Intermediate Tax Exempt Strategy

Executive Summary

Click Here to get the full APA High Quality Intermediate Strategy Overview


Objective:

To manage for after-tax total return, the strategy seeks to add value through active management and access to institutional pricing. Conduct thorough relative value and credit analysis to take advantage of inefficiencies in the market. Maximize after tax income. Bonds selected for the accounts have maturities within 1 and 20 years.

APA Municipal Bond Team:

Portfolio managers, Kevin Woods and Trisha Broussard, direct the strategy's active management and draw upon the expertise of our municipal traders and credit analysts. Together, the team identifies issuers, evaluates credit fundamentals and implements a relative-value trading approach.

Investment Process:

The strategy employs a quantitative approach to investing in primarily high quality municipal bonds. We combine our fundamental research with an investment process that emphasizes both risk management and relative-value investing to achieve competitive risk-adjusted returns.

Investment Benefits:                         

· Customize portfolios to meet our clients’ specific tax objectives, income requirements and risk tolerance.

· Investing in high quality municipal bonds with low default and event risk compared with corporate bonds.

· Provide ongoing internal analysis of credit quality and underlying fundamentals.

· Active Management which can potentially provide additional total return over the lifetime of the portfolio.

· Structure fixed-income investments that most effectively diversify a client's portfolio.

· Offers state-specific and state-preference portfolios in all states.

 

Investment Professionals


Kenneth R. Woods – Chairman/CEO
Ken Woods established Asset Preservation Advisors, Inc. in 1989 after a long and successful career in the investment industry. Prior to forming APA, he was Vice President and Manager of Bankers Trust Company’s Southeastern Global Market Division located in Atlanta. Mr. Woods holds a B.S. degree in Finance and Economics from Florida State University. In addition he is a member of the FINRA (Formerly NASD) Board of Arbitrators and has been appointed by the Superior Court of Georgia to serve as an arbitrator in fee arbitration. Mr. Woods is also a speaker on topics concerning fixed income and is quoted in many business and financial publications, including The Bond Buyer, Bloomberg Wealth Manager, Barron’s, Money Magazine, and Reuter News. Mr. Woods is a member of the National Federation of Municipal Analysts and the Souther Municiapl Finance Society. Ken has 40+ years investment experience.

Charles R. Doty – President/COO
Charles Doty has been with APA since 2002 and has been in the municipal bond business for 30 years.  He is a graduate of the University of Mississippi and worked for SunTrust Equitable Securities for 16 years, eventually serving as Director of National Institutional Municipal Sales. In  1999 he joined Municipal Trade, an online public finance investment bank, as Chief Operating Officer and President. He is a former Chairman of the Board of Prevent Blindness Georgia and is currently member of the Advisory Board of Skyland Trail, George West Mental Health Foundation. Mr. Doty is a member of the National Federation of Municipal Analysts and the Southern Municipal Finance Society. Charles has been included in Barron’s list of Top 100 Independent Wealth Advisors and Top 1,200 Top Advisors for the past four consecutive years. Additionally, he has appeared on CNBC to discuss topics related to the municipal bond market. 

Kevin B. Woods – Managing Partner/Chief Investment Officer
Kevin Woods has been with APA since 2002. He is a graduate of the University of Mississippi with a Bachelor of Finance degree. Mr. Woods is a Principal of APA and serves as the Chief Investment Officer. His responsibilities include research, trading of taxable and tax-exempt securities, portfolio analytics, and client service. Mr. Woods is a member of the National Federation of Municipal Analysts, the Southern Municipal Finance Society, and the Atlanta Society of Financial Analysts. Kevin has 13+ years investment experience.

Whitney Imeraj – Vice President/Chief Compliance Officer
Whitney Imeraj is Asset Preservation Advisors' Vice President and Chief Compliance Officer. She oversees regulatory compliance at APA, assists with overall operations and heads the client service team. Prior to joining APA in 2009, she was an investment professional at Homrich Berg. Whitney is a graduate of the University of Georgia and received her Masters of Business Administration from UGA's Terry College of Business. Whitney is also a member of the National Society of Compliance Professionals.

Paul Nolan – Director of Research
Paul joined Asset Preservation Advisors in June of 2011 and has nearly 14 years of investment industry and related experience. His primary responsibilities include assisting with portfolio analytics and investment research. Prior to joining APA, Mr. Nolan was employed by McDonnell Investment Management, where he was responsible for providing both the municipal and taxable portfolio management teams with fixed income credit and market research, with an emphasis on health care credits. Previously, he was employed by Moody’s Investors Service where he performed municipal credit analysis including general obligation, essential service, and special tax backed securities. He earned a Master of Science in Urban Policy Analysis and Management from the Milano New School University (formerly the New School For Social Research) and also holds a B.A. degree in Political Science from the University of Buffalo. Paul has 15 years investment experience.

Bob M. Farmer – Senior Managing Director
Bob Farmer joined APA in 2008 and has over 35 years investment experience. Mr. Farmer was previously employed by Ridgeworth Investments (formerly Trusco Capital Management) for 28 years where he served as Managing Director of Business Development. He obtained his B.S. degree from Hampden-Sydney College in Economics and a Masters in Commerce and Business Administration from the University of Richmond. He is a member of the Atlanta Society of Finance and Investment Professionals and formerly served on the Honorary Board of Directors for Special Olympics of Georgia. Mr. Farmer is a Registered Investment Advisor Representative and holds the Series 65 license.

