[ultimatemember form_id=1216]
21
Feb
2018
Account Minimum: $100,000* | Launch of Strategy: May 1, 1989
Category: Uncategorized
06
Jan
2017
High Yield Corporate Bonds
HIGH YIELD CORPORATE BONDS
Strategy Overview
For investors seeking potentially greater returns, this strategy focuses on the upper tier of the High Yield credit curve (BA & B). Securities rated CAA and lower are not eligible for purchase. Our objective is to achieve greater returns than might be available in the investment grade universe while avoiding the greater risk associated with lower credit quality securities (CAA and lower).
The portfolio management team employs a value approach whereby we purchase only U.S. dollar denominated corporate bonds and seek those that we feel are undervalued. Preservation of capital is considered essential to the objective of the portfolio, which is total return over a full market/economic cycle.
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 06/30/2026)
| wdt_ID | name | value |
|---|---|---|
| 1 | Average Maturity | 6.10 |
| 2 | Duration | 3.40 |
| 3 | Coupon | 5.92% |
| 4 | Yield to Maturity | 6.35% |
| 5 | Current Yield | 6.02% |
| 6 | Target Diversification | 33-40 Issues |
| 7 | Average Credit Rating | B1 |
Resources
High Yield Brochure
High Yield Profile
High Yield Client Agreement
CAM Strategy Guide
Bottom-Up Approach
Identify investment opportunities that represent the most attractive value, with strong prospects for consistent income and growth.
Minimize Overall Volatility
Focused on the upper tier of the High Yield credit curve (BA-B), as well as the conservative portion of a firm’s capital structure (Senior Subordinated Debentures) and CAA rated securities are not eligible for purchase.
Established companies & industries
Emphasis on established industries leads us to avoid sectors that have precarious operating profiles.
Enhanced Liquidity & Safety
By investing only in bonds with an initial issue size generally in excess of $100,000,000.
Diversified
The portfolio is diversified across more than 35 issues and the industry group (a subset of sector) concentration is approximately 12%.
Low Turnover
Historical low turnover of the portfolio, on average less than 45% per year.
Strategy Data
Calendar Year Returns (Gross)
Annualized Returns
(period ended 06/30/2026)
| wdt_ID | Period | CAM Gross | CAM Net of Fees | Bloomberg US Corporate High Yield Index |
|---|---|---|---|---|
| 1 | YTD | 2.13 | 1.99 | 1.96 |
| 2 | 1 Year | 6.01 | 5.71 | 5.91 |
| 3 | 3 Years | 8.22 | 7.90 | 8.86 |
| 4 | 5 Years | 3.29 | 2.99 | 4.17 |
| 5 | 10 Years | 4.96 | 4.63 | 5.81 |
| 6 | Inception | 6.62 | 6.14 | 7.51 |
Risk Statistics
(period ended 06/30/2026)
| wdt_ID | Period | Standard Deviation CAM HY (%) | Standard Deviation Bloomberg High Yield Index (%) | Sharpe Ratio CAM HY | Sharpe Ratio High Yield Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 4.22 | 4.26 | 0.86 | 1.01 |
| 2 | 5 Yrs. | 7.40 | 6.96 | -0.04 | 0.09 |
| 3 | 10 Yrs. | 7.61 | 8.10 | 0.34 | 0.43 |
| 4 | Inception | 7.60 | 9.54 | 0.48 | 0.47 |
Annualized Returns
(period ended 06/30/2026)
Risk Statistics
(period ended 06/30/2026)
Maturity Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 0.0 |
| 2 | AA | 0.0 |
| 3 | A | 0.0 |
| 4 | BAA | 10.9 |
| 5 | BA | 71.9 |
| 6 | B | 17.2 |
| 7 | CAA | 0.0 |
| 8 | CA | 0.0 |
| 9 | < C | 0.0 |
| 10 | NR | 0.0 |
*Bloomberg Index Ratings
MONTHLY RETURN CORRELATIONS (SINCE 1984)
(as of 12/31/2025)
| High Yield | X-Over | U.S. Credit | S&P 500 | EM* | Govt | U.S. Agg | Ba | B | Caa | |
