High Quality Floating Rate

STRATEGY HIGHLIGHTS

The management team seeks to invest in high quality, low-volatility alternatives to low-yielding money market and government debentures.  We target short-term bonds (1-5 years) that we believe to be of the highest quality with low credit and event risk.  The team seeks to protect principal and generate a consistent source of income and liquidity.  Traditional short-term, low volatility mortgage- and asset-backed securities are emphasized because of their historical substantial yield premium versus Treasury and agency notes.


Key Stats

Asset Class: US Fixed Income
Inception Date: October 1, 2010
Credit Quality: AAA
Non-AAA Exposure: 0%
Yield to Maturity: 2.4%
Modified Duration (years): 0.1
Average Maturity (years): 0.7
Duration Target: 0 - 0.25 years
Benchmark: ICE BofA ML 90-Day T-Bill

LOW VOLATILITY

 

Below Peer Group1

ULTRA HIGH CREDIT QUALITY

100%

'AAA' Rated & Government

MODIFIED DURATION

0.1

Years


PERFORMANCE ANALYSIS

Investment Performance (%)

as of September 30, 2018

  Quarter 1 Yr 3 Yr 5 Yr  10 Yr Since Inception
High Quality Floating Rate (Gross) 0.53 1.80 1.22 0.88 -- 0.70
High Quality Floating Rate (Net) 0.45 1.45 0.87 0.53 -- 0.34
ICE BofA Merrill Lynch 90 Day T-Bill 0.49 1.59 0.84 0.52 -- 0.36

Periods greater than one year are annualized. Inception date is 10/1/10.

GIPS DISCLOSURE


EMPHASIS ON SECURITIZED SECTORS

Sector Allocation (%)

as of September 30, 2018

Cash allocation included in U.S. Treasury. Percentages based on weighted average of composite portfolios.


RISK PROFILE

Standard Deviation (%)

As of September 30, 2018

Annualized gross of fee returns. Standard deviation (risk) measures the historic volatility of the composite and benchmark returns. 1eVestment US Enhanced Cash Management Universe includes products primarily invested in ultra-short, investment grade debt while maintaining some exposure to higher-yielding securities or sectors to enhance returns.


EMPHASIS ON HIGHEST QUALITY ISSUES

Credit Quality*

as of September 30, 2018


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Investment Background

  • 20+ years managing high-quality bonds
  • $1.2 billion in short duration assets
  • Focus on securitized debt instruments
  • Custom portfolio tailored to investment needs

PORTFOLIO MANAGEMENT

Jim Womack, CFA

Jim Womack, CFA

Portfolio Manager

SEE BIO
Brad Buie, CFA

Brad Buie, CFA

Portfolio Manager

SEE BIO
Kyle Johns, CFA

Kyle Johns, CFA

Portfolio Manager

SEE BIO

STRATEGY DOCUMENTS

Fact Sheet

High Quality Floating Rate

September 30, 2018
Read More

Short Duration Scorecard

September 30, 2018
Read More

*Source:  eVestment.  Percentages may not sum to 100 due to rounding.  Cash allocation included in Government weighting, which includes government debentures and mortgage securities.  Percentages based on weighted average of composite portfolios.

Important Additional Information and Disclosures. This information is intended for use by institutional investors only and may not be suitable for all investors. This information is for illustrative purposes only and should not be considered investment advice or a recommendation to purchase or sell any specific security or invest in a specific strategy. The material is based upon information that Atlanta Capital considers to be reliable, however no assurances are provided and Atlanta Capital has not sought to independently verify information taken from public and third party sources. Composite characteristics are based on a weighted average of composite portfolios; actual security holdings and allocations may vary for each client based on client guidelines.  There is no guarantee that a particular client’s account will match the results shown.

The High Quality Floating Rate Composite includes all fully discretionary separate accounts invested in debt securities having average effective maturities of 0.25 to two years.   Accounts in this composite invest in fixed income securities having a debt rating of A or above from nationally recognized rating services and may invest in obligations issued or guaranteed by the U.S. Government, its agencies or its instrumentalities, corporate bonds, and mortgage-backed and asset-backed securities.  Low-volatility collateralized mortgage obligations (CMOs) and asset-backed securities are used to improve yield and minimize event risk.  Corporate issues are de-emphasized in order to avoid event risk and raise the overall quality of the portfolios.  The composite’s duration typically ranges between one-tenth and one quarter of a year.   Composite assets as of 6/30/18 were $7 million.

The benchmark for this strategy is the ICE BofA Merrill Lynch 90 Day T- Bill Index, which consists of U. S. Treasury Bills maturing in 90 days. Strategy deviations from the benchmark may include but are not limited to such factors as active management, exclusion/inclusion of securities held/not held in the index, over/underweighting specific sectors or securities, and/or client constraints. The index is unmanaged and does not incur management fees, transaction costs or other expenses associated with managed accounts.  It is not possible to directly invest in an index. 

Performance reflects reinvestment of all income and capital gains. Composite returns and market values are reported in U.S. dollars. Gross-of-fee returns are presented before management and custodial fees but after all trading expenses.  Net-of-fee returns are calculated by reducing the monthly gross-of-fee returns by the highest management fee charged to clients holding only fixed income assets.  This fee is 0.35% annually.  Clients with multiple portfolios representing different asset classes may be charged aggregate fees at the relationship level.  These fees may exceed 0.35% annually. Other expenses will reduce a client’s returns. Actual management fees incurred by clients may vary.  Advisory fees for all investment styles are stated in Part 2 of Atlanta Capital’s ADV, which is available upon request.

Atlanta Capital Management Company, LLC is an SEC-registered investment adviser located in Atlanta, Georgia.  The firm became a majority-owned subsidiary of Eaton Vance Corp. in 2001.  Atlanta Capital operates as an independent subsidiary of Eaton Vance and provides professional investment advisory services to a broad range of institutional and individual clients and sub-advisory investment management to mutual funds and separately managed wrap fee programs.  Atlanta Capital claims compliance with the Global Investment Performance Standards (GIPS®).  Please contact the Performance Department at 404-876-9411 to request a complete list and description of Atlanta Capital’s composites and/or a presentation that adheres to the GIPS® standards. Investing entails risks and there can be no assurance that Atlanta Capital will achieve profits or avoid incurring losses. Past performance does not predict or guarantee future results.