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MacKay Municipal Managers

MacKay Municipal Managers team of MacKay Shields is co-headed by John Loffredo and Robert DiMella. John and Robert previously headed the largest municipal asset management group at Merrill Lynch Investment Managers/BlackRock. John and Robert have experience managing municipal assets across institutional separate accounts, open-end and closed-end funds, high net worth accounts, and custom opportunistic funds. Combined they have over 50 years of investing experience and have managed municipal credit and portfolio strategies together for over 20 years.

The team

  • Has research experience in all facets of the municipal market including investment grade municipals, municipal high yield, tender option bonds, municipal inflation protected bonds, floating rate notes, and variable rate demand obligations.
  • Employs a risk management focus throughout the investment process—with regard to municipal bonds—to help reduce volatility.
  • Focuses on value added municipal portfolio management and seeks strong partnerships in three areas: separate accounts, commingled funds, and subadvisory relationships.

Investment philosophy

We believe that strong long-term performance can be achieved with a relative value research-driven approach:

  • Active management of the portfolio in an effort to capitalize on market inefficiencies, consistently build a yield advantage, and seek an attractive after-tax total return.
  • Focused on reduced volatility through a disciplined investment process
  • Fundamental, bottom-up credit research

A multi-dimensional approach to municipal investing

  • The team evaluates the current economic and political environments and their impact on fixed-income securities in general and on the municipal market in particular.
  • Focus on Value—team approach based on fundamental, bottom-up credit research of sectors and individual securities to identify attractive opportunities.
  • The following four value-added strategies are regularly implemented:
  1. Sector/security allocation
  2. Yield curve positioning
  3. Duration management
  4. Buy/sell trade execution

What distinguishes the team’s investment process?

Research—there is a thorough understanding of underlying credit and the drivers of its relative value from all dimensions of the market.

Risk Management Focus—is employed throughout the process to help reduce volatility of the portfolio.

Execution—The team manages money for multiple clients including institutional clients, high net worth individuals, and global asset management firms including long-only separate accounts and hedge funds.

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