|---|---|---|---|---|---|---|---|---|---|---|
| Crossover | 0.92 | |||||||||
| Credit | 0.57 | 0.73 | ||||||||
| S&P 500 | 0.62 | 0.63 | 0.36 | |||||||
| EM | 0.64 | 0.64 | 0.56 | 0.55 | ||||||
| Govt | 0.22 | 0.36 | 0.84 | 0.14 | 0.32 | |||||
| Agg | 0.34 | 0.50 | 0.91 | 0.21 | 0.40 | 0.96 | ||||
| Ba | 0.94 | 0.98 | 0.68 | 0.61 | 0.64 | 0.36 | 0.47 | |||
| B | 0.99 | 0.87 | 0.54 | 0.61 | 0.62 | 0.20 | 0.31 | 0.91 | ||
| Caa | 0.90 | 0.77 | 0.38 | 0.55 | 0.54 | 0.04 | 0.15 | 0.77 | 0.88 | |
| Lev. Loans | 0.77 | 0.72 | 0.36 | 0.48 | 0.44 | -0.09 | 0.03 | 0.72 | 0.74 | 0.78 |
*EM since 1994
Source Bloomberg Research and Indices
06
Jan
2017
Broad Market Corporate Bonds
Broad Market Corporate Bonds
Strategy Overview
Account Minimum: $300,000 | Launch of Strategy: January 1, 2002
Long-term investors have enjoyed the benefits of diversifying their bond portfolios across all credit qualities within the U.S. corporate bond asset class. Blending a High Yield bond strategy with an Investment Grade strategy historically has lowered overall volatility and increased long-term returns. The portfolio management team targets an allocation of 67% Investment Grade and 33% High Yield to provide an investment solution that has an average credit rating of investment grade. The objective is to provide a diversified approach to the corporate bond market that can perform in various environments.
The targeted average credit rating objective is BAA. A bottom-up approach identifies investment opportunities that represent the most attractive value with strong prospects for consistent income and growth. The strategy offers extensive diversification with each portfolio containing at least 55 issues. To minimize risk, each high yield position represents approximately 1% of the overall portfolio. In addition, concentration limits within the high yield portion of the strategy are observed to assure appropriate industry diversification. A historical low portfolio turnover of approximately 30% per year.
Liquidity and safety are enhanced by investing only in bonds with an initial issue size generally in excess of $100,000,000. 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 06/30/2026)
| wdt_ID | Name | Value |
|---|---|---|
| 1 | Average Maturity | 7.10 |
| 2 | Duration | 5.10 |
| 3 | Coupon | 4.97% |
| 4 | Yield to Maturity | 5.48% |
| 5 | Current Yield | 5.08% |
| 6 | Target Diversification | 55-60 Issues |
| 7 | Average Credit Rating | BAA2 |
Resources
Broad Market Brochure
Broad Market Profile
Broad Market Client Agreement
CAM Strategy Guide
Investment Grade
The strategy blends a fixed allocation of 67% Investment Grade and 33% High Yield in one portfolio with an overall credit rating objective of Baa, an average duration between five and six and an average maturity of seven to nine years.
Diversified Approach
The objective is to provide a diversified approach to the corporate bond market that can perform in various environments.
Bottom Up
A bottom-up approach identifies investment opportunities that represent the most attractive value with strong prospects for consistent income and growth.
Enhanced Liquidity & Safety
Liquidity and safety are enhanced by investing only in bonds with an initial issue size generally in excess of $100,000,000.
Diversified Portfolio
The portfolio is diversified across more than 55 issues and generally limited to a maximum of 15% per industry group.
Low Turnover
A historical low turnover of the portfolio, on average 30% per year.
