A core competency of
PDR Advisors is the ability to manage fixed income assets for institutional clients and high net worth individuals. The assets
under management may be total return in nature, seeking to maximize an after-tax return consistent with a prudent level of
credit and interest rate exposure. The investments may also be income-oriented in scope and design, seeking investment
alternatives which provide a high rate of current income on either a taxable or taxable equivalent / after-tax basis.
Approach
PDR Advisors utilizes a separately managed account (SMA) structure on assets under our control, offering our
clients a professionally managed portfolio constructed of individual fixed income securities. Each customer will hold
clear title to all securities held in their account. PDR Advisors does not act as a custodian on any separately managed
account under its supervision. All fixed income portfolios are customized to meet the specific expectations and investment
parameters of each client.
Process
Our process begins with an in-depth discussion
between the portfolio manager and the client to identify appropriate time horizons, identify tax ramifications on the
interest earnings of the portfolio, regulatory issues germane of the assets to be managed, and to establish investment
guidelines that identify the ultimate goal of the portfolio. The culmination of these discussions is the crafting
of an investment policy statement (IPS) outlining risk tolerances, maturity parameters, liquidity requirements, return expectations
and any other factors unique to the client. If the client already possesses an IPS, the portfolio manager
will thoroughly review the statement to ensure policy documents adhere to the characteristics of the
assets. A customized portfolio is then constructed to compliment the findings of the needs analysis. No fundamental investment
parameters or restrictions set forth in the IPS may be changed without the specific approval of the authorized owners
of the account.
Expertise
PDR Advisors can offer both institutional
and high net worth individuals proficiency in the following areas of concentration:
Insurance company investment management: We offer expertise
in managing fixed income portfolios for both domestic and offshore insurance companies. The focus in this categorymay
be solely on the book yield of fixed income assets or a combination of total return and yield enhancement. The tax position
and AMT status of the insurance company will typically determine a mix between taxable and tax advantaged securities,
including the preference for DRD-qualifying preferred stocks, to be used.
Short-term cash balances and
cash reserves investments: Under this category, the focus is on capturing yields in excess of
bank sweep products and 2(a)-7 money market funds. Value added is typically available for corporations
and high net worth individuals in the top Federal tax brackets and top State tax brackets. Value added
is also available for clients who wish to maximize their interest income on a before-tax basis. A month-end client reporting
package with accounting reconciliation is included with this investment management.
Special Situations: We also specialize in fixed income investment management for accounts
with investment grade quality requirements, directed liabilities, specific tax structures for interest and income earned,
customized maturity restraints, regulatory or policy restrictions on sectors, and diversification restrictions.
