Strategy. The Fixed-Income Fund seeks capital appreciation and current income in its attempt to maximize total return. In doing so, the Fixed-Income Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in bonds and other fixed-income securities, and in derivatives and other instruments that have economic characteristics similar to such securities, and in ETFs and other registered investment companies investing in fixed income securities. Fixed-income securities may include: Obligations of the U.S. government or its agencies, instrumentalities or sponsored enterprises, including obligations that are issued by private issuers that are guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities; Obligations of state, local and foreign governments; Obligations of … Show more… The Fixed-Income Fund seeks capital appreciation and current income in its attempt to maximize total return. In doing so, the Fixed-Income Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in bonds and other fixed-income securities, and in derivatives and other instruments that have economic characteristics similar to such securities, and in ETFs and other registered investment companies investing in fixed income securities. Fixed-income securities may include: Obligations of the U.S. government or its agencies, instrumentalities or sponsored enterprises, including obligations that are issued by private issuers that are guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities; Obligations of state, local and foreign governments; Obligations of domestic and foreign banks, corporations and other institutions; Mortgage- and other asset-backed securities, including collateralized loan obligations (CLOs); Stripped securities evidencing ownership of future interest or principal payments on debt obligations; and Bank loans, loan participations, assignments and notes. The Fixed-Income Fund primarily invests in investment grade debt obligations or those of comparable quality as determined by the Adviser or the Fixed-Income Funds sub-advisers but may invest up to 40% of its net assets in obligations that are rated below-investment grade (which may include, among other investments, securities commonly referred to as junk bonds). A security is considered investment grade if, at the time of purchase, it is rated BBB- or higher by S&P Global Inc. or Fitch Ratings, Baa3 or higher by Moody's Investors Service, or BBB (low) or higher by DBRS Morningstar. A security is considered non-investment grade if it does not meet the criteria listed above. Securities of non-investment-grade quality are speculative in nature. The Fixed-Income Fund expects to maintain an average duration, under normal circumstances, of not more than eight years. Because of events affecting the bond markets and interest rate changes, the duration of the portfolio might not meet the foregoing target at all times. Duration is a measure of price sensitivity of a fixed income investment or portfolio (expressed as % change in price) to a 1 percentage point (i.e., 100 basis points) change in interest rates, accounting for optionality in bonds such as prepayment risk and call/put features. A longer duration means an increased likelihood of interest rate sensitivity. For example, when the level of interest rates increases by 0.10%, the price of a fixed income security or a portfolio of fixed income securities having a duration of five years generally will decrease by approximately 0.50%. Conversely, when the level of interest rates decreases by 0.10%, the price of a fixed income security or a portfolio of fixed income securities having a duration of five years generally will increase by approximately 0.50%. The Fixed-Income Fund may invest in securities of issuers located in foreign markets, including emerging markets. The Fixed-Income Fund utilizes a multi-manager approach whereby U.S. Bancorp Asset Management, Inc. (Adviser or USBAM) may allocate all or a portion of the Fixed-Income Funds assets to one or more unaffiliated sub-advisers. Each sub-adviser acts independently from the other sub-advisers and utilizes its own distinct investment style in selecting securities and managing the portion of the Fixed-Income Funds assets to which the sub-adviser has been allocated. Each sub-adviser manages its portion of the Fixed-Income Funds assets in a manner consistent with the Fixed-Income Funds investment objective, strategies and restrictions. The Adviser has overall responsibility for the Fixed-Income Funds investments, and for selecting and overseeing the Fixed-Income Funds sub-advisers. Not all of the sub-advisers listed for the Fixed-Income Fund may be actively managing assets for the Fixed-Income Fund at all times. The Adviser also has discretion to manage directly all or a portion of the Fixed-Income Fund and currently directly manages a portion of the Fixed-Income Funds assets using a core-fixed income strategy. The principal investment strategies employed by the Fixed-Income Fund include the following: Core Fixed-Income . The core fixed-income strategies invest in a broad range of investment-grade bonds and fixed-income securities, including U.S. government securities, corporate bonds, taxable municipal securities, and mortgage-backed or other asset-backed securities. The strategy may also invest in a limited amount of non-investment grade securities and distressed securities. The core fixed-income strategies are constructed through using fundamental research to analyze economic trends and other market events. The Fixed-Income Fund expects to allocate between 30% and 75% of its assets in core fixed-income strategies. Investment Grade Credit . The investment grade credit strategies invest in U.S. and, to a limited extent, non-U.S. investment grade bonds and securities of U.S. and non-U.S. corporations and other institutions. The investment grade credit strategies are constructed using a bottom-up investment approach. The sub-adviser(s) may from time to time invest up to 5% of the assets allocated to the strategy in high yield securities. The investment grade credit strategies are constructed using fundamental research to analyze economic trends and other market events. The Fixed-Income Fund expects to allocate up to 30% of its assets to investment grade credit strategies. High Yield . The high yield strategies invest in U.S. and non-U.S. fixed income instruments rated below investment grade. The Fixed-Income Fund expects to allocate up to 30% of its assets to high yield strategies. Structured Fixed-Income . The structured fixed-income strategies invest in high quality structured fixed-income securities, with a particular focus on asset-backed securities backed by assets other than real estate (also known as non-traditional asset-backed securities). The structured fixed-income strategy may also invest a limited amount in commercial mortgage-backed securities, agency-backed securities, and corporate and municipal debt instruments that are secured by tangible asset collateral or revenue streams. The structured fixed-income strategies are constructed using either a bottom-up investment approach or a quantitative framework to assess valuation and long-term return potential. The Fixed-Income Fund expects to allocate up to 30% of its assets to structured fixed-income strategies. Passive Allocation. The Fixed Income Fund may strategically allocate up to 80% of its assets to passively managed strategies tracking the U.S. bond markets or to actively managed mutual funds that provide exposure to U.S. and global fixed income securities, including high yield securities. Generally, the Adviser expects to use ETFs, such as those tracking the Bloomberg US Aggregate Bond Index, or mutual funds to implement these strategies. At times, the Fixed Income Fund may invest a significant portion of its assets in one ETF or mutual fund. From time to time, the Adviser may also make tactical allocations to over-weight or under-weight certain segments of the fixed income market in an attempt to outperform it. The Adviser may use ETFs, mutual funds, securities, derivatives, or a combination in seeking to implement such a strategy. The Adviser may over-weight or under-weight certain segments of the market based on the Advisers analysis on the economy, capital markets, valuation, and trends related to the foregoing. The allocations to each of the core fixed-income, investment grade credit, high yield, structured fixed-income, and passive allocation strategies may vary significantly from the above expected allocation percentages due to market conditions or to meet the investment objective of the Fixed-Income Fund. The Adviser has discretion to change the Fixed-Income Funds allocations to the strategies listed above and the allocations to individual sub-advisers without notice to or approval by shareholders. When determining the allocations and reallocations to a sub-adviser, to a passively managed strategy or to the Advisers core fixed-income strategy, the Adviser employs a strategic and tactical management approach, and considers a variety of factors, including but not limited to the Advisers views of the economy and markets, the Advisers or the sub-advisers investment approach and outlook, relative value and risk, and the characteristics of each sub-advisers allocated assets (including capitalization, growth and profitability measures, valuation metrics, economic sector exposures, and earnings and volatility statistics). The Adviser seeks, through its selection of sub-advisers and its allocation determinations, to provide an attractive combination of risk and return for the Fixed-Income Fund. In managing the Funds assets, the Adviser and certain of the Fixed-Income Funds sub-advisers use a combination of top-down economic analysis and bottom-up research in conjunction with proprietary quantitative models and risk management systems. In the top-down economic analysis, the Adviser and/or a sub-adviser develops views on economic policy and market trends by continually evaluating economic data that affect the movement of markets and securities prices. This top-down macroeconomic analysis is integrated into the Advisers and/or a sub-advisers bottom-up research which informs security selection. In its bottom-up research, the Adviser and/or a sub-adviser develops an internal rating and outlook on issuers. The rating and outlook is determined based on a thorough review of the financial health and trends of an issuer, which includes a review of the composition of revenue, profitability, cash flow margin, and leverage. The Adviser and/or a sub-adviser may also consider factors such as expected total return, yield, spread and potential for price appreciation as well as credit quality, maturity and risk. The Adviser and/or a sub-adviser may also invest in a security based upon the expected total return rather than the yield of such security. The Fixed-Income Fund can invest in derivative instruments, including futures contracts and forward foreign currency contracts. The Fixed-Income Fund can use uninvested cash to purchase futures contracts to gain exposure to equity markets. The Fixed-Income Fund can use forward foreign currency contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated. The Fixed-Income Fund may sell futures contracts to facilitate implementation of the overall investment approach, such as to help manage duration positioning and yield curve exposure. The Fixed-Income Fund may also purchase or sell securities on a forward commitment basis. Forward commitments also include to be announced (TBA) securities. The Fixed-Income Fund seeks to implement its investment strategy, in part, through investments in ETFs and other registered investment companies instead of direct investments. The Fund may invest up to 20% of its assets in derivatives. The Fixed-Income Funds Adviser and sub-advisers may engage in active trading and will not consider portfolio turnover a limiting factor in making decisions for the Fund. Show less