Short Duration

Investment Strategy

At AUIM, we manage portfolios under a uniform investment approach driven by a seasoned group of investment and risk management professionals. Performing in a team-oriented environment, we focus on fundamentals, positioning, technicals, and valuation throughout each step of the investment process. We begin our investment process with fundamental independent bottom-up research of security and sector, which is shared amongst our global partners and between different asset classes to fully leverage resources and provide optimal value to our clients. We strive to exploit inherent inefficiencies of the market and outperform the benchmark over a full market cycle, while achieving a competitive level of current income with minimal fluctuation in principal value and liquidity.

Unlike a core bond fund, our short duration strategy seeks a lower level of price volatility due to its lower duration (interest rate sensitivity) than a typical core bond fund. Unlike a money market fund, the short duration strategy seeks a higher level of current income and a higher yield, yet exhibits more price volatility as the product does not seek to maintain a stable $1 NAV.

AUIM's most valuable attribute is the result of our rigorous independent bottom-up credit research. Concentration is given to specific industries across the credit spectrum, as we seek to capitalize on inefficiencies across the cap structure. A thorough understanding of the entire competitive landscape allows us to evaluate the strategic positioning of a credit and effectively measure the impending upside, while limiting downside performance risk.

Key Facts

$2,815 million USD

Strategy AUM

$114 billion USD

Firm AUM

Strategy Objective

To provide capital preservation and current income by investing in a portfolio of relatively short maturity fixed income securities, and to consistently outperform the Bank of America Merrill Lynch 1-3 Year U.S. Corporate and Government Index over a full market cycle (typically 3-5 years).

As of 3/31/2017

Short Duration Institutional Fact Sheet

Click here to open the latest Short Duration Commentary.

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Composite Disclosures

Click here to download the Short Duration GIPS® Composite Disclosures.

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Portfolio Management Bios

Click here to download bios for the Short Duration Portfolio Management Team.

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Aegon USA Investment Management, LLC, (AUIM) is a U.S.-based investment adviser registered with the Securities and Exchange Commission (SEC) and a member company of Aegon Asset Management, the global investment management division of the Aegon Group.