- The Intermediate Duration MBS composite includes all fixed income accounts, greater than $2 million, which contain exclusively federal agency mortgage-backed securities.
- The accounts are benchmarked to the Barclays U.S. MBS Index and typically maintain duration between 2.5 and 5 years.
- Duration of client portfolios is typically maintained +/- 1 year of the benchmark index and portfolio returns are generally expected to track the index closely. Cash is not held as a tactical allocation. No derivatives are used.
Composition as of December 31, 2017
The Barclays U.S. MBS Index contains exclusively agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Both DBF returns and index returns reflect the reinvestment of dividends and other earnings. Indices are included for comparison purposes only and do not include transaction costs. Volatility, number of issues, capitalization size, year-to-year return history, and other security attributes of the indices differ from the attributes of the DBF portfolios.
D.B. Fitzpatrick (DBF) is an independent investment management firm established in 1984 and is registered with the U.S. Securities and Exchange Commission and the Idaho Department of Finance. Registration does not imply a certain level of skill or training. DBF manages a variety of equity, fixed-income, and balanced assets for institutional and individual clients. DBF also manages the Idaho Commercial Mortgage Program which offers local funding to institutional grade Idaho commercial properties.
- Future returns will depend on future allocation decisions. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that when redeemed, investments may be worth more or less than the original cost.
- Any investment, including DBF’s portfolios, has the potential of generating losses as well as profits.