Effective: May 21, 2019
IMPORTANT ANNOUNCEMENT – CHANGE TO MANAGER LINE-UP UPAL ALTERNATIVE INVESTMENT FUND AND UPAL CORE BOND FUND
Upon reviewing the underlying mix of managers within the UPAL Retirement Program, we have decided, upon the advice of the Strategic Investment Advisory Group, the independent investment advisors to the Program, to remove iShares iBoxx $ High Yield Corporate Bond ETF from the UPAL Core Bond Fund and replace it with the Federated Institutional High Yield Bond Fund effective May 21, 2019. Research shows that high yield fixed income is one of the most challenging areas of the market to index due to the lack of supply and liquidity in the high yield bond space. After reviewing the current high yield fund, iShares iBoxx $ High Yield Corporate Bond ETF and other potential passive options, an actively managed option would be most appropriate. In addition, the performing competitively among other high yield bond funds, the Federated Institutional High Yield Bond Fund has done a better job of keeping pace with the returns of a high yield index than many other passive strategies.
Consistent with the move to slightly reduce the overweight to equities in the asset allocation models, a change will be made to reduce the allocation to higher beta strategies in the Alternative Investment Fund and increasing the allocation to lower volatility strategies. The Diamond Hill Long-Short Fund will be removed from the UPAL Alternative Investment Fund and that allocation will move to the existing position in the Calamos Market Neutral Fund.
Implementation of these changes will become effective May 21, 2019. Should you have any questions or concerns, please don’t hesitate to contact UPAL at 918-747-5585.
