Strategies

A separately managed account with flexibility tailored to the client’s investment policy statement, which may include: income targets, social concerns, maturity, duration, credit quality and state-specific objectives.

The objective of this strategy is to provide a high degree of liquidity and safety of principal by investing in a diversified portfolio of variable rate demand notes (VRDNs). The strategy seeks to achieve a higher rate of return compared to typical tax-exempt money market rates. The portfolio also provides a defensive position against rising rates. VRDNs utilized in this strategy have a one-day or seven-day demand feature (put option) which enables an investor to tender the securities at face value. VRDNs for this strategy will benefit from third-party credit and liquidity enhancements guaranteeing payment of principal and interest on tendered securities. The main types of credit enhancements include letters of credit and standby bond purchase agreements, both of which are provided by highly rated U.S. banks.

This strategy offers a diversified portfolio of investment grade municipal debt securities with an average maturity range of 6 to 12 years and an average duration of 4 to 7 years. The average portfolio credit rating is “A” and bonds subject to the Alternative Minimum Tax (AMT) are not utilized. Clients may choose state-specific portfolios. This strategy focuses on maximizing tax-exempt income and lowering interest rate volatility.

This strategy offers a diversified portfolio of municipal debt securities with an average maturity range of 1 to 30 years and an average duration of 1 to 15 years. This investment strategy seeks total return by taking an opportunistic approach to the municipal market. The municipal sector is inefficient and there is dislocation in security pricing. SMC FIM believes this is an opportunity for clients to employ credit analysis with experienced portfolio management to find undervalued securities. Securities selected for this portfolio can include investment grade, non-investment grade and non-rated municipal issues. Active yield curve positioning is also a component of the strategy. The manager may select taxable or tax-exempt municipal securities in seeking total return opportunities. In addition, this portfolio will be highly flexible and can be structured to a risk profile of investment grade only, with a maximum maturity of 20 years and a duration limit of 10 years. The manager intends to employ an active approach to maximizing total return.

Customized Portfolio

A separately managed account with flexibility tailored to the client’s investment policy statement, which may include: income targets, social concerns, maturity, duration, credit quality and state-specific objectives.

Municipal Cash Management

The objective of this strategy is to provide a high degree of liquidity and safety of principal by investing in a diversified portfolio of variable rate demand notes (VRDNs). The strategy seeks to achieve a higher rate of return compared to typical tax-exempt money market rates. The portfolio also provides a defensive position against rising rates. VRDNs utilized in this strategy have a one-day or seven-day demand feature (put option) which enables an investor to tender the securities at face value. VRDNs for this strategy will benefit from third-party credit and liquidity enhancements guaranteeing payment of principal and interest on tendered securities. The main types of credit enhancements include letters of credit and standby bond purchase agreements, both of which are provided by highly rated U.S. banks.

Municipal Intermediate

This strategy offers a diversified portfolio of investment grade municipal debt securities with an average maturity range of 6 to 12 years and an average duration of 4 to 7 years. The average portfolio credit rating is “A” and bonds subject to the Alternative Minimum Tax (AMT) are not utilized. Clients may choose state-specific portfolios. This strategy focuses on maximizing tax-exempt income and lowering interest rate volatility.

Municipal Opportunities Plus

This strategy offers a diversified portfolio of municipal debt securities with an average maturity range of 1 to 30 years and an average duration of 1 to 15 years. This investment strategy seeks total return by taking an opportunistic approach to the municipal market. The municipal sector is inefficient and there is dislocation in security pricing. SMC FIM believes this is an opportunity for clients to employ credit analysis with experienced portfolio management to find undervalued securities. Securities selected for this portfolio can include investment grade, non-investment grade and non-rated municipal issues. Active yield curve positioning is also a component of the strategy. The manager may select taxable or tax-exempt municipal securities in seeking total return opportunities. In addition, this portfolio will be highly flexible and can be structured to a risk profile of investment grade only, with a maximum maturity of 20 years and a duration limit of 10 years. The manager intends to employ an active approach to maximizing total return.