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 3/31/2020)

wdt_ID Name Value
1 Average Maturity 3.50 yrs.
2 Duration 3.00
3 Coupon 4.21%
4 Yield to Maturity 5.36%
5 Current Yield 4.36%
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.

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 3/31/2020)

Risk Statistics

(period ended 3/31/2020)

Annualized Returns

(period ended 3/31/2020)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index
1 YTD -5.13 -5.20 -7.46
2 1 Year -0.24 -0.56 -2.56
3 3 Years 2.05 1.71 1.58
4 5 Years 1.02 0.68 2.44
5 10 Years 3.18 2.83 4.16
6 Inception 3.89 3.51 4.98

Risk Statistics

(period ended 3/31/2020)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 4.09 5.69 0.05 -0.05
2 5 Yrs. 4.29 5.03 -0.04 0.24
3 10 Yrs. 3.86 4.46 0.65 0.77
4 Inception 5.31 6.39 0.45 0.54

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 0.40
2 AA 5.20
3 A 31.90
4 BAA 14.50
5 BA 26.30
6 B 19.10
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 2.60

*Bloomberg Barclays Index Rating