Fixed Income Strategies

DBF Short Duration

The Short Duration strategy invests in U.S. Treasury securities, U.S. Agency mortgage-backed securities, and fixed-maturity federal agency debt. Portfolios have no explicit credit risk, while interest rate and prepayment risks are actively managed.

Income maximization is emphasized. The total return objective is to outperform the average return of benchmark indices during three- to five-year periods by 30 basis points.
The portfolios are constrained to a duration collar within 0.3 years of the duration of the Merrill Lynch 1-3 year Treasury Index.

DBF Intermediate Duration

Intermediate duration portfolios are constructed utilizing morgage-backed securities, federal agency securities, and U.S. Treasuries. Since portfolios hold only AAA+ rated U.S. government/agency assets, there is no explicit credit risk.
This strategy seeks to equal or exceed the total return of the Barclays Aggregate Index, net of costs, with less credit risk than the index.
Portfolios maintain a duration between the durations of the Barclays Mortgage and Barclays Aggregate Indices.

DBF Commercial Mortgage Strategy

This strategy seeks to substantially outperform the Barclays Aggregate and Barclays Mortgage indices during a three- to five-year period by investing in high-quality, whole loan commercial mortgage assets and in mortgage-backed securities.

Portfolio risk is reduced by requiring personal guarantees of borrowers on all commercial mortgage assets. Whole loans are originated, managed, and serviced as part of the overall portfolio management program.
Portfolios incorporate managed commercial mortgages, mortgage-backed securities, and/or U.S. Treasury or federal agency securities.

DBF Mortgage-Backed Securities

This strategy fully invests in AAA+ rated U.S. agency mortgage-backed securities to insulate portfolis from interest rate volatility while seeking to maintain a yield advantage.
The total return objective is to meet or exceed the total rate of return of the Barclays Mortgage Index during a three- to five-year period.
The investment team leverages its understanding of fluctuations in interest rates, mortgage prepayment rates, and mortgage spreads to optimize portfolios relative to the Barclays Mortgage Index.