BondSavvy has shown how a select portfolio of individual corporate bonds can outperform bond funds and ETFs. The below returns compare how BondSavvy investment recommendations have performed relative to the market. We also show Steve Shaw's investment performance in 2016 and 2017 for bonds he owned prior to launching BondSavvy on June 28, 2017.
All returns calculations include the price appreciation of the bond, interest received and accrued, and all transaction costs. As per the Global Investment Performance Standards (GIPS), accrued interest is included in both the amount invested as well as the total value of the bond when it is either sold or valued at the end of a period.
(1) Return is after 1% sales charge, which is imposed if fund is sold within one year.
(2) Other parts of the BondSavvy site indicate a 31% annualized return for Steve's high-yield corporate bond investments in 2016. Note that the returns shown in this chart are not annualized. The key driver of the returns difference is Steve's investment in Toys R Us bonds that were bought on February 12, 2016 and then called September 29, 2016. Annualized, this return is 54.4% compared to 31.1% if not annualized.