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Durig Fixed Income 2 (FX2) Portfolio Review: December 2017

For many years, we have emailing our Durig Capital Fixed Income FX2 high-yield bond ideas as they were added to our FX2 client portfolios.  The relatively standard benchmarks shown below are compared to the Year-to-Date (YTD), 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 December 7th, 2017, 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 14.66%, and outperformed every high-yield bond mutual fund that was listed. The top five performing high-yield bond funds we identified on Morningstar in YTD return were:

FX2  up 14.66% YTD

1. Fidelity Capital Income up 10.72%
2. Fidelity Advisor High Income Advantage I up 10.38%
3. Deer Park Total Return Credit I up 10.10%
4. Fidelity Advisor High Income Advantage M up 10.08%
5. Fidelity Advisor High Income Advantage A up 10.02%

  • The average YTD return among the high-yield bond mutual funds listed was 6.13%
  • FX2 aggregated year-to-date returns were 139.15% above the average YTD return of the high-yield bond mutual funds listed

Trailing 1 Year

For a 1 Year period, FX2 aggregated returns were up 15.73%, outperforming all high-yield bond mutual funds that were listed.  The top five performing high-yield bond funds we identified on Morningstar for Trailing one year return were:

FX2  up 15.73% Trailing 1 Year

1. Fidelity Capital & Income Fund up 11.09%
2. DDJ Opportunistic High Yield Institutional up 11.09%
3. DDJ Opportunistic High Yield I up 11.06%
4. Diamond Hill High Yield Y up 10.91%
5. Victory High Yield Y up 10.87%

The average trailing 1 year return among the high-yield bond mutual funds listed was 6.97%

  • FX2 aggregated returns outperformed the average trailing 1 year return of the high-yield bond mutual funds listed by 125.68%

Trailing 3 Year

For a 3 Year period, FX2 aggregated returns were up 9.64%, outperforming all high-yield bond mutual funds that were listed.  The top five performing high-yield bond funds we identified on Morningstar for Trailing three year return were:

FX2  up 9.64 % Trailing 3 Year

1. Fairholme Focused Income up 8.34%
2. Artisan High Income Advisor up 7.55%
3. Artisan High Income Investor up 7.37%
4. T. Rowe Price US High Yield I up 7.26%
5. Angel Oak High Yield Opportunities Institutional up 7.14%

  • The average trailing 3 year return among the high-yield bond mutual funds listed was 4.54%
  • FX2 aggregated returns outperformed the average trailing 3 year return of the high-yield bond mutual funds listed by 112.33 %

Trailing 5 Year

For a 5 Year period FX2 aggregated returns were up 8.88%, outperforming all but one of the high-yield bond mutual funds listed. The top five performing high-yield bond mutual funds we identified on Morningstar for Trailing 5 year return were:

FX2  up 8.88% Trailing 5 Year

*1. Fairholme Focused Income up 9.16 %
2. Credit Suisse Strategic Income I up 7.34%
3. Fidelity Capital & Income  up 7.33%
4. Morgan Stanley Institutional High Yield I up 7.22%
5. Lord Abbett High Yield I up 7.19 %

  • The average trailing 5 year return among the high-yield bond mutual funds listed was 4.70%
  • FX2 aggregated returns outperformed the average trailing 5 year return of the high-yield bond mutual funds listed by 88.94 %

* Fairholme Focused Income I: Outperformed  Durig Capital FX2 for a 5 year period.  This is the first mutual fund to outperforming Durig Capital FX2 aggregated performance in a major category since covering our last three monthly performance reviews.

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, find us at: Durig Fixed Income 2

FX2 – Investment Presentation

Click to see Our FX2 Investment Presentation

Durig Fixed Income FX2 Review November 2017

For many years, we have been publishing our FX2 high-yield bond ideas on Bond-Yields.com as they were added to our FX2 client portfolios.  The relatively standard benchmarks shown below are compared to the Year-to-Date (YTD),Trailing 1 year, Trailing 3 year and Trailing 5 year returns provided by the High-Yield Bond Mutual Fund database provided by Morningstar.

