Tax-Exempt Portfolios Customized for Investor Needs
Timothy T.A. McGregor, CFA
Director, Municipal Fixed Income Management
Municipal fixed income strategies tailored to emphasize principal preservation, income and liquidity.
At Northern Trust Asset Management, municipal fixed Income strategies are constructed with the goal of generating consistent risk-adjusted performance. We emphasize the client's unique tax situation, preserving principal, generating current income and providing liquidity.
As active bond managers, managing credit risk is the cornerstone of our fundamental research process. We seek to add value with yield curve positioning, sector and structure and state analysis; and disciplined risk management.
- Extensive, global, fundamental credit research and risk management
- Deep integrated team across research, portfolio management, trading & risk
- High-quality, well-diversified fixed income portfolios backed by 40 years of experience
- Municipal Fixed Income asset under management* : $32.9 billion
- High-quality, high-yield and state-specific strategies in separate accounts and mutual funds
- Active, structured and laddered managed account portfolios to meet investor objectives
*As of June 30, 2019 (updated quarterly). Source: NTAM Finance.
A Flexible Platform Actively Seeking Relative Value in Municipal Bonds
Multiple strategies - laddered, structured and active bond portfolios - to meet specific client objectives
Proprietary Municipal Research Seeking Relative Value in Municipal Bonds
We recently shared a piece describing the risk management benefits of premium coupon bonds. But that benefit may come with a warning: if you spend the entire premium bond coupon income, you may be spending some of your principal, disguised as coupon interest.
Fiscal Year (FY) 2019 revenues universally exceeded budget expectations. No states made mid-year budget cuts based on revenue shortfalls. That’s down from a peak of 41 in FY2009 and 22 states in FY2017. The revenue outperformance has allowed 28 states to add to reserves.1 Median rainy day fund levels hit an all-time high of 7.5% of general fund spending, up from 1.6% in fiscal 2010.2 At the median, states are more resilient now than the prior year, but outliers still exist.
States, higher education and hospitals face some of the biggest challenges in 2019. Find out why, and see our detailed breakdown of states with the most risks.