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 06/30/2018)

wdt_ID Name Value
1 Average Maturity 3.90 yrs.
2 Duration 3.10
3 Coupon 4.06%
4 Yield to Maturity 4.30%
5 Current Yield 4.09%
6 Target Diversification 25-30 issues
7 Average Credit Rating BBB-/Baa3

Resources

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 06/30/2018)

Risk Statistics

(period ended 06/30/2018)

Annualized Returns

(period ended 06/30/2018)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index1
1 YTD -0.35 -0.52 -0.05
2 1 Year 0.61 0.28 1.36
3 3 Years 0.83 0.49 3.38
4 5 Years 1.73 1.39 3.54
5 10 Years 3.83 3.48 5.64
6 Inception 4.08 3.70 5.32

Risk Statistics

(period ended 06/30/2018)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 3.72 3.22 0.04 0.83
2 5 Yrs. 3.39 2.87 0.38 1.07
3 10 Yrs. 6.21 6.87 0.55 0.75
4 Inception 5.32 5.96 0.50 0.37

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.20
2 AA 4.80
3 A 35.00
4 BAA 10.70
5 BA 13.30
6 B 35.00
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 0.00