Ultra Short Duration Strategy
The strategy seeks maximum total return consistent with the preservation of capital. Interest rate risk is managed by maintaining an effective duration of one year or less under normal market conditions.
20+ year track record
Higher-quality (Investment Grade), high cash flow bonds with an emphasis on complexity premium
Buy and hold approach with an emphasis on structured securities
Seeks to keep duration less than a year, which reduces duration risk compared to longer duration portfolios
Competitive performance versus peers and benchmark1
Ultra Short Duration
ICE BofAML 3-Month T-Bill
Jul. 1, 1995
The team views the Ultra Short Duration strategy as an extension of the money market sector, offering the potential for additional returns in exchange for a modest degree of price volatility. Its buy and hold approach produces a portfolio with significant first-year cash flows, and an overriding goal to maximize reinvestment opportunities and reduce price volatility. The strategy's multi-sector approach emphasizes structured products, which historically have produced high alpha and Sharpe ratios through interest rate and credit cycles. The strategy leverages the firm's sector specialists as well as advanced evaluation and risk management capabilities in these increasingly complex markets.
Invests primarily in investment grade cash bonds and cash
U.S. dollar-denominated securities with Yankee bond exposure typically below 10%