Yield Advantage Opportunistic Core
Q3 2024 | September 30, 2024
Annualized Returns (%)
| QTD | YTD | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years | Since Inception1 | |
| Gross of fees | 5.14 | 5.84 | 13.18 | -0.75 | 1.15 | 2.03 | 2.35 | 3.60 |
| Net of fees | 5.10 | 5.71 | 13.00 | -0.91 | 1.00 | 1.87 | 2.19 | 3.40 |
| Benchmark | 5.20 | 4.45 | 11.57 | -1.39 | 0.33 | 1.47 | 1.84 | 3.20 |
| 1 Inception Date: June 30, 2003 2 Benchmark: Bloomberg Barclays U.S. Aggregate Index | ||||||||
Characteristics
| Portfolio Weight | Benchmark Weight | |
| Average Duration | 6.06 | 6.05 |
| Weighted Average Life | 8.26 | 8.27 |
| Average YTM | 4.77 | - |
| Average YTW | 4.75 | 4.23 |
| Average Weighted Coupon | 4.00 | 3.38 |
| Average Quality (Moody’s) | A1 | Aa2 |
Sector Weights (%)
| Portfolio Weight | Benchmark Weight | |
| Cash | 1.17 | - |
| U.S. Treasury | 15.95 | 43.05 |
| Govt-Related | 3.71 | 0.73 |
| Credit | 45.78 | 27.79 |
| Securitized | 33.39 | 28.43 |
Duration Distribution (%)
| Portfolio Weight | Benchmark Weight | |
| 0-1 Year | 5.00 | 0.95 |
| 1-3 Years | 15.88 | 27.63 |
| 3-5 Years | 20.87 | 21.78 |
| Over 5 Years | 58.25 | 49.64 |
Distinguishing Attributes
- Significantly enhanced credit diversification
- Focused on directional changes in the price of risk
- 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 Global Investment Performance Standards (GIPS®)* report below. Portfolio characteristics are subject to change, and current holdings may differ. Past performance is not an indication of future results. Returns are presented gross and net of management fees and include the reinvestment of all income.  A GIPS report is found at the end of this presentation. Statistics shown above are supplemental information to the GIPS report at the end of this presentation. Results represent preliminary data which is subject to change. For further performance data, please see the Xponance® Yield Advantage Opportunistic Core disclosures below.
*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.
Portfolio Management
Charles L. Curry, Jr.
Managing Director, Sr. Portfolio Manager, U.S. Fixed Income
Noel McElreath, CFA
Sr. Director, Sr. Portfolio Manager, U.S. Fixed Income
About Xponance®
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
Investment Objective
The Xponance® Opportunistic Core strategy is a yield maximizing total return bond strategy with primary investment objectives of current income and capital preservation. A secondary investment objective is long-term capital appreciation. The Strategy invests at least 85% of its debt exposure around securities within the Bloomberg Aggregate benchmark.
Investment Strategy
The strategy goal is to deliver long-term results that maximize yield’s contribution to total return within a risk-aware framework. This includes a cyclical/trend assessment of granular economic data in concert with a fundamental assessment of risk premia. The strategy’s differentiated exposure includes index securities as well as out of index exposure such as high yield, FRNs, TIPS and other market opportunities.
All portfolios are managed within a diversified, risk-adjusted framework. Client driven risk parameters dictate our non-index exposure.
Portfolio Facts
| Benchmark | Bloomberg U.S. Aggregate Index |
| Inception | 6/30/2003 |
| Total Product Assets | $1,605mm |
| Vehicles Available | Separately managed |
Trailing period performance as of 9/30/20241
| (%) | QTD | CYTD | 1-Year | 3-Years | 5-Years | 10-Years | Since Inception | Inception Date | |||||||||||||||||||
| Composite Gross | 5.14 | 5.84 | 13.18 | -0.75 | 1.15 | 2.35 | 3.60 | 6/30/2003 | |||||||||||||||||||
| Composite Net | 5.10 | 5.71 | 13.00 | -0.91 | 1.00 | 2.19 | 3.40 | ||||||||||||||||||||
| Index | 5.20 | 4.45 | 11.57 | -1.39 | 0.33 | 1.84 | 3.20 | ||||||||||||||||||||
| 1 Benchmark: Bloomberg Barclays U.S. Aggregate Index Past performance is not indicative of future results. Periods greater than 1 year are annualized. The U.S. Dollar is the currency used to express performance. Investments in fixed income involve risks, including the loss of principal invested. This strategy's returns may fluctuate in response to one or more of many factors, that include financial condition of individual companies; the business market in which individual companies compete; industry market conditions; interest rates; general economic environments; portfolio management activities; and data or modeling risk where proprietary models are used in the management of the strategy. The strategy is subject to general market risk, interest rate risk, credit (issuer and counterparty) risk, and liquidity risk. General market risk is the risk that the value of the securities owned in the strategy may underperform because of exogenous market factors such as cyclical or geopolitical. Interest rate risk is the risk the values of bonds will change by changes in interest rates. If rates increase, the value of bonds declines in general on a mark to market (price)basis with the offsetting caveat of higher yields . Credit risk is the risk the value of investments may change because of changes in creditworthiness of issuers of debt securities and improbable yet potential default of counterparties in investment transactions. Liquidity risk is the risk the Fund may have a realized loss when it sells securities to raise cash for redemption requests by other bondholders. Gross of fee returns are presented before management fees, but after custodial fees and transaction costs and include the reinvestment of all income. Net of fee returns reflect the deduction of the actual management fees (including performance-based fees) from the monthly gross of fee returns. Actual management fees