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 12/31/2019)

wdt_ID Name Value
1 Average Maturity 3.60 yrs.
2 Duration 2.50
3 Coupon 2.98%
4 Yield to Maturity 3.23%
5 Current Yield 4.06%
6 Target Diversification 25-30 issues
7 Average Credit Rating 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 group.

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 12/31/2019)

Risk Statistics

(period ended 12/31/2019)

Annualized Returns

(period ended 12/31/2019)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index
1 YTD 8.96 8.59 10.41
2 1 Year 8.96 8.59 10.41
3 3 Years 4.33 3.97 4.83
4 5 Years 2.30 1.95 4.42
5 10 Years 3.96 3.61 5.30
6 Inception 4.30 3.93 5.59

Risk Statistics

(period ended 12/31/2019)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 2.26 3.14 1.21 1.01
2 5 Yrs. 3.51 3.41 0.36 0.99
3 10 Yrs. 3.38 3.58 1.00 1.31
4 Inception 5.12 6.04 0.55 0.67

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.00
2 AA 4.90
3 A 32.70
4 BAA 13.50
5 BA 28.10
6 B 19.80
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 0.00

*Bloomberg Barclays Index Rating