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 one of the three major credit rating agencies (S&P, Moody’s or Fitch) 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. The intermediate part of the yield curve historically has offered investors a favorable risk/reward opportunity.

Portfolio Statistics

(as of 03/31/2018)

wdt_ID Name Value
1 Average Maturity 7.80 yrs.
2 Duration 6.5
3 Coupon 3.58%
4 Yield to Maturity 3.76%
5 Current Yield 3.64%
6 Target Diversification 20-25 issues
7 Average Credit Rating A3/A-

Resources

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/A- minimum) average credit rating is the constant target. BBB/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 sector.

Low Turnover

A historical low turnover of the portfolio, on average less than 25% per year, helps to reduce transaction costs.

Strategy Data

Calendar Year Returns (Gross)

Annualized Returns

(period ended 03/31/2018)

Risk Statistics

(period ended 03/31/2018)

Annualized Returns

(period ended 03/31/2018)

wdt_ID Period CAM Gross CAM Net of Fees Bloomberg Barclays US Corporate Index
1 YTD -2.50 -2.56 -2.32
2 1 Year 1.24 1.00 2.69
3 3 Years 1.59 1.35 2.30
4 5 Years 2.59 2.34 3.02
5 10 Years 5.06 4.80 5.42
6 Inception 6.19 5.93 6.17

Risk Statistics

(period ended 03/31/2018)

wdt_ID period Standard Deviation CAM IG Standard Deviation Barclays Corporate Index Sharpe Ratio CAM IG Sharpe Ratio Barclays Corporate Index
1 3 Yrs. 4.29 4.54 0.24 0.39
2 5 Yrs. 4.35 4.27 0.51 0.62
3 10 Yrs. 5.69 6.09 0.81 0.82
4 Inception 5.10 5.26 0.95 0.91

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.60
2 AA 13.9
3 A 50.5
4 BAA 31
5 BA 2.1
6 B 0.0
7 CAA 0.0
8 CA 0.0
9 < C 0.0
10 NR 0.9