Core Plus Fixed Income

The Brandes Core Plus Fixed Income Strategy seeks long-term returns in excess of its benchmark (the Bloomberg U.S. Aggregate Bond Index) by investing primarily in United States government and agency debt, U.S. and non-U.S. corporate debt, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”).

Overview

Why Core Plus Fixed Income?

  • Flexibility: The strategy is designed for income-oriented investors who are also seeking value potential from active management of their bond portfolios.
  • Experience: Brandes has been navigating the fixed-income investment landscape for over 20 years.
  • Focus: The strategy primarily invests in high quality U.S. Treasury, agency and corporate debt obligations. The portfolio may be invested in a total of up to 25% of its assets, determined at the time of purchase, in each of non-U.S. dollar denominated debt instruments and non-investment grade debt obligations. A minimum of 75% of the investments must be rated investment grade by a nationally recognized rating agency at the time of purchase.

    Performance

    As of 30 Sep 2024 | Reporting Currency: USD

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    Source: Brandes, Bloomberg Indices. Total return – net and gross of management fees. Periods of greater than one year have been annualized. Past performance is not a guarantee of future results. The strategy primary benchmark is the Bloomberg U.S. Aggregate Bond Index. It is not possible to invest directly in an index. GIPS® Report available in Resources section below.

    Portfolio

    Data displayed as of 30 Sep 2024

    Characteristics

    Characteristic Core Plus Fixed Income Aggregate Index
    Average Maturity (yrs)
    This figure is computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures.
    7.7 8.3
    Average Yield to Maturity %
    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate.
    4.3 4.2
    Current Yield %
    Annualized income from the investment (dividends, interest, etc.) divided by the current market price of the investment.
    3.7 3.6
    Average Coupon %
    The annual rate, as a percentage of par that the issuer has agreed to pay the bondholder.
    3.6 3.4
    Average Duration (yrs)
    Duration is a time measure of a bond's interest-rate sensitivity, based on the weighted average of the time periods over which a bond's cash flows accrue to the bondholder.
    5.5 6.0
    Average Quality AA- AA
    Number of Bonds 70 --
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    Top 10 Corporate Holdings (%)

    Issuer %
    Bank of America Corp 2.4
    Prime Security Services 2.1
    Citigroup Inc 2.1
    Ford Motor Credit Co LLC 1.9
    Netflix Inc 1.8
    Range Resources Corp 1.6
    VMware LLC 1.4
    Charles Schwab Corp 1.4
    Meta Platforms Inc 1.3
    USB Capital IX 1.3
    % of Portfolio 17.3
    Portfolio holdings are subject to change at any time at the discretion of the investment manager.
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    Sector Allocation (%)

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    The Brandes Core Plus Fixed Income Composite seeks long-term returns in excess of its benchmark (the Bloomberg U.S. Aggregate Bond Index) by investing primarily in United States government and agency debt, U.S. and non-U.S. corporate debt, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”). The composite will be invested in a total of up to 25% in each of non-dollar denominated debt instruments and non-investment grade debt obligations, with the total combination of these two categories not exceeding 35% of the composite's assets as measured at the time of purchase. A minimum of 75% of the investments must be rated investment grade by a nationally recognized rating agency at the time of purchase. The composite may invest in a mutual fund (Separately Managed Account Reserve Trust, or “SMART”) that is available only within the Brandes Income Strategies program. Generally SMART is predominantly invested in corporate debt, including non-dollar denominated and non-investment grade debt obligations, but may invest in other types of securities as well. The firm believes this fixed income composite to be aggressive with regard to certain risks, especially credit risk.

    The Bloomberg U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar denominated, fixed rate taxable bond market. This index is a total return index which reflects the price changes and interest of each bond in the index. The benchmark returns are not covered by the report of independent verifiers.

    Portfolio characteristics from Brandes, BondEdge Solutions.

    The portfolio characteristics shown relate to a single account deemed by Brandes to be generally representative of the strategy as of date noted. Not every account will have these exact characteristics. The actual characteristics with respect to any particular account will vary based on a number of factors including but not limited to: (i) the size of t he account; (ii) investment restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment. Data is updated on a quarterly basis.

    The results for individual accounts and for different periods may vary. Investors should not rely on prior performance results as a reliable indication of future results. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance.

    Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada. This website may also contain trademarks of other companies.