Fixed Income 2: Finding Attractive Income Opportunities in a Yieldless World

  • Build a better quality of life today with FX2, specifically designed to increase and grow income over time!
  • Over 6% in Cash Generation Alone
  • Annualized Lifetime Return of 8.72%

A monthly performance review of Durig’s high yielding Fixed Income 2 (FX2) Managed Income Portfolio which also explores the many benefits that the portfolio can provide to investors.

(performance is reported net of fee, as of 2-20-20)

Performance Highlights

  • Over 6% in Cash Generation Alone
  • Year-to-Date Return of 6.20%
  • Trailing 1 Year Return of 7.72%
  • Trailing 3 Year Return of 9.03%
  • Trailing 5 Year Return of 9.13%
  • Annualized Return Since Inception of 8.72%
  • Average Bond Maturity of 4 Years
  • Alpha of 10.58 (vs. Benchmark)*
  • Beta of -1.22 (vs. Benchmark)*
  • Excess Return of 4.32% (vs. Benchmark)*

High Income and Growth Over Time

Durig’s Fixed Income 2 (FX2) High Yield Managed Income Portfolio was specifically designed to earn you more income through a large and diverse portfolio of domestically issued, high yield corporate bonds. These bonds have been reviewed at length by Durig, and are selected for the portfolio only once they have passed our proven selection process.  The bonds held in the portfolio are often laddered (with regard to their scheduled maturity date), equating to relatively stable payments of  bond interest (ie. income).

In fact, the bonds contained in the FX2 Managed Income Portfolio generate well over 6% in cash generation from bond interest alone. In addition, by reinvesting the 6% income the portfolio generates as bonds purchased at a discount are redeemed at face value, the potential benefit for growth of income over time becomes even more pronounced as these benefits compound over the years, further boosting total return.

Build a better quality of life today with FX2, specifically designed to earn you more income!

Considering the portfolio’s excellent income production and strong potential for growth over time, Durig believes that its Fixed Income 2 (FX2) Managed Income Portfolio makes an excellent addition to those seeking to increase and even grow their incomes at all stages of life.

Historical Outperformance

Over the long term, the performance of FX2 Portfolio truly sets itself apart. The high yield, fixed income opportunities that the portfolio captures have resulted in FX2 outperforming in nearly all return periods, reflected in its historical performance which has exceeded its closest peers in YTD, Trailing-3 Year, Trailing-5 Year and Annualized Lifetime Return Periods, by nearly 4% , 4.45%, 4.47%, and  3.38%, respectively (shown below for your convenience).

(performance is reported net of fee, as of 2-20-20)

For long-term income investors hoping to generate higher levels of income, and even grow their income over time, the Fixed Income 2 (FX2) Managed Income Portfolio has been an excellent solution.

Seamlessly Combine with Any of Durig’s Existing Income Solutions for Additional Benefits!

FX2 can provide even further benefits (e. improved portfolio diversification) to investors when combined with other asset strategies or non-correlated assets, such as those held in Durig’s many successful Blue Chip Dividend Portfolios, such as the Dogs of the Dow, Dogs of the S&P, and the Dividend Aristocrats, to name a few.

A complete list of portfolio offerings can be found near the end of this review.

Why Low-Cost, Individually Managed Accounts? 

Separately managed accounts allow for customization, bringing investors even closer to achieving  their income goals, not to mention more accurate tax implications to the investor as compared to a mutual fund structure.

Relationships Founded in Trust

Over the years, Durig has worked one-on-one with our clients  to develop lasting, personal, (and often, life-long) relationships that were  founded in trust. As a Fiduciary, Durig is proud to retain the duty and privilege to always act in our clients best interests.

Investors are hard pressed these days to find an investment professional that actually takes the time to get to know you on a genuinely personal basis, rarely expressing genuine concern or care over you (or your family’s) wellbeing / future financial goals.  Skip the sup-par service and false pleasantries observed in large financial institutions and experience the difference with Durig, where we are “Always putting your interests first!

Short Maturities Help to Reduce Associated Volatility and Allow for Agile Management

The short average maturities (less than 4 years) in FX2 help to reduce the impact of interest rate risk and associated volatility, with the scheduled bond interest payments (especially when reinvested over time) helping to grow interest income and significantly enhance total portfolio return.

Generally speaking, by keeping the average maturity of the bonds held in the portfolio relatively low, we believe we mitigate many of the less favorable impacts associated with changes to interest rates, new regulations, or other, social, political, or economic conflicts and turmoils.

By keeping bond maturities under four years, Durig believes it has positioned the portfolio for much more nimble management and should be subject to much less downside than longer-termed fixed income portfolios would be.

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Summary  

Considering the portfolio’s excellent income production of over 6% and strong potential for growth, Durig believes that its Fixed Income 2 (FX2) Managed Income Portfolio is an astute addition for those seeking higher incomes, at all stages of life!

For investors still searching in vain for the once attractive yields and income they became accustomed to in past fixed income investments and wish for the chance to once again earn a higher with the potential to grow income over time, the Fixed Income 2 (FX2) Managed Income Portfolio is an obvious solution.

At Durig, we take great pride in our low cost investor services.  While our firm is small, we keep this structure intentionally to keep costs down, delivering higher net returns to our clients. And as always, our experienced managers and industry professionals, not to mention a dedicated support team which remains focused solely on helping you to solve your personal income needs.

Contact us at Durig today!

If you have any questions or would like further information Durig’s Fixed Income 2 (FX2) Managed Income Portfolio, or any of the outstanding income solutions listed below, please call Durig at (971) 327-8847, or email us at info@durig.com.

Durig Capital has several high yield portfolios available, click below to learn more.

About Durig

Durig Capital provides investors with a specialized, transparent fiduciary service at a very low cost. Our FX2 (Discretionary Management) Portfolio over time has greatly outperformed our FX1 (Non-discretionary) Portfolio, giving significantly higher (at times double) the returns of FX1. Our professional service enables access to a broad spectrum of bond, high yields, and lower price points that are often found in less efficient markets, but not evidenced in many bond services.

We track thousands of bond issues and their underlying fundamentals for months, sometimes years, before finding any that achieve or surpass the targeted criteria we have found to be successful.  Our main priority is to provide the best opportunities for our clients. Our bond reviews are first distributed to our clients, then published on our website and our free email newsletter, and lastly on the Internet and distributed to thousands of prospective clients and competitive firms. Bond selections may not be published if they have very limited availability or liquidity, or viewed as not being in the best interests of our clients. When high yielding bonds with improving fundamentals are acquired at lower costs, Durig Capital believes that investors will appreciate earning higher incomes with our superior high income, low cost, fiduciary services.

Risk Disclaimer: Any content on this review should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades investments to make. Invest only with risk capital; that is, with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee. Durig Capital is not responsible for any losses incurred as a result of this article Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. 

Disclosure: *Primary Benchmark used is BBG Barc US Agg Bond Indx TR USD*

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