How PT Asset Management targets 5–6% returns in bonds

Proactive - Interviews for investors

PT Asset Management CEO Sean Dranfield talked with Proactive's Stephen Gunnion about navigating the current interest rate environment through the company’s Performance Trust Total Return Bond UCITS ETF. Dranfield outlined how the fund is outperforming its benchmark despite recent market headwinds, attributing this success to a deliberate balance of offensive and defensive allocations. “We’re trying to source total return from these nontraditional sources,” he said, noting the unpredictability of interest rates as a key consideration in their approach. He highlighted that elevated yield levels across the curve make today’s bond market a more compelling environment than in previous years. On the offensive side, Dranfield pointed to the steepness of the yield curve—particularly in the 20-year Treasury and municipal bond space—as an underappreciated driver of total return that traditional yield and duration metrics often miss. On the defensive end, he noted that interest-only commercial mortgage-backed securities (CMBS) and very short investment-grade corporates offer yield without significant rate risk. These instruments help the fund remain rate-agnostic while still targeting total returns in the 5% to 6% range. Dranfield also expressed concern about tight spreads in investment-grade corporates, prompting the team to look elsewhere for opportunities with better risk-reward dynamics. “There are some really interesting opportunities both offensively and defensively right now,” he noted. For more insights like this, head to the Proactive YouTube channel. Don’t forget to like the video, subscribe to the channel, and enable notifications so you never miss an update. #BondMarket #InterestRates #FixedIncome #ETFs #InvestmentStrategy #PTAssetManagement #SeanDranfield #YieldCurve #CMBS #Treasuries #ProactiveInvestors #TotalReturn #RateStrategy