ORFIX
ORFIX Resources
Fund Details

Symbol
ORFIX

Net Asset Value
$10.30 (February 22, 2012)

Expense Ratio
0.80%

Strategy
The Fund seeks high current income exempt from federal income tax and Oregon personal income tax, as is consistent with preservation of capital.

Effective Date
May 2, 2011

Where to Buy
Fidelity, Charles Schwab, E*Trade, Pershing

Minimum Investment
$10,000

Duration*
1-4 years

*Duration is a time measure of the underlying bonds in the fund’s portfolio to  interest-rate sensitivity, based on the weighted average maturity of all the cash flows in the portfolio.

 

 

Fund Overview

The fund is a response to market demand for tax-free, short-term investment solutions due to the state’s high income tax and today’s volatile fixed income market.

  • Tax Free: Income generated from the short-term bond fund is exempt from both state and federal income tax (see “Risk Considerations” below for more information). Oregon has one of the highest state income tax rates in the country, ranging from 9% to 11%.
  • Bond Quality: Each bond selected for the fund is subject to rigorous analysis based upon the firm’s long history of working with municipal credits.
  • Short Term: The short term nature of the fund allows it to react quicker in the event that interest rates rise. All other Oregon-specific funds are intermediate or long duration investments.

Since 2002, SNW Asset Management has specialized in fixed income portfolio management for U.S. investors. Until now, this service was available only to those with a minimum $1 million to invest in a separately managed account. Given SNW Asset Management’s track record of managing investment grade fixed income, ORFIX has been launched to meet this previously unmet demand.

If you are an investor with over $1 million dollars in investable assets, SNW Asset Management offers separately managed accounts.

 

Risk Considerations

Under normal market circumstances, the Fund invests at least 80% of its net assets in municipal obligations that are exempt from regular federal income tax and Oregon individual income tax. The Fund may invest up to 20% of its total assets in securities the interest on which is subject to federal income tax and/or taxation by the state of Oregon. Capital gain distributions by the Fund also may be subject to federal, state, or local tax. As a non-fundamental policy, the Fund will not invest in obligations the income from which is a tax preference item under the federal alternative minimum tax. To the extent that the Fund invests in bonds that are subject to the federal income tax or state taxes, a portion of the income paid by the Fund will not be tax-free to investors.

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment and interest rate risk. As interest rates rise the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund may focus its investments of a particular sector thereby increasing the risk of being affected by changes in the area of focus. The Fund invests primarily in municipal obligations of issuers located in Oregon and therefore will be affected by economic, political or other events affecting Oregon municipal issuers.

 

 

Before investing, you should carefully consider the Fund’s investment objectives, risks, charges and expenses. You may obtain a prospectus with this and other information about the Fund by clicking here or calling 1-855-234-9706. The prospectus should be read carefully before investing.

The SNW Oregon Short-Term Tax-Exempt Bond Fund is distributed by BNY Mellon Distributors Inc., not an adviser affiliate.