| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 3.38% | -0.48% | -0.48% |
The Optimum Fixed Income Fund declined 0.36% in Q1 2026, underperforming the Bloomberg US Aggregate Bond Index which fell 0.05%. The fund is managed by Delaware Management Company with sub-advisory from PIMCO, operating through two distinct sleeves. Performance was impacted by rising interest rates as investors scaled back Federal Reserve rate cut expectations, anticipating rates to remain higher for longer. Geopolitical tensions dominated market volatility, with a US-Israel military offensive against Iran disrupting shipping through the Strait of Hormuz and sending oil prices sharply higher. This increased inflation concerns across markets. The Nomura sleeve underperformed due to overweight high yield corporate exposure and emerging market debt selection, while benefiting from high yield security selection and foreign currency exposure. The PIMCO sleeve was hurt by intermediate rate positioning as the yield curve flattened and agency mortgage-backed securities selection focused on higher coupons. Looking ahead, inflation, interest rates, global trade, and geopolitical risks remain key market drivers.
The fund operates as a diversified fixed income strategy managed across two sleeves, with performance driven by duration positioning, sector allocation, and security selection within various bond categories.
Investors are watching developments around inflation, interest rates, global trade, and geopolitical risks, all of which have the potential to have an outsized influence on markets in the months ahead.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 6 2026 | 2026 Q1 | - | Bonds, fixed income, Geopolitical, inflation, interest rates, oil | - | Fixed income fund declined 0.36% in Q1 2026, underperforming benchmark due to rising rates and geopolitical tensions. Oil price surge from Middle East conflicts increased inflation concerns while Fed rate cut expectations diminished. Both management sleeves underperformed with challenges in duration positioning and security selection across high yield corporates and mortgage-backed securities. |
| Jan 30 2026 | 2025 Q4 | AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA | Bonds, credit, duration, fixed income, interest rates, Mortgage, TIPS | - | Optimum Fixed Income Fund matched benchmark returns at 1.07% in 4Q2025 through multi-manager approach. PIMCO sleeve outperformed via interest rate positioning and agency MBS overweights, while Nomura underperformed despite benefiting from duration positioning. Fund maintains diversified fixed income exposure across credit qualities and sectors as markets navigate falling rates and curve steepening dynamics. |
| Nov 5 2025 | 2025 Q3 | AMZN, META, NVDA, TSLA | Bonds, credit, duration, Fed policy, fixed income, interest rates | - | Optimum Fixed Income Fund outperformed its benchmark in Q3 2025 through strategic overweights to high yield corporates and duration positioning. The fund benefited from falling short-term Treasury yields amid dovish Fed expectations. Dual sub-advisor structure enabled diversified fixed income strategies across credit quality and duration spectrum while managing interest rate and credit risks. |
| Jul 22 2025 | 2025 Q2 | AMZN, META, NVDA, TSLA | credit, duration, Fed policy, fixed income, high yield, RMBS | - | Optimum Fixed Income Fund outperformed in 3Q2025 through strategic duration positioning and credit allocation. The fund benefited from falling Treasury yields amid Fed dovishness and overweight exposure to high yield corporates and securitized credit. Strong market performance supported returns, though risks persist around labor markets, inflation, and trade policy. |
| Mar 31 2025 | 2025 Q1 | AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA | Bonds, credit, duration, fixed income, interest rates, yield curve | - | Optimum Fixed Income Fund outperformed its benchmark in Q1 2025 despite challenging equity markets marked by Big Tech weakness and tariff concerns. The multi-manager approach delivered positive results through PIMCO's duration positioning and currency exposure, while Macquarie's yield curve steepener and high yield overweights detracted. Treasury rally supported fixed income performance. |
| Dec 31 2024 | 2024 Q4 | - | Bonds, Corporates, credit, duration, fixed income, interest rates, Treasurys | - | Optimum Fixed Income Fund outperformed the Bloomberg US Aggregate Bond Index despite declining 2.99% in Q4 2024. The multi-manager approach with Delaware Management and PIMCO sub-advisor delivered value through overweights to financials, high yield, and emerging markets, plus security selection in agency mortgage-backed securities and TIPS allocation. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
OilOil prices surged sharply during the quarter driven by escalating geopolitical tensions and severe disruptions in shipping through the Strait of Hormuz following a US-Israel military offensive against Iran. Energy was the strongest performing sector by a wide margin, benefiting from these oil price increases. |
Oil Energy Geopolitical Strait of Hormuz |
RatesInterest rates rose modestly during the quarter as investors scaled back expectations for Federal Reserve rate cuts, now anticipating rates to remain higher for longer. Bond markets weakened as a result of these rising rates, with the fund's positioning negatively impacted by intermediate rate exposure. |
Interest Rates Federal Reserve Bond Markets | |
InflationGeopolitical disruptions sent oil prices sharply higher and increased concerns about inflation. The fund's overweight exposure to Treasury Inflation Protected Securities (TIPS) contributed positively as breakeven expectations rose. |
Inflation TIPS Oil Prices | |
| 2025 Q4 |
Healthcare ITCareCloud helps smaller U.S. health practices manage data and collect payments. High switching costs lock in practices but also lock out competitors. Most RCMs have high fixed costs and too few clients, creating consolidation opportunities for CareCloud to buy cheaply and cut costs. |
EHR RCM Healthcare Consolidation Switching Costs |
CementICG owns cement plants in Kazakhstan and Tajikistan with significant energy and transport cost advantages. Newest dry process plants with heat recovery versus competitors' older wet process plants. Strategic locations 100km closer to customers than competitors. |
Energy Efficiency Transport Kazakhstan Cost Advantage Infrastructure | |
ConstructionCTR Holdings builds structural frames and handles finishing work in Singapore. Most projects are public with stable government payments guaranteeing cash flow. Company had significant net cash and signed project backlog. |
Singapore Government Cash Flow Backlog Public Projects | |
| 2025 Q3 |
RatesTreasury yields fell at the short end as expectations grew for more Federal Reserve rate cuts. The Fed's tone shifted more dovish, though uncertainty remains about future moves. Higher duration securities outperformed lower duration securities during the quarter. |
Interest Rates Fed Policy Duration Treasury Monetary Policy |
CreditCorporates outperformed treasurys during the quarter. Lower quality securities outperformed higher quality securities. The fund benefited from overweight allocations to high yield corporates and securitized credit. |
Corporate Bonds High Yield Credit Quality Securitized Investment Grade | |
| 2025 Q2 |
RatesTreasury yields fell at the short end as expectations grew for more Federal Reserve rate cuts. The Fed's tone shifted more dovish, though uncertainty remains about future moves. Higher duration securities outperformed lower duration securities during the quarter. |
Interest Rates Fed Policy Duration Treasury Monetary Policy |
CreditCorporates outperformed treasuries during the quarter. Lower quality securities outperformed higher quality securities. The fund benefited from overweight allocations to high yield corporates, securitized credit, and residential mortgage-backed securities. |
Corporate Bonds High Yield Credit Spreads RMBS Securitized | |
| 2025 Q1 |
AIBig Tech stocks including the Magnificent Seven entered bear market territory during Q1 2025, with cracks appearing in the artificial intelligence growth narrative. The quarter highlighted growing concerns about the future of AI-driven investments as growth fears and negative earnings revisions pressured technology stocks. |
Technology Growth Semiconductors Earnings Volatility |
Trade PolicyTariffs became a major concern during the quarter, with President Trump announcing sweeping measures including 25% tariffs on auto imports. This led to cautious sentiment among consumers and businesses, reflected in declining confidence and expectations of inflation. |
Tariffs Inflation Policy Autos Consumer |
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