High Quality (AAA) Ultra-Short Securitized


The management team seeks to invest in high quality, low-volatility alternatives to low-yielding money market and government debentures.  We target ultra-short securities 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, 2015
Average Credit Quality: AAA
Non-AAA Exposure: 0%
Yield to Maturity: 0.8%
Modified Duration (years): 0.7
Average Maturity (years): 0.8
Duration Target: 0.5 - 1.5 years
Benchmark: ICE BofA 1-Yr Treasury



Below Peer Group1



'AAA' & Government





Investment Performance (%)

as of September 30, 2020

  Quarter 1 Yr 3 Yr 5 Yr 10 Yr Since Inception
HQSD (AAA) Ultra-Short Securitized (Gross) 0.25 2.47 2.44 1.92 -- 1.92
HQSD (AAA) Ultra-Short Securitized (Net) 0.16 2.12 2.09 1.56 -- 1.56
ICE BofA 1-Yr Treasury 0.08 2.37 2.19 1.54 -- 1.54

Periods greater than one year are annualized. Inception date is 10/1/15.



Sector Allocation (%)

as of September 30, 2020

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


As of September 30, 2020

Annualized gross of fee returns. Standard deviation (risk) measures the dispersion of returns (historic volatility). 1Peer group: products reporting a one-year maturity benchmark within the eVestment 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). Volatility measured by the 3-year standard deviation of product returns. Percentile rankings reflect where those returns fall within the peer group. The Composite’s 5-year low volatility measure ranked in the top 1st percentile among 8 strategies. 


Credit Quality*

as of September 30, 2020


Investment Background

  • 25+ years managing high-quality bonds
  • $1,603 million in short duration assets
  • Focus on securitized debt instruments
  • Custom portfolio tailored to investment needs


Jim Womack, CFA

Jim Womack, CFA

Portfolio Manager

Brad Buie, CFA

Brad Buie, CFA

Portfolio Manager

Kyle Johns, CFA

Kyle Johns, CFA

Portfolio Manager



Fact Sheet

High Quality (AAA) Ultra-Short Securitized

September 30, 2020
Read More

Fixed Income Market Review

September 30, 2020
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*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.

Average Credit Quality calculated as of current quarter-end by Atlanta Capital.  The Strategy’s overall average portfolio credit quality is not assigned by an independent credit agency.  Rather, it is calculated by the investment adviser by determining the average credit quality of the Strategy’s investments (including cash held in government money market funds) based on their market value.  If individual securities within the portfolio are rated differently by the independent credit agencies, the higher rating is used to calculate the average portfolio credit quality.  Unrated securities are included based on internally assigned ratings. Average credit quality may change over time.

Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security.   If securities are rated differently by the rating agencies, the higher rating is applied.  Ratings of BBB or higher by Standard and Poor's or Fitch (Baa or higher by Moody’s) are considered to be investment grade quality.

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 Ultra-Short Securitized Composite includes all fully discretionary separate accounts invested predominantly in debt securities having average effective maturities of 0.25 to two years.   The investment objective of this strategy is to outperform money market instruments over time while minimizing credit and event risk.   Accounts in this composite invest primarily in asset-backed securities, mortgage-backed securities, and low-volatility collateralized mortgage obligations to improve yield and minimize event risk. Accounts may also invest in obligations of the U.S. Treasury.  Corporate bonds are excluded due to their inherent credit and event risk and higher volatility. Securities generally have a debt rating of AAA assigned by a nationally recognized statistical rating organization (such as Standard & Poor’s, Moody’s or FitchRatings).   The composite’s duration typically ranges between one-half year and one and one-half years.   Composite assets as of September 30, 2020 were $726 million.

The benchmark for this composite is the ICE BofA 1 Year Treasury Note Index. The index is comprised of a single issue purchased at the beginning of the month and held for a full month.  At the end of the month, that issue is sold and rolled into a newly selected issue.  The issue selected at each month-end rebalancing is the outstanding original issue 2-year Treasury Note that matures closest to one year from the rebalancing date.  To qualify for selection, an issue must have settled on or before the month-end rebalancing date. 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 future results.