
3Twelve
What is 3Twelve?
3TWELVE MAY BE THE FIRST INDEXED, EQUALLY WEIGHTED FIXED-INCOME STRATEGY
3Twelve Total Bond is an equally weighted, index-based strategy that invests in each major taxable bond category. The strategy, which seeks total return from income and capital appreciation, uses 12 major bond asset classes in an effort to enhance performance and reduce risk.
3 Reasons 3Twelve
INNOVATIVE
3Twelve may be a first. We are not aware of any fully-diversified, equally-weighted, index-based bond strategy besides 3Twelve.
PERFORMANCE
Equal-weighting can make a significant difference for long-term returns. See our White Paper for details.
DEMAND
According to ICI, Multi-Sector Bond (the 3Twelve category) was the only major taxable bond category that had net inflows for 2023.
The 3Twelve Bond Map
BEFORE EQUAL WEIGHTING
Global Bond Universe in $Trillions

AFTER EQUAL WEIGHTING
3Twelve Total Bond

Why a Total Bond Portfolio?
The industry has resisted creating a diversified equally-weighted global bond strategy, in part, because bonds are perceived to have lower dispersions of returns than stocks.
This is not true. There was significant dispersion of returns within the 12 major taxable fixed-income categories in 2023 (chart below). This has consistently been the case:
Bond Dispersion of Returns for Year Ended 2023

Bond Dispersion chart definitions: Federal Agency: Bloomberg US Agency, Conv/Pref: ICE BofA All US Convertible, US Inv Grade Corp: Bloomberg US Credit, MBS: Bloomberg GNMA, Leveraged Loan: Morningstar LSTA US LL100, Emer Mkt: JPM EMBI Global Core, Non-US Corp: S&P International Corp Bd, TIPS: Bloomberg US Treasury US TIPS, Cash: Bloomberg US Treasury Bill 1-3 M, US High-Yield: Bloomberg US Corporate High Yield, Non-US Gov: Bloomberg Global Treasury Ex US, US Tsy: Bloomberg US Treasury 7-10 Yr. Source Data: Morningstar, Inc.
The information contained herein is for educational purposes only and is not to be considered investment advice nor a recommendation of any fund, product or investment. Information is obtained from third-party sources which are believed to be reliable, but have not been independently verified by 7Twelve. “7Twelve” is a trademark. 7Twelve™, 7Twelve Advisors, LLC, and all strategies, models, adaptations, and products created from said intellectual property are the sole ownership of Craig L. Israelsen, PhD, and/or 7Twelve Advisors, LLC.