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OUR STRATEGIES 2017-12-11T17:57:53+00:00

Green Square Tax Exempt High Income Fund

Green Square Separately Managed Account (SMA)

With a historically low yield environment as the backdrop, our pure high yield strategies (the Fund and SMA) are opportunistically designed to potentially generate maximum tax exempt income.  Although income is our primary objective, we also aim to provide meaningful total return in order to achieve a solid overall risk-return profile for our investors.

Unlike others, we won’t simply mirror a benchmark. Our portfolio construction is characterized by intensive fundamental credit analysis and focused on sectors that we believe present the best relative value and greatest upside potential in an effort to uncover investment opportunities that may produce a high stream of federally tax-free income.

We manage a diversified portfolio of high-yielding tax exempt securities with a focus on project revenue bonds in sectors deemed vital to the economy, such as healthcare, transportation, power/energy and education (public/private).  We will selectively invest in innovative, non-traditional, new dynamic sectors (such as charter schools, continuing care retirement communities and alternative forms of power/energy), which are historically higher-yielding and may provide long-term opportunities for enhanced total return and income.

“We believe that a high conviction, credit-driven, disciplined and pure high yield tax-exempt strategy will translate into strong long-term investment performance through different economic cycles.”

– Timothy Pynchon, Portfolio Manager, GSCA Boston

VALUE PROPOSITION

We believe our strategy can offer investors the following:

  • Higher yields on a relative and absolute basis
  • Favorable risk / reward characteristics compared to other asset classes
  • Low correlation* to other asset classes
  • Good value relative to investment grade municipals and taxable high yield
  • A means to lower the overall tax liability – provides federally tax free income
  • A partial offset to price declines in the event of higher interest rates

MARKET AND ASSET CLASS APPEAL

We believe this is a timely opportunity to capture yield and total return in the high yield tax-exempt securities market. Today, the market and asset class are buoyed by the narrow trading band for Treasuries, the absence of inflation, a strengthening economy, higher spreads and the continued supply/demand imbalance on the long end of the interest rate curve, driven by investors’ seemingly insatiable appetite to find yield.

“Rather than simply mirroring a benchmark, we focus on those sectors that we believe present the best relative value and greatest upside potential in an effort to uncover investment opportunities that may produce a high stream of federally tax-free income.”

– Joseph Gulli, Portfolio Manager, GSCA Boston

DYNAMIC, ACTIVE PROCESS

More Than Just Income . . .

Portfolio Management Team

Timothy Pynchon, CFA

Portfolio Manager, GSCA Boston

Timothy Pynchon, CFA founded Green Square Capital Advisors, Boston in October 2016. Although no longer an Oppenheimer Asset Management employee, Tim continues to manage the funds and separately managed accounts, working under a long-term sub advisory contract for Oppenheimer. Prior to this recent move, Tim joined Oppenheimer Asset Management in June 2013 and has worked in asset management since 1982.

Throughout his career, Tim has been responsible for investments in municipal bond portfolios and select taxable fixed income strategies. Within tax-exempt, Tim has focused primarily on high yield investments and has served as a portfolio manager, underwriter, analyst and restructuring specialist.  Previously, Tim had worked at Pioneer investment Management since 2000 as a Senior Vice President, first as a senior analyst and then as a Portfolio Manager for both open-end and closed-end funds. Prior  to Pioneer, Tim underwrote high yield tax-exempt health care issues for three years as a Managing Director at Commerce Capital Markets and served as a high yield analyst and restructuring specialist at Eaton Vance Management for the seven years prior to Commerce Capital Markets.

Tim earned his Bachelor’s degree at Hamilton College and his M.B.A. from the Johnson Graduate School of Management at Cornell University. He also earned the Chartered Financial Analyst designation from the CFA Institute and is a member of both the CFA institute and the CFA Society of Boston.

Joseph Gulli

Portfolio Manager, GSCA Boston

Joseph Gulli joined Green Square Capital Advisors in October 2016 as a partner and head of credit research, ensuring that the management team for the funds and the separately managed accounts remains intact.  Prior to this recent move, Joe had joined    Oppenheimer Asset Management in November 2014 and has worked in asset management since 1992. Throughout his career, Joe has concentrated primarily on high yield and investment grade tax exempts, including analysis and restructurings.

