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INVESTMENT PHILOSOPHY
Building and maintaining expertly tailored, tax-efficient portfolios for families of wealth is what CFI does. Achieving this requires many things, but it comes down to this: sustained success requires knowledge, experience and industry. CFI believes that only active management with vigilance and hard work will produce better structure, quality and superior performance over time. CFI's clients have benefitted from this philosophy. CFI is extremely conservative, yet extremely aggressive in constructing portfolios that mitigate risk while providing competitive returns. With in-depth research, consultation with the specialists, CFI is able to make informed decisions to secure the best results for every portfolio.
INVESTMENT STRATEGY
Identifying the appropriate strategy to employ for a given client requires the identification of four factors. First you must know your client's goal, objectives and risk tolerance. Second, one must confront the realities of the current market (supply, demand, fiscal and monetary policy, etc). Third, the strategy needs to incorporate a prudent assessment of future market factors affecting yield curves, credit dynamics and the potential for market altering legislation. Finally, the strategy should be cognizant of the client's circumstances, i.e. age, health, disposition of other assets and liabilities, income requirements, tax status, goals. CFI is able to make informed decisions to secure the best results for every portfolio.
INVESTMENT PROCESS
The paramount factor in constructing a resilient portfolio of municipal bonds is diversification. Although maturity distribution will reflect our interest rate outlook, it should never be concentrated in a narrow window of maturities, as the risk penalty of having erred is way out of proportion to any hoped for advantage such a tactic would produce. Likewise, broad diversification is needed with regard to the issuer, geography, bond purpose, legal structure, sources of debt service etc. The type of bond coupons and call features need to varied as well. Within the guidelines dictated by the client's objectives and risk tolerance, CFI's policy is to maximize returns. This must be accomplished however, by maintaining the discipline to avoid the potential hazards that over concentrations present.
STRATEGY CHARACTERISTICS
Charles Fish Investments, Inc. (CFI) has been specializing in building and actively managing tailored municipal bond portfolios for families of wealth for decades. The CFI Enhanced Yield Muni Bond strategy consists of portfolios invested in broadly diversified bonds with a primary focus in California non-AMT tax-exempt issues. The strategy utilizes a broad range of durations and embedded options while leveraging our credit expertise to expand the scopes of security selection. A portion of each portfolio is employed in bonds with no outstanding ratings. These bonds have been thoroughly scrutinized and found to possess the characteristics of investment grade securities while providing significantly higher yields. The strategy does not employ leverage.
Fact Sheet 9/30/2024
Performance shown in the Fact Sheet represent both Gross and Net returns. NET returns are calculated by deducting the highest applicable annual management fee of 0.50% from GROSS returns applied monthly. Not all accounts pay the same management fees. GROSS returns are provided for INFORMATIONAL PURPOSES ONLY. Actual fees, costs and performance may vary depending on many factors. Past performance of the strategy is no guarantee as to its performance in the future.
CFI is owned by Brentview Investment Management, LLC. Brentview Investment Management, LLC claims compliance with the Global Investment Performance Standards. (GIPS®). To receive a GIPS® Report please visit the Brentview GIPS® Page here. GIPS is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
The CFI Enhanced Yield Muni Bond Composite inception date was January 1, 2017. Prior to September 2022, the composite was known as the CFI Muni Bond Composite. The composite consists of portfolios invested in broadly diversified municipal bonds, primarily of California tax-exempt issues. The strategy’s total return approach results in a broad range of durations and embedded options, driving enhanced yield potential. The portfolio management team utilizes fundamental credit analysis and sophisticated trading capability to identify and secure superior results. The strategy does not employ leverage. Performance prior to July 31, 2020 represents the track record achieved at a prior firm, and meets the portability guidelines of GIPS. The firm maintains a list of composite descriptions, which is available upon request.
The U.S. Dollar is the currency used to express performance. The minimum account size for this composite is $2 million with less than 25% in cash & cash equivalents. Net of cash, the account must be comprised of a minimum with at least 50% of holdings in California tax-exempt non-AMT municipal bonds and a minimum of 25% non-rated or non-investment grade bonds. CFI’s fees are computed as a percentage of the market value of assets under management and are payable quarterly in advance. On rare occasions and under special circumstances, CFI may agree to lower account minimums and charge a fixed fee. At the discretion of CFI, related accounts may be combined for the purpose of calculating the breakpoint on fees. The maximum annual fees for fixed income accounts are as follows: ½ of 1% on the first $2 million under management; 3/8 of 1% on the next $13 million under management; 1/4 of 1% on the next $35 million under management; 1/8 of 1% on all over $50 million under management. It should be noted that CFI’s minimum annual fee for new accounts is $10,000. Further details are available on CFI’s ADV Part 2A. The Bloomberg Barclays California Municipal Bond Index is a market capitalization - weighted index of California investment grade tax-exempt bonds with maturities of one year or more. They are based on issues of at least $75 million, have an amount outstanding of at least $7 million, and have been issued after December 31, 1990. Past performance is not indicative of future results. Performance shown represents total returns that include income, realized and unrealized gains and losses. Gross performance is presented net of transaction costs as well as custodial fees. Net returns are calculated by deducting the highest applicable annual management fee of 0.50% from Gross returns applied monthly. Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.
STRATEGY
CHARLES FISH INVESTMENTS, INC. (CFI), founded in l984, is a Registered Investment Adviser with the Securities and Exchange Commission under the Investment Act of l940. CFI is an affiliated subsidiary of Brentview Investment Management, LLC. CFI’s revenues are derived exclusively from the fees received for the investment advisory and/or management services provided.
INFORMATION
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