AIG Investments' municipal assets under management total more than US $72 billion. We have the expertise to invest across all investment-grade sectors and terms ranging from money market to 30-year bonds. We offer both total return and book income investment management strategies for our internal and external clients. Our municipal holdings place us among the top five tax-exempt investors based on market value boosting our presence in the marketplace is strong.

Because of our unique relationship with the AIG companies, the largest underwriters of commercial and industrial insurance, we have thorough knowledge of the challenges of investing for property and casualty companies. We understand tax challenges, net investment income demands, accounting issues, regulatory issues and gain/loss constraints that are specific to the industry. Our committees meet on a regular basis with in-house economists and representatives from all asset classes setting duration and curve placement policy, and interest rate projections for the firm.

The firm's municipal bond group uses both research and portfolio management skills in our approach to add value.

• Analyst / Credit Research
  • Economic indices – Proprietary models to assess the financial health of states and regions of the United States.
  • Regular surveillance – AIG Investments currently monitors over 2,500 separate issuers and securities.
  • Integration with the firm's Corporate bond department – Ability to leverage the knowledge of 17 corporate high-grade analysts for municipal issues backed by corporate obligors.
  • Sector rotation – We can, and will, rotate investments in various sectors depending on market conditions in an attempt to capture higher yield.
    
• Portfolio Management
  • Duration / convexity management – Ability to understand complex structures and model changes in various yield curve scenarios.
  • Management experience in retail funds, institutional and insurance products.
    • Money Market
    • Total return strategies
    • Yield enhancement strategies
    • Book income strategies
  • Yield curve strategies – Develop and monitor yield curve strategies rather than assume large duration risk.
  • Bottom up technique to trading – Identify undervalued securities by working closely with research analysts.