April 15th, 2015

Income Review

First Quarter Review and Outlook Cumberland Income Fund March 2015

Monetary policy decisions by central banks around the world during the first quarter of 2015 increased volatility in fixed income markets and fueled further demand for sovereign bonds globally. Meanwhile, corporate spreads (the yield premium investors’ demand for owning corporate bonds over government bonds) were mixed during the quarter depending on the bond’s maturity and credit rating, however, overall spreads remained stable. Cumberland’s income strategy continues to be positioned to dampen the volatility from large swings in interest rates and the impact of changing monetary policy. Additionally, prudently managing credit risk remains central to our objective of generating a stable income stream meaningfully greater than inflation while simultaneously preserving capital.