Intermediate Municipal Bond

Philosophy

We believe the integration of fundamental credit research and analysis, market experience, attention to execution and continuous performance review can provide investors with attractive risk-adjusted returns relative to benchmark and peers


Process

Benchmark: S&P Investortools Intermediate Municipal Bond Index 


The Municipal Fixed Income investment process integrates portfolio management with fundamental credit research and quantitative risk analysis. The establishment of a transparent agreement between the investment management team and the client is the basis for managing the portfolio exposures. Fundamental credit research utilizes both top-down as well as a bottom-up process. Top down focuses on national economic analysis for regional and state specific recommendations, while bottom up analysis is performed to generate credit opinions on over 100 focus list issuers. These analyses provide the portfolio managers with proprietary credit opinions to develop relative value trading ideas across states, sectors, rating categories and obligors.

The quantitative research group generates daily interest rate profiles for each security in addition to each portfolio. This active management strategy involves examining each maturity on the curve, or the “key rate” duration measure. We do not express an interest rate view, but dynamically maintain equivalent interest rate sensitivity across the maturity spectrum. The quantitative group also monitors portfolio performance attribution to evaluate security and portfolio structure for their contribution to investment return.

Portfolio managers/traders synthesize the credit and quantitative research with current market conditions to execute the most advantageous transitions for investor portfolios with the goal that the client risk-adjusted returns exceed those available from the benchmark.