Portfolio Construction

Taxable and tax-free accounts are managed to produce a total of return, including interest earned, dividends, and distributions and capital gains realized over a given period of time.  As with equities, portfolios are individually constructed to meet the investment needs of the client including liquidity and cash flow requirements.

Since portfolios are managed, not bought and held, investment decisions are based on a thorough and ongoing analysis of domestic and global economic factors that determine the direction and potential magnitude of shifts in U.S. interest rates.  Accounts are continually monitored and changes made when movement in the yield curve necessitate modifying the portfolio’s effective maturity or duration.

Attention is given to the portfolio credit quality by investing in investment grade or higher.   

Taxable Fixed Income

Portfolios are constructed using components that cover all aspects of the domestic fixed-income market by sector and maturity range.  We measure performance against the Broad Market Index (BMI) with a primary goal of meeting or exceeding the benchmark returns.

Our strategy allows the manager to deviate from the index to:

·      Shorten or lengthen the effective maturity or duration of the portfolio in anticipation of interest rate changes

·      Adjust portfolio allocations versus index components to increase yield and improve liquidity

·      Substitute investment vehicles versus benchmark components, i.e., FDIC-insured CD’s for Treasuries or agencies, fixed to floating preferred equities and taxable municipals for corporates 

All investments will be a minimum of investment grade. 

Municipal Tax-Exempt

We maintain a long-term tax-exempt, fixed-income strategy, placing emphasis on high-grade, general-obligation debt.  However, permissible investments may also include credits such as revenue, insured and appropriation bonds as well as pre-refunded issues.  Portfolio holdings have a credit rating of investment grade or higher and are structured to meet the income objectives of our clients.  Accounts are individually managed and do not employ derivatives products to enhance portfolio results.