Investment Overview
- The Short Duration Govt./Agency composite includes all fixed income accounts greater than $2 million that contain exclusively U.S. Treasury notes, federal government agency securities, and federal agency mortgage-backed securities.
- The accounts typically maintain duration between 1.0 and 2.5 years and are benchmarked to the Merrill Lynch 1-3 Year Treasury Index.
- Portfolios typically hold between 20 and 35 securities. Cash is not held as a tactical allocation. No derivatives are used.
Annualized Performance through March 31, 2013
Portfolio Composition
Short Duration Govt/Agency Merrill Lynch 1-3 Year Govt/Corp Index
Benchmarks
The Merrill Lynch 1-3 Year Treasury Index tracks the performance of US dollar denominated sovereign debt publicly issued by the US 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. The Barclays Capital U.S. Government Intermediate Index includes Treasuries and U.S. agency debentures that have remaining maturities of more than one year but less than 10 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.
Notes:
- D.B. Fitzpatrick & Co., Inc. (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 U.S. institutional and individual clients.
- Valuations and returns are computed and stated in U.S. Dollars.
- The annual internal dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year.
- All returns are net of trading commissions. Gross returns do not reflect the deduction of the management fees or any other expenses that may be incurred in the management of the account. Net returns are net of model management fees in effect for the respective time period and are derived using the maximum rate of the fee schedule. Actual returns may vary.
- Total Firm Assets include approximately $504.3 million in whole loan commercial mortgages, which are not liquid securities.
- The minimum portfolio size for inclusion in the composite is $2,000,000.
- 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.