incurred by clients may vary. Prior to June 30, 2004, net of fee returns were calculated using a dollar-weighted average fee. The standard management fee schedule is as follows: First $50mm: 30 bps; Next $25mm: 28 bps; Next $25mm: 25 bps; Over $100mm: 20 bps. Fees are charged to clients on a quarterly basis. Fees are calculated as a percentage of assets under management and vary based upon the type of product and the total amount of assets under management. The percentage fee is expressed terms of basis points ("BPS") for our products. One hundred basis points equal 1%. All fees are negotiable. Xponance claims compliance with the Global Investment Performance Standards (GIPS®). To obtain GIPS-compliant performance information for the firm's strategies and products, please contact info@xponance.com. The firm maintains a complete list and description of composites and limited distribution pooled fund(s) which is available upon request. Please refer to the GIPS® report for additional performance information which is included on the next page of this presentation. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. | |||||||||||||||||||||||||||
Annual Disclosure Presentation
| Performance Results (%) | 3-Yr Annualized Ex-Post Standard Deviation (%) | ||||||||||||||||||||||
| Year End | Composite Gross TWR | Composite Net TWR | Benchmark1 | Composite Gross | Benchmark1 | Number of Portfolios | Internal Dispersion (%) | Composite Assets ($mm) | Total Firm Assets ($mm) | ||||||||||||||
| 2023 | 6.43 | 6.27 | 5.53 | 6.76 | 7.14 | 8 | 0.29 | 1,475 | 16,613 | ||||||||||||||
| 2022 | -13.31 | -13.44 | -13.01 | 5.98 | 5.77 | 8 | 0.25 | 1,309 | 13,512 | ||||||||||||||
| 2021 | -0.34 | -0.49 | -1.54 | 3.94 | 3.36 | 8 | 0.19 | 1,534 | 14,866 | ||||||||||||||
| 2020 | 8.93 | 8.77 | 7.51 | 3.85 | 3.35 | 6 | 0.56 | 1,460 | 12,493 | ||||||||||||||
| 2019 | 8.53 | 8.37 | 8.72 | 2.63 | 2.87 | 7 | 0.12 | 1,383 | 5,411 | ||||||||||||||
| 2018 | -0.44 | -0.61 | 0.01 | 2.55 | 2.84 | Five or fewer | N/A | 981 | 4,026 | ||||||||||||||
| 2017 | 4.10 | 3.90 | 3.54 | 2.60 | 2.78 | 6 | 0.09 | 1,102 | 6,817 | ||||||||||||||
| 2016 | 4.34 | 4.15 | 2.65 | 2.85 | 2.98 | Five or fewer | N/A | 759 | 6,249 | ||||||||||||||
| 2015 | 0.23 | 0.05 | 0.55 | 2.94 | 2.88 | Five or fewer | N/A | 629 | 5,577 | ||||||||||||||
| 2014 | 5.59 | 5.41 | 5.97 | 2.84 | 2.63 | Five or fewer | N/A | 699 | 2,542 | ||||||||||||||
| Composite inception date: June 30, 2003 1 Benchmark: Bloomberg U.S. Aggregate Index 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, 2023. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. 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 list of composite descriptions and limited distribution pool fund(s) descriptions, which is available upon request. Xponance is an investment adviser registered with the United States Securities and Exchange Commission ("SEC"). Our registration as an investment adviser does not imply any level of skill or training and the information in this report has not been approved or verified by the SEC or by any state securities authority. 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 Opportunistic Core Composite contains fully discretionary core fixed income accounts that maintain a minimum average credit quality of A- with non-investment grade holdings capped at 15% of the portfolio. Other spread sectors include mortgage-backed and asset-backed securities in addition to potential non-index exposure to Tips and floating rate paper. This strategy is measured against the Bloomberg U.S. Aggregate Bond Index. The product typically has 75-150 holdings, with duration ranging from 90 to 112% of the prospective index and a predicted tracking error of 0.75 to 1.50%. The Yield Advantage Opportunistic Core Composite was created June 30, 2003. Results are based on fully discretionary accounts under management. Accounts that are no longer with the firm are included through the last full measurement period such accounts were managed in the composite's style. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance. The composite maintains a significantcash flow policy. Effective 9/30/2022, for cash flows 25% or greater in Fixed income accounts, we will remove the member account from the composite until trading is complete. Gross of fee returns are presented before management fees, but after custodial fees and transaction costs and include the reinvestment of all income. Net of fee returns reflect the deduction of the actual management fees (including performance-based fees) from the monthly gross of fee returns. Actual management fees incurred by clients may vary. Prior to June 30, 2004, net of fee returns were calculated using a dollar-weighted average fee. The maximum fee for the Yield Advantage Opportunistic Core Common Trust Fund is 0.30%. The standard management fee schedule is as follows: First $50mm: 30 bps; Next $25mm: 28 bps; Next $25mm: 25 bps; Over $100mm: 20 bps. Fees are charged to clients on a quarterly basis. Fees are calculated as a percentage of assets under management and vary based upon the type of product and the total amount of assets under management. The percentage fee is expressed terms of basis points ("BPS") for our products. One hundred basis points equal 1%. All fees are negotiable. The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period. Internal dispersion presented is an equal-weighted standard deviation of annual gross returns of those portfolios that were in the composite for the entire year. For those years when less than six portfolios were included in the composite for the full year, no dispersion measure is presented. Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request. | |||||||||||||||||||||||