Form of Investment

Separately managed accounts provide clients with the flexibility to target specific needs and an ongoing process that revisits a client's objectives and market conditions.

• Overview

• Client objectives

• Investment guidelines

• Portfolio execution

• Client service

Investors have unique objectives

Investment guidelines tailored to match client objectives

Key considerations for portfolio management

Attentive client service throughout investment process

• Investment horizon
  • Dependent on factors particular to investor (e.g., years to retirement)
  • Consideration of future liquidity needs
  • Possibility of changes in circumstances (e.g., state of residence)
• Risk tolerance
  • Is return of principal primary objective?
  • Allocating risk exposure to other assets or through municipal bonds?
• Tax status
  • Client's domicile for tax
  • Is client subject to AMT?
• Cash flow needs
  • Importance of current cash flow
  • Specific cash flow targets

• Duration limit
  • Short, intermediate or long duration
  • Maturity constraints
  • Manager discretion
• Credit quality
  • High quality state G.O., essential services revenue bonds
  • Bonds with high quality collateral
• Diversification
  • Benefits of geographic diversification
  • Issuer concentration limit
• Cash flow requirements
  • Targeted cash flows by dates

• Tax awareness
  • If AMT suitable, client could pick up significant yield
  • Weigh state tax advantage vs. diversification benefits
  • Diversification in tax cost basis
• Security selection
  • Review credit independent of agency ratings or insurer
  • Seek strong credit and yield in niche sectors
• Ramp-up period
  • Take advantage of periods of large bond supply and new issuance
  • Allow time to search for value in secondary market
• Capital gain/loss management
  • Take advantage of municipal bond capital gain/loss tax asymmetry
  • Harvest gains in fundamentally rich sectors in tax efficient way
  • Capture capital loss tax credit through bond switches
• Legacy portfolio management
  • Manage portfolio to satisfy new guidelines
  • Switch risky names into safer names with consideration of capital gains tax

• Hands-on approach by senior portfolio managers
  • Portfolio managers involved in guideline creation process
  • Available for discussion with investor/advisor about portfolio, municipal and other fixed income markets
• Customized reporting
  • Characteristics and risk profile of portfolio
  • Portfolio holdings and recent activities
  • Market commentary
    • Commentary on municipal bond market and other fixed income markets, i.e., rates, mortgages, credit
    • Published articles by portfolio managers
• Repeat process as client circumstances change
  • Investment objectives and risk tolerance
  • State of residence and/or tax status
  • Exogenous factors

Private Funds, also known as single client funds, allow certain client-types to package 100%-owned leveraged investment strategies in a form which achieves greater tax efficiency.

• Investor maintains complete control of fund and underlying investments
• Outright leverage can be added tax-efficiently
• Portfolio construction and management customization handled via investment guidelines and share class governance

Commingled Funds provide clients efficient access to unique exposures.

Emerging Markets Debt	Structured Finance	Asset Backed Commercial Paper