PT Asset Management CEO highlights bond market stability and strategy behind total return bond ETF
Published: 17:55 03 Jun 2025 EDT
PT Asset Management CEO Sean Dranfield joined Proactive's Steve Darling to discuss current bond market dynamics and the investment approach behind the firm’s Performance Trust Total Return Bond ETF.
Dranfield addressed market concerns around volatility, noting that despite global uncertainty, the bond market has shown relative stability. “The actual bond market hasn't been as volatile as it has been historically,” he said, referencing the ten-year U.S. Treasury. He explained that higher coupon income has helped offset price swings, resulting in less dramatic movement than equities.
As an example, Dranfield noted that someone buying a ten-year Treasury on April 4th would have seen only a 3.5% drawdown from peak to trough, compared to an 18% drop in the S&P 500. He emphasized the lower risk profile of bonds, their role in diversification, and the certainty of income they offer in a broader portfolio.
Turning to the ETF itself, Dranfield described it as a “best ideas type fund” specifically designed to give European investors access to U.S. bond markets. Importantly, he stressed that the fund is “rate-agnostic”—not based on predictions about the direction of interest rates—but structured to perform well across both rising and falling rate environments. The fund’s flexible strategy seeks to manage risk while identifying value across different segments of the fixed-income market.
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