- The Variable Duration composite includes all fixed income accounts, greater than $2 million, which may contain U.S. Treasury notes, federal government agency securities, federal agency mortgage-backed securities, dollar denominated corporate bonds, municipal bonds, and other investment grade U.S. fixed income securities.
- The accounts are benchmarked to the BofA Merrill Lynch 1-3 Year U.S. Treasury Index and typically maintain duration between 1 and 5 years.
- Cash is not held as a tactical allocation. No derivatives are used.
Composition as of December 31, 2019
The ICE BofA Merrill Lynch 1-3 Year U.S. Treasury Index tracks the performance of U.S. dollar denominated sovereign debt publicly issued by the U.S. government in its domestic market. Qualifying securities must have at least one year remaining to final maturity, a fixed coupon schedule, a minimum amount outstanding of $1 billion, and must mature in less than three years. 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.
DB 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, balanced, fixed-income, and commercial mortgage assets for institutional and individual clients.
- 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.