Plumb Balanced Fund
Investment Objective.
The Plumb Balanced Fund (Balanced Fund) seeks a high total return through capital
appreciation while attempting to preserve principal, and secondarily seeks current
income.
Fund Strategy.
The Balanced Fund invests in a diversified portfolio of common stocks and fixed
income securities. We select securities that, in our judgment, will result in the
highest total return consistent with preservation of principal, and we vary the
mix of common stocks and bonds from time to time. More than 50% of the Fund’s assets
are normally invested in common stocks.
To achieve a better risk-adjusted return on its equity investments, the Fund invests
in many types of stocks, including a blend of large company stocks, small company
stocks, growth stocks, and value stocks.
We also normally invest at least 25% of the Fund’s assets in fixed income senior
securities. The fixed income senior securities in which the Fund may invest include
corporate bonds and other debt instruments, mortgage-related securities, asset-backed
securities, debt securities issued or guaranteed by the U.S. Government (including
its agencies and instrumentalities), convertible debt securities, and preferred
stock. The dollar-weighted average portfolio maturity of the fixed income securities
held by the Fund will normally not exceed 10 years.