Strategy Data
Calendar Returns
Annualized Returns
(period ended 06/30/2026)
Risk Statistics
(period ended 06/30/2026)
Annualized Returns
(period ended 06/30/2026)
| wdt_ID | Period | CAM Gross | CAM Net of Fees | Weighted Bloomberg Index |
|---|---|---|---|---|
| 1 | YTD | 1.08 | 0.95 | 1.23 |
| 2 | 1 Year | 4.80 | 4.53 | 4.87 |
| 3 | 3 Years | 6.40 | 6.13 | 6.48 |
| 4 | 5 Years | 1.70 | 1.43 | 1.62 |
| 5 | 10 Years | 3.33 | 3.05 | 3.69 |
| 6 | Inception | 4.88 | 4.52 | 5.48 |
Risk Statistics
(period ended 06/30/2026)
| wdt_ID | period | Standard Deviation CAM BM | Standard Deviation Weighted Bloomberg Index | Sharpe Ratio CAM BM | Sharpe Ratio Weighted Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 4.84 | 5.58 | 0.36 | 0.33 |
| 2 | 5 Yrs. | 6.79 | 7.38 | -0.30 | -0.29 |
| 3 | 10 Yrs. | 6.42 | 7.09 | 0.15 | 0.19 |
| 4 | Inception | 5.78 | 6.71 | 0.53 | 0.54 |
Maturity Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 0.0 |
| 2 | AA | 7.3 |
| 3 | A | 41.9 |
| 4 | BAA | 21.2 |
| 5 | BA | 24.0 |
| 6 | B | 5.6 |
| 7 | CAA | 0.0 |
| 8 | CA | 0.0 |
| 9 | < C | 0.0 |
| 10 | NR | 0.0 |
*Bloomberg Index Ratings
Monthly Return Correlations (since 1984)
(as of 12/31/2025)
| High Yield | X-Over | U.S. Credit | S&P 500 | EM* | Govt | U.S. Agg | Ba | B | Caa | |
|---|---|---|---|---|---|---|---|---|---|---|
| Crossover | 0.92 | |||||||||
| Credit | 0.57 | 0.73 | ||||||||
| S&P 500 | 0.62 | 0.63 | 0.36 | |||||||
| EM | 0.64 | 0.64 | 0.56 | 0.55 | ||||||
| Govt | 0.22 | 0.36 | 0.84 | 0.14 | 0.32 | |||||
| Agg | 0.34 | 0.50 | 0.91 | 0.21 | 0.40 | 0.96 | ||||
| Ba | 0.94 | 0.98 | 0.68 | 0.61 | 0.64 | 0.36 | 0.47 | |||
| B | 0.99 | 0.87 | 0.54 | 0.61 | 0.62 | 0.20 | 0.31 | 0.91 | ||
| Caa | 0.90 | 0.77 | 0.38 | 0.55 | 0.54 | 0.04 | 0.15 | 0.77 | 0.88 | |
| Lev. Loans | 0.77 | 0.72 | 0.36 | 0.48 | 0.44 | -0.09 | 0.03 | 0.72 | 0.74 | 0.78 |
* EM since 1994
Source: Bloomberg Research and Indices
06
Jan
2017
Investment Grade Corporate Bonds
Investment Grade Corporate Bonds
Strategy Overview
Account Minimum: $100,000* | Launch of Strategy: January 1, 1993
Designed for the more conservative investor interested in an intermediate, investment grade corporate strategy that provides a premium yield to Treasury securities. Bonds must be rated investment grade by at least one of the credit rating agencies to be considered for purchase.
In the event of a downgrade, the security may be held if we anticipate credit improvement in the future. Our focus is on the potential future value of individual corporate issuers based on potential earnings growth and stability over the long term.
