Overview

• Current equity market conditions have risk-averse investors desperately searching for fixed income investments that deliver high and predictable yields and cash flows. The Holdun Income Fund’s strategy meets these requirements by offering an attractive fixed income alternative for investors seeking above-average yields with safety of principal.
• The cornerstone of the strategy is the purchase of GSE (Government Sponsored Enterprise) bonds issued by the Government National Mortgage Association (commonly referred to as Ginnie Mae and abbreviated to GNMA) – a U.S. government agency.
• By utilizing securities issued by GNMA, the strategy benefits from a guarantee of payments of principal and interest by the U.S. government (“preservation of principal”), while taking advantage of customizable cash flow streams that provide the opportunity for above-market yields when compared to similar credit-rated securities (AAA).
• The investment advisors are constantly monitoring the current interest trends and have the ability, through the monthly cash flow received from principal and interest to adjust the portfolio composition to take advantage of trends, carefully selecting certain Collateralized Mortgage Obligations with the goal of obtaining attractive yields in both rising and falling interest rate environments.