| INVESTING FOR THE BEST RETURNS
We believe the best way to preserve and grow capital is through long-term, tax-efficient compounding of returns in diversified portfolios. We limit risk by combining asset classes that do not typically move in the same direction in given market conditions.
Prudent investing requires time, expertise, research, and discipline. If you can optimize any of these, you can increase profits. We'll help you optimize them all.
LIQUIDITY MANAGEMENT SERVICES
Client Service Philosophy
Strive for excellence in client service by:
- Acting in a fiduciary capacity at all times
- Frequent, responsive client communications
- Custom-tailoring of portfolios to specific client circumstances
Fiduciary Service Basis
All liquidity management portfolios are handled on a fiduciary basis. This means:
- Our client’s interests always come first
- There is no self-dealing
- There are no mark-ups, commissions or hidden costs on any transactions
Individualized Portfolios
All portfolios are custom-tailored in conformance with specific client guidelines and objectives to reflect:
- Liquidity and cash flow needs
- Credit quality and volatility constraints
- Rate-of-return expectations
- State of the art record keeping, including accruals, accretions and ammortizations
Investment Process
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Slight maturity extension past money fund universe offer attractive risk/reward characteristics
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Recurring patterns in the fixed income markets can be exploited
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Yield-advantaged sectors offer higher returns with minimal incremental risk
Specific Issue Selection
Credit Policy
- We purchase only high-quality, readily marketable securities
- Impact of individual issues is quantified through modeling
- Misevaluation opportunities are captured while maintaining portfolio strategy
- Independent analysts provide ongoing credit research and monitoring to assure high quality and marketability
- Credit Policy ensures that appropriate standards are maintained
Client Reporting
Portfolio Appraisal
- Lists holdings as of report date
- Provides liquidation values, yields and average maturities
Appraisal with Income
- Provides total earnings (including accruals and cash) for reporting period
Transaction Report
- Monthly summary of transactions
On-line access to holding/transactions
data available upon request
Summary
- We place a premium on independent analysts who embrace our commitment to service excellence
- We have expertise in both the taxable and tax-exempt markets
- Our performance confirms that our business cycle/yield advantaged strategies work
- The fiduciary nature of our client relationships is a distinguishing feature
Fixed Income Management
Business Cycle Analysis & Strategy Guidance Conclusions
| |
Peak |
Recession |
Recovery |
Expansion |
| Business Cycle Trends |
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| Federal Reserve: |
Tightening Ends |
Eases |
Eases/Neutral |
Tightens |
| Interest Rates: |
Peak/Begin Declines |
Decline |
Trading Range |
Rise |
| Sector Trends |
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Credit Quality:
Call Risk: |
Stable
Low |
Deteriorating
Increasing |
Improving
High |
Stable
Decreasing |
| Buffington Mohr McNeal Strategy |
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| Duration Strategy: |
Shorter or Neutral |
Longer |
Longer to Neutral |
Neutral to Shorter |
| Call Exposure: |
Reduce |
Avoid |
Increase |
Increase |
| Sector Weightings: |
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|
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|
| General Obligation: |
Overweight |
Underweight |
Establish Position |
Increase |
HOW WE SELECT STOCKS
We select companies with a history of consistent earnings growth which we believe will drive stock prices higher over the long-term.
HOW WE SELECT BONDS
A percentage of your portfolio may be invested in bonds, or Fixed Income Securities. We use high-quality, intermediate term securities, which typically capture a significant portion of available yield with substantially less price volatility than longer-term bonds.
HOW WE SELECT SPECIALTY MANAGERS
Our multi-style, multi-manager diversification limits risk by spreading assets across top-rated money managers with different investment approaches. Our investment philosophy is to structure a long-term portfolio that outperforms traditional, actively managed portfolios with the same-or lower-level of risk. Through extensive research and close partnership with you, we identify the best combination of stocks, bonds, and specialty managers for your investment objectives.
FEES
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Market Value
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Fee
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$0 - $2,000,000
|
1.00%
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Over $2,000,000
|
.50%
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Management fees will be assessed at the beginning of the month or quarter. New accounts and terminated accounts will be charged a pro-rata fee for the period of time that assets are under management. In the event of termination of an agreement where fees have been paid in advance, a prorated refund will be made. Accounts may be terminated by either party with five (5) days written notice. Compensation for other services shall be on an hourly rate negotiated with the client.
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