Core Plus Collective Trust

Investment Philosophy

Logan Circle Partners L.P. (the "Adviser") believes that the fixed income markets are efficient with respect to interest rate risk, but that bond markets regularly misprice securities that are exposed to credit, prepayment and liquidity risks. The Adviser seeks to exploit these inefficiencies by focusing on security and sector selection, and de-emphasizing duration management.

Investment Process

The Adviser employs a “bottom-up” approach to constructing the Fund’s portfolio, leveraging its in-house credit research capabilities to determine the relative value of each fixed income security purchased by the Fund. The Adviser believes that proprietary, bottom-up, fundamental credit and structured products research, coupled with active trading is the best technique to identify the relative value of the individual securities and market sectors.

  • The Fund will invest primarily in U.S. corporate, government, mortgage-backed and asset-backed fixed income securities and privately issued securities (e.g., Rule 144A securities), but may also invest in U.S. Treasury interest rate futures, forward currency contracts and credit default swaps. The Fund may use U.S. Treasury interest-rate futures for hedging purposes, primarily to assist in the risk management and liquidity of the Fund. The Fund may also use forward currency contracts for currency hedging and credit default swaps to gain exposure that is not available in the cash bond market.
  • The Plus Sectors are defined as High Yield Emerging Market Corporates (denominated in USD or local currency); High Yield Emerging Market Sovereigns (denominated in USD or local currency); Non-U.S. dollar denominated securities; U.S. High Yield securities; Bank Loans; and Capital Securities (including Bank capital / Trust Preferred /Convertibles). The total of all of the Plus Sector types of securities cannot exceed 20% of the net assets of the Fund.

SEI Trust Company (the "Trustee") serves as the Trustee of the Funds and maintains ultimate fiduciary authority over the management of, and the investments made, in the Funds. The Funds are part of a Collective Investment Trust ("the Trust") operated by the Trustee. The Trustee is a trust company organized under the laws of the Commonwealth of Pennsylvania and wholly owned subsidiary of SEI Investments Company (SEI). 

The Logan Circle Partners Master Collective Investment Trust is for investment by “Eligible Plans” (as that term is defined in the Declaration of Trust for the Trust) only (generally retirement plans that are tax-qualified under Section 401(a) of the Internal Revenue Code and governmental plans established pursuant to Section 414(d) of the Internal Revenue Code). The information is provided solely for use by a fiduciary or service provider of such plans, and cannot be used or relied upon by any other person or entity.

All investing is subject to risk, including the possible loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. In addition to the normal risk associated with investing, international investments may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. These risks are especially high in emerging markets. The Fund may invest in derivatives. The primary risk of derivative instruments is that changes in the market value of securities held by the Fund and of the derivative instruments relating to those securities may not be proportionate. Derivatives are also subject to illiquidity and counterparty risk.