Active Relative Value (ARV):
Our Four Pillars of Performance

Riverbend’s Active Relative Value (ARV) strategy is built on four performance attributes designed to maximize income and total return while actively managing risk.

Pillar #1

Municipal Durations /
Global Macro

We determine interest rate risk exposures by analyzing both global macroeconomic trends and specific municipal factors. Our duration decisions and biases are often a result of tax-exempt specific variables.

Pillar #2

Yield Curve Position /
Structure

We aim to maximize income and total return through maturity, coupon, and call structure. We utilize portfolio duration wisely, to ensure you are compensated for risk. Defensive structures, such as coupon protection, can be inexpensive to add.

Pillar #3

Sector Weights /
Quality Profile

We meticulously evaluate credit spreads and the intrinsic value in general obligations and revenue bonds. We are disciplined in this approach, avoiding low-quality or poorly structured financings, such as appropriation debt, unsecured leases or poorly funded pensions, which have no place in our ARV strategy.

Pillar #4

Security Selection /
State Exposures

We employ a dedicated and and rigorous security selection process. We negotiate aggressively—a dynamic opportunity within the municipal market—and are tactical regarding state exposures. Our process leaves no stone unturned to identify the best outcomes for our clients.

Our Superior Quality Profile:
The “Double Win”

We believe performance and quality are not mutually exclusive.

Bar chart comparing credit ratings AAA, AA, A, and BAA for Riverbend Capital and Bloomberg Municipal Bond Index, with Riverbend Capital having higher proportions in AA and AAA ratings.

Key Elements of Our "Double Win" Strategy:

  • Quality and outperformance: We seek to provide returns superior to the market and our peers while focusing only on the highest-quality bonds and sectors.

  • Fully utilized market: We access the entire market, including the 80% of new issues under $50 million. This enables us to be extremely selective and identify the best opportunities.

  • It’s more work––and worth every minute of it: Portfolio construction with a unique relative value lens and a rigorous security selection process enables us to do the best for our clients.

  • Built for your success: We only buy what is in your best interest. We don’t seek to mimic the composition of indexes in terms of sectors, credit ratings, or issuer weighting.