Scout Investments



Morningstar Category

Nontraditional Bond

Total Net Assets
as of 3/31/2015




Inception Date


Fund Summary

The Scout Unconstrained Bond Fund pursues its objective of maximizing total return consistent with the preservation of capital by investing its assets in fixed income obligations of varying maturities, including bonds, mortgage- and asset-backed securities, and derivatives. The Fund also may invest in high yield securities, non-investment grade securities, derivative instruments (e.g. swap agreements), securities denominated in foreign currencies, and in U.S. dollar-denominated securities of foreign issuers.


Overall Morningstar Rating

1(based on risk-adjusted performance against 228 Nontraditional Bond Funds as of April 30, 2015)

Lipper Leader Rating

2(among 40 Alternative Credit Focus Funds as of April 30, 2015)

Portfolio Managers

The Overall Morningstar Rating™ for a fund is derived from the weighted-average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variations in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in a broad asset class receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

The Fund may have experienced negative performance during one or more of the time periods represented by the Morningstar rating shown.

As of Apr. 30, 2015, the Scout Unconstrained Bond Fund - Institutional Class received the following star ratings among U.S. domiciled Nontraditional Bond Funds for the following time periods: 4 stars (among 228 funds) for the 3 year period.

© 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating may differ among share classes of a mutual fund as a result of different sales loads and/or expense structures. It may be based, in part, on the performance of a predecessor Fund.

2Lipper Ratings

Lipper ratings for Expense reflect funds' expense minimization relative to peers with similar load structures as of April 30, 2015. The Scout Unconstrained Bond Fund - Institutional Class share, in Lipper's Alternative Credit Focus Funds classification, received the following ratings for the 3-year period: a Lipper Leader rating (among 40 funds).

The Fund may have experienced negative performance during one or more of the time periods represented by the Lipper rating shown.

Unconstrained risk considerations:
The Fund employs an unconstrained investment approach, which creates considerable exposure to certain types of securities that present significant volatility in the Fund’s performance, particularly over short periods of time. The return of principal in a fixed income fund is not guaranteed. Fixed income funds have the same interest rate, inflation, issuer, maturity and credit risks that are associated with underlying fixed income securities owned by the Fund. Foreign investments present additional risks due to currency fluctuations, economic and political factors, government regulations, differences in accounting standards and other factors. Investments in emerging markets involve even greater risks. Mortgage- and Asset-Backed Securities are subject to prepayment risk and the risk of default on the underlying mortgages or other assets. High yield securities involve greater risk than investment grade securities and tend to be more sensitive to economic conditions and credit risk.

Credit Default Swaps and related instruments such as credit default swap index products, may involve greater risks than if the Fund invested in the referenced obligation directly. Credit Default Swaps are subject to risks such as market risk, liquidity risk, interest rate risk, credit risk and management risk. Derivative investments could lose more than the principal amount invested. The Fund may use derivatives for hedging purposes or as part of its investment strategy. The use of leverage and derivatives investments could accelerate losses to the fund. These losses could exceed the amount originally invested.

The Fund may, at times, experience higher-than-average portfolio turnover which may generate significant taxable gains and increased trading expenses which in turn may lower the Fund’s return.

The recent growth in the fixed income market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.

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