Core Fixed

Managed Account
$2MM
AUM
7/1/2002
Inception Date
$2MM
AUM
7/1/2002
Inception Date

Strategy Overview

Our fixed income investment philosophy emphasizes a unique and defined tactical allocation approach to fixed income management, with the following strategic and tactical factors:

Strategic:

  • Global Macro Considerations
  • Yield Curve Management
  • Sector Considerations

 

Tactical:

  • Security Selection
  • Relative Valuation
  • Break-even analysis vs. risk free investments
Strategy Facts
Inception Date
7/1/2002
Total Assets
$2MM
Benchmark
Bloomberg US Aggregate Index
Diversification
Portfolios may purchase up to 25% of non-credit issues to maintain sufficient liquidity
Portfolio Construction
No non-government security will exceed 5% of total market value at time of purchase

Performance

Trailing Returns
(as of 09/30/2024)

Average Annualized Performance %
(as of 09/30/2024)

  QTD YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Since Inception (7/1/02)
Core Fixed Income (Gross) 5.14 4.81 11.06 0.47 1.58 2.15 3.71
Core Fixed Income (Net) 5.04 4.49 10.62 0.07 1.17 1.75 3.29
Bloomberg US Aggregate Index 5.20 4.45 11.57 -1.39 0.33 1.84 3.51
Past performance does not guarantee future results.
Sources throughout this presentation: Congress Asset Management, Bloomberg Finance L.P., and Morningstar Direct. The information throughout this presentation is for illustrative purposes and is subject to change at any time. Holdings and sector weightings are subject to change and should not be considered investment advice or a recommendation to buy or sell a particular security. Past performance does not guarantee future results. Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce investment performance. This information is supplemental to the GIPS Report. Performance returns of less than one year are not annualized.

Risk/Return(as of 09/30/2024)

Core Fixed Income (Gross) Core Fixed Income (Net) Bloomberg US Aggregate Index
Standard Deviation % 3.80 3.80 4.35
Alpha 0.53 0.13
Beta 0.82 0.82 1.00
Sharpe Ratio 0.56 0.46 0.45
Tracking Error 1.43 1.43
Information Ratio 0.15 -0.14
Data shown is since inception of July 1, 1997.

Portfolio

Distribution by Duration1%
(as of 09/30/2024)

Core Fixed Composite Bloomberg US Aggregate Index
Under 1 yr. 13.8 0.5
1-3 yrs. 21.7 26.6
3-5 yrs. 14.6 21.9
5-7 yrs. 16.6 18.8
7-10 yrs. 12.7 15.5
10 yrs. + 20.7 16.7

Maturity Allocation1%(as of 09/30/2024)

Ratings Distribution1%(as of 09/30/2024)

Sector Allocation1%(as of 09/30/2024)

Characteristics1%
(as of 09/30/2024)

Core Fixed Composite Bloomberg US Aggregate Index
Average YTM 4.18 4.23
Average Maturity (yrs) 8.50 8.36
Average Coupon (%) 3.96 3.37
Average Duration 5.90 6.20
Average Rating Aa3 AA2/AA3
1Actual client account holdings and sector allocations may vary. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”)., used under license. Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.” and (ii) Licensee shall not use or distribute Data or Derived Data in any manner that, in Licensor’s good faith judgment, adversely affects Bloomberg’s (or any of its Data Providers’) ability to license the Data or would cause the use and distributions thereof to be a functional source of, or a substitute for, data otherwise commercially available from Bloomberg or any of its Data Providers.

Top 10 Issuers
(as of 09/30/2024)

United States of America 39.8
Honda Auto Receivables Owner Trust 6.4
Nissan Auto Lease Trust 4.7
Comcast Corp 2.6
Bristol-Myers Squibb Co 2.5
Pfizer Inc 2.5
BHP Group Ltd 2.5
Deere & Co 2.5
Duke Energy Corp 2.5
Toyota Motor Corp 2.4
Total 68.3

Materials

Holding, portfolio characteristics, performance, and risk data pertain to the Core Fixed Income Composite. Congress Asset Management claims compliance with the Global Investment Performance Standards (GIPS®). This information is supplemental to the GIPS report.

The materials are being provided for illustrative and informational use only. Performance returns of less than one year are not annualized. Prior performance results are based on accounts that do not participate in a wrap delivery program with investment and operational differences such as account size and/or level of customization. There may be other reasons why the performance results differ from those of an individual account managed in the same or a substantially similar investment strategy. For example, individual accounts may differ from the strategy when applying client-requested restrictions.

There is no guarantee that the wrap portfolio will continue to hold any particular security and securities are held in varying percentages. Holdings are subject to change since the portfolio is actively managed. Holdings are intended to illustrate the composition and characteristics. Across client portfolios, there may be variations in holdings, characteristics and performance information as dictated by reasons such as diversification needs, specific client guidelines, account size, cash flows, the timing and terms of execution of trades, and differing tax situations.

This strategy involves risk, may not be profitable, may not achieve its objective, and may not be suitable or appropriate for all investors. Investors should consider the investment objectives, risks, and fees of this strategy carefully with their financial professional before investing. Principal loss is possible. Past strategy returns are dependent on the market and economic conditions that existed during the period. Future market or economic conditions can adversely affect the returns.

Index Information

Bloomberg US Aggregate Bond Index is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the U.S. You cannot invest directly in an index.

BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, shall not have any liability or responsibility for injury or damages arising in connection therewith.

Definitions

Yield to Maturity (“YTM”) the rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM includes the current market price, par value, coupon interest rate and time to maturity; and it assumes that all coupons are reinvested at the same rate.

Average Maturity is the weighted average of the maturities of the underlying securities in the portfolio.

Average Coupon (%) is calculated by weighting each bond’s coupon by its relative size in the portfolio.

Average Duration is a measurement of a bond’s interest rate risk that considers a bond’s maturity, yield, coupon and call features. These many factors are calculated into one number that measures how sensitive a bond’s value may be to interest rate changes.

Ratings credit ratings for a rated issuer or security are categorized using the highest credit rating among the following three Nationally Recognized Statistical Rating Organizations (“NRSRO”): Moody’s Investors Service (Moody’s); Standard & Poor’s Rating Services (S&P); or Fitch, Inc. Securities that are not rated by any of these three NRSRO’s (e.g. equity securities, if held) are categorized as Not Rated. All U.S. government securities are included in the U.S. Government category.

Sharpe Ratio is a risk-adjusted measure, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s historical adjusted performance.

Alpha is a measure of the difference between actual returns and expected performance, given the level of risk as measured by Beta, where Beta measures sensitivity to benchmark movements.

Tracking Error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. Information Ratio is a measurement of portfolio returns beyond the returns of a benchmark, usually an index, compared to the volatility of those returns.