DBLTX – Q3 2019 Commentary
Overview:
The DoubleLine Total Return Bond Fund underperformed its benchmark during the quarter, as well as YTD. This underperformance was heavily driven by the shorter duration of the Fund compared to its benchmark, as we saw 2-year and 10-year rates decline 13bps and 34bps, respectively.
MWTIX – Q3 2019 Commentary
Overview:
The MetWest Total Return Bond Fund was approximately in line (slightly under) with its benchmark during the quarter, but has slightly outperformed during the year. The slight underperformance was heavily driven by the shorter duration positions during August, as well as the Treasury futures allocation. While falling rates and exceeding financial rates compared to yields created a lag for some of MWTIX’s holdings, other allocations in corporate credit brought positive returns.
TCPNX – Q3 2019 Commentary
Overview:
The Touchstone Impact Bond Fund slightly outperformed its benchmark during the quarter, yet underperformed YTD. This underperformance for the year has been heavily driven by the funds allocation to mortgages, including the funds’ underweight on agency single-family MBS, which underperformed agency multi-family MBS (fund is overweight here).
WATFX – Q3 2019 Commentary
Overview:
The Western Asset Core Bond Fund slightly outperformed its benchmark during the quarter, while outperforming at a greater scale YTD. This outperformance was heavily driven by the tactical duration positioning and yield curve positioning as rates moved lower and the yield curve began to flatten out during the quarter.
