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

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)*

Did Chairman Powell Just Change Course? Did Trump Influence Him?

Federal Reserve Chairman Jerome Powell said “The Fed will act as appropriate to sustain economic expansion.” Powell claimed “The outlook for the U.S. economy has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates.”

He also said “The crosscurrents have reemerged, with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy.” To add to the disappointments, economic reports also show a big surprising drop in consumer confidence, plus added weakness in the housing market.

Fed’s Jay Powell, Interest Rates, and Trump

US and China Feds Help Change the Market Outlook

What is a “Neutral” Interest Rate? Powell and Trump Have Different Opinions

Is Fed Tightening Going to Cause a Recession? Many Experts Think Yes!