Investment Partners

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Genoa Asset Management

F/m Solutions From This Manager

About

Separately managed accounts

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Intermediate Municipal Bond

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Enhanced Bond Ladders

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Opportunistic Income

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Quality Income

Manager Snapshot

Investment Focus

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Custom Municipal and Taxable Bond Portfolios

Headquarters

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Cincinnati, Ohio

Firm Founded

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2003

Manager Independence

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2020

Firm Assets Under Management

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$540.6 million as of December 31, 2020

Genoa Asset Management provides customized fixed income solutions—both tax-exempt and taxable—for advisors and clients.

Genoa believes that success in fixed income investing requires the ownership of individual bonds in actively managed portfolios customized to the specific needs and objectives of the investor.

In 2020, F/m Investments provided a new home and corporate structure for Genoa Asset Management, a new name for a municipal and taxable fixed income manager with deep experience and a long track record.

Manager Highlights:

Custom Portfolios

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Municipal and taxable fixed income portfolios customized for each client

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Personalized portfolios for each investor’s combination of needs: yield, total return, risk tolerance, state of residence, taxation, and future cash requirements

Value Approach

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Value-based total return approach

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Genoa searches for value across individual bonds, sectors, duration, and maturities, seeking to enhance income and total return

Quality Focus

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Target high quality bonds for safety-oriented investors

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Seek bonds with improving or misunderstood credit quality for opportunistic investors

Strategies Include:

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Intermediate Municipal Bond

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Enhanced Bond Ladders—Municipal, Taxable and Hybrid

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Opportunistic Income

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Quality Income

Investment Team

JUSTIN “JUD” HENNESSY

JUSTIN “JUD” HENNESSY

Director of Portfolio Management

PETER P. BADEN, CFA®

PETER P. BADEN, CFA®

Chief Investment Officer

SARAH CONWELL

SARAH CONWELL

Portfolio Manager

Our Philosophy

Success in fixed income investing

Genoa believes that success in fixed income investing requires the ownership of individual bonds in actively managed portfolios customized to the specific needs and objectives of the investor.

Custom Fixed Income Portfolios

Genoa Asset Management provides customized fixed income solutions for advisors and clients. We customize portfolios to the unique needs of each investor.

We also serve as a resource and partner for financial advisors. We seek to enhance each advisor’s practice and client experience by providing a professional, personal fixed income department dedicated to the particular needs of the advisor and the client.

Genoa seeks to optimize the combination of investor benefits across the firm’s municipal and taxable bond strategies as well as for each portfolio:

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Enhanced yield
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Appreciation potential
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Risk management
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Tax efficiency
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Distribution needs
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Transition and legacy portfolios

There can be no assurance that any objective can be achieved.

We seek to further enhance our portfolios through opportunistic trading based on our long experience and our flexibility as a nimble, boutique fixed income manager.

Advantages of Personalized Portfolios vs. Bond Funds

SEEKING TO ENHANCE THE PERSONALIZED PORTFOLIO

We strive to enhance our personalized client portfolios by applying our experience and expertise across the key disciplines of fixed income management:

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Top-down macroeconomic and market analysis
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Bottom-up sector and security selection
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Credit and duration positioning
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Risk management
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Opportunistic trade execution

Proprietary Tools

At Genoa, we seek to unite a multi-faceted approach to the fixed income markets with proprietary analytical and portfolio tracking systems. We believe that the benefits of cutting-edge tools are enhanced by the experience of those deploying them. Our tools help us to understand opportunity and risk at the security level and for the overall portfolio.

Our proprietary systems enable us to customize and actively manage each investor portfolio, as well as review and analyze legacy bond portfolios for advisors and clients seeking a fresh perspective on how to achieve their goals.

Value Approach and Quality Focus

At Genoa, we pursue a value-based total return approach. We search for value across individual bonds, sectors, duration, and maturities, seeking to enhance income and total return.

We target high quality bonds for safety-oriented investors, and seek bonds with improving or misunderstood credit quality for opportunistic investors.

Genoa Custom Strategies

Genoa provides a variety of solutions for diverse investment needs.

Tax-Exempt

Intermediate Municipal Bond Strategy

The Genoa Intermediate Municipal Bond Strategy seeks income and total returns through customized, risk-aware portfolios of high-grade, tax-exempt municipal bonds.

The Strategy provides flexible allocations based on an investor’s state of residence:

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National

Diversification for clients with no state income tax obligations
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State Specific

Seeks to maximize after-tax yields for clients in high tax states such as California and New York
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State Preference

Flexible portfolio of in-state or out-of-state bonds selected for after-tax yields and value characteristics
Enhanced Bond Ladder Strategy
Bond ladders are a time-tested strategy. A laddered bond portfolio consists of bonds with varying maturities. As holdings mature, the proceeds may be reinvested into new bonds, or redeployed for your personal or investment needs.

By owning bonds with different maturity dates—the rungs of the ladder—and reinvesting in longer-term bonds as each bond matures, you can manage your income stream and risks over time, as well as adjust to changing market conditions, interest rates, and personal requirements.

How Genoa Enhances The Bond Ladder

First, we allocate the core of the portfolio to a ladder of high-quality bonds with one to ten-year maturities, each bond carefully selected based on our proprietary research. Then, we dynamically deploy portions of the portfolio to both:

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Shorter maturities

To reduce interest-rate risk and capture higher yields if rates rise
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Longer maturities

To enhance income
Over time, we will adjust the allocations to shorter and longer maturities to complement the core bond ladder as interest rates and fixed income markets evolve.

We believe we can enhance the traditional bond ladder by adding these additional allocations to shorter-term and longer-term bonds—providing the flexibility to capture income opportunities as interest rates change across market cycles. The graphic below illustrates how Genoa seeks to enhance your bond ladder:

Taxable

Opportunistic Income Strategy
The Genoa Opportunistic Income Strategy seeks to maximize total return, including both income and appreciation, by identifying undervalued and opportunistic sectors and securities in the U.S. fixed income markets. For this strategy, our portfolio managers pursue income opportunities utilizing a four-step process:
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Search for relative value across the yield curve, credit spectrum, and individual issues,
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Implement opportunities through targeted security selection and nimble trading,
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Seek to realize profits when positions have achieved full value in the managers’ judgement, and
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Redeploy capital in an ongoing search for relative value.
With a broad mandate, the Genoa Opportunistic Income Strategy can select from across a diverse array of bonds and income-generating securities, including:
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Investment grade and high yield corporate bonds,
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Investment grade and high yield municipal bonds,
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Preferred stocks,
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US Government and agency securities,
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Mortgage-backed securities, and
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Specialty issues, including $25 par value baby bonds.
Genoa believes this flexible approach provides greater opportunities for total return compared to sector-specific or target-duration strategies.
Quality Income Strategy
The Genoa Quality Income Strategy seeks enhanced income and total returns primarily in high grade taxable bonds.

With a flexible mandate, the Genoa Quality Income Strategy searches for yield opportunities from across the spectrum of investment grade bonds, including:

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Investment grade corporate bonds,
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Investment grade tax-exempt and taxable municipal bonds,
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Investment grade mortgage-backed securities,
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US Treasury, Government, and Agency securities, and
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Other high-quality fixed income instruments.
The strategy invests in sectors, structures, and securities within the investment grade fixed income universe which Genoa believes to be undervalued.

The Genoa Quality Income Strategy is designed for investors seeking yield and total returns from a portfolio of carefully selected bonds issued by financially strong issuers.

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