 

FX2 Benchmark 11-9-17

We estimate that Morningstar tracks the performance of and benchmarks close to 800 High-Yielding Bond Mutual Funds, and on November 10th, 2017, 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 16.86%, and outperformed every high-yield bond mutual fund that was listed. The top five performing high-yield bond funds we identified on Morningstar in YTD return were:

 

FX2  up 16.86% YTD

1. Fidelity Capital Income up 10.20%

2. DDJ Opportunistic High Yield Institutional  up 9.92%

3. DDJ Opportunistic High Yield 1 up 9.91%

4. Deer park Total Return Credit I up 9.81%

5. Fidelity Advisors High Yield Advantage I up 9.72%

  • The average YTD return among high-yield bond mutual funds listed was 5.61%

  • FX2 aggregated year to date returns were 201% above the average YTD return of the high-yield bond mutual funds listed

Trailing 1 Year

For a 1 Year period, FX2 aggregated returns were up 19.74%, outperforming all high-yield bond mutual funds that were listed.  The top five performing high-yield bond funds we identified on Morningstar for Trailing one year return were:

 

FX2  up 19.74% Trailing 1 Year

1. Catalyst SMH High Income A up 14.13%

2. Catalyst SMH High Income I up 14.10%

3. Highland Opportunistic Credit Z up 13.88%

4. Highland Opportunistic Credit A up 13.72%

5. Highland Opportunistic Credit C up 13.17%

  • The average trailing 1 year return among the high-yield bond mutual funds listed was 7.74%

  • FX2 aggregated returns outperformed the average trailing 1 year return of the high-yield bond mutual funds listed by 155%

Trailing 3 Year

For a 3 Year period, FX2 aggregated returns were up 9.98%, outperforming all high-yield bond mutual funds that were listed.  The top five performing high-yield bond funds we identified on Morningstar for Trailing three year return were:

 

FX2  up 9.98% Trailing 3 Year

1. Fairholme Focused Income up 7.60%

2. Artisan High Income Advisor up 7.21%

3. Artisan High Income Investor up 7.03%

4. Credit Suisse Strategic Income I up 6.72%

5. Diamond Hill Corporate Credit Y up 6.64%

  • The average trailing 3 year return among the high-yield bond mutual funds listed was 3.85%

  • FX2 aggregated returns outperformed the average trailing 3 year return of the high-yield bond mutual funds listed by 159.2%

 

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Trailing 5 Year

For a 5 Year period FX2 aggregated returns were up 9.81%, outperforming all high-yield bond mutual funds listed. The top five performing high-yield bond mutual funds we identified on Morningstar for Trailing three year return were:

 

FX2  up 9.81% Trailing 5 Year

1. Fairholme Focused Income up 8.49%

2. Fidelity Capital & Income up 7.71%

3. Credit Suisse Strategic Income I up 7.50%

4. Fidelity Advisor High Income Advantage I up 7.49%

5. Morgan Stanley Institutional High Yield I up 7.45 %

  • The average trailing 5 year return among the high-yield bond mutual funds listed was 4.88%

  • FX2 aggregated returns outperformed the average trailing 5 year return of the high-yield bond mutual funds listed by 101%

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.  Individualized 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, find us at:

 

Durig Capital, Inc.

Registered Investment Advisor

11600 SW 69th Avenue

Tigard, Oregon 97223

Toll Free: (877) 359-5319

Fax: (971) 732-5121

E-mail us at:

Info@Durig.com

Find FX2 on the web at: fixed-income2.com

Ask a question, or, tell us what you’re looking for:

To learn more about this bond call our fixed income specialist at (971) 327-8847

Always putting your interests first,

Randy Durig
Registered Investment Advisor
DIR  971-732-5119


A+ Rating with the BBB!
Fixed-Income2.com I Distressed Debt 1 Hedge Fund

How does Durig’s Fixed Income 2 (FX2) portfolio stack up against comparable high-yield bond mutual funds?

Well, we might have a big surprise for you.

For many years, we have been publishing our FX2 high-yielding bond ideas as they were added to our FX2 client portfolios.  The relatively standard benchmarks shown below are compared by Year-to-Date (YTD),Trailing 1 year, Trailing 3 year and Trailing 5 year returns, using the High-Yield Bond Mutual Fund database provided by Morningstar.

FX2 Benchmark 10-19-17.JPG

We estimate that Morningstar tracks the performance of and benchmarks close to 800 High-Yielding Bond Mutual Funds, and on October 19, 2017,  this is how FX2 compared to Morningstar’s high-yield bond database:

YTD  

Year-to-Date, FX2 returns were up 16.28%, and outperformed every high-yield bond mutual fund that was listed.  The best performing high-yield bond fund we could identify on Morningstar in YTD return was Fidelity Capital & Income, up 10.40%.

  • FX2 Beat the top performing high-yield bond mutual fund in YTD return by 56.53 %

 Trailing 1 Year

For a 1 Year period, FX2 returns were up 17.80%, outperforming all high-yield mutual funds that were listed.  The best performing high-yield bond fund in Trailing 1 year return that we could identify on Morningstar was Catalyst/SMH High Income I, up 15.50%.

