Brandes - U.S. Institutions - Core Plus Fixed Income Strategy

Investment Strategies

There’s More to Fixed Income than U.S. Government Bonds

  • Flexibility — Designed for income-oriented investors who are also seeking some potential value from active management of their bond portfolios.
  • Focus — 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.

Partner with a Pioneer in Global Value Investing

  • Experienced Professionals — The Investment Committee is composed of experienced professionals who have managed extreme market cycles.
  • Commitment to Transparent, Easy to Understand Investment Process — The firm consistently applies a Graham-and-Dodd, value investing approach centered on a research-driven process of purchasing potentially undervalued companies with the goal of capturing future price appreciation.
  • Independent Point of View — Brandes Investment Partners is a 100% employee owned firm and its strategies are unhindered by sales quotas or any outside influence that may impede the firm’s pursuit of investment management excellence.

Past performance is not a guarantee of future results.

No investment strategy can assure a profit or protect against loss. Diversification does not assure a profit or protect against a loss in a declining market.

Duration is defined as the weighted maturity of a fixed-income investment’s cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates.

Cash-pay securities offer a fixed coupon rate of interest that is paid in cash, usually in semiannual payments, through the maturity or call date. (Source: sifma.org-Securities Industry and Financial Market Association)

The Bloomberg Barclays 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. 

Unlike bonds issued or guaranteed by the U.S. government or its agencies, stocks and other bonds are not backed by the full faith and credit of the United States. Stock and bond prices will experience market fluctuations. Please note that the value of government securities and bonds in general have an inverse relationship to interest rates. Bonds carry the risk of default, or the risk that an issuer will be unable to make income or principal payment. There is no assurance that private guarantors or insurers will meet their obligations. The credit quality of the investments in the portfolio is no guarantee of the safety or stability of the portfolio. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.

This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance.

The Brandes Core Plus Fixed Income Strategy seeks long-term returns in excess of its benchmark (the Bloomberg Barclays 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 strategy 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 strategy’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. We expect the strategy to be invested in approximately 60-110 issues. There is no limitation on the strategy’s investment in U.S. government securities, but investment in each of MBS, ABS and corporate debt obligations will be limited to 60% of the overall investments.

The strategy benchmark is the Bloomberg Barclays U.S. Aggregate Bond Index.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

GIPS® Compliant Presentation:

Annualized Performance (Net)

THROUGH March 31, 2019 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
Since Inception 12/31/1999
Core Plus Fixed Income
3.64%
2.78%
2.65%
3.17%
6.64%
4.40%
5.56%
Primary Benchmark (a)
4.48%
2.03%
2.74%
2.48%
3.77%
3.89%
4.93%
Relative Performance
-0.84%
0.75%
-0.09%
0.69%
2.87%
0.51%
0.63%

Annualized Performance (Gross)

THROUGH March 31, 2019 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
Since Inception 12/31/1999
Core Plus Fixed Income
3.92%
3.06%
2.93%
3.48%
6.95%
4.72%
5.89%
Primary Benchmark (a)
4.48%
2.03%
2.74%
2.48%
3.77%
3.89%
4.93%
Relative Performance
-0.56%
1.03%
0.19%
1.00%
3.18%
0.83%
0.96%

Annual Periods (Net)

THROUGH March 31, 2019 | REPORTING CURRENCY: USD
 
2018
2017
2016
2015
2014
2013
2012
Core Plus Fixed Income
-0.26%
3.09%
5.84%
-1.15%
4.71%
0.73%
10.34%
Primary Benchmark (a)
0.01%
3.54%
2.65%
0.55%
5.97%
-2.02%
4.22%
 
2011
2010
2009
2008
2007
2006
2005
Core Plus Fixed Income
5.25%
12.53%
23.20%
-16.20%
4.24%
7.38%
3.41%
Primary Benchmark (a)
7.84%
6.54%
5.93%
5.24%
6.97%
4.33%
2.43%
 
2004
2003
2002
2001
2000
Core Plus Fixed Income
7.24%
13.90%
6.08%
8.76%
10.20%
Primary Benchmark (a)
4.34%
4.10%
10.25%
8.44%
11.63%

Quarterly Performance (Net And Gross)

