As Seen On
The FGM Tactical Bond Program is ideal for investors seeking returns higher than traditional bond strategies and for investors wanting to lower their downside risk. Since its inception, the program has provided an annualized return of 7.95%, outperforming the bond market by 3.89% on an annual basis, net of fees, and has limited downside risk to a maximum of 2.50% (when the total bond market has had a maximum drawdown of 3.37% during the same time period).1
Top of Its Peer Group
Since its inception, the FGM Tactical Bond Program has outperformed its peer group benchmark by 0.99% on an annual basis.1
Downside Risk Protection
The program aims to limit downside risk to 3%, even in a bad month or quarter. Since its inception, the program has managed to limit downside risk to 2.5% in a quarter. During the same time frame, the bond market has lost 3.37% in a quarter and our peer group benchmark has lost 29.69% in a quarter.1
The FGM Tactical Bond Program (the “Program”) invests in high yield bond markets and high yield municipal bond markets using a proprietary quantitative investment model that looks at price, volume, yield spreads, and default rates to identify trends in high yield corporate bonds and high yield municipal bonds. The Program seeks to identify opportunities where the short-term and intermediate-term direction of the high yield bond markets can be predicted with high probability.
The Program’s Investment Manager adjusts the Program’s portfolio to obtain maximum total return (income and price appreciation) in up-trending markets and focuses on capital preservation in down-trending price environments. In these down trending price environments, the Program employs trailing stop-loss orders and can move its high yield bond exposure temporarily to cash or short-term cash equivalents in an attempt to mitigate market declines as well as lower portfolio volatility.
1. The Peer Group Benchmark for the Tactical Bond Program is the Lipper High Yield Bond Index, a widely recognized index of the largest mutual funds that invest primarily in high yield bonds; performance is presented net of the funds’ fees and expenses. “The Bond Market” is the Bloomberg Barclays U.S. Aggregate Bond Index, a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The inception date of the Tactical Bond Program is March 31, 2003. The performance figures for the The Program are net of a 0.5% quarterly advisor fee. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that the value may be worth more or less than the original value.
Not FDIC Insured • May Lose Value • No Bank Guarantee