Read more

Fixed Income 2 - By Durig Capital

FX2 Year-To-Date up 18.10 % – Since Inception FX2 is up 9.71 % – Trailing 1 Yr Return is up 20.69 %

fx2-10-2-1017preCapture

Click to see FX2 most recent performance FX2 Master (Summary) 09_30_2016 to 09_29_2017.pdf

fx2benchmark-9-26-2017Capture

Click to see FX2 most recent benchmark performance CFX2 Master (Summary) 09_26_2016 to 09_25_2017.pdf

FX2 | Fixed Income2.com Is A High Yielding, Short Term, Low Cost Managed Income Portfolio. Designed to earn you both a higher fixed income and your money returned back!

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High 7 – 8.5% Yields | Fixed-Income2.com

FX2 | Fixed-Income2.com targets an 8 – 8.5% yield with our 3+ average maturity that is far better than the current 0.90% range that the three year government bonds are currently paying.  That works out to about an 800% increase in fixed income, by switching to our services.

Based on the above treasury yield, if you have a $1,000,000 portfolio in US government bonds for three years, your yearly income would be $9,000 dollar. Or about  $758.33 dollars per month, hardly fitting life style for a millionaire.

Using our midpoint 8.25% yield with a similar maturities using the same $1,000,000 portfolio, the yearly income would be income $82,500. Or $6,875.00 dollars per month. Thus a higher yield can greatly increase your standard of living, in this case over 800%.

It’s simple: You worked hard to earn your money,  it’s time your fixed income worked as hard as you do ! Read more

Fixed Income 2 - By Durig Capital

Higher Institutional Yields, and Diversified Portfolio’s | Fixed-Income2.com

FX2 | Fixed-Income2.com is able to access the much higher yielding global institution bonds. Whether this is because of our outstanding reputation or high internet presence, or because we often have major US and World bond firms contact us wanting our services and business isn’t clear. However it does put us in the enviable position to pick and work with the trading firms we think will provides better price and higher values for our clients.   Thus, we are able to shop the globe, often seeing much higher yielding bonds from a wide variety of counties, industries and services that most of our clients can’t find or purchase on their own. Thus we shop the world to find our clients the best bonds. Read more

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Targets up to 25% in foreign currencies | Fixed-Income2.com

The FX2 | Fixed-Income2.com portfolio targets up to  25% of our investments, in foreign currencies. FX2 is a high yielding bond portfolio designed to have some diversity away from the dollar, most if not all that diversity is from Canada.

Remember foreign currencies might and will increase the volatility in this portfolio, even though the added diversity could overtime reduce your overall portfolio risks. Many foreign currency bonds have very limited liquidity and the plan is to holding these very short term bonds to maturity. High yield, short maturities, with a very low fee, so our clients can continue to achieve their goals of higher cash flow while limiting their exposure to the US Dollar. Read more

Fixed Income 2 - By Durig Capital

Short 3.75 Year Average Laddered Maturities | Fixed-Income2.com

FX2 | Fixed-Income2.com portfolio is designed to protect our clients against inflation, with a focus on short term, maturity certain bonds.

Historically, interest rates move in 30 year cycles. Thus interest rates have been falling for about 30 years until the 4th quarter 2012. Not only did interest rates decline for about 30 years, they hit almost zero, an artificially low level. This low level was caused by the Federal Reserve, in a effort to keep short term interest rates at about zero while at the same time pumping large amounts of new money into the system to stimulate the US economy.

We have learned though history that this kind of activity, repeated over a long period of time, could and will have negative long term effects, for example not only helping interest rates to rise, but often creating a similar duration and magnitude opposite swing. Just like a clock pendulum. When you move a clock pendulum to the left many degrees and then let go it will come close to the same movement past center to the right before it begins to find it’s equilibrium,  this in  finance is this effect is called Regression to the means.  So if interest rates are artificiality low with a large pumping of new money, now for over 5 years, at some point this could cause an opposite effect proving a equally overly high interest rates, for about the same 5 year time period. Either way we believe interest rates over the foreseeable future will be rising and the best way to deal with this is the keep your maturities very short and certain, and your bond coupons high. Read more

Fixed Income 2 - By Durig Capital

High Level of Fiduciary Service | Fixed-Income2.com

 At FX2 | Fixed-Income2.com we are a fiduciary service firm and very proud of it!

We put our clients interest first. Our service is excellent, and we are honest, hard working blue collar type workers who understand the needs and concerns of our clients. We will explain in writing the risk and rewards. We believe things will be tough, that there will be many economic challenges ahead, and we are working hard on our plans to better position our clients to better evade most if not all of these future issues. We are only paid by our clients and take zero soft dollars, kickbacks, or trading fees. It is important to us to structure our company in a way that is fundamentally right for our clients. This is in our mind just as important is our commitment to provide a fiduciary selection and investment model for our clients.

To take to the next step, the companies we own, vendors that services us, and employees we work with are all work under our fiduciary model. We work hard to run all aspects of our business in a fiduciary role.

We believe ethics is important! Read more