Stephen Colavito – Managing Director/Portfolio Manager

With over 22 years of professional experience, Stephen holds his Bachelor of Science Degree from Florida International University in Finance, and worked as one of the top institutional fixed income salesmen for Bear Stearns Co. Inc.  After Bear Stearns, Stephen was Director of Corporate Cash for Deutsche Bank and Barclays.  

Trisha Broussard – Senior Vice President        

Trisha Broussard joined Asset Preservation Advisors in January of 2006. She is a graduate of the University of Southwest Louisiana. Trisha began her career in the Atlanta Municipal Bond Department at Dean Witter, and has been involved in the municipal bond market since 1987. Prior to joining Asset Preservation Advisors, Trisha worked at Morgan Stanley. She was Vice President in the Municipal Bond Department responsible for Southeast trading. She was also Senior Vice President of Municipal Trading at Sterne Agee & Leach. She currently focuses on fixed income trading and client servicing. 

Kyle Gerberding – Director of Trading
Kyle serves as Portfolio Manager primarily focused on the APA Short Term Tax Exempt Strategy and APA High Income Tax Exempt Strategy where he is responsible for the construction, implementation, and monitoring of client portfolios in separately managed accounts and private funds. He also assists with trading in each of these strategies as well as the APA Intermediate Tax Exempt Strategy and APA Taxable Strategy, where he concentrates on detecting dislocations in the municipal market. He has been with APA since 2008 in successive fixed income roles. Kyle is an active member of our Investment Committee and works closely with clients to develop an in-depth understanding of their unique investment objectives. He graduated from the University of Florida where he earned a Bachelor of Science in Business and Sport Management. He is a member of the National Federation of Municipal Analysts.

Matthew Riggle – Vice President, Credit Research
Matthew Riggle joined Asset Preservation Advisors in 2006. Matt is involved in analyzing credits of municipal securities. In addition, he is responsible for maintaining our client reporting and accounting systems. He is a Cum Laude Graduate of the University of Florida, where he received his degree in Business. He received a Master of Business Administration from the Georgia Institute of Technology. Matt has 9+ years investment experience.

Trish Hodgman – Vice President, Portfolio Manager

Patricia “Trish” Hodgman joined Asset Preservation Advisors in 2015, bringing with her 12 years of investment experience in the financial services industry and specifically in the municipal bond market.  In her role as Portfolio Manager, Trish focuses on portfolio analytics, performance attribution and client services. As a member of APA’s credit research team, she contributes to the firms’ investment research and risk management.  

Wesley Williams – Vice President, Business Development
Wesley Williams joined Asset Preservation Advisors in 2012. He supports the business development team by analyzing investment portfolios and by building sample portfolios incorporating APA’s investment strategies. Additionally, Wesley works directly with clients on an ongoing basis to discuss market conditions and portfolio management strategies. Wesley is pursuing his Masters of Business Administration at the Georgia Institute of Technology’s Scheller College of Business. He earned his Bachelor of Finance from The University of Mississippi. Previously, he was employed as an investment professional with Morgan Stanley and with Sterne Agee & Leach in Chattanooga, TN. In his free time, Wesley coaches youth basketball at Northside Youth Organization.

Matthew Swan – Business Development

Matthew Swan joined Asset Preservation Advisors in August of 2014. He supports the trading group as an assitant trader. Previously, he was employed as a financial advisor and client service associate at Morgan Stanley for two and a half years. Prior to that, Matthew played professional golf for two years. Matthew is a graduate from the University of Alabama where he was a four year letterman on the University's golf team. Matthew was an Academic and an Athletic All-American while on the team. He is Series & and 66 licensed.

 

Disclosures:


Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The performance and portfolio characteristics shown relate to the APA Enhanced Intermediate Tax-Free Strategy Composite (the “Composite”) formerly High Income Tax-Exempt Composite.

Not every client’s account will have these exact characteristics. The actual characteristics with respect to any particular client account will vary based on a number of factors including but not limited to: (i) the size of the account; (ii) investment restrictions applicable to the account, if any; and (iii) market predicaments at the time of investment.

APA reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed may not represent an account’s entire portfolio, and in the aggregate may represent only a small percentage of an account’s portfolio holdings. It should not be assumed that any of the security transactions, holdings or sectors discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. APA is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about the advisor including its investment strategies and objectives can be obtained by visiting www.assetpreservationadvisors.com. A list of composite descriptions is available upon request.

For comparison purposes, the Composite is measured against the BofA Merrill Lynch BBB Municipal Securities Index and the Single- A Municipal Securities Index. The BBB Municipal Securities Index is a subset of The BofA Merrill Lynch US Municipal Securities Index including all securities rated BBB1 through BBB3, inclusive. The Single- A Municipal Securities Index is a subset of the The BofA Merrill Lynch US Municipal Securities Index including all securities rated A1 through A3, inclusive. The volatility of the indices could be materially different from that of the Composite. It is not possible to invest in the indices. Returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account.

The fee schedule for APA’s investment advisory services for separately managed accounts in the APA Enhanced Intermediate Tax-Free Strategy Composite is 0.65% on net assets under management. Actual investment advisory fees incurred by clients may vary. A complete description of APA’s fee schedule can be found in Part 2 of its FORMADV which is available at www.assetpreservationadvisors.com or by calling (404) 261-1333. Enhanced Intermediate

APA-18-185