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 6/30/2022)

wdt_ID Name Value
1 Average Maturity 4.00 yrs.
2 Duration 3.40
3 Coupon 3.84%
4 Yield to Maturity 6.09%
5 Current Yield 4.18%
6 Target Diversification 25-30 issues
7 Average Credit Target BAA3

Resources

Short Duration Brochure
Short Duration Profile
Short Duration Client Agreement
CAM Strategy Guide

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.

Established Companies & Industries

Emphasis on established industries leads us to avoid sectors that have precarious operating profiles.

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 6/30/2022)

Risk Statistics

(period ended 6/30/2022)

Annualized Returns

(period ended 6/30/2022)

wdt_ID Period CAM Gross CAM Net Weighted Bloomberg Index
1 YTD -9.01 -9.13 -9.63
2 1 Year -8.58 -8.82 -9.25
3 3 Years 0.71 0.43 0.20
4 5 Years 1.81 1.51 1.74
5 10 Years 2.09 1.77 3.13
6 Inception 3.64 3.28 4.66

Risk Statistics

(period ended 6/30/2022)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Bloomberg Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Bloomberg Index
1 3 Yrs. 6.70 7.93 0.01 -0.05
2 5 Yrs. 5.50 6.65 0.13 0.09
3 10 Yrs. 4.68 5.24 0.31 0.47
4 Inception 5.51 6.54 0.42 0.51

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 Aaa 0.90
2 Aa 6.00
3 A 31.20
4 Baa 18.30
5 Ba 15.50
6 B 27.10
7 Caa 0.00
8 Ca 0.00
9 < C 0.00
10 NR 1.00

*Moody’s rating organization