THROUGH March 31, 2019 | REPORTING CURRENCY: USD
Year
 
1Q
2Q
3Q
4Q
YTD
2019
NET
GROSS
Primary Benchmark (a)
-00 3.03%
-00 3.10%
-00 2.94%
-0000000
-0000000
-0000000
-0000000
-0000000
-0000000
-0000000
-0000000
-0000000
-00 3.03%
-00 3.10%
-00 2.94%
2018
NET
GROSS
Primary Benchmark (a)
00 -0.85%
00 -0.78%
00 -1.46%
-00 0.23%
-00 0.30%
00 -0.16%
-00 0.06%
-00 0.13%
-00 0.02%
-00 0.30%
-00 0.37%
-00 1.64%
00 -0.26%
-00 0.01%
-00 0.01%
2017
NET
GROSS
Primary Benchmark (a)
-00 1.10%
-00 1.17%
-00 0.82%
-00 1.26%
-00 1.33%
-00 1.45%
-00 0.87%
-00 0.94%
-00 0.85%
00 -0.18%
00 -0.11%
-00 0.39%
-00 3.09%
-00 3.36%
-00 3.54%
2016
NET
GROSS
Primary Benchmark (a)
-00 3.27%
-00 3.34%
-00 3.03%
-00 3.19%
-00 3.27%
-00 2.21%
-00 1.43%
-00 1.50%
-00 0.46%
00 -2.08%
00 -2.01%
00 -2.98%
-00 5.84%
-00 6.14%
-00 2.65%
2015
NET
GROSS
Primary Benchmark (a)
-00 1.61%
-00 1.68%
-00 1.61%
00 -0.90%
00 -0.83%
00 -1.68%
-00 0.21%
-00 0.28%
-00 1.23%
00 -2.04%
00 -1.96%
00 -0.57%
00 -1.15%
00 -0.86%
-00 0.55%
2014
NET
GROSS
Primary Benchmark (a)
-00 1.84%
-00 1.93%
-00 1.84%
-00 1.76%
-00 1.84%
-00 2.04%
00 -0.13%
00 -0.05%
-00 0.17%
-00 1.16%
-00 1.24%
-00 1.79%
-00 4.71%
-00 5.03%
-00 5.97%
2013
NET
GROSS
Primary Benchmark (a)
-00 1.17%
-00 1.26%
00 -0.12%
00 -2.06%
00 -1.98%
00 -2.32%
-00 0.74%
-00 0.83%
-00 0.57%
-00 0.91%
-00 1.00%
00 -0.14%
-00 0.73%
-00 1.07%
00 -2.02%
2012
NET
GROSS
Primary Benchmark (a)
-00 3.68%
-00 3.77%
-00 0.30%
-00 1.49%
-00 1.58%
-00 2.06%
-00 3.81%
-00 3.90%
-00 1.58%
-00 1.01%
-00 1.10%
-00 0.22%
-0 10.34%
-0 10.72%
-00 4.22%
2011
NET
GROSS
Primary Benchmark (a)
-00 2.08%
-00 2.15%
-00 0.42%
-00 1.97%
-00 2.04%
-00 2.29%
00 -0.14%
00 -0.06%
-00 3.82%
-00 1.26%
-00 1.33%
-00 1.12%
-00 5.25%
-00 5.55%
-00 7.84%
2010
NET
GROSS
Primary Benchmark (a)
-00 4.50%
-00 4.58%
-00 1.78%
-00 2.17%
-00 2.24%
-00 3.49%
-00 4.56%
-00 4.64%
-00 2.48%
-00 0.80%
-00 0.87%
00 -1.30%
-0 12.53%
-0 12.86%
-00 6.54%
2009
NET
GROSS
Primary Benchmark (a)
00 -1.03%
00 -0.95%
-00 0.12%
-0 10.80%
-0 10.88%
-00 1.78%
-00 9.12%
-00 9.20%
-00 3.74%
-00 2.96%
-00 3.04%
-00 0.20%
-0 23.20%
-0 23.57%
-00 5.93%
2008
NET
GROSS
Primary Benchmark (a)
00 -1.29%
00 -1.22%
-00 2.17%
00 -0.49%
00 -0.42%
00 -1.02%
00 -9.50%
00 -9.43%
00 -0.49%
00 -5.73%
00 -5.65%
-00 4.58%
0 -16.20%
0 -15.95%
-00 5.24%
2007
NET
GROSS
Primary Benchmark (a)
-00 1.65%
-00 1.72%
-00 1.50%
00 -0.58%
00 -0.51%
00 -0.52%
-00 1.53%
-00 1.59%
-00 2.84%
-00 1.59%
-00 1.66%
-00 3.00%
-00 4.24%
-00 4.53%
-00 6.97%
2006
NET
GROSS
Primary Benchmark (a)
-00 0.73%
-00 0.81%
00 -0.65%
-00 0.45%
-00 0.54%
00 -0.08%
-00 3.83%
-00 3.89%
-00 3.81%
-00 2.21%
-00 2.41%
-00 1.24%
-00 7.38%
-00 7.83%
-00 4.33%
2005
NET
GROSS
Primary Benchmark (a)
00 -0.16%
00 -0.08%
00 -0.48%
-00 3.13%
-00 3.22%
-00 3.01%
-00 0.01%
-00 0.10%
00 -0.67%
-00 0.42%
-00 0.50%
-00 0.59%
-00 3.41%
-00 3.76%
-00 2.43%
2004
NET
GROSS
Primary Benchmark (a)
-00 2.61%
-00 2.70%
-00 2.66%
00 -1.24%
00 -1.16%
00 -2.44%
-00 3.66%
-00 3.75%
-00 3.20%
-00 2.08%
-00 2.16%
-00 0.95%
-00 7.24%
-00 7.60%
-00 4.34%
2003
NET
GROSS
Primary Benchmark (a)
-00 2.45%
-00 2.54%
-00 1.39%
-00 7.34%
-00 7.44%
-00 2.50%
-00 1.28%
-00 1.37%
00 -0.15%
-00 2.27%
-00 2.35%
-00 0.32%
-0 13.90%
-0 14.30%
-00 4.10%
2002
NET
GROSS
Primary Benchmark (a)
00 -0.61%
00 -0.52%
-00 0.09%
-00 1.39%
-00 1.48%
-00 3.69%
-00 2.56%
-00 2.65%
-00 4.58%
-00 2.64%
-00 2.73%
-00 1.57%
-00 6.08%
-00 6.45%
-0 10.25%
2001
NET
GROSS
Primary Benchmark (a)
-00 3.49%
-00 3.57%
-00 3.04%
-00 0.79%
-00 0.88%
-00 0.56%
-00 3.63%
-00 3.72%
-00 4.61%
-00 0.62%
-00 0.71%
-00 0.05%
-00 8.76%
-00 9.14%
-00 8.44%
2000
NET
GROSS
Primary Benchmark (a)
-00 2.18%
-00 2.27%
-00 2.21%
-00 1.90%
-00 1.97%
-00 1.74%
-00 2.97%
-00 3.00%
-00 3.01%
-00 2.78%
-00 2.81%
-00 4.21%
-0 10.20%
-0 10.43%
-0 11.63%

