For decades, bonds were considered the go-to solution for investors seeking stability and income.
But over the past few years, many investors have been surprised by how volatile bond markets can actually be.
Interest rate changes, inflation expectations, and market sentiment can cause bond prices to move significantly, sometimes creating the very volatility investors were hoping to avoid.
The chart below compares the performance of the Bloomberg U.S. Aggregate Bond Index and U.S. Treasuries against the Eppler Capital Funds Promissory Note Fund.
While traditional bond indices have experienced meaningful fluctuations, our strategy focuses on contractual cash flows through promissory note investments. Because these investments are privately structured and not marked to market daily, performance has been driven by consistent income rather than market pricing.
Since inception, the Promissory Note Fund’s 9% share class has produced a 29.89% total return assuming dividends are reinvested, compared with 12.32% for the Bloomberg U.S. Aggregate Bond Index and 8.91% for U.S. Treasuries over the same period.
For investors seeking dependable income and a smoother return profile, private market strategies can offer an attractive alternative to traditional fixed income.
We are currently accepting new investor allocations into the Promissory Note Fund. If you would like to review the investment overview or schedule a brief call to discuss whether it may be a fit for your portfolio, please contact us.