Short Duration - Investment Grade Only

Strategy Overview

Account Minimum: $250,000 | Launch of Strategy: December 1, 2008

The strategy is designed for investors interested in a shorter maturity profile which has a fixed allocation of 100% Investment Grade securities in the portfolio. A bottom-up approach identifies investment opportunities that represent the most attractive value with strong prospects for consistent income and growth. The overall average credit rating objective is A- with a targeted maturity range of 3 – 5 years. The portfolio is diversified across 15 – 20 equally weighted issues and generally limited to a maximum of 15% per industry sector.

Liquidity and safety are enhanced by investing only in bonds with an initial issue size generally in excess of $100,000,000. We access over 30 institutional broker/dealers seeking competitive bids and offerings. This trading network provides all of our clients with best pricing. A strict sell discipline is employed within the strategy.

Portfolio Statistics

(as of 06/30/2018)

Resources

Short Term

Portfolios are fully invested in the shorter term range (3 – 5 years). We avoid interest rate anticipation or market timing.

Investment Grade

An investment grade (A3/A- minimum) average credit rating is the constant target. BBB/Ba bonds are purchased (to a maximum of 30%) to enhance cash flow, reduce interest rate sensitivity and provide greater potential capital appreciation.

ENHANCED LIQUIDITY & SAFETY

Liquidity and safety are enhanced by investing only in bonds with an initial issue size generally in excess of $100,000,000.

Strict Sell Discipline

A strict sell discipline is employed. Issues and issuers are analyzed regularly to ensure that gains are captured, relative value is optimized, and capital is preserved.

Diversified

The portfolio is diversified across more than 20 issues and generally limited to a maximum of 15% per industry sector.

Low Turnover

A historical low turnover of the portfolio, on average less than 35% per year, helps to reduce transaction costs.

Strategy Data

Calendar Year Returns (Gross)

Annualized Returns

(period ended 06/30/2018)

Risk Statistics

(period ended 06/30/2018)

Annualized Returns

(period ended 06/30/2018)

wdt_ID Period CAM Gross CAM Net Bloomberg Barclays US Credit Intermediate 1-5 Year
1 YTD -0.96 -1.08 -0.45
2 1 Year -0.31 -0.56 0.12
3 3 Years 1.53 1.26 1.48
4 5 Years 2.16 1.89 1.83
5 Inception 5.24 4.99 3.92

Risk Statistics

(period ended 06/30/2018)

wdt_ID name Standard Deviation CAM SD-IG Standard Deviation Bloomberg Barclays US Credit 1-5 Index1 Sharpe Ratio CAM SD-IG Sharpe Ratio Bloomberg Barclays US Credit 1-5 Index1
1 3 Yrs. 2.09 1.53 0.39 0.49
2 5 Yrs. 1.91 1.34 0.86 0.98
3 Inception 3.93 2.67 0.98 0.95

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.8
2 AA 15.7
3 A 52.4
4 BBB 30.1
5 BB 0.00
6 B 0.00
7 CCC 0.00
8 CC 0.00
9 < C 0.00
10 NR 0.00