Since its launch in January 2011, this global bond fund has consistently been one of the top performers, both on an absolute and risk adjusted basis. For the three years ending June 30, it has gained an annualized 13.5%, whichis nearly three times the category average. It has outperformed the index nearly 70% of the time, and has been up when the broader bond market is falling. It is managed using a very active process that incorporates top down elements such as duration management, yield curve positioning and sector mix, with a fundamentally driven, bottom up security selection that looks to identify undervalued bonds. The portfolio holds all types of fixed income instruments, ranging from the plain vanilla government bonds, to the spicier high yield, and emerging market debt. It will also invest in derivatives. While the fund’s low volatility return stream makes it appear that it is a relatively safe fund, make no mistake about it, this is NOT a core bond fund. It is much riskier than it appears, but if used as a portion of a well-diversified portfolio, I believe it can play a role in helping to increase returns and reduce volatility.