Up 13.05% per year for the last three years – FX2 – January Review

Durig Fixed Income 2 (FX2) Portfolio Review: February 5th, 2018

 

With all the volatility seen in the equity markets this past week, some may be wondering how Durig’s FX2 portfolios have fared.  Well, we have a surprise for you..

 

The portfolio’s short average maturities and the low to negative correlation of the high-yield opportunities pursued has enabled us to not only see minimal impacts from the recent volatility, but has produced positive returns in light of this sell-off.

 

The relatively standard benchmarks shown below are compared to the Year-to-Date (YTD) and Trailing 1 year, Trailing 3 year and Trailing 5 year returns provided by the High-Yield Bond Mutual Fund database provided by Morningstar.  We estimate that Morningstar tracks the performance of and benchmarks close to 800 High-Yielding Bond Mutual Funds, and on February 5th, 2018, this is how our clients aggregated FX2 portfolios compared to Morningstar’s high-yield bond fund database:

YTD  

Year-to-Date, FX2 returns were up 3.81%, and outperformed every high-yield bond mutual fund that was listed. The top five performing high-yield bond funds we identified on Morningstar in Year-to-Date return were:

 

  1. RBC BlueBay Diversified Credit R6 (RBDRX), 2.18% YTD
  2. RBC BlueBay Diversified Credit I (RBTRX), 2.18% YTD
  3. Virtus Newfleet Credit Opportunities R6 (VRCOX), 1.45% YTD
  4. Virtus Newfleet Credit Opportunities I (VCOIX), 1.45% YTD
  5. Virtus Newfleet Credit Opportunities C (VCOCX), 1.45% YTD

 

  • The average YTD return among the high-yield bond mutual funds listed was -0.06%
  • FX2 aggregated year-to-date returns were 6350% above the average YTD return of the high-yield bond mutual funds listed

 

Trailing 1 Year

For a Trailing 1 Year period, FX2 returns were up 17.50%, and outperformed every high-yield bond mutual fund that was listed. The top five performing high-yield bond funds we identified on Morningstar in Trailing 1 Year  return were:

 

  1. Diamond Hill High Yield Y (DHHYX), 10.06%
  2. Diamond Hill High Yield I (DHHIX), 9.84%
  3. Diamond Hill High Yield A (DHHAX), 9.65%
  4. Deer Park Total Return Credit I (DPFNX), 9.43%
  5. DDJ Opportunistic High Yield Institutional (DDJIX), 9.27%

 

  • The average Trailing 1 Year return among the high-yield bond mutual funds listed was 4.74%
  • FX2 aggregated Trailing 1 Year returns were 269.2% above the average Trailing 1 Year of the high-yield bond mutual funds listed

 

Trailing 3 Year

For a Trailing 3 Year period, FX2 returns were up 13.05%, and outperformed every high-yield bond mutual fund that was listed. The top five performing high-yield bond funds we identified on Morningstar in Trailing 3 Year return were:

 

  1. Fairholme Focused Income (FOCIX), 8.57%
  2. Artisan High Income Advisor (APDFX), 8.05%
  3. Artisan High Income Investor (ARTFX), 7.87%
  4. Credit Suisse Strategic Income I (CSOIX), 7.73%
  5. Credit Suisse Strategic Income A (CSOAX), 7.41%

 

  • The average Trailing 3 Year return among the high-yield bond mutual funds listed was 4.61%
  • FX2 aggregated Trailing 3 Year returns were 183.08% above the average Trailing 3 Year return of the high-yield bond mutual funds listed

 

Trailing 5 Year

For a Trailing 5 Year period, FX2 returns were up 9.50%, and outperformed every high-yield bond mutual fund that was listed. The top five performing high-yield bond funds we identified on Morningstar in Trailing 5 Year return were:

 

  1. Fairholme Focused Income (FOCIX), 9.49%
  2. Fidelity Capital & Income (FAGIX), 6.97%
  3. Fidelity Advisor High Income Advantage I (FAHCX), 6.83%
  4. Credit Suisse Strategic Income I (CSOIX), 6.70%
  5. Morgan Stanley Institutional High Yield I (MSYIX), 6.65%

 

  • The average Trailing 5 Year return among the high-yield bond mutual funds listed was 4.35%
  • FX2 aggregated Trailing 5 Year returns were 118.40% above the average Trailing 5 Year return of the high-yield bond mutual funds listed

 

Past performance is no guarantee of future results. FX2 is a composite of individual (segregated) bond accounts comprised of individual bond positions, with return averages both higher and lower than the FX2 composite returns.  Individual (segregated) accounts are a different investment vehicle than bond funds, offering more easily customized asset allocation and tax accountability compared to having all the investments held in one single large pool.

To learn more, call us toll-free at: (877) 359-5319  or find us at: Durig Fixed Income 2