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August 05, 2003
Guardian Investor Services LLC Adds Low Duration Bond Fund
NEW YORK, (August 5, 2003) - Guardian Investor Services LLC (GIS), an indirect wholly-owned subsidiary of The Guardian Life Insurance Company of America, today announced the addition of The Guardian Low Duration Bond Fund to The Park Avenue Portfolio family of mutual funds.
The new fund complements the fixed-income funds in The Park Avenue Portfolio. The Guardian Low Duration Bond fund seeks a high level of current income potential, consistent with preservation of capital. It invests primarily in short-term fixed income securities, including Treasuries, agencies, investment grade corporate bonds, high yield corporate bonds and mortgage-backed and asset-backed securities. The Lehman Brothers U.S. Government 1-3 Year Bond Index serves as the fund's benchmark.
"The Guardian Low Duration Bond Fund can help investors who are seeking to diversify their portfolios by providing a lower volatility complement not just to equity funds but also to different types of bond funds within The Park Avenue Portfolio," said Thomas G. Sorell, Executive Vice President and Chief Investment Officer, Guardian. "We believe this fund will appeal to risk-averse investors who seek higher yields than are available in money market funds, but are unwilling to take on the additional interest rate risk or volatility of a longer-duration bond fund."
Howard W. Chin, who has been with Guardian since 1997, manages the fund. Chin, who has over 17 years of industry experience, currently manages The Guardian Investment Quality Bond Fund, The Guardian Bond Fund and underlying investment option in The Guardian Insurance & Annuity Company, Inc. variable annuities, and a substantial portion of the investment grade bond portfolio of Guardian's general account.
"The challenge in this environment is to make a well-informed investment decision and to understand the risks that go along with that investment," said Chin. "Similar to other fixed income funds within The Park Avenue Portfolio, we will not engage in market timing or make interest rate bets. Rather, the Fund will actively manage its interest rate risk and seek to remain duration-neutral to its benchmark. This duration neutral approach allows us help investors that are seeking income potential without taking on a great deal of principal risk. We will also add value through asset allocation and security selection."
The new fund is available for direct purchase through financial advisors and will also be made available through 401(k) PLUS with The Park Avenue Portfolio family of mutual funds, a 401(k) retirement vehicle.
About Guardian
The Guardian Life Insurance Company of America, New York, NY (Guardian) is the fourth largest mutual life insurance company in the United States. As of December 31, 2002, Guardian and its subsidiaries had $34.1 billion in assets. Founded in 1860, Guardian is listed among Fortune magazine's top 300 businesses---and in 2003 was ranked once again as one of the top 10 most admired life and health companies in Fortune's "America's Most Admired Companies" list. With 5,500 employees, over 2,700 financial representatives and 100 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health and dental insurance products, and offer 401(k), mutual fund and annuity investment products, and trust services. More information on Guardian can be obtained at: www.guardianlife.com.
Annuities are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation. GIAC variable annuities and The Park Avenue Portfolio family of mutual funds including The Guardian Low Duration Bond Fund, are distributed by Guardian Investor Services LLC (GIS). GIAC and GIS are located at 7 Hanover Square, New York, NY 10004 and are wholly owned subsidiaries of The Guardian Life Insurance Company of America, New York.
The Park Avenue Portfolio family of mutual funds and variable annuities are sold by prospectus only. The prospectuses contain important information including risks, fees and expenses. Be sure to read the prospectuses carefully before investing or sending money. Prospectuses can be obtained from your financial professional or by calling 800-221-3253.
Annuities, mutual funds, and variable annuities along with their underlying investment options are not deposits or obligations of, or guaranteed or endorsed by any bank or depository institution, nor are they insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, the National Credit Union Association or any other agency. Mutual funds and variable annuities involve investment risk, including possible loss of principal amount invested. Investment return and principal value may fluctuate so that share, when redeemed, may be worth more or less than their original cost. Annuities principal and stated interest rates are guaranteed by GIAC.
Investments in shares of Money Market funds are neither insured nor guaranteed by the FDIC or any other agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
As with all mutual funds, the value of your investment could decline, and as a result, you could lose money. An investment in a low duration bond fund, such as The Guardian Low Duration Bond Fund, exposes you to the general risk of investing in debt markets. These include interest rate risk — the risk that a debt's obligation price will be adversely affected by changes in interest rates; credit risk -- the risk that the issuer of the debt obligation will fail to repay principal and interest; and prepayment risk -- the risk that debt obligations will be prepaid when interest rates are lower. Please keep in mind that in this kind of environment, the risk that bond prices may fall when interest rates rise is potentially greater.
Bond funds are subject to interest rate risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently, interest rates are at historically low levels.
GIS is a member of NASD, SIPC.
1 The Lehman Brothers U.S. Government 1-3 Year Bond Index is an unmanaged index of U.S. government securities with maturities of 1 to 3 years. It is not available for direct investment.
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