U.S. Government Securities Fund (CAUSX)

Fund Objective

The Fund’s investment objective is to seek liquidity, safety from credit risk, preservation of investors principal and as high a level of income as is consistent with these objectives.

Strategy Highlights

• Primarily invests in high-quality bonds whose interest is guaranteed by the full faith and credit of the United States government 
• Invests in a mix of U.S. Treasury bonds and Ginnie Mae mortgage securities 
• Target duration is usually three to twelve years

Fund at a Glance

This Fund seeks to maximize current income by investing primarily in long-term U.S. Government Securities. It is made up of U.S. Government Securities, primarily treasury bonds, notes and GNMAs.

• The bonds in the Fund are backed by the full faith and credit of the United States Government. This means that the Government insures the bonds against default, but not the Fund itself.
• Long-term bond funds typically pay higher dividends than short-term bond funds and money market funds. However, the share price is usually more volatile. In other words, you earn a higher dividend by accepting higher risk.
• If you want to own a long-term bond fund, and are comfortable with the share price fluctuation, you may want to consider this Fund. This Fund is referred to as an “income fund” meaning that it pays dividend income and is not managed for growth. Your investment time-frame should be long-term in nature.