Our investment process begins with a discussion of client financial goals in light of risk tolerance, liquidity needs and tax considerations.  The purpose is to develop a targeted long range plan that seeks to achieve these goals. Each customized portfolio solution is separately managed and designed to address specific client objectives.

At Riverbend Capital, our proactive approach includes an assessment of the most appropriate yield curve positioning designed to maximize income in accordance with client goals.

Cost efficient trade execution is a priority as we seek to reduce transaction costs and mark-ups, which can be egregious in the Muni market if left unchecked. Our transparent, fee-based cost structure aligns our interests with those of our clients.

In the current market environment, individual bond selection is more important than ever. We focus on diversification of risk and underlying credit quality, emphasizing high grade, tax-supported obligations and essential purpose revenue bonds with dedicated pay sources.

The strategic utilization of various bond structures plays an important role in our investment strategy. We take advantage of the fragmented nature of the market on behalf of our clients. We are active managers in the sense that we make tactical portfolio adjustments when the market offers relative value opportunities to do so.

We consistently monitor each individual portfolio and rebalance when appropriate. Our approach is methodical and disciplined with a longer-term focus.


Process


Why Munis?

The municipal bond market is vast at approximately $3.7 trillion in size and it is heterogeneous in scope with a wide variety of sectors. Municipal bonds are issued at the state and local level as general, tax-supported obligations or for specific purposes such as water and sewer systems, health care, electric utilities, housing, higher education, etc. Broad geographic variation also contributes to the diversity of municipal market options.

Municipal bonds can provide several benefits to an investor portfolio:

  • Predictable tax-free stream of income
  • Wealth preservation and reduced capital risk
  • History of positive returns (26 of last 30 years*)
  • Portfolio diversification
  • Secondary market liquidity

We believe that a well-managed municipal bond portfolio can play a vital role in an investor’s overall asset allocation.

 

*ICE BofA US Municipal Securities Index