DB BondTrac Plus
Aggregate Bond INDEX ENHANCED YIELD
The Model seeks to track the investment results of the Barclays U.S. Aggregate Bond Index with an enhanced higher yield using leveraged and hedged indexed ETF's. The Barclays U.S. Aggregate Bond Index measures the performance of the total U.S. investment-grade bond market. The Model includes investment-grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage-backed pass-through securities, commercial mortgage-backed securities and asset-backed securities that are publicly offered for sale in the United States. The Model also includes exposure to the BofA Merrill Lynch US Fallen Angel High Yield Index (the "Fallen Angel Index") which is comprised of below investment grade corporate bonds denominated in U.S. dollars that were rated investment grade at the time of issuance.
The DB BondTrac Plus is generally non-diversified and entails certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. There is no guarantee the DB BondTrac Plus will achieve its investment objective.
PROFESSIONAL MANAGEMENT AND OVERSIGHT
To ensure appropriate allocation, the Adviser reviews the Portfolio each month and scales the asset classes up or down based on well-researched market views.