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Strategy Assets
$4M
Investment Objective
The Short Duration Government Strategy seeks to provide long-term total return, which includes income and capital appreciation, while considering capital preservation.
Strategy Overview
A short duration strategy focused on high-quality government securities and disciplined duration management. Designed to preserve capital in rising rate environments, the strategy applies a consistent process grounded in proprietary stress testing and active rebalancing.
| Investment Style | Absolute Return |
|---|---|
| Opportunity Set | U.S. Government Debt |
| Strategy Assets | $4M |
| Sector Constraints | None |
| Illustrative Benchmark | Bloomberg U.S. Treasury 1-5 Year |
| Vehicle Availability | ETF: FPA Short Duration Government ETF |
Use a proprietary 100-basis point stress test to model portfolio performance under rising rate scenarios.
Adjust portfolio duration to seek to remain aligned with risk and interest rate expectations.
Typically maintains an effective duration between 1.5 — 4.5 years, in line with Morningstar Short Government category.
Rebalances when duration deviates by 0.25 years or more from the stress test target.
Invest at least 90% of all assets in US Treasuries and agencies under normal conditions.
Up to 10% may be allocated to investment grade securities rated BBB or higher for added flexibility.
Information Request
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