Most institutions look at their fixed income portfolios as two distinct sectors: On one-hand, they view their taxable bond portfolio primarily as a source of total return, while at the same time viewing their municipal bond portfolio simply as source of after-tax income. We see things a bit differently. We believe that each sector contributes to both price return and income return. The best way to maximize portfolio returns is to optimize the allocation between the segments, and across the yield curve.
Individual Investor Portfolios
In a world of the 'bigger is better', many in the financial industry have attempted to provide one-stop shopping for the individual investor. This approach has left investors with cookie-cutter products that gravitate to the needs of the average investor. By trying to cater to everyone, mass marketed products end up appealing to no one. We believe investors deserve better. At MuniCrest, each account is separately managed by bond market professionals with years of experience managing portfolios with diverse goals and objectives.
Registered Investment Advisors
MuniCrest offers its expertise to other registered investment advisors whose primary focus is on something other than fixed income assets - namely equities. Many equity firms' fixed income holdings are beginning to reach a critical mass and they have the need for more focused expertise. These firms can contract with MuniCrest to manage their holdings on either a discretionary or non-discretionary basis. In essence, we can be a turn-key fixed income department.