The following points highlight our investment process:
Portfolios are conservatively constructed with moderate durations to limit systematic risk. Minimal interest rate forecasting is employed.
Only high quality, highly liquid securities are purchased.
Portfolios are constructed using four proven strategies.
Active management is employed to enhance investment returns.
Tax efficiency is paramount in all investment decisions.
The municipal bond market is extremely broad and decentralized. Bonds are issued by many large municipalities, such as states, counties and cities, smaller municipalities and various municipal authorities that operate water systems, provide low cost mortgage assistance, oversee student loan programs, support higher education, etc. Specific security knowledge is crucial to the research effort and drives effective purchase and sell decisions. Rating agency ratings are closely watched to asses the quality of individual bonds and monitor credit trends. In-house research involves careful and exhaustive analysis of individual bond indentures and structures with the goal of discovering undervalued securities likely to outperform the market. Internal analysis done by C.W. Henderson & Associates is complemented by research received from over fifty broker dealers, many of whom have specialized expertise such as in-depth knowledge of housing bond cash flows, insights regarding regional issuers and the like. The firm continuously monitors portfolio constructions to assure that accounts are positioned advantageously relative to the Barclays Capital (formerly known as the Lehman Brothers) Five Year GO Municipal Index.
