GIPS® Composite Descriptions

Direct access to Tannin's institutional investment management composite strategies, Tannin's multi-custodial platform allocation strategies & sub-advised asset class specific separately managed accounts.

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GIPS® Composite Descriptions *

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  • Tax-Exempt & Taxable
    • Cash Management
    • Enhanced Cash
    • Short Duration
    • Short-Intermediate Duration
    • Intermediate Duration
    • Long Duration
    • ARB & Basis Strategies
    • Asset / Liability Matching
    • ESG - Environmental, Social & Governance
Tax-Exempt & Taxable GIPS® Composite Descriptions

Tax-Exempt & Taxable GIPS® Composite Descriptions

Short-Intermediate (Core) High Quality Tax-Exempt Composite is a high quality short-intermediate duration (1-8 years effective duration) tax-exempt and tax efficient AMT-free municipal bond strategy that seeks to preserve capital, maximize tax-exempt and after-tax income and capitalize on high quality risk adjusted total return opportunities.

Short High Quality Tax-Exempt Composite is a high quality short duration (0-4 years effective duration) tax-exempt and tax efficient AMT-free municipal bond strategy that seeks to preserve capital, maximize tax-exempt and after-tax income and capitalize on high quality risk adjusted total return opportunities.

Intermediate High Quality Tax-Exempt Composite is a high quality intermediate duration (3-12 years effective duration) tax-exempt and tax efficient AMT-free municipal bond strategy that seeks to preserve capital, maximize tax-exempt and after-tax income and capitalize on high quality risk adjusted total return opportunities.

Short-Intermediate High Quality Taxable Composite is a high quality, short-intermediate duration (1-5 years effective duration), tax efficient bond strategy that seeks to preserve capital, maximize after-tax income and capitalize on high quality risk adjusted total return opportunities. The composite includes US Treasury and government securities and investment credit.

Short-term Government Composite seeks to preserve capital, maximize after-tax income and capitalize on high quality risk adjusted total return opportunities. The strategy invests in US Treasury and US government securities and maintains a short duration (0-3 years effective duration).

Tannin Capital, LLC claims compliance with the Global Investment Performance Standards (GIPS®).

To receive a GIPS compliance presentation and/or Tannin Capital's list of composite descriptions, please email your request to cs@tannin.com.

  • Sectors
    • Government & Agency (UST, FHLB, FFCB, FNMA, FHLMC)
    • MBS: Agency Mortgage Backed Securities (GNMA, FNMA, FHLMC)
    • CMOs: Agency Collateralized Mortgage Obligation securities
    • RMBS: Non-Agency Residential MBS
    • Private Label Non-Agency CMOs
    • CMBS: Commercial Mortgage Backed Securities
    • ACMBS: Agency CMBS (FNMA, FHLMC, GNMA)
    • ABS: Asset Backed Securities (Autos, Cards, Student Loans)
    • SBA: Small Business Administration SBA Floater, Fixed, SBIC, SBAP, Whole Loan
    • CLOs: Collateralized Loan Obligations (AAA-Equity)
    • Municipal Bonds: Tax-Exempt & Taxable, BABS (Build America Bonds), High Quality & Cross-over High Yield
    • Corporate Bonds: Fixed & Floating, High Quality & Cross-over High Yield
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Exceptional Institutional Investment Management Services

Tax-Exempt Core (TEC) Fixed Income Strategy

TCTEC Short-Intermediate High-Quality AMT-free Tax-Exempt Core

  • Direct Institutional
  • Family Office
  • SMA Sub-Advisory
  • Platform Sub-Advisory

Fixed Income / Tax-Exempt / TCTEC High Quality Short-Intermediate AMT free Tax-Exempt Core

 

TCTEC

Q&A

Tannin’s High Quality Short-Intermediate Non-AMT Tax-Exempt Core portfolio was originally designed and continues to be the nucleus of our Family Office Clients’ Partnership & Trust Portfolios.  Why?

The first of Tannin’s three tenants is Preserve - preserving capital at the root level - providing the foundation for the portfolio and the entire balance sheet.

What’s unique about the portfolio?

High Quality is defined as AA and higher and, through our client specific SMAs, portfolios are built to maximize federal and, more specifically, state tax-exempt income while retaining the utmost liquidity and optionality.

So what about client objectives and performance objectives is accomplished with this strategy at the center of the portfolio?

We are risk mangers and strive to provide creative, bespoke solutions to our clients potential risks so that we fill any gaps or exposures before they become problems in their balance sheets.

Risk-adjusted performance is very important to us.  We will strive to manage efficiently to that end while focusing on our primary objective of doing the right thing for our clients’ specific needs.  We have found that doing the right thing for our clients leads to performance.

Give me an example of that?

One example would be year end, 12/31/12, which was the virtual low in interest rates in the history of the United States, basically 0-25 basis points on the Fed Funds Target Rate and T-Bills.  If you’re a bond manager, this would be the most challenging starting point to start a performance composite,  yet that was when ours started on this composite.  We believe that the positive outcomes that we have achieved for our clients are reflective of the discipline necessary to manage through the more challenging environments.

Another example was in the fourth quarter of 2017 when there was an increase in Municipal bond supply as issuers rushed to re-fund deals prior to pending tax changes.  We were well positioned for rising rates and embraced the Fed's transparent forecast of 100 basis points of tightening in 2018.  Therefore, all things being equal, one generally would rather not consider extending duration in portfolios from a short term performance perspective.  But like most things in life, every client's portfolio and situation is unique.  Yet, one byproduct of zero rate policy and low volatility, is that industry forces have successfully commoditized many portfolios as if all clients were the same.