We avoid any interest rate anticipation or market timing. We believe the intermediate portion of the yield curve offers investors a favorable risk/reward opportunity
Portfolio Statistics
(as of 06/30/2026)
| wdt_ID | Name | Value |
|---|---|---|
| 1 | Average Maturity | 7.50 |
| 2 | Duration | 5.90 |
| 3 | Coupon | 4.47% |
| 4 | Yield to Maturity | 5.05% |
| 5 | Current Yield | 4.59% |
| 6 | Target Diversification | 20-25 Issues |
| 7 | Average Credit Rating | A3 |
Resources
Investment Grade Brochure
Investment Grade Profile
Investment Grade Client Agreement
CAM Strategy Guide
Intermediate Range
Portfolios are fully invested in the intermediate range (5 – 10 years). We avoid interest rate anticipation or market timing. The intermediate portion of the yield curve historically has offered investors a favorable risk/reward opportunity.
Investment Grade
An investment grade (A3 minimum) average credit rating is the constant target. BAA/BA bonds are purchased (to a maximum of 30%) to enhance cash flow, reduce interest rate sensitivity and provide greater potential capital appreciation.
Enhanced Liquidity & Safety
By investing only in bonds with an initial issue size generally in excess of $100,000,000. We access over 30 institutional broker/dealers seeking competitive bids and offerings. This trading network provides all of our clients with best pricing.
Strict Sell Discipline
A strict sell discipline is employed. Issues and issuers are analyzed regularly to ensure that gains are captured, relative value is optimized, and capital is preserved.
Diversified
The portfolio is diversified across more than 20 issues, with 20 – 25 equally weighted positions and generally limited to a maximum of 15% per industry group.
Low Turnover
A historical low turnover of the portfolio, on average less than 25% per year.
Strategy Data
Calendar Year Returns (Gross)
Annualized Returns
(period ended 06/30/2026)
Risk Statistics
(period ended 06/30/2026)
Annualized Returns
(period ended 06/30/2026)
| wdt_ID | Period | CAM Gross | CAM Net of Fees | Bloomberg US Corporate Index |
|---|---|---|---|---|
| 1 | YTD | 0.58 | 0.46 | 0.86 |
| 2 | 1 Year | 4.19 | 3.94 | 4.35 |
| 3 | 3 Years | 5.53 | 5.29 | 5.29 |
| 4 | 5 Years | 0.94 | 0.70 | 0.34 |
| 5 | 10 Years | 2.55 | 2.31 | 2.60 |
| 6 | Inception | 5.42 | 5.17 | 5.34 |
Risk Statistics
(period ended 06/30/2026)
| wdt_ID | period | Standard Deviation CAM IG | Standard Deviation Bloomberg Corporate Index | Sharpe Ratio CAM IG | Sharpe Ratio Corporate Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 5.27 | 6.38 | 0.16 | 0.09 |
| 2 | 5 Yrs. | 6.67 | 7.83 | -0.43 | -0.44 |
| 3 | 10 Yrs. | 6.22 | 7.16 | 0.03 | 0.03 |
| 4 | Inception | 5.53 | 5.98 | 0.32 | 0.28 |
Maturity Distribution
Duration Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 0.0 |
| 2 | AA | 11.7 |
| 3 | A | 60.9 |
| 4 | BAA | 26.0 |
| 5 | BA | 1.4 |
| 6 | B | 0.0 |
| 7 | CAA | 0.0 |
| 8 | CA | 0.0 |
| 9 | < C | 0.0 |
| 10 | NR | 0.0 |
*Bloomberg Index Rating
06
Jan
2017
Short Duration Investment Grade Only Strategy
Short Duration - Investment Grade
Strategy Overview
Account Minimum: $250,000 | Launch of Strategy: December 1, 2008
The strategy is designed for investors interested in a shorter maturity profile which has a fixed allocation of 100% Investment Grade securities in the 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 A3 with a targeted maturity range of 3 – 5 years. The portfolio is diversified across more than 20 issues and generally limited to a maximum of 15% per industry group.
