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 09/30/2018)
| wdt_ID | Name | Value |
|---|---|---|
| 1 | Average Maturity | 3.70 yrs. |
| 2 | Duration | 2.80 |
| 3 | Coupon | 4.10% |
| 4 | Yield to Maturity | 4.28% |
| 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 09/30/2018)
Risk Statistics
(period ended 09/30/2018)
Annualized Returns
(period ended 09/30/2018)
| wdt_ID | Period | CAM Gross | CAM Net | Weighted Barclays Index1 |
|---|---|---|---|---|
| 1 | YTD | 0.84 | 0.58 | 1.44 |
| 2 | 1 Year | 0.79 | 0.45 | 1.59 |
| 3 | 3 Years | 2.53 | 2.18 | 4.68 |
| 4 | 5 Years | 1.49 | 1.14 | 3.49 |
| 5 | 10 Years | 4.69 | 4.33 | 6.49 |
| 6 | Inception | 4.09 | 3.72 | 5.33 |
Risk Statistics
(period ended 09/30/2018)
| wdt_ID | Period | Standard Deviation CAM SD | Standard Deviation Weighted Barclays Index | Sharpe Ratio CAM SD | Sharpe Ratio Weighted Barclays Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 2.85 | 2.63 | 0.59 | 1.41 |
| 2 | 5 Yrs. | 3.29 | 2.86 | 0.29 | 1.03 |
| 3 | 10 Yrs. | 5.69 | 6.41 | 0.75 | 0.95 |
| 4 | Inception | 5.27 | 5.91 | 0.51 | 0.38 |
Maturity Distribution
Duration Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 1.20 |
| 2 | AA | 4.50 |
| 3 | A | 32.30 |
| 4 | BAA | 14.30 |
| 5 | BA | 15.70 |
| 6 | B | 32.00 |
| 7 | CAA | 0.00 |
| 8 | CA | 0.00 |
| 9 | < C | 0.00 |
| 10 | NR | 0.00 |