Fixed Income Strategies

At Shelton Capital Management we actively manage fixed income portfolios which seek to generate total investment return and income, focused on the US high-yield and investment grade taxable and tax-exempt bond markets.

We employ a thorough top-down and bottom-up research approach. We believe that actively managing fixed income today requires us to have soundly developed views of economic and business cycles as well as interest rate and credit cycles. Our unique approach to portfolio construction aims to generate differentiated above-market returns that are uncorrelated to market benchmarks.

We are also skilled in ESG and impact investing in the US fixed income markets and believe utilizing ESG factors in fixed income investing is likely to generate unique uncorrelated returns and may help create desired social impact objectives.

Learn more about our funds and strategies that consider environmental and impact investing approaches.

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Shelton Tactical Credit Fund

Fund Objective

Seeks to achieve current income and capital appreciation.

Strategy Highlights

  • The Fund is managed as a total return fund, employing a “credit long/short” investment strategy.
  • The Fund employs an opportunistic relative-value credit strategy focused on a portfolio of credit-related instruments, including U.S. high yield and investment grade municipal and corporate bonds.
  • The Fund marries a top-down macro thesis with bottom-up fundamental research including relative value, event driven, special situation and arbitrage opportunities.
  • To the extent the Fund invests in tax-exempt municipal bonds, the Strategy may generate tax-advantaged income.

Fund Information

Portfolio Management Team

Resources

Documents PDF Zip
Prospectus pdf DL
Annual Report pdf DL
Statement of Additional Information pdf DL
Semi-Annual Report pdf DL

Important Information

It is possible to lose money by investing in the Fund. Past performance does not guarantee future results.

The Fund invests without restriction as to issuer capitalization, country, credit quality and without restriction as to the maturity of fixed income securities. The Fund generally will take long positions in securities believed to be undervalued and short positions in securities believed to be overvalued. The Fund typically employs derivatives for hedging purposes, such as futures contracts, options, credit-default swaps, and total return swaps.

The risk for loss on short selling is greater than the original value of the securities sold short, and theoretically is unlimited, because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Although the Fund intends to use derivatives to reduce risk, they may have the opposite effect and increase the volatility or magnitude of loss by the Fund. Derivatives may be illiquid and subject to the risk of default by a counter-party. The value of the Fund’s investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The Fund may invest in non-investment grade fixed income securities, sometimes known as “high-yield bonds” or “junk bonds,” which may subject the Fund to greater credit risk, price volatility and risk of loss than investment grade securities. Some of the “junk bonds” may include securities issued by distressed companies experiencing acquisition, merger, spinoff, restructuring, bankruptcy, downgrade, delinquency, default, or relatively poor financial performance. Distressed securities are speculative and involve substantial risks in addition to the risks of investing in junk bonds, including potential loss of the Fund’s entire investment.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap2b.wpengine.com or call (800) 955-9988. A prospectus should be read carefully before investing.

Shelton Tactical Credit Fund is distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Customized Portfolios

Shelton Capital Management has been managing fixed income portfolios since the company was founded in 1985. 

The fixed income portfolio team is comprised of Bill Mock, David Falk, Jeffrey Rosenkranz and Chris Walsh. Our team has a combined experience of 100+ years throughout all fixed income asset classes and investing markets over the past 25+ years. We have managed all sectors of our core fixed income asset classes across several credit and economic cycles. 

Overview

  • We actively manage bond portfolios based on a range of risk tolerances, income objectives and tax considerations.
  • Our portfolio management team continuously monitors risk and return characteristics across portfolio holdings.
  • ESG and Impact considerations can be included as part of a portfolio’s overall strategy objectives.

Portfolio Construction Process

  • We employ a thorough top-down and bottom-up research approach.
  • Our unique approach to portfolio construction is expected to generate differentiated above-market returns that are uncorrelated to market benchmarks.

Strategy Information

Management Team

Important Information

When comparing mutual funds to SMAs one should carefully consider the fees and expenses associated with each type of investment. All investments carry a certain degree of risk, including the possible loss of principal and there are specific risks that apply to each investment strategy. There is no assurance that an investment will provide positive performance over any period of time. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Prospective clients should consult their financial advisor about investment strategies that are appropriate for their investment objectives, risk tolerance, tax status and liquidity needs. Income may be subject to the alternative minimum tax (AMT) and/or state and local taxes, based on the state of residence.

Contact Us For More Information

We have a team of professionals dedicated to supporting the needs of our advisor clients. Request to consult with a Portfolio Manager and your Director of Advisor Services to learn more about how we can help you meet your clients’ needs.

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