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 12/31/2023)

wdt_ID Name Value
1 Average Maturity 2.90
2 Duration 2.30
3 Coupon 4.11%
4 Yield to Maturity 5.82%
5 Current Yield 4.25%
6 Target Diversification 25-30 Issues
7 Average Credit Target BAA3

Resources

Short Duration Brochure
Short Duration Profile
Short Duration Client Agreement
CAM Strategy Guide

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 an 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.

Established Companies & Industries

Emphasis on established industries leads us to avoid sectors that have precarious operating profiles.

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 12/31/2023)

Risk Statistics

(period ended 12/31/2023)

Annualized Returns

(period ended 12/31/2023)

wdt_ID Period CAM Gross CAM Net Weighted Bloomberg Index
1 YTD 7.56 7.29 9.76
2 1 Year 7.56 7.29 9.76
3 3 Years 0.70 0.44 1.06
4 5 Years 3.48 3.20 3.80
5 10 Years 2.21 1.90 3.28
6 Inception 3.86 3.51 4.89

Risk Statistics

(period ended 12/31/2023)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Bloomberg Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Bloomberg Index
1 3 Yrs. 5.07 5.82 -0.33 -0.22
2 5 Yrs. 5.81 7.03 0.27 0.27
3 10 Yrs. 4.73 5.43 0.20 0.37
4 Inception 5.39 6.41 0.43 0.52

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 Aaa 0.60
2 Aa 3.60
3 A 30.80
4 Baa 20.20
5 Ba 15.20
6 B 24.20
7 Caa 5.40
8 Ca 0.00
9 < C 0.00
10 NR 0.00

*Moody’s rating organization