Liquidity and safety are enhanced by investing only in bonds with an initial issue size generally in excess of $100,000,000. 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 06/30/2026)
Resources
Short Duration – Investment Grade Brochure
Short Duration – Investment Grade Profile
Short Duration – Investment Grade Client Agreement
CAM Strategy Guide
Short Term
Portfolios are fully invested in the shorter term range (3 – 5 years). We avoid interest rate anticipation or market timing.
Investment Grade
An investment grade (A3 minimum) average credit rating is the constant target. BAA/BA bonds are purchased to enhance cash flow, reduce interest rate sensitivity and provide greater potential capital appreciation.
ENHANCED LIQUIDITY & SAFETY
Liquidity and safety are enhanced by investing only in bonds with an initial issue size generally in excess of $100,000,000.
Strict Sell Discipline
A strict sell discipline is employed. Issues and issuers are analyzed regularly to ensure that gains are captured, relative value is optimized, and capital is preserved.
Diversified
The portfolio is diversified across more than 20 issues and generally limited to a maximum of 15% per industry group.
Low Turnover
A historical low turnover of the portfolio, on average less than 35% per year.
Strategy Data
Calendar Year Returns (Gross)
Annualized Returns
(period ended 06/30/2026)
Risk Statistics
(period ended 06/30/2026)
Annualized Returns
(period ended 06/30/2026)
| wdt_ID | Period | CAM Gross | CAM Net | Bloomberg US Corporate 1-5 Year |
|---|---|---|---|---|
| 1 | YTD | 0.96 | 0.85 | 0.93 |
| 2 | 1 Year | 3.62 | 3.39 | 3.85 |
| 3 | 3 Years | 5.12 | 4.88 | 5.70 |
| 4 | 5 Years | 1.83 | 1.59 | 2.43 |
| 5 | 10 Years | 2.35 | 2.10 | 2.77 |
| 6 | Inception | 4.22 | 3.97 | 3.92 |
Risk Statistics
(period ended 06/30/2026)
| wdt_ID | name | Standard Deviation CAM SD-IG | Standard Deviation Bloomberg US Corporate 1-5 Index | Sharpe Ratio CAM SD-IG | Sharpe Ratio Bloomberg US Corporate 1-5 Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 2.08 | 2.64 | 0.22 | 0.40 |
| 2 | 5 Yrs. | 3.55 | 3.62 | -0.60 | -0.38 |
| 3 | 10 Yrs. | 3.40 | 3.33 | -0.01 | 0.12 |
| 4 | Inception | 3.85 | 3.35 | 0.72 | 0.75 |
Maturity Distribution
Duration Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 0.0 |
| 2 | AA | 6.5 |
| 3 | A | 64.8 |
| 4 | BAA | 25.9 |
| 5 | BA | 2.7 |
| 6 | B | 0.1 |
| 7 | CAA | 0.0 |
| 8 | CA | 0.0 |
| 9 | < C | 0.0 |
| 10 | NR | 0.0 |
*Bloomberg Index Rating
06
Jan
2017
Short Duration Corporate Bonds
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 06/30/2026)
| wdt_ID | Name | Value |
|---|---|---|
| 1 | Average Maturity | 2.90 |
| 2 | Duration | 2.30 |
| 3 | Coupon | 4.82% |
| 4 | Yield to Maturity | 5.33% |
| 5 | Current Yield | 4.86% |
| 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 06/30/2026)
Risk Statistics
(period ended 06/30/2026)
Annualized Returns
(period ended 06/30/2026)
| wdt_ID | Period | CAM Gross | CAM Net | Weighted Bloomberg Index |
|---|---|---|---|---|
| 1 | YTD | 1.50 | 1.38 | 1.42 |
| 2 | 1 Year | 4.65 | 4.39 | 4.83 |
| 3 | 3 Years | 6.31 | 6.04 | 7.25 |
| 4 | 5 Years | 2.88 | 2.62 | 3.37 |
| 5 | 10 Years | 3.79 | 3.49 | 4.24 |
| 6 | Inception | 4.06 | 3.72 | 5.04 |
Risk Statistics
(period ended 06/30/2026)
| wdt_ID | Period | Standard Deviation CAM SD | Standard Deviation Weighted Bloomberg Index | Sharpe Ratio CAM SD | Sharpe Ratio Weighted Bloomberg Index |
|---|---|---|---|---|---|
| 1 | 3 Yrs. | 2.24 | 3.34 | 0.77 | 0.80 |
| 2 | 5 Yrs. | 4.24 | 5.01 | -0.19 | -0.05 |
| 3 | 10 Yrs. | 4.31 | 5.32 | 0.33 | 0.35 |
| 4 | Inception | 5.11 | 6.10 | 0.43 | 0.51 |
Maturity Distribution
Duration Distribution
Industry Distribution
Credit Quality Distribution
