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 06/30/2019)

wdt_ID Name Value
1 Average Maturity 3.60 yrs.
2 Duration 2.50
3 Coupon 4.08%
4 Yield to Maturity 3.69%
5 Current Yield 4.04%
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 6/30/2019)

Risk Statistics

(period ended 6/30/2019)

Annualized Returns

(period ended 6/30/2019)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index
1 YTD 5.69 5.51 7.22
2 1 Year 6.44 6.08 6.88
3 3 Years 4.05 3.69 4.99
4 5 Years 1.50 1.15 3.52
5 10 Years 4.49 4.14 6.32
6 Inception 4.24 3.86 5.57

Risk Statistics

(period ended 6/30/2019)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 2.41 3.30 1.11 1.09
2 5 Yrs. 3.53 3.56 0.18 0.76
3 10 Yrs. 3.73 4.39 1.07 1.32
4 Inception 5.20 6.14 0.53 0.66

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.10
2 AA 5.50
3 A 32.60
4 BAA 15.20
5 BA 23.60
6 B 22.00
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 0.00