Spread widening was also a significant characteristic of the fixed income markets during the first quarter. Yields on non-investment grade bonds increased over 80 basis points amid mutual fund outflows. In general, our portfolios are invested to achieve a shorter duration and a greater exposure to corporate bonds than their respective benchmarks. Although our corporate bond position was a drag on performance, it was partially mitigated by our decision to maintain our shorter than index duration. We believe that corporate spreads over Treasuries continue to be attractive, and therefore we are maintaining this strategy.
Past performance is no guarantee of future results.
All material is compiled from sources deemed to be reliable but accuracy and completeness cannot be guaranteed. Earnings and growth estimates are based on advisor's analysis of independently obtained information. The data presented is taken from publicly available information and is based on advisor's best efforts to present factual information. Given the inherent volatility of the securities markets, it should not be assumed that future investors will experience returns, if any, comparable to those discussed herein. Small company investing involves greater opportunity for growth, but may also involve greater risks, including more limited earnings histories and product lines and greater price volatility.