| wdt_ID | Type | Value |
|---|---|---|
| 1 | AAA | 0.00 |
| 2 | AA | 3.60 |
| 3 | A | 30.10 |
| 4 | BAA | 22.30 |
| 5 | BA | 29.80 |
| 6 | B | 14.20 |
| 7 | CAA | 0.00 |
| 8 | CA | 0.00 |
| 9 | < C | 0.00 |
| 10 | NR | 0.00 |
*Bloomberg Index Ratings
04
Jan
2017
Disclosure Statements
Cincinnati Asset Management
Important regulatory, privacy, index provider, and investment risk disclosures.
01
Performance & GIPS
Performance Disclosures
Cincinnati Asset Management, Inc., (“CAM”) was established in 1989 as a
registered investment adviser with the United States Securities and Exchange
Commission specializing in U.S. dollar denominated fixed income investments.
CAM is an independent privately held corporation. CAM claims compliance with
the Global Investment Performance Standards (GIPS®).
Please contact us at the number referenced herein to obtain a GIPS Report or
a list of composite descriptions. Performance examinations were conducted
on the High Yield composite for the period May 1, 1989 through December 31,
2025, Investment Grade composite for the period January 1, 1993 through
December 31, 2025 and Short Duration composite for the period June 1, 2004
through December 31, 2025. The Broad Market composite has been examined for
the period January 1, 2007 through December 31, 2025. The Short Duration –
Investment Grade composite has been examined for the period December 1, 2008
through December 31, 2025.
GIPS® is a registered trademark of CFA Institute. CFA Institute does not
endorse or promote this organization, nor does it warrant the accuracy or
quality of the content contained herein.
Investment Strategies
Composite Descriptions
The High Yield composite includes investments with credit ratings which
average BA3 with average maturity of four to eight years. The Investment
Grade composite includes investments in fixed income securities with credit
ratings averaging A3 with at least one investment grade credit rating and an
average maturity of five to ten years. The Short Duration composite includes
investments in fixed income securities with credit ratings averaging BAA3
and a target duration of three years. The Broad Market composite includes
investments in fixed income securities with credit ratings averaging BAA2,
an average duration between five and six years and an average maturity of
seven to nine years. The Short Duration-Investment Grade composite includes
investments in fixed income securities with credit ratings averaging A2 with
at least one investment grade credit rating and an average maturity of two
to four years.
Methodology
Performance Standards
The Adviser’s investment performance data conform to the following
standards since inception:
01
The composites consist of all discretionary portfolios in each
respective style under management, including all securities and cash
held in the portfolios, appropriately weighted for the size of the
portfolios. All portfolios are included after three months under
management or upon reaching 65% invested by CAM, whichever occurs
first.
02
Returns are calculated monthly in U.S. dollars and include
reinvestment of dividends and interest.
03
Gross of fees performance results include all transaction costs and
exclude management fees. When performance is compared to Lipper
mutual fund averages gross performance net of CAM’s management fees
is used.
04
For the period from May 1, 1989 through 1992, the High Yield composite
includes all assets of all accounts that meet the above criteria,
except that not all accounts were added to the composite by the
beginning of the third full reporting period for which the account
was under management. In addition, prior to 1990 certain
diversification requirements were not met.
