Us Government Securities Fund Investment Guide

Investing in a US Government Securities Fund can be a smart move for those looking to diversify their portfolio and reduce risk. By investing in these funds, you're essentially lending money to the US government, which can be a safe and stable option.

US Government Securities Funds invest in a variety of government securities, including Treasury bills, notes, and bonds. These securities are backed by the full faith and credit of the US government, making them an extremely low-risk investment.

One of the key benefits of US Government Securities Funds is their low volatility. Because they invest in securities with a low risk of default, the value of the fund is less likely to fluctuate wildly. This can be a welcome relief for investors who are looking for a more stable return on their investment.

The US Government Securities Fund can be a good option for conservative investors who are looking for a low-risk investment with a relatively low return.

The U.S. Government Securities Ultra-Short Bond Fund is designed to provide a higher level of current income than money market funds, while still maintaining the security of U.S. Government bonds and obligations.

The fund's investment strategy allows it to pursue current income, which is a key consideration for investors seeking regular returns. This fund is a good option for those looking for a low-risk investment.

Here are the top 10 holdings in the MXGMX portfolio, sorted by their percentage of the portfolio weight:

The fund's holdings are subject to change and are not buy/sell recommendations.

The Ultra-Short Bond Fund is designed to provide a high level of current income, while maintaining the security of U.S. Government bonds and obligations.

It's worth noting that the fund has a total of $322,134,701.00 in assets, as of the latest data available.

The fund's 3-year Sharpe Ratio is -0.84, indicating that it has not performed as well as the benchmark during this time period. This is likely due to the fund's focus on current income, which may not always align with the benchmark's goals.

The fund's 3-year Standard Deviation is 5.98, which suggests that it has been a relatively stable investment. This is good news for investors who are looking for a low-risk option.

Here are the top 10 holdings in the fund, sorted by portfolio weight:

As you can see, the fund is heavily invested in government securities, which is consistent with its focus on U.S. Government bonds and obligations.

The portfolio structure of this investment is quite interesting. It's primarily composed of Mortgage Backed securities at 58.95%. This is a significant chunk of the overall portfolio.

U.S. Treasuries make up a substantial portion as well, at 54.60%. This is likely due to their relatively low risk and stable returns. Commercial Mtg Backed securities, on the other hand, account for just 3.08% of the portfolio.

Here's a breakdown of the top categories in the portfolio:

It's worth noting that the portfolio also includes a variety of other securities, such as Collateralized Loan Obligations, Asset Backed, and Residential Mtg Backed, but in smaller percentages.

The performance of the US Government Securities Fund is a crucial aspect to consider when evaluating its potential for your investment portfolio.

The fund's average annual total returns are based on risk-adjusted performance, according to Morningstar ratings.

The table shows the fund's annual rate of return for each year from 2015 to 2024, both at Net Asset Value (NAV) and with sales charge.

Here are the fund's annual rates of return at NAV: 0.27% in 2015, 0.52% in 2016, 1.91% in 2017, 0.27% in 2018, 6.19% in 2019, 6.24% in 2020, -2.18% in 2021, -12.22% in 2022, 3.83% in 2023, and 0.44% in 2024.

In comparison, the Bloomberg U.S. Government/Mortgage Index had annual rates of return ranging from 0.83% in 2024 to 6.63% in 2019.

The fund's performance can be compared to the Bloomberg US Government Intermediate Total Return Index, which had annualized returns of 0.14% over 3 years, 0.32% over 5 years, and 1.13% over 10 years.

Here's a summary of the fund's returns and the benchmark index returns:

Investing in a U.S. government securities fund can be a safe bet, but it's essential to understand the potential risks involved.

Investments in U.S. government securities not supported by the U.S. Treasury are subject to greater credit risk than those that are.

You could lose money on your investment in the fund if the credit quality of the issuer or borrower declines.

The value of your portfolio may decline during periods of rising interest rates.

Debt instruments with longer durations are more sensitive to a rise in interest rates, making them more volatile.

At times, especially during market turmoil, it may be difficult to value certain investments or sell them at an acceptable price.

Investments in derivatives can be highly volatile and involve risks in addition to those of the underlying indicator.

This US Government Securities Fund has a 3-year alpha of 0.15%, which is a measure of its excess return over the risk-free rate.

The fund's 3-year beta is 1.29, indicating that its returns are highly correlated with the broader market.

With a 3-year R-Squared of 0.97, the fund's returns are closely tied to the performance of the Bloomberg US Government Intermediate Total Return Index.

The fund's 3-year Sharpe Ratio is -0.84, suggesting that its returns have not kept pace with the risk-free rate over the past three years.

The fund's 3-year standard deviation is 5.98, indicating a relatively high level of volatility.

Here are the fund's major asset allocations:

The U.S. Government Securities Ultra-Short Bond Fund focuses on investing in U.S. government and agency securities.

This fund aims to take advantage of the security of U.S. Government bonds and obligations, while also pursuing a higher level of current income than money market funds offer.

Investors can expect the fund to invest in U.S. government and agency securities based on macroeconomic indicators, valuations, and market environment.

By doing so, the fund seeks to provide a stable source of income with minimal risk.

The fund's 3-year alpha is a relatively modest 0.15%. This suggests that the fund has not performed significantly better than the benchmark over the past three years.

The fund's 3-year beta is 1.29, which indicates that it has been more volatile than the benchmark. This means that the fund's value has fluctuated more than the benchmark's value over the past three years.

The fund's 3-year R-Squared is an impressive 0.97, indicating a very strong correlation between the fund's performance and the benchmark's performance.

The fund's 3-year Sharpe Ratio is -0.84, which is a negative value. This suggests that the fund's returns have not been sufficient to compensate for its higher volatility.

The fund's 3-year standard deviation is 5.98, which is a measure of its volatility. This value is a good indicator of the fund's risk level.

The fund's total assets are a substantial $322,134,701.00, indicating its size and scale.

Here's a breakdown of the fund's asset allocation: