CCP 11-28-1994 - Laserfiche WebLink

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Portfolio Composition INSTITUTIONAL '-\s il percem.lge 0/ [otal ..Issets GOVERNMENT INCOME .-'- Agency werse F[o:Jters 21 % PORTFOLIO U.S. Agency In\'erse Imerest-Only 80/" U.S. Agency October 31,1994 Z-bonds 60/" Institutional Gouerw1lcnt Income Portfolio'$ iHt-'estment obiectiL'(! is d high /elJel ()f current income COl1Sistellt with preserz'dtiol1 ()f l-.lpit.ll. Since early 1994, we have been modifying the composition of the Shorr-Term 16'1" portfolio as we have implemented J. three-part strategy for the fund: u.s. T(e~sury 19c}\, I. Rebalance the portfolio with an emphasis on ,,. Added to short-term positIon of fund in early Nowmber short-term U.S. Treasuries in an effort to reduce net asset value (NAV) volatility. Fund Performance The potential for further rare increases in the remainder of 1994 remains high, and our diems are clearly concerned about continued erosion to Fund performance calculations are !hrough the fund's NA V. Therefote, we have taken the following steps to October 31, 1994, and reflect the reinvestment of ail rebalance the portfolio, which have reduced the fund's volatility. We dividend and capital gains distributions. plan to continue rebalancing the fund rhtough the middle of November One-Year Total Return in an attempt to further reduce volatility. .Does not reflect the fund's 1.5% sales charge. . We have increased the U.S. Treasuty component of the fund. By early November, approximately 45% of portfolio holdings 15220 million) Institutional Government Income Portfolio.....-28.96% :\tlerrill Lynch 3-5 Year Treasury Index.........~2.37% will be in cash and one- and two-year Treasury securities. Average Annual Total Returns . During most of the period since June, rhe Institutional Government Reflects the fund's 1.5% sales charge. Income Portfolio has been a net seller of mortgage derivative One-Year ".................'-...............................-30.02 'Yo securities. As we have sold these securities, we have made adjustments Five- Year .................."".................................4.02 ~{;, in the composition of that portion of the portfolio, concentrated in Since Inception (7/11/88) ......................".......5.21 % two areas: We are selling securities that have long-rerm recovery potential in favor of securities that we believe are likely to recover in I a sharrer time frame; and we are generally selling more principal-only Fund Statistics securities (POs) and inverse floaters while buying interest-only securities (IOs) and U.S. Treasury securities. Currently, 87% of the Net Assets $487 million securities in the portfolio have a par value that is issued or guaranteed Net Asset Value 57.67 at maturity by the U.S. government or an agen!"":y of the U.S. Inception Date Julv 1988 government. These securities remain severely discounted with their Fiscal Year End September 30 average price at 573 for $100 of par value. This is down from 92 'Yo, ptimarily tesulting ftom our sale of POs and our slightly increased Ticker Symbol PJIGX purchase of lOs, which may ha ve income earning capabilities and Initial Investment Fund closed to may act as a hedge against the PO component of the portfolio. new investors . Over the past several months the sale-forwatd (dollar-roll) ptogram Subsequent Investments $2,500 was reduced. In October, it was discontinued pending more favorable 12-Month Distribution $1.I8 marker conditions. . Comil1ued Oil hack page --- ------------