RCSTX — Red Cedar Short Term Bond Fund
Data updated: 2023-01-13
RCSTX — Red Cedar Short Term Bond Fund. Short Bond · $99.33M AUM · 0.45% expense ratio · -2.2% 1-yr return. Holdings, fees, performance and SEC filings.
RCSTX Fund Overview
RCSTX — Red Cedar Short Term Bond Fund is a US mutual fund managed by Red Cedar Fund Trust, categorised as Short Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Red Cedar Fund Trust
- Category: Short Bond
- Assets under management: $99.33M
- 1-year return: -2.2%
- Ticker: RCSTX
- SEC CIK: 0001783305
- SEC series ID: S000066725
- Share class ID: C000215037
RCSTX Investment Objective and Strategy
Red Cedar Short Term Bond Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Red Cedar Fund Trust.
Investment objective
The investment objective of the Red Cedar Short Term Bond Fund (the Fund) is to seek preservation of capital and maximize current income.
Principal investment strategy
Under normal market circumstances, the Fund will invest at least 80% of its net assets in U.S. dollar-denominated debt obligations, including corporate bonds, bonds issued by municipalities and local authorities, U.S. treasury obligations, U.S. treasury inflation-protected securities (TIPS) and other U.S. government and agency securities, U.S. dollar denominated bonds issued by foreign governments and corporations, asset-backed, commercial mortgage-backed, mortgage-related and mortgage-backed securities. The Fund may also invest in derivatives. To the extent the Funds holdings in derivatives have economic characteristics similar to these investments, the current market value of the Funds investments in derivatives (or fair value of OTC derivatives) will be counted toward the 80% policy. The Fund utilizes a relative value approach to security selection and sector allocation.
A variety of factors impact the assessment of relative value including yield, duration, credit quality and security optionality. The Adviser evaluates a wide variety of securities and purchases those that it believes will best position the Fund to meet its objectives. The Fund only invests in debt obligations that, at the time of purchase, are rated at least Baa3 or higher by Moodys Investors Services, Inc., or BBB- or higher by S&P Global Ratings or Fitch, Inc., or, if unrated, are determined by the Adviser to be of comparable quality. After purchase, a debt obligation may cease to be rated or may have its rating reduced below the minimum rating required by the Fund for purchase. If a debt obligation held by the Fund is downgraded below these levels by one or more ratings agencies, the Adviser is not obligated to immediately dispose of such debt obligation.
In such a case, the Adviser may decide that the Fund should continue to hold such debt obligation if the Adviser determines, in the exercise of its discretion, that it is in the best interest of the Fund to do so. In such a case, the Fund may hold debt obligations with a D or similar credit rating indicating at least a partial payment default. Under normal circumstances, the Funds dollar-weighted average portfolio effective maturity will be more than one year but less than three. The Fund may shorten or lengthen its average weighted effective maturity for temporary defensive purposes. Due to the Funds holdings in asset-backed, commercial-mortgage-backed, residential mortgage-backed and similar securities, the Funds dollar-weighted average portfolio effective maturity is equivalent to the average weighted maturity of the cash flows in such securities held by the Fund given certain prepayment assumptions (also known as weighted average life).
The Fund may invest in debt obligations of all maturities. The Fund may invest a significant portion of its assets in mortgage-backed securities, asset-backed securities and other securitized products. Securitized products may be structured as collateralized mortgage obligations (agency and non-agency), stripped mortgage-backed securities (interest-only or principal-only), commercial mortgage-backed securities, mortgage pass-through securities and other asset-backed securities. The Fund may invest a significant portion of its assets in the financial services industry and may invest in instruments that are issued or guaranteed by financial institutions, such as banks and brokers, or that are collateralized by securities issued or guaranteed by financial institutions. In addition to direct investments in securities, the Fund may hold a variety of derivatives, including futures contracts, options, swaps and forward contracts.
Derivatives are instruments that have a value based on another instrument, exchange rate or index. Derivatives may be used as substitutes for securities in which the Fund can invest directly or to hedge investments for risk management purposes. The Fund may invest in securities that have not been registered under the Securities Act of 1933, as amended (the Securities Act), but that may be resold to qualified institutional buyers in accordance with the provisions of Rule 144A under the Securities Act (Rule 144A securities).
RCSTX Performance
Total returns for RCSTX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -2.2% |
| 3 years (annualised) | 0.2% |
RCSTX Risk Information
Risk metrics for RCSTX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 1.6%
RCSTX Costs and Fees
RCSTX costs about $45 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.45%
- Gross expense ratio: 0.70%
- Portfolio turnover: 130%
- Brokerage commissions: 0.29 bps of average net assets (SEC N-CEN)
RCSTX Cashflows
Over the 12 months to 2022-07, Red Cedar Short Term Bond Fund had net outflows of $12.69M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2022-07 | $91.24K |
| 2022-06 | −$968.50K |
| 2022-05 | −$886.94K |
| 2022-04 | $143.44K |
| 2022-03 | −$2.72M |
| 2022-02 | $176.78K |
RCSTX Debt Constituents
No individual debt constituents are reported in Red Cedar Short Term Bond Fund's latest SEC N-PORT filing.
RCSTX Prospectus and SEC Filings
Official Red Cedar Short Term Bond Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2022-02-28
- Prospectus (485BPOS) — filed 2021-03-18
- Prospectus supplement (497) — filed 2019-12-05
- Portfolio holdings (N-PORT) — filed 2022-09-29
- Portfolio holdings (N-PORT) — filed 2022-06-29
- Portfolio holdings (N-PORT) — filed 2022-03-31
- Annual census (N-CEN) — filed 2023-01-13
- Annual census (N-CEN) — filed 2022-01-14
Related Funds
Other Short Bond funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.