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 3/31/2019)
| wdt_ID | Name | Value |
|---|---|---|
| 1 | Average Maturity | 3.50 yrs. |
| 2 | Duration | 2.50 |
| 3 | Coupon | 4.14% |
| 4 | Yield to Maturity | 4.02% |
| 5 | Current Yield | 4.13% |
| 6 | Target Diversification | 25-30 issues |
| 7 | Average Credit Rating | BBB-/Baa3 |
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 3/31/2019)
Risk Statistics
(period ended 3/31/2019)
Annualized Returns
(period ended 3/31/2019)
| wdt_ID | Period | CAM Gross | CAM Net | Weighted Barclays Index1 |
|---|---|---|---|---|
| 1 | YTD | 3.61 | 3.52 | 4.75 |
| 2 | 1 Year | 4.71 | 4.36 | 5.18 |
| 3 | 3 Years | 3.97 | 3.61 | 5.28 |
| 4 | 5 Years | 1.44 | 1.10 | 3.30 |
| 5 | 10 Years | 5.56 | 5.20 | 7.32 |
| 6 | Inception | 4.17 | 3.79 | 5.35 |
Risk Statistics
(period ended 3/31/2019)
| wdt_ID | Period | Standard Deviation CAM SD | Standard Deviation Weighted Barclays Index | Sharpe Ratio CAM SD | Sharpe Ratio Weighted Barclays Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 2.38 | 3.39 | 1.14 | 1.17 |
| 2 | 5 Yrs. | 3.51 | 3.48 | 0.20 | 0.74 |
| 3 | 10 Yrs. | 5.24 | 5.78 | 0.97 | 1.18 |
| 4 | Inception | 5.24 | 5.93 | 0.52 | 0.65 |
Maturity Distribution
Duration Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 1.00 |
| 2 | AA | 4.50 |
| 3 | A | 31.70 |
| 4 | BAA | 14.40 |
| 5 | BA | 21.20 |
| 6 | B | 27.20 |
| 7 | CAA | 0.00 |
| 8 | CA | 0.00 |
| 9 | < C | 0.00 |
| 10 | NR | 0.00 |