Investment Process
Our Tax Exempt Fixed Income investment approach is based on the belief that superior long-term performance may be achieved by focusing on three key strategies: security selection, portfolio structure, and duration management, while diversifying risk exposure.

Our Tax Exempt Fixed Income management team members use a disciplined process and team-based decision-making when considering these three key strategies:

Portfolio structure: We use bullet, barbell, and ladder strategies based on yield curve shape and market outlook.

Security selection: We use credit research and trend analysis to identify mispriced securities and manage security-specific risk by diversifying across sectors and issuers.

Duration management: We make limited adjustments (maximum ±20% vs. the benchmark) in duration based on our macroeconomic forecasts and relative value analysis.

Of the three key strategies our Tax Exempt Fixed Income team considers in constructing a portfolio, our primary focus is on security selection.

Research
Our research-driven process is based on quantitative and qualitative municipal credit research including:

Macro-outlook: economic growth, demographic trends, legal/regulatory, legislative environment, tax developments, new issue supply

Microanalysis/Security Selection: loan agreement, bond covenants, bond structure, legal/tax factors, reporting requirements, revenue/expenditure trends, cash-flow analysis, fixed-charge coverage, leverage, CAPX needs, budgetary performance, state and local economic trends

Risk Management/Surveillance: macrofactors and microfactors, issuer performance, security performance, portfolio exposure, rating agency actions