Additional Information
Performance Notes
The indices shown for comparative purposes are based on or derived from
information generally available to the public from sources believed to be
reliable. No representation is made to their accuracy or completeness.
“Gross Yield Comparisons”: CAM yields are for client account purchases over
the last thirty days, gross before the impact of fees or expenses.
Past performance should not be taken as an indication of future results.
High Yield bonds may not be suitable investments for all individuals.
This presentation is for informational purposes and is not an offer to
solicit the purchase or sale of securities.
02
Client Information
Privacy Notice
Cincinnati Asset Management is committed to maintaining your trust and
confidence. We want you to understand how we protect your privacy when we
obtain and use information about you. We also want you to understand the
measures we take to safeguard that information.
We obtain nonpublic personal information about you from:
- Information we receive from you on investment advisory agreements such as
your name, address and personal assets. - Information about your investment transactions in the accounts which we
manage for you.
We do not disclose any of this personal information about you to anyone
without your consent except as required by law.
We restrict access to nonpublic personal information about you to those
employees and non-affiliated third parties who need to know that information
to effect authorized transactions or fulfill legal and regulatory obligations
in your account. We maintain physical, electronic, and procedural safeguards
that comply with federal standards to guard nonpublic personal information.
This notice is required by federal law; however, it has always been the
practice of Cincinnati Asset Management to respect and safeguard the privacy
of your personal information in our possession.
03
Third-Party Indexes
Index Provider Notice
Bloomberg®
“Bloomberg®” and Bloomberg US Corporate Index, Bloomberg US Corporate
High Yield Index, Bloomberg US Corporate 1-5 Year Index, and Bloomberg
Intermediate US Corporate High Yield Index are service marks of Bloomberg
Finance L.P. and its affiliates, including Bloomberg Index Services
Limited (“BISL”), the administrator of the index (collectively,
“Bloomberg”) and have been licensed for use for certain purposes by
Cincinnati Asset Management, Inc. Bloomberg is not affiliated with
Cincinnati Asset Management, Inc., and Bloomberg does not approve,
endorse, review, or recommend any product noted herein. Bloomberg does
not guarantee the timeliness, accurateness, or completeness of any data
or information relating to any product noted herein.
04
Investment Considerations
Material Risks & Potential Benefits
Investors in corporate bonds generally face the following material investment
risks: interest-rate risk, credit risk, currency risk, and liquidity risk.
Our investment approach constantly keeps the risk of loss in mind and
mitigates the aforementioned risks as follows:
01
Interest-rate Risk
Fluctuations in interest rates may cause investment prices to fluctuate.
For example, when interest rates rise, yields on existing bonds become
less attractive, causing their market values to decline. We are interest
rate agnostic, meaning we do not tactically adjust the average maturity
and duration of this portfolio based on interest rate expectations.
We instead focus on assessing credit risk. We do, however, look to
minimize the impact of interest rate risk from the investment process
by employing a defensive maturity structure within the portfolio.
02
Credit Risk
This is the risk that the issuer of a corporate bond is unable to honor
its financial obligations. Corporate bonds also carry the risk of
default. Credit risk is a greater concern for lower rated credit
subsectors. We underweight the lowest credit subsectors in this strategy.
Therefore, we expect to underperform when credit risk is driving market
dynamics and outperform when credit quality is demanded. Further, we
believe we can provide the most value in assessing credit risk by
employing a relative value discipline that includes a thorough analysis
of downside risk versus upside potential for each issue we purchase or
sell.
03
Currency Risk
This is the risk that the value of a security will decrease due to
changes in the relative value of the U.S. dollar and a security’s
underlying foreign currency. CAM only invests in U.S. dollar denominated
issues.
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Liquidity Risk
This is the risk that a particular investment cannot be sold at an
advantageous time or price. CAM avoids smaller issues with an initial
issue size of less than $100 million that are generally more illiquid.