Short Duration Corporate Bonds
Strategy Overview
Account Minimum: $250,000 | Launch of Strategy: June 1, 2004
The strategy is designed for investors interested in a shorter maturity profile which targets an allocation of 50% Investment Grade and 50% High Yield securities in one 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 BAA3 with a duration target of 3.
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 3/31/2020)
| wdt_ID | Name | Value |
|---|---|---|
| 1 | Average Maturity | 3.50 yrs. |
| 2 | Duration | 3.00 |
| 3 | Coupon | 4.21% |
| 4 | Yield to Maturity | 5.36% |
| 5 | Current Yield | 4.36% |
| 6 | Target Diversification | 25-30 issues |
| 7 | Average Credit Rating | BAA3 |
Resources
Short Duration Brochure
Short Duration Profile
Short Duration Client Agreement
Diversified Approach
The objective is to provide a diversified approach to the corporate bond market that can perform in various environments within the context of a duration target of 3.
Enhanced liquidity & safety
By investing only in bonds with an initial issue size generally in excess of $100,000,000.
Shorter Maturity
A shorter maturity profile which blends a fixed allocation of 50% Investment Grade and 50% High Yield in one portfolio..
Diversified Portfolio
The portfolio is diversified across 20 – 30 equal weighted issues and generally limited to a maximum of 15% per industry group.
Low Turnover
A historical low turnover of the portfolio, on average under 60% per year.
Bottom Up Approach
A bottom-up approach identifies investment opportunities that represent the most attractive value with strong prospects for consistent income and growth.
Strategy Data
Calendar Year Returns (Gross)
Annualized Returns
(period ended 3/31/2020)
Risk Statistics
(period ended 3/31/2020)
Annualized Returns
(period ended 3/31/2020)
| wdt_ID | Period | CAM Gross | CAM Net | Weighted Barclays Index |
|---|---|---|---|---|
| 1 | YTD | -5.13 | -5.20 | -7.46 |
| 2 | 1 Year | -0.24 | -0.56 | -2.56 |
| 3 | 3 Years | 2.05 | 1.71 | 1.58 |
| 4 | 5 Years | 1.02 | 0.68 | 2.44 |
| 5 | 10 Years | 3.18 | 2.83 | 4.16 |
| 6 | Inception | 3.89 | 3.51 | 4.98 |
Risk Statistics
(period ended 3/31/2020)
| wdt_ID | Period | Standard Deviation CAM SD | Standard Deviation Weighted Barclays Index | Sharpe Ratio CAM SD | Sharpe Ratio Weighted Barclays Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 4.09 | 5.69 | 0.05 | -0.05 |
| 2 | 5 Yrs. | 4.29 | 5.03 | -0.04 | 0.24 |
| 3 | 10 Yrs. | 3.86 | 4.46 | 0.65 | 0.77 |
| 4 | Inception | 5.31 | 6.39 | 0.45 | 0.54 |
Maturity Distribution
Duration Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 0.40 |
| 2 | AA | 5.20 |
| 3 | A | 31.90 |
| 4 | BAA | 14.50 |
| 5 | BA | 26.30 |
| 6 | B | 19.10 |
| 7 | CAA | 0.00 |
| 8 | CA | 0.00 |
| 9 | < C | 0.00 |
| 10 | NR | 2.60 |
*Bloomberg Barclays Index Rating