What is 3Twelve?
3TWELVE MAY BE THE FIRST GLOBAL, INDEXED, EQUALLY WEIGHTED FIXED-INCOME STRATEGY
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3Twelve Total Bond is an equally weighted, index-based strategy that invests in each major taxable bond category. The strategy, which seeks total return from income and capital appreciation, uses 12 major bond asset classes in an effort to enhance performance and reduce risk.
3 Reasons 3Twelve
INNOVATIVE
3Twelve may be a first. We are not aware of any fully-diversified, equally-weighted, index-based bond strategy besides 3Twelve.
PERFORMANCE
Equal-weighting can make a significant difference for long-term returns. See our White Paper for details.
DEMAND
According to ICI Fact Book 2024, Multi-Sector Bond (the 3Twelve category) was the only major taxable bond category that had net inflows.
Why a Total Bond Portfolio?
The industry has resisted creating a diversified equally-weighted global bond strategy, in part, because bonds are perceived to have lower dispersions of returns than stocks.
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This is not true. When you add significantly more bond categories performance may improve.
Bond investors' biggest fear?
From 12/20 - 12/23 the Federal Funds Rate jumped from .09% to 5.33%, the fastest rise in history. (When rates rise, bonds typically drop in value.) See, below, how well 3Twelve performed against four major bond benchmarks during this period:
The information contained herein is for educational purposes only and is not to be considered investment advice nor a recommendation of any fund, product or investment. Information is obtained from third-party sources which are believed to be reliable, but have not been independently verified. Index returns only--indexes are not investable. Bloomberg US Agg: A broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Bloomberg US Government Bond Index: comprised of the US Treasury and US Agency Indices. The index includes US dollar denominated, fixed-rate, nominal US Treasuries and US agency debentures. FTSE WGBI: A broad index providing exposure to the global sovereign fixed income market, the index measures the performance of fixed-rate, local currency, investment-grade sovereign bonds. It comprises sovereign debt from over 20 countries, denominated in a variety of currencies. The Bloomberg US GNMA Index tracks the performance of fixed-rate, mortgage-backed pass-through securities guaranteed by the Government National Mortgage Association (GNMA or Ginnie Mae). Past performance is no guarantee of future returns.