High level of current income consistent with the preservation of capital and maintenance of liquidity
The Fund invests primarily in short-term, U.S. dollar denominated money market instruments. The Fund's investments may include U.S. Government securities, repurchase agreements, commercial paper, certificates of deposit, variable rate securities, asset-backed securities, foreign debt securities, Eurodollar deposits and domestic and foreign bank deposits.
The Fund invests consistent with regulatory standards governing security quality, maturity and portfolio diversification. For example, the portfolio manager limits investments to high quality securities with remaining maturities of up to 13 months and limits the weighted average maturity of the Fund's portfolio to 90 days or less. The Fund may invest more than 25% of its total assets in the domestic banking industry.
All of the Fund's assets must be rated in the two highest short-term rating categories (or their unrated equivalents), and at least 95% of its assets must be rated in the highest rating category (or its unrated equivalent), by a nationally recognized statistical rating organization. Additional information about the money market instruments in which the Fund may invest, including rating categories, is contained in the Statement of Additional Information.
We believe in a team approach to investing and a fundamental research process that combines: 1) a top-down economic outlook incorporating monetary policy and interest rate implications; and 2) relative value analysis of individual short-term securities and the broader sectors. We seek securities with:
- Yields above general money market rates
- Reasonable relative valuations
- High credit quality
- Liquidity
- Low interest rate risk
The process begins with the team's economic outlook and its view on the direction of monetary policy and interest rates. This drives each strategy's position along the short end of the yield curve. The strategies will invest primarily in a variety of short- term investment grade debt securities such as asset-backed securities, mortgage-backed securities, government securities, corporate debt securities, and money market instruments. Security selection is based on a relative value analysis combined with in-depth, fundamental research of the underlying issue. The types of securities purchased and the extension of maturities differentiate the Cash Plus and Enhanced Cash strategies. GEAM's rigorous risk management process supports this investment process.
1The investment process is fluid and may change from time to time without prior public notice as market conditions and portfolio managers change.
Michael Martini, leads the portfolio management team, which includes two assistant portfolio managers.The portfolio management team is supported by GEAM's credit research team.
The principal risks of investing in the Fund are interest rate risk, credit risk, asset-backed securities risk and foreign exposure risk. Changes in banking regulations or the economy can have a significant impact on the banking industry and, therefore, the Fund.
The Fund also invests in U.S. Government securities. U.S. Government securities are securities that are issued and guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer's right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.
An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the Fund seeks to maintain a net asset value of $1.00 per share, it is possible to lose money by investing in the Fund. The Fund's yield will change due to movements in current short-term interest rates and market conditions. A change in interest rates or default on the Fund's investments could cause the Fund's share price to decline below $1.00.
Please read the prospectus carefully for a complete description of the fund. Before investing in a mutual fund, you should carefully consider the Investment objectives, risks and charges and expenses of the fund.
