How von Borstel & Associates' $74 Million Move Signals a Shift in Fixed Income Strategy

The Big Picture: Bonds Making a Comeback

On November 13, von Borstel & Associates, Inc. sent a clear market signal by significantly expanding its fixed income exposure. The Oregon-based investment advisory firm added 97,269 shares of the Dimensional Global Core Plus Fixed Income ETF (NASDAQ: DFGP) during Q3, pushing its total stake to 1.34 million shares worth $74.09 million—now the second-largest holding in their portfolio, commanding roughly 11.36% of total fund assets.

This isn’t just another routine rebalancing move. It reflects a fundamental shift in how sophisticated investors are approaching portfolio construction after years of treating bonds as deadweight.

The Numbers Behind the Shift

The $5.75 million quarter-over-quarter increase in DFGP holdings tells an important story about current market positioning:

Current Portfolio Snapshot:

• DFGP position value: $74.09 million (11.2% of AUM)
• Total shares held: 1.34 million
• Fund AUM: $2.06 billion
• Current share price: $54.03 (up ~2% year-over-year)

For comparison, their top fixed income allocation, DFAC (Dimensional Core Bond ETF), stands at $133.53 million (20.2% of AUM), followed by other diversified holdings. The aggressive expansion of DFGP suggests a deliberate strategy to layer in higher-yield fixed income exposure alongside core equity positions.

Why DFGP? Understanding the Fixed Income Strategy

The Dimensional Global Core Plus Fixed Income ETF employs a disciplined approach that distinguishes it from vanilla bond funds. Here’s what makes it attractive to institutional allocators:

Portfolio Composition:

• Over 1,300 holdings across global debt markets
• Mix of investment-grade securities with selective higher-yielding, lower-rated bonds
• Dual focus on U.S. and foreign debt exposure
• Yield to maturity exceeding 5.5%
• Duration kept under seven years

The Core Plus Edge: “Core plus” isn’t marketing jargon—it’s a structural decision. By blending investment-grade stability with opportunistic credit exposure, the fund captures income enhancement without taking on extreme duration or credit risk. The sub-0.22% expense ratio keeps costs minimal, meaning more yield stays in investors’ pockets.

Market Context: A Tale of Two Asset Classes

The comparison is stark. While DFGP delivered a 6% one-year total return, the S&P 500 gained nearly 17%. On pure performance, stocks dominated. Yet von Borstel & Associates and similar sophisticated investors aren’t chasing last year’s winners—they’re building structural balance.

After years where rising rates crushed bond valuations, the fixed income market is finally pricing in a more stable rate environment. With yields now in the 5%+ range, the risk-return tradeoff has fundamentally shifted. Bonds are no longer portfolio ballast waiting for better days; they’re generating meaningful income.

The Strategic Takeaway

Expanding a $74 million fixed income position isn’t speculative trading. It’s a deliberate statement: institutional advisors believe diversified bond exposure is worth nearly the same allocation as core equity exposure. The positioning of DFGP as the second-largest holding—ahead of all other fixed income positions except DFAC—demonstrates conviction.

This move captures three key advantages for investors: reliable income streams, lower correlation to equity volatility, and the safety of 1,300+ diversified holdings. In a world of uncertain equity valuations and volatile rate environments, that combination is increasingly hard to ignore.

The takeaway for individual investors? When sophisticated allocators are this deliberate about fixed income, it might be worth reviewing whether your own portfolio is giving bonds the structural role they deserve.