HELMSTED
Prepared for Gordon Ashby · September 2026
Interest rate review

Your rate risk is duration, not the Fed.

About 21 percent of your portfolio is fixed income, and close to half of that is floating rate, interest rate hedged or negative duration, so a hiking Fed is close to neutral for you. The rate risk that remains is duration: the bond sleeves that respond to the 10 year, plus a looser, second order effect on the equity priced off long yields.

Account
HL-40917
Portfolio value
$775,868.78
Holdings as of
June 30, 2026
Prepared for
Gordon Ashby
Scenario
Rate oneWhat the Fed sets

The front end

Fed funds and the 2 year. This is the rate in the headlines, and the one you are most likely watching.

+0 bp
-1500+300 bp
Caused by this rate
0
Forward annual income
0
Largest movers
Rate twoWhat the market sets

The long end

The 10 year Treasury yield. Nobody votes on it, and it is the rate your duration answers to.

+0 bp
-1500+300 bp
Caused by this rate
0
Versus the front end
0
Largest movers

Your statement is dated June 30, 2026, and rates have already moved since. The Fed raised its target range by 25 basis points on September 16, and the 10 year is roughly 48 basis points higher than its June average. Both panels start from where rates sit today, so the shaded strip on each chart is the move that has already happened rather than a move still to come. Everything to the right of the line marked today is hypothetical.

Both panels are drawn on one shared vertical scale and one shared bar scale, so the two rates can be compared directly. The bond figures rest on disclosed durations. The equity responses are judgment inputs, set by the slider below with a note on what each level has looked like in practice, and every input we used is listed and editable at the foot of the page.

The judgment call

How much do stocks care about the 10 year?

Every bond figure above rests on a measured duration. This one does not. Stocks have no coupon and no maturity, and their link to long yields is real but loose: some years higher yields and higher prices arrive together, some years they pull apart. So rather than bury an assumption, this slider makes it. It sets the response of diversified equity and real assets to a 100 basis point move in the 10 year, and gives the long and short strategy half of it.

REITs, the regulated utility and the infrastructure income holdings are held at their own, stronger rates in the register below, because they are valued as yield streams and behave like long bonds far more consistently. Banks and the exchange respond to the front end, not to this slider.

-1.50%per 100 bp on the 10 year, diversified equity
0 none-2.00-4.00 tight
Both rates together
0
0.00% of the account
Portfolio value
$775,868.78
Under this scenario, before income
Forward income
0
Annual reset on floating and cash, a front end effect
Fixed income
21.0%
Of your portfolio, close to half of it hedged or floating

Every sleeve, split by the rate that drives it

Caused by the front end Caused by the 10 year

The curve you are pricing

Today against the scenario you have set. The two ringed points are the maturities the panels above control, and everything between them is interpolated.

Today   Scenario
The assumptions behind these figures, all editable Change any figure to re test the scenario

Method

Each holding is shocked as price change equals minus effective duration times its blended yield change, plus a convexity term where the holding has meaningful optionality. Every holding carries a key rate mix, so the effect divides exactly between the two rates: that division is what the two panels report, and the two parts always sum to the combined figure.

Equity holdings use a response rate in percent per 100 basis points, assigned to the rate that drives them.

The baseline, and what has already happened

Your portfolio value of $775,868.78 is the mark on your June 30, 2026 statement. Rate levels, however, start from today: a federal funds target range of 3.75 to 4.00 percent after the September 16 increase, against 3.50 to 3.75 percent through June, and a 10 year near 4.95 percent against a June average of 4.47 percent. The move since your statement date has therefore already affected your portfolio and is not captured in that June figure, which is why it is shaded on both charts rather than treated as a scenario.

What the income figure does and does not include

Forward annual income applies the short rate move to the share of each holding whose coupon actually resets: the floating rate CLO notes, the ultra short government paper, the hedged high yield leg and cash. That is a front end effect, so the 10 year does not move this figure.

It therefore excludes reinvestment. As bonds in the municipal, multisector, mortgage and securitized sleeves mature or amortize, proceeds are reinvested at whatever the curve offers at the time, and for intermediate maturities that is a long end effect. It arrives gradually at the pace of portfolio turnover rather than on the day rates move, and the rate of turnover is not observable from a statement, so it is left out rather than estimated.

Confirmed from the statement Statement

  • Every market value and sleeve total, taken from your June 30, 2026 statement and totalling $775,868.78.
  • The April rebalance sold the entire long Treasury position, about $10,700.

Disclosed fund data Fund

  • Flexible income fund effective duration 3.63 years, dynamic municipal fund 7.12 years against a two to eight year mandate, securitized income fund 2.9 years.
  • Low duration mortgage fund: long positions 5.89 years and short positions -2.92 years, with a stated target under three years.
  • Rate hedge fund effective duration -2.40 years, built on interest only mortgage strips designed to gain as rates rise.
  • The CLO fund holds AAA rated floating rate notes, so coupons reset rather than prices falling.

Estimated, and worth reviewing together Estimate

  • Risk parity fund at 8 years, inferred from an index target of roughly 35 percent long duration TIPS and 35 percent Treasuries with leverage. The single input most worth verifying.
  • International inflation linked fund at 9.5 years real duration, inferred from a maturity ladder with roughly 35 percent beyond 10 years. Its currency exposure is a separate risk and is not modelled.
  • Negative convexity is applied to the mortgage and securitized sleeves, so a large rise costs slightly more than duration alone implies.
  • Diversified equity is set to -1.50 percent and real assets and currency to -1.50 percent for every 100 basis points on the 10 year. These are deliberately modest: the link between long yields and stock prices is real but loose, and it comes and goes. The equity slider above the summary band sets both, with a description of what each level has looked like in practice.
  • All equity response rates are judgment inputs rather than measured betas. The long and short equity strategy is given half the diversified equity figure to reflect its partial net exposure, which is worth checking against the manager's stated positioning.
  • Holdings are as of your June 30, 2026 statement. Any trading since then is not reflected.
What this says about the worry

A hiking Fed is close to a non event for you. A move in long yields is not.

02

Much of the bond allocation is already built for this

Floating rate senior structured credit, ultra short government paper, interest rate hedged high yield and a negative duration mortgage position together run about $70,900, and the long Treasury holding was sold outright in April. Your portfolio was already positioned for a good deal of this before the Fed moved.

03

The rate risk that does not look like a bond

A risk parity sleeve carries long duration Treasuries and inflation linked bonds inside it, and the REIT, regulated utility and infrastructure income holdings are valued off long yields. None of it appears as fixed income on your holdings list, but all of it behaves that way.

04

Income moves the other way

Roughly $79,000 of your floating and ultra short paper plus cash reprices upward with the front end. That is why a hiking cycle is close to neutral for you: the modest price loss is offset by a rising forward yield.

05

The equity figures are a direction, not a measurement

Stocks are priced off long yields only loosely, and the relationship comes and goes, so the equity responses here are set low and marked as estimates. Plan around the bond duration figures, which rest on disclosed data, and read the equity line as a reminder that a repricing of long yields is rarely confined to bonds.