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.

Fund Information

Fund Management

Important Information

An investment in the Fund involves risk, including possible loss of principal. Fund information is not intended to represent future portfolio composition.  Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.

The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include interest rate risk, income risk, call risk, and prepayment risk.