Investment Process

Since the municipal market is not static, MacKay Municipal Managers’ TM process is dynamic. The team’s investment process looks to capitalize on market inefficiencies, consistently build a yield advantage, and seeks an attractive after-tax total return.

The team employs a multi-dimensional approach in evaluating technical trends and analyzing individual issues, while emphasizing risk control. Their relative value approach is based on fundamental  bottom-up credit research of sectors and individual securities to identify attractive opportunities. This dynamic approach has been consistently applied for over 18 years and is based on:

  • Research – Thorough understanding of underlying credit and the drivers of their relative values from all dimensions of the market to identify mispriced securities.
  • Risk Management – Rigorous oversight employed throughout the investment process to help reduce volatility.
  • Execution – A focus on cost efficient execution, which can make a meaningful difference when managing municipal portfolios.
  • Value Added Strategies – Consistent implementation of four value added strategies: sector/security allocation, yield curve positioning, duration management, and buy/sell trade execution.