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Core Individual Securities Management (ISM)
Municipal Bonds
A diversified core investment strategy targeting strong returns across market cycles
This strategy seeks to provide investors with diversified and comprehensive exposure to investment opportunities through a durable multi-disciplinary investment process. We take an active approach to identify investments in both global equity markets and predominantly investment grade municipal fixed income. Over full market cycles, we incorporate both growth and value styles in the equity selection process as well as global macro-economic and monetary policy expectations.
Long-Term Return Potential
Diversified asset allocation as well as proprietary in-house research and analysis complements our client expectation to deliver reasonable risk adjusted returns regardless of market and economic environment.
Growth of $100,000
Investment Overview
| Inception Date | Composite AUM ($mil) | Strategy AUM ($mil) | Firm AUM ($mil) | Current Yield |
|---|---|---|---|---|
Annualized Total Return
As of
| YTD | 1-yr | 3-yr | 5-yr | 10-yr | 20-yr | Inception* | |
|---|---|---|---|---|---|---|---|
| Composite Gross Return | |||||||
| Benchmark Return |
Calendar Year Returns (%)
| Composite Gross Return |
| Benchmark Return |
Risk Statistics*
| Standard Deviation | Beta | Sharpe Ratio | Annual Turnover % |
|---|---|---|---|
*5 year annualized
Individual Securities Management Balanced Tax-Sensitive Composite contains fully discretionary tax-sensitive balanced accounts managed primarily utilizing individual equity security for the large cap allocation of the portfolio and individual tax-sensitive bond or mutual funds for the fixed income allocation. The composite inception date is January 1, 1995. Composite Benchmark consists of the Russell 3000 (40%), the MSCI ACWI ex US (10%), the BofA Merrill Lynch California Municipal 3-7 Year Index (47%) and the Lipper CA Tax-Exempt Money Market Index (3%) since August 1, 2008. Please consult the ISM Balanced Tax-Sensitive Composite performance presentation for the benchmark composite and weight changes prior to that date. The Composite Benchmark is rebalanced on a monthly basis. The Sharpe Ration measures the risk-adjusted performance. Returns are presented gross of management fees and include the reinvestment of all income. Firm AUM includes all actual, fee and non-fee paying accounts. ISM Balanced Tax-Sensitive Composite AUM includes all accounts with an objective 50/50 allocation to equity and fixed income asset classes. Strategy AUM includes all accounts within the Individual Security Management (ISM) strategy that may have the same or different objective allocations. First American Trust maintains a complete list and description.
Flexible and disciplined Implementation
We tailor our strategy for client variances, including tax-efficiency, by utilizing individual stock and bond positions supplemented with mutual funds and exchange traded funds to enhance and broaden asset class participation. We evaluate equity and fixed income investments based on our fundamental, valuation, and technical analysis to mitigate risk. One of the advantages of investing in individual securities is the ability to customize portfolios if necessary.
Experienced Investment Team
Clients interact directly with their portfolio manager to implement the investment plans. Our team of portolio managers and dedicated research analysts average more than 20 years of investment experience. From following specific equity sectors to evaluating yield and credit curves, they have the expertise to serve individual clients as well as large corporate and charitable endowments.
Our portfolio managers are seasoned professionals who are an integral part of the client service team and average over 20 plus years of experience.
Daniel Ast, CFA
Portfolio Manager
Michael L. Serrano
Portfolio Manager
William G. Lugaro, CFP®
Portfolio Manager
Kevin M. Wilcox, CFA
Portfolio Manager
Jason Nerio
Investment Research and Strategy
Scott K. Laudeman, CFA
Portfolio Manager
Market Value Allocation
As of
| Cash and Equivalent | |
| Fixed Income | |
| Domestic Equity | |
| International Equity | |
| Alternatives | |
| Equity Short |
Past performance is no guarantee of future results. Individual account performance will vary. Not FDIC insured. No Bank guarantee. May lose value. There is no guarantee that the strategy will achieve its investment goal. The strategy is subject to various risks, including market risk, asset allocation risk, credit risk, interest rate risk, liquidity risk, currency risk, concentration risk, trading risk, emerging market risk, turnover risk, and commodity risk. This strategy may not be suitable for all investors. Please consult your tax advisor for personal tax questions and concerns. This report is intended for informational purposes only and does not constitute or contain an investment recommendation and is issued without regard to the specific investment objectives, financial situation or particular needs of any specific recipient. First American Trust, FSB and its affiliates do not accept any liability for any direct, indirect or consequential damages or losses arising from any use of this report or its contents.
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