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 BBB- 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 12/31/2018)

wdt_ID Name Value
1 Average Maturity 3.50 yrs.
2 Duration 3.10
3 Coupon 4.12%
4 Yield to Maturity 4.75%
5 Current Yield 4.21%
6 Target Diversification 25-30 issues
7 Average Credit Rating BBB-/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 sector.

Low Turnover

A historical low turnover of the portfolio, on average under 60% per year, helps to reduce transaction costs.

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 12/31/2018)

Risk Statistics

(period ended 12/31/2018)

Annualized Returns

(period ended 12/31/2018)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index1
1 YTD 0.36 0.02 -0.32
2 1 Year 0.36 0.02 -0.32
3 3 Years 3.45 3.10 4.49
4 5 Years 0.96 0.61 2.71
5 10 Years 5.33 4.97 7.20
6 Inception 3.99 3.61 5.11

Risk Statistics

(period ended 12/31/2018)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 1.92 2.80 1.13 1.14
2 5 Yrs. 3.20 3.02 0.10 0.67
3 10 Yrs. 5.19 5.73 0.94 1.18
4 Inception 5.24 5.91 0.49 0.34

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.20
2 AA 4.40
3 A 31.00
4 BAA 15.50
5 BA 16.40
6 B 31.50
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 0.00