How SNW Approaches High-Quality, Tax-Efficient Fixed Income
Offering investment-grade strategies delivered through SMAs, with impact investment options.
September 21, 2017
A high quality, fixed income strategy that actively invests in a blend of tax-exempt municipal bonds and domestic taxable bonds in seeking to generate attractive after-tax total returns while mitigating volatility for investors in mid-level Federal tax brackets and/or who reside in no-to-low income tax states.
The SNW investment team seeks to generate outperformance relative to stated benchmarks on a rolling three-year basis, while exhibiting similar levels of volatility. The team believes such outperformance can potentially be achieved via active sector allocation and security selection while adhering to tight duration bands, identifying high quality securities that maximize income potential and employing a comprehensive risk framework.
Based on a 12-month investment horizon, the SNW Investment Committee forms its macro outlook and establishes portfolio risk and sector positioning targets. Sector-dedicated research analysts conduct fundamental analysis and identify the most attractive relative value opportunities. Traders then source approved securities and construct portfolios to meet the aforementioned risk targets. Risk management is critical throughout our process and is predicated on a comprehensive framework that seeks to accurately manage portfolio risks and mitigate the downside.
Eddie Bernhardt serves as SNW Investment Team Leader. He is responsible for the portfolio management of the SNW National Municipal, Blend, Taxable, Credit and Impact investment strategies. He was President and CEO of SNW Asset Management, which joined the OppenheimerFunds family in 2017. Prior to joining SNW, he traded taxable and municipal bonds and built high-net-worth fixed income portfolios for Wells Fargo Securities Private Client Services.
Tim Benzel is responsible for the portfolio management of the SNW National Municipal, Blend, Taxable, Credit and Impact investment strategies. He served in a similar capacity at SNW Asset Management, which joined the OppenheimerFunds family in 2017. Prior to joining SNW in 2010, Tim was an Assistant Fixed Income Portfolio Manager at Neuberger Berman Private Asset Management, where his responsibilities included credit analysis and trading.