MSTBX

About MSTBX

Morningstar Defensive Bond Fund is an actively managed mutual fund designed to prioritize capital preservation while generating income from fixed-income securities. The strategy typically maintains at least 80% of assets in a diversified mix of bonds across varying maturities and credit qualities, with an emphasis on short- and intermediate‑term, investment‑grade exposure to limit interest‑rate sensitivity and volatility. The portfolio features a significant allocation to U.S. Treasuries and cash-like instruments, complemented by securitized assets and selective corporate holdings to balance stability with income potential. The fund’s risk profile aligns with the short‑term bond category, targeting limited interest‑rate risk and medium credit quality, and it distributes income monthly. With an established expense structure and institutional share class, it serves as a conservative core or ballast allocation within multi-asset portfolios, aiming to dampen drawdowns during periods of market stress while maintaining liquidity and diversification across high-quality fixed-income segments.