How does 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%.

  • FX2 Beat the top performing trailing 1 Year return of high-yield bond mutual funds listed by 14.839%

Trailing 3 Year

For a 3 Year period, FX2 returns were up 9.98%, outperforming all high-yield bond mutual funds that were listed.  The best performing high-yield bond fund in Trailing 3 year return that we could identify on Morningstar was Fairholme Focus Income, up 8.85%.

  • FX2 Beat the top performing trailing 3 year return of high-yield Bond mutual funds listed  by 12.768 %

 Trailing 5 Year

For a 5 Year period FX2 returns were up 9.34 %, outperforming all high-yield bond mutual funds listed. The best performing high-yield bond fund in Trailing 5 year return that we could identify on Morningstar was Fairholme Focus Income, up 8.69 %.

  • FX2 Beat the top performing trailing 5 year high-yield Bond mutual fund by 7.480    %

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