Tax Efficient Fixed Income

Investment Approach

Our tax efficient fixed income investment strategies focus on quality control and effective risk management by utilizing a disciplined, capital preservation focused investment process. Portfolio Managers work directly with clients to customize separately managed portfolios to their particular investment goals, risk tolerance, liquidity needs, and state and federal tax status.

Active Management Approach:

  • Interest Rate Exposure
  • Yield Curve Structure
  • After-tax Sector Analysis
  • Credit Rating Allocation
  • Municipal State and Sector Relative Value
  • Trade Execution
  • Security Selection

Core Principles

  • Credit Research Emphasis
  • Transparency
  • Preservation of Capital
  • After-Tax Total Return Orientation
  • Risk-Management

Commentary

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We invest across the maturity and investment grade credit spectrum with strategies ranging from customized liquidity and deployment capital solutions, to core mandates, to opportunistic long duration portfolios.

  Short Term Capital Deployment Core Conservative Core Plus
Mandate Liquidity
Asset Liability Management		 Preservation of capital Preservation and growth of capital
Benchmarks Immunized Treasury Portfolio Bloomberg Barclays Municipal Index

    • 3 Year
    • 5 Year
    • 1-10 Year
 Bloomberg Barclays 1-10 Year Municipal Index
Liquidity Focus on large, liquid issues Focus on large, liquid issues Some limited liquidity, particularly in down markets
State Allocation Customized to client state tax status Customized to client state tax status Allocation based on fundamental and technical analysis
Maturity Spectrum 0-5 years Range of 0-12 years depending on mandate Typically 0-15 years
Credit Investment grade A-rated or below typically limited to 25% Up to 50% in A-rated or below
Strategic investments in BBB-rated bonds
Sector Allocation After-tax total return and interest rate scenario analysis Quality-driven approach with focus on limited volatility and after-tax total return Robust sector rotation based on internal credit research and quantitative models
After-tax total return analysis

 

 

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Senior Investment Team

Kenneth M. PottsKenneth M. Potts

Senior Vice President, Portfolio Manager

Ken is a strategy leader for the Tax Efficient Fixed Income Investments team. He is also a member of the Fixed Income Investment Committee and manages fixed income portfolios for high net worth individuals.

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Judy Wesalo TemelJudy Wesalo Temel

Senior Vice President, Director of Credit Research

Judy leads the fixed income credit research team. She is a member of the Fixed Income Investment Committee and the author of the book The Fundamentals of Municipal Bonds.

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Dexter J. TorresDexter J. Torres

Senior Vice President, Portfolio Manager, Head of Trading

Dexter is Head of Trading and a Portfolio Manager for the Tax Efficient Fixed Income Investments team. He also serves as a member of the Fixed Income Investment Committee.

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Alec AltermanAlec Alterman

Vice President and Portfolio Manager

Alec works closely with other portfolio managers on the day-to-day management and analysis of clients’ portfolios. He is also responsible for compliance testing on all of the firm’s bond portfolios and supports the Currency Strategies management team.

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