Joe brings expertise in both high yield and investment grade tax exempts, as well distressed credits and restructurings.  Joe is responsible for a wide range of sector and credit analysis, continuing surveillance of credits, and buy and sell recommendations.

Prior to starting at OAM, Joe was at Lord Abbett & Co. for seven years, most recently as Partner and Director of Municipal Bond Research at Management.  Prior to Lord Abbett, Joe worked for SMC Fixed Income Management for one year after working as a tax-exempt analyst for 14 years at Merrill Lynch Investment Managers.

Joe earned his Bachelor’s degree at Rider University in accounting and finance.

Holdings as of 11/30/17

Fund %
Capital Trust Agency, Inc., 10.000%, 11/1/2020 6.49%
New Jersey Economic Development Authority, 8.000%, 9/1/2019 6.44%
Lake County Florida, 7.125%, 1/1/2052 6.28%
Virgin Islands Public Finance Authority, 5.000%, 10/1/2029 6.04%
Anderson Indiana Economic Development, 6.000%, 10/1/2042 4.93%
Wisconsin Public Finance Authority, 7.125%, 6/1/2041 4.85%
Iowa Finance Authority, 5.750%, 9/1/2043 4.84%
Tarrant County Cultural Education Facilities Finance Corp., 5.750%, 11/15/2037 4.80%
Collier County Florida Industrial Development Authority, 8.125%, 5/15/2044 4.79%
Canton Housing Authority, 6.500%, 7/1/2051 4.74%
South Carolina Econonomic Development Authority, 7.750%, 10/1/2057 4.73%
California Pollution Control Financing Authority, 8.000%, 7/1/2039 4.55%
Lake County Port & Economic Development Authority, 6.750%, 12/1/2052 4.49%
Michigan Tobacco Settlement Finance Authority, 6.000%, 6/1/2048 3.34%
Illinois Finance Authority, 5.500%, 12/1/2052 2.90%

For full holdings list click here.

Sector Allocations as of 9/30/17

Fund %

* The correlation coefficient is a measure that determines the degree to which two variables’ movements are associated. The range of values for the correlation coefficient is -1.0 to 1.0. A correlation of -1.0 indicates a perfect negative correlation, while a correlation of 1.0 indicates a perfect positive correlation.

Diversification does not assure a profit or protect against a loss in a declining market.

The Green Square Funds are offered only to United States residents, and information on this website is intended only for such persons. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Green Square Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Please read and consider the prospectus carefully before investing. To obtain a hardcopy of the prospectus, please call 1.877.914.7343.

Mutual Fund investing involves risk. Principal loss is possible. The Fund’s value investments are subject to the risk that their intrinsic values may not be recognized by the broad market or that their prices may decline. Investments in larger companies are subject to the risk that they are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. Variable and floating rate securities provide for a periodic adjustment in the interest rate paid on the obligations. ETNs are subject to the credit risk of the issuer. Fixed-income securities are or may be subject to interest rate, credit, liquidity, prepayment and extension risks. Interest rates may go up resulting in a decrease in the value of the fixed-income securities held by the Fund. High-yield fixed income securities or “junk bonds” are fixed-income securities held by the Fund that are rated below investment grade are subject to additional risk factors such as increased possibility of default, illiquidity of the security, and changes in value based on public perception of the issuer. The municipal market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. The Fund is new with no operating history and there can be no assurance that the Fund will grow to or maintain an economically viable size.

Green Square Capital Asset Management, LLC is the Investment Adviser to the Green Square Tax Exempt High Income Fund, which is distributed by Quasar Distributors, LLC.

MEMPHIS
HEADQUARTERS

Green Square Asset Management, LLC

The Crescent Center

6075 Poplar Avenue

Suite 221

Memphis, Tennessee 38119

901.259.6300

BOSTON

Green Square Asset Management, LLC

61 Fletcher Street

Winchester, MA 01890

781.729.0962