So what were you thinking in the moment during that window of time?

We focused on the needs of our clients.  In our analysis, we looked at the increase in supply and the relative levels at which we were able to deliver high quality bonds into our clients' portfolios.  The 10 year US Treasury was yielding around 2.25% and we thought, with the anticipated Fed tightening, that the yield on the 10 year bond was probably heading for 3.25% by the end of 2018.  In bond price terms, that is a significant headwind from a short term performance perspective.

So your performance would have suffered in the short term as a firm if you purchased bonds for clients at the end of 2017.  What did you decide to do?

We bought bonds for clients by participating in selective New Issues with the increase in supply to deliver both relative tax-equivalent spreads of over 200 basis points and nominal state-specific tax-equivalent yields of around 4.50% to 5.00% into our clients' SMAs.  It was the right thing to do for our clients and our interests are aligned with our clients.

What happened in 2018?

In 2018, with the Fed's tightening policy and Quantitative Tapering, we were actively managing factors such as duration, structure and quality in our clients' separately managed accounts.  We definitely felt the rise in interest rates from a short term performance perspective on the intermediate duration bonds that we had purchased going into the Fed's first tightening of 2018.  Our themes for 2018 were that rates would rise across the curve and volatility would increase with correlations heading towards one across asset classes.  After the Fed's third tightening in September 2018, as we continued rolling out of what were positive total returns on our shorter duration maturities, the strategy focus was to move into longer duration high quality bonds.  In order for that to happen in that environment, one needs to be positioned accordingly.  Our institutional clients and financial professionals who allocate to our SMAs understand how those mechanics work and the advantages of SMAs for high net worth clients.  The volatility re-surfaced in December 2018 as the Fed tightened for the final time last year.

What has happened this year?

In 2019, the Fed has reversed course and may have to ease again in the fourth quarter.  We are watching; however, our attention is now turning more towards the credit and structure side of risk in the markets as we go into year end.

Equity, Tactical & Alternative Composites GIPS® Composite Descriptions

Equity, Tactical & Alternative Composites GIPS® Composite Descriptions

Large Cap Value Composite seeks to achieve long-term capital growth while generating tax-efficient income with relative risk-adjusted outperformance versus the benchmark index. The strategy invests primarily in large companies that the management team believes are under-valued, typically pay above market dividends and have a history of growing dividends. 

Large Cap Dividend Composite seeks to achieve long-term capital growth while generating tax-efficient income with relative risk-adjusted outperformance versus the benchmark index. The strategy invests primarily in large companies that the management team believes are under-valued with an emphasis on higher dividend paying companies. 

Absolute Return Composite seeks to achieve positive returns over rolling 2-month periods. The strategy invests in equites and fixed income securities, tax efficiently managing exposures and positions through market cycles to preserve and grow capital.

Tactical Allocation Composite seeks to achieve long-term capital appreciation with capital preservation as a secondary objective. The strategy invests primarily in ETFs/ETNs and specific equity and fixed income securities to obtain/achieve exposure to specific asset classes, sectors, industries and companies that management believes will provide above benchmark risk-adjusted returns.

Equity Hedge Composite seeks to achieve long-term capital appreciation over market cycles with less correlation to the broad equity markets and higher risk adjusted returns relative to the benchmark. The strategy invests in equites, bonds and cash, tax efficiently managing exposures and positions through market cycles to preserve and grow capital.

Equity Hedge Concentrated Composite seeks to achieve long-term capital appreciation over market cycles with less correlation to the broad equity markets and higher risk adjusted returns relative to the benchmark. The strategy invests in more concentrated equity positions through market cycles to preserve and grow capital.

Tannin Capital, LLC claims compliance with the Global Investment Performance Standards (GIPS®).

To receive a GIPS compliance presentation and/or Tannin Capital's list of composite descriptions, please email your request to cs@tannin.com.

Expertly Managing Your Assets, Maximizing Your Investments

Tannin ESG Impact Investment Management Strategies - ESG Applied

Tannin's High Quality & Alternative Strategies may be applied in client specific Separately Managed Accounts to achieve YOUR ESG, Community Impact & risk-adjusted total return objectives.

Environmental, Social and Governance factors are part of our daily routine. Our very name, Tannin, is analogous to how we approach and embrace environmental and social Impact Investing in our SMAs. Tannin Capital serves client objectives by Building Structure and Unique Value Over Time™.

Investment Philosophy

Preserve

Capital Preservation through a disciplined investment process and risk management

Strengthen

Efficiently manage portfolio optionality and employ tax optimization

Grow

Capitalize on risk-adjusted, total return opportunities in a tax-efficient framework

Investment Process

Tannin Capital utilizes a customized strategic portfolio management process implemented within a disciplined investment and risk management framework. We employ proven proprietary tax option valuation models for each client.

Tannin Capital builds optionality into client portfolios and, through dynamic management, exercises embedded options on existing securities only when the opportunity exists to further enhance future option value in the portfolio.

Tannin Capital employs an active and rigorous risk management process analyzing overall portfolio characteristics, sector allocations, relative value among sectors and individual securities.

Navigating Capital Markets For After-Tax Risk-Adjusted Performance... What's left...

Tannin Capital, LLC claims compliance with the Global Investment Performance Standards (GIPS®).

To receive a GIPS compliance presentation and/or Tannin Capital's list of composite descriptions, please email your request to cs@tannin.com.