Wasatch-Hoisington U.S. Treasury Fund® (WHOSX) 

The Wasatch-Hoisington U.S. Treasury Fund invests in U.S. Treasury securities. (It is not a money market fund.)

What is this fund's objective?

The Wasatch-Hoisington U.S. Treasury Fund seeks to provide a rate of return that exceeds the rate of inflation over a business cycle. It invests in U.S. Treasury securities with an emphasis on both income and capital appreciation.

What is expected under normal market conditions?

Portfolio Manager Van R. Hoisington expects the following from this fund:

  • The fund’s effective duration is expected to vary from less than a year to a maximum of 25 years
  • The maturity of holdings will range from less than a year to the longest maturity Treasury bonds available
  • Share price that is subject to greater volatility when the fund is invested in longer weighted average maturities
  • The turnover rate will vary substantially from year to year. Increased portfolio turnover may result in higher transaction costs and taxable capital gains.
  • Portfolio adjustments may require the sale of securities prior to maturity date

How do we determine our investments?

To achieve the fund’s investment objective, Van takes the following approach:   

Measuring Credit Risk:

He seeks to limit credit risk by investing primarily in U.S. Treasury securities and in repurchase agreements collateralized by such securities. All Treasury securities are direct obligations of the U.S. government and are viewed as carrying minimal credit risk.  They vary only in maturity and coupon.

Measuring Interest Rate Risk:

If he expects that interest rates will decrease, the average maturity of the portfolio can be extended to the maximum maturity of any existing Treasury issue. If interest rates are expected to increase, he may determine that a defensive policy is more appropriate and reduce the average maturity of the portfolio.

Investing in bonds, you are subject, but not limited to, the same interest rate, inflation and credit risk associated with the underlying bonds owned by the Fund. Return of principal is not guaranteed. Interest rate risk is the risk that a debt security’s value will decline due to changes in market interest rates. The interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Even though some interest-bearing securities offer a stable stream of income,their prices will fluctuate with changes in interest rates. Inflation risk is the possibility that inflation will reduce the purchasing power of a currency, and subsequently reduce the value of a security or asset, and may result in rising interest rates. Inflation is the overall upward price movement of goods and services in an economy that causes the value of a dollar to decline. Credit risk is the risk that the issuer of a debt security will fail to repay principal and interest on the security when due. Credit risk is affected by the issuer’s credit status, and is generally higher for non-investment grade securities.