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 03/31/2018)

wdt_ID Name Value
1 Average Maturity 3.90 yrs.
2 Duration 3.20
3 Coupon 3.98%
4 Yield to Maturity 4.06%
5 Current Yield 3.99%
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 03/31/2018)

Risk Statistics

(period ended 03/31/2018)

Annualized Returns

(period ended 03/31/2018)

wdt_ID Period CAM Gross CAM Net Weighted Barclays Index1
1 YTD -0.70 -0.78 -0.73
2 1 Year 1.73 1.39 2.16
3 3 Years 0.24 -0.10 3.14
4 5 Years 1.29 0.95 3.15
5 10 Years 3.81 3.46 5.64
6 Inception 4.13 3.75 5.36

Risk Statistics

(period ended 03/31/2018)

wdt_ID Period Standard Deviation CAM SD Standard Deviation Weighted Barclays Index Sharpe Ratio CAM SD Sharpe Ratio Weighted Barclays Index
1 3 Yrs. 3.82 3.25 -0.08 0.80
2 5 Yrs. 3.53 3.01 0.27 0.93
3 10 Yrs. 6.21 6.87 0.54 0.76
4 Inception 5.36 6.01 0.51 0.37

Maturity Distribution

Duration Distribution

Industry Distribution

Credit Quality Distribution

wdt_ID Type Value
1 AAA 1.20
2 AA 5.00
3 A 35.50
4 BAA 11.20
5 BA 13.50
6 B 33.60
7 CAA 0.00
8 CA 0.00
9 < C 0.00
10 NR 0.00