Active Duration Fixed Income


Trevor Stewart Burton & Jacobsen Inc. (TSBJ) is an independent investment management firm. TSBJ has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS™). TSBJ has not been independently verified. The current composites were created in 1991 and effective 1/1/82 all data are in compliance with GIPS™ standards. All composites are of our fee paying, discretionary tax-exempt accounts, valued in U.S. Dollars; starting in 1994 accounts under one million dollars were no longer included. Wrap accounts are included as of 1/1/10. GIPS™ requires the data below and these explanations to be included with any presentation.

Tax-exempt Fixed Income composite

  2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Market Value $MM 5.10 12.5 115.0 148.5 127.1 246.4 230.5 231.6 315.8 336.3
# of Accounts <5 <5 9 11 13 19 20 20 21 23
% of Firm's Assets 0.01 3% 24% 26% 22% 38% 30% 34% 44% 46%
Total Firm Assets $MM 379.80 375.80 477.0 579.3 565.7 656.4 780.6 678.7 724.8 730.0
Carve-outs-% of Composite - - - - 9.1 7.2 9.3 7.5 5.6 5.2
Standard Deviation 0.58 0.37 1.26 1.55 6.39 7.43 3.10 3.11 2.97 1.97
Weighted Fee 0.60 0.50 0.41 0.40 0.40 0.37 0.33 0.37 0.31 0.35
Annual Return -1.83 3.18 4.9 3.47 3.42 6.95 7.22 3.46 1.85 3.44
Barclays Capital Aggregate Index -2.02 4.24 7.87 6.56 5.93 5.24 6.96 4.32 2.42 4.34
Barclays Capital Gov't/Credit Index -2.34 4.83 8.72 6.59 4.53 5.71 7.25 3.77 2.38 4.21

The three-year annualized ex-post standard deviation of the composite and benchmark as of the year end is as follows:

  3 Yr Standard Deviation (%)
  12/31/13 12/31/12 12/31/11
TSBJ Active Duration Fixed Income 2.02 1.58 1.68
Barclays Capital Aggregate Index 2.94 2.80 3.08
Barclays Capital Govt/Credit Index 3.44 3.62 4.19

Since the beginning of 1982 our fixed income performance data include total returns of accounts limited to those assets but also include the fixed income sector plus cash of balanced accounts, which once were the dominant form of accounts under our management. The cash in balanced accounts is allocated to fixed income, based upon the ratio of equity and fixed income at the beginning of the period. The return on cash is assumed to be the 91-day Treasury bill rate. Beginning 1/1/10, carve-outs are excluded from the composite but have not been removed from returns prior to this date. Effective 12/31/02, the benchmark has been changed to the Lehman Aggregate from the Lehman Government Credit; the Aggregate Index is more appropriate because it includes mortgages. Effective 1/1/93, composite performance will be compared to the Aggregate Index as our benchmark. A list of all current composites is available upon request. Information regarding policies is available upon request.

Early data, from 1975 through 1981, are based upon total returns in only retirement trust accounts and data do not include cash for some portion of the period. Generally, the effect of excluding cash is to raise the performance in up markets and to lower it down markets. Because cash is excluded, data from this period precludes the full period data from being in compliance and should be considered supplemental information.

Performance for non-wrap accounts has been calculated after commissions and investment management fees, but was not reduced by other expenses (e.g. custody fees) a client may incur. The gross performance for wrap accounts has been reduced by the portion of the bundled fee that includes trading expenses and the net performance is reduced by the entire bundled fee. The bundled fee might include custody and other fees in addition to the trading expenses and investment management fees. Returns are computed using a time-weighted rate of return. Prior to 1/1/90, net of fees was calculated using the highest fee; starting 1/1/90 actual fees have been used. Past performance is no guarantee of future results.