Extended Duration Fixed Income

Texas Landscape
Ella Mewhinney  
Learn More About Barrow Hanley's Engagement with the Arts >
About Extended Duration Fixed Income

The strategy, managed by a team with deep experience investing together through multiple market cycles, utilizes the full breadth of the firm’s fundamental research capabilities to identify companies across the market cap spectrum in order to exploit inefficiencies resulting in a differentiated portfolio.

Investment Process

Investment Objective:

Seeks to outperform the Bloomberg Barclays U.S. Treasury STRIPS 20+ Index over a full market cycle.

Investment Overview:

We believe that by using our proprietary total return models we can take advantage of pricing anomalies in the long-dated STRIPS market while staying duration-neutral to the benchmark. By investing in undervalued securities with above-average total return potential, the strategy is well positioned to generate above-average returns over the longterm, while minimizing volatility, and therefore, downside risk. We seek to preserve the natural advantage of STRIPS and to promote stability of the asset class.

Strategy Summary

as of 12/31/2020
Asset Class
US Fixed Income
Investment Style
Bottom-Up Security Selection
Portfolio Benchmark
Bloomberg Barclays U.S. Treasury STRIPS 20+
Separate Account
Open

Additional Information

Media Spotlight

Mark Giambrone Discusses Midterm Elections and Markets on Fox Business
November 7, 2018
View on FoxBusiness.com
Mark Giambrone Discusses Market Trends on CNBC
November 6, 2018
View on CNBC.com>

Portfolio Characteristics

as of 12/31/2020
Portfolio
Bloomberg Barclays US Treasury STRIPS 20+
Average Credit Quality
AA+
AA+
Average Weighted Coupon
0.0
0.0
Average Maturity
25.3
25.8
Effective Duration (yrs)
26.7
27.1
Yield to Worst
1.7
1.7
Current Yield
0.0
0.0

Performance

Annualized Portfolio Returns as of 12/31/2020
Qtr*
1 Year
3 Year
5 Year
10 Year
Extended Duration Fixed Income- Gross Returns
-3.45%
23.82%
13.09%
10.79%
12.13%
Extended Duration Fixed Income- Net Returns
-3.51%
23.57%
12.84%
10.54%
11.88%
Bloomberg Barclays US Treasury STRIPS 20+
-3.79%
24.05%
12.88%
10.64%
11.66%

* Most recent quarter returns are not annualized. Past performance does not guarantee future results and there is no assurance that the Strategy will achieve its investment objective.

Disclosure

Sources for data noted above are from APX, BondEdge and Bloomberg Index Services Limited as of the date specified.

Barrow Hanley gross returns are shown before investment management fees and custody expenses. Index returns do not reflect transaction costs, management fees, and other expenses. Performance is expressed in U.S. currency. Net returns are calculated using a model fee. The model fee is based on the highest tier of a previous standard fee schedule.  Barrow, Hanley, Mewhinney & Strauss, LLC claims compliance with the Global Investment Performance Standards (GIPS®). 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.

Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, "Barclays"), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All institutional product information has been provided by Barrow, Hanley, Mewhinney & Strauss, LLC. Any questions about this material or requests for additional information may be made directly to the firm by contacting us here.

Back to Top  >