Composite Characteristics

THROUGH March 31, 2019 | REPORTING CURRENCY: USD
Year
#Accts
Assets
(mil)
Dispersion
% of non-fee
paying assets
Total Firm
Assets (mil)
2019
-000,00 8
-000, 247
-000,
-000,
-0 21,033
2018
-000,00 7
-000, 224
-00 0.14
-00 0
-0 19,590
2017
-000,00 5
-000, 176
-00 0.32
-00 0
-0 25,578
2016
-000,00 8
-000, 157
-00 0.38
-00 0
-0 22,971
2015
-000,0 11
-000, 140
-00 0.22
-00 0
-0 20,666
2014
-000,00 8
-000, 114
-00 0.35
-0 28
-0 20,722
2013
-000,0 11
-000, 116
-00 0.51
-0 26
-0 21,464
2012
-000,0 12
-000, 133
-00 0.66
-0 24
-0 22,171
2011
-000,0 12
-000, 224
-00 0.24
-0 15
-0 26,658
2010
-000,0 14
-000, 225
-00 0.82
-0 14
-0 38,659
2009
-000,0 14
-000, 195
-00 3.69
-00 4
-0 42,152
2008
-000,0 14
-000, 146
-00 2.07
-00 4
-0 40,591
2007
-000,0 13
-000, 179
-00 0.23
-00 4
-0 83,242
2006
-000,00 4
-000,0 36
-00, N/A
-0 17
-0 85,974
2005
-000,00 2
-000,0 24
-00, N/A
-0 23
- 101,874
2004
-000,00 2
-000,0 23
-00, N/A
-0 23
-0 98,078
2003
-000,00 1
-000,00 5
-00, N/A
- 100
-0 75,789
2002
-000,00 1
-000,00 7
-00, N/A
-0 58
-0 51,808
2001
-000,00 1
-000,00 7
-00, N/A
-0 59
-0 61,996
2000
-000,00 1
-000,00 5
-00, N/A
-0 69
-0 50,852
THROUGH March 31, 2019 | REPORTING CURRENCY: USD

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.
As of September 30, 2013, Brandes Investment Partners includes the non-SMA Division of Brandes Investment Partners L.P., Brandes Investment Partners (Europe) Limited, Brandes Investment Partners (Asia) Pte Ltd and the Brandes Investment Partners & Co. assets sub-advised by Brandes Investment Partners, L.P. The firm was redefined to reflect the expansion of the organization. As of January 1, 2006, Brandes Investment Partners was divided into two separate divisions: the SMA Division of Brandes Investment Partners, which acts as a discretionary manager to SMA or “wrap fee” program clients, including those who may invest in an SMA product; and the non-SMA Division of Brandes Investment Partners (Brandes), which acts as a discretionary manager for all other types of clients which may include pooled investment vehicles, institutional accounts and high net worth clients outside of wrap fee programs. Although the divisions may share portfolio management and other personnel, each division serves a particular target market, may trade in a different manner and may offer investment advice which differs from the other depending upon the individualized needs of the clients served. The performance data presented does not contain any SMA Division accounts.
The Brandes Core Plus Fixed Income Composite seeks long-term returns in excess of its benchmark (the Bloomberg Barclays 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.
Brandes claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions and/or presentation that complies with GIPS standards, contact client service at 800-237-7119 or write 11988 El Camino Real, Suite 600, P.O. Box 919048, San Diego, California 92191-9048 or email ClientService@Brandes.com.
(a) The Bloomberg Barclays 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.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

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