Yield Advantage Limited Duration
Q1 2021 | March 31, 2021
Annualized Returns (%)
|QTD||YTD||1 Year||3 Years||5 Years||7 Years||10 Years||Since Inception1|
|Gross of fees||-0.40||-0.40||4.95||3.17||2.42||2.12||2.01||2.03|
|Net of fees||-0.43||-0.43||4.84||3.07||2.32||2.02||1.91||1.93|
|1 Inception Date: June 30, 2010 2 Benchmark: Bank of America Merrill Lynch 1-3 Year US Corporate & Government Index|
|Portfolio Weight||Benchmark Weight|
|Weighted Average Life||2.55||1.96|
|Average Weighted Coupon||2.28||1.81|
|Average Quality (Moody’s)||A2||Aa1|
Sector Weights (%)
|Portfolio Weight||Benchmark Weight|
Duration Distribution (%)
|Portfolio Weight||Benchmark Weight|
- Significantly enhanced credit diversification
- Seeks to only own credits that are readily marketable
- Wisdom of experienced investment team
- Corporate culture built on client service and diversity
*Total product assets shown above may include accounts that are not reflected in the GIPS composite performance.
Portfolio characteristics are subject to change, and current holdings may differ. Past performance is not an indication of future results. A complete list of firm composites and performance results is available upon request. Additional disclosures are found at the end of this presentation. Statistics shown are supplemental information to the GIPS compliant presentation at the end of this presentation. Results represent preliminary data which is subject to change.
The information provided on this page should be considered supplemental. For complete performance data, please see the Xponance® Yield Advantage Limited Duration disclosures below.
Charles L. Curry, Jr
Managing Director, Sr. Portfolio Manager, U.S. Fixed Income
Noel McElreath, CFA
Director, Portfolio Manager, U.S. Fixed Income
Xponance® is a multistrategy investment firm offering strategies across equity and fixed income. We are independent and employee owned by women and diverse professionals, whose common passion is to do the right thing for our clients and each other. Xponance® is the successor firm representing the integration of two great legacy firms, FIS Group, Inc. and Piedmont Investment Advisors, LLC
The Xponance® Limited Duration strategy will invest in a well-diversified liquid portfolio of high-quality fixed income instruments with an average maturity of less than three years. The Strategy will seek to preserve capital and to generate a positive absolute return while following a prudent fundamental credit research strategy.
The limited duration strategy is typically a laddered, credit intensive portfolio that significantly underweights treasury securities that in turn reflects a consistent yield advantage relative to the benchmark. The strategy has low turnover and reflects a goal of realizing the incremental purchased yield to maturity. The relatively short average life dampens mark to market volatility and effectively lets book yield win.
|Benchmark||Bank of America Merrill Lynch 1-3 Year US Corporate & Government Index|
|Total Product Assets*||$130mm|
|Vehicle(s) available||Separately managed|
Annualized Disclosure Presentation
|Composite Assets||Annualized Performance Results (%)||3 Year Ex-Post Standard Deviation (%)|
|Year End||Total Firm Assets ($mm)||USD ($mm)||Number of Accounts||Composite Gross||Composite Net||Benchmark1||Composite Dispersion (%)||Composite||Benchmark1|
|2019||5,411||111||5 or fewer||4.47||4.36||4.07||N/A2||0.72||0.89|
|2018||4,026||107||5 or fewer||1.69||1.59||1.64||N/A2||0.75||0.79|
|2017||6,817||64||5 or fewer||1.63||1.54||0.85||N/A2||0.74||0.71|
|2016||6,249||63||5 or fewer||2.58||2.48||1.28||N/A2||0.79||0.73|
|2015||5,577||61||5 or fewer||0.54||0.46||0.67||N/A2||0.75||0.57|
|2014||2,542||61||5 or fewer||1.29||1.17||0.80||N/A2||0.81||0.49|
|2013||2,731||60||5 or fewer||1.03||0.93||0.70||N/A2||0.85||0.54|
|2012||3,425||47||5 or fewer||2.95||2.83||1.48||N/A2||N/A4||N/A4|
|2011||3,441||46||5 or fewer||1.27||1.17||1.56||N/A2||N/A4||N/A4|
|20103||3,449||45||5 or fewer||1.23||1.17||0.86||N/A2||N/A4||N/A4|
1 Benchmark: Bank of America Merrill Lynch 1-3 Year US Corporate & Government Index 2 The internal dispersion is not presented for those periods marked “N/A” because the composite did not have at least six portfolios for the entire annual period. 3 Results shown for the year 2010 represent partial period performance from July 1, 2010 through December 31, 2010. 4 Not shown because 36 monthly returns are not available..
The 3-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. Standard deviation is not required for periods prior to 2011. Xponance,® Inc. (“Xponance®”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Xponance® has been independently verified for the periods from November 1, 1998 through December 31, 2019. A copy of the verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compli- ance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. . GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
On August 31, 2018, FIS Group, Inc. (“FIS Group”) acquired Piedmont Investment Advisors, Inc.’s (“PIA”) predecessor, Piedmont Investment Advisors, LLC. Xponance,® Inc. (“Xponance®”) is an independent, registered investment adviser and is the successor registrant under the Investment Advisers Act of 1940 (the “Advisers Act”) to both FIS Group and its wholly-owned subsidiary, PIA. Pursuant to a corporate rebranding and consolidation strategy, Xponance® was established effective April 1, 2020, to leverage the long histories of its predecessor entities in providing customized investment management products to institutional clients. FIS Group (through its former subsidiaries, Fiduciary Investment Solutions, Inc. and FIS Funds Management, Inc.) managed assets since 1996 and PIA (through its former affiliate Piedmont Investment Advisors, LLC) began managing assets in 2000. The firm maintains a complete list of composite descriptions, which is available upon request.
Total firm assets presented through, and including, Calendar Year 2019 represent total firm assets for PIA, prior to April 1, 2020, this composite was managed by legacy firm PIA. Total firm assets presented post April 1, 2020 represent the total firm assets of Xponance®.
Yield Advantage Limited Duration Composite contains fully discretionary core fixed income accounts with a one to five-year maturity horizon and is measured against the Bank of America Merrill Lynch 1-3 Year U.S. Corporate/ Government Bond Index. The product typically has 80-100 holdings with duration ranging from 90 to 110% of the prospective index and a predicted tracking error of 0.25 to 0.50%. The Yield Advantage Limited Duration Composite was created June 30, 2010.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. Xponance® maintains a significant cash flow policy. A significant cash flow has been defined as any client requested cash withdrawal where we must execute trades to generate the requested cash. We will remove the cash from the account the day we raise the cash; therefore, significant cash flows out of an account will be treated as a temporary account and the member account will remain in the composite.
The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using actual management fees.
The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.