Transcript Investment Advisory Services: Broker/Dealer CMTA Conference April 22, 2004 Karl Schwab, CFA FTN Financial Discussion Topics 1.

Investment Advisory Services:
Broker/Dealer
CMTA Conference
April 22, 2004
Karl Schwab, CFA
FTN Financial
Discussion Topics
1. Investment goals
2. Factors influencing investment decisions
3. Choosing the relationship
4. Portfolio management tools
5. What to expect from your “advisor”
Investment Goals
• Preservation of principal
• Protect
• Taxpayers
• Debt-holders
• Income Generation
• Fund ongoing services
• Cover debt service
• Meet emergency needs
Discussion Topics
1. Investment goals
2. Factors influencing investment decisions
3. Choosing the relationship
4. Portfolio management tools
5. What to expect from your “advisor”
Factors influencing investment decisions
• Current level of interest rates
• Cash flow and budget requirements
• Risk tolerances
• Investment policy – state and local laws
• External Influences
Discussion Topics
1. Investment goals
2. Factors influencing investment decisions
3. Choosing the relationship
4. Portfolio management tools
5. What to expect from your “advisor”
Choosing the relationship
• Active / Passive investment management
• Advisor “track record”
• Approval process and documentation
Choosing the relationship
Broker / Dealer Direct Investment - Defined
• Pay as you go
• Sector specific research and information
• Strategies, ideas, and trade execution
• Compete for your transactions
Broker / Dealer Direct Investment
Municipality
Advice
Advice
Trade
Trade
Broker / Dealer
Advice
Trade
Broker / Dealer
Broker / Dealer
Choosing the relationship
Broker / Dealer Direct Investment - Advantages
• Market knowledge
• Product / Sector insight
• Closer to the market / can underwrite issues
• Independent of process
Choosing the relationship
Broker / Dealer Direct Investment - Advantages
Discussion Topics
1. Investment goals
2. Factors influencing investment decisions
3. Choosing the relationship
4. Portfolio management tools
5. What to expect from your “advisor”
Portfolio Management Tools
Information to make the right decisions
• Essential analytics
• Online portfolio tools
Portfolio Management Tools
Information to make the right decisions
Portfolio Management Tools
Information to make the right decisions
Portfolio Management Tools
Information to make the right decisions
Portfolio Management Tools
Information to make the right decisions
• Essential analytics
• Online portfolio access
• CMS Bondedge
• Yieldbook
• Bloomberg
Portfolio Management Tools
Information to make the right decisions
• Essential analytics
• Portfolio accounting
Portfolio Management Tools
Information to make the right decisions
Portfolio Management Tools
Strategies and Trade Ideas
• Tailored to the objectives of the municipality
• Based on the current portfolio structure
• Both strategic and tactical trade ideas
Portfolio Management Tools
Strategies and Trade Ideas
Portfolio Management Tools
Investment Research – Industry Leaders
• Economic Research
• Government Agencies
• Corporate Bonds
Portfolio Management Tools
Investment Research
Portfolio Management Tools
Investment Research
Discussion Topics
1. Investment goals
2. Factors influencing investment decisions
3. Choosing the relationship
4. Portfolio management tools
5. What to expect from your “advisor”
What to expect from your advisor relationship
Broker / Dealer Direct Investment
• Quality coverage based on needs
• Proven Firm with knowledgeable
representatives
• Trade execution for quality ideas & service
• Customized Agency underwriting
• Market making leadership in Agency debt
What to expect from your advisor relationship
Broker / Dealer Direct Investment
• Access to customized analytics and reporting
• Distribution of research and information flow
• Access to Economist and Analyst