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 3/31/2019)

wdt_ID Name Value
1 Average Maturity 3.50 yrs.
2 Duration 2.50
3 Coupon 4.14%
4 Yield to Maturity 4.02%
5 Current Yield 4.13%
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 3/31/2019)

Risk Statistics

(period ended 3/31/2019)

Annualized Returns

(period ended 3/31/2019)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index1
1 YTD 3.61 3.52 4.75
2 1 Year 4.71 4.36 5.18
3 3 Years 3.97 3.61 5.28
4 5 Years 1.44 1.10 3.30
5 10 Years 5.56 5.20 7.32
6 Inception 4.17 3.79 5.35

Risk Statistics

(period ended 3/31/2019)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 2.38 3.39 1.14 1.17
2 5 Yrs. 3.51 3.48 0.20 0.74
3 10 Yrs. 5.24 5.78 0.97 1.18
4 Inception 5.24 5.93 0.52 0.65

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.00
2 AA 4.50
3 A 31.70
4 BAA 14.40
5 BA 21.20
6 B 27.20
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 0.00