FHN Financial Main Street thoroughly understands the unique aspects of managing public fund investment portfolios — that return of principal is more important than return on principal. We realize municipal investment portfolios are the only places in government where revenue can be generated without assessing taxes or fees to its citizens. We are dedicated to providing intelligent investment strategies to assist entities in prudently and effectively enhancing investment income.

As of December 31, 2020, we provide investment management services to approximately $12 billion in public sector fixed income portfolios on a discretionary basis, and $1.4 billion on a non-discretionary basis.

We also provide investment consulting services to approximately $61.6 billion in public sector fixed income portfolios on a non-discretionary basis, which includes investment reporting, oversight, and policy review.

Investment Philosophy

Our investment philosophy focuses exclusively on the public sector and is guided by three foundational tenets, in order of importance: safety, liquidity, and income.

  • Safety — Investments will be undertaken in a manner that seeks to ensure preservation of capital and to mitigate credit and interest rate risk.
  • Liquidity —It is critical to have sufficient liquidity to meet all operating requirements which might be reasonably anticipated, by matching most investment maturities with expected cash outflows.
  • Investment —The objective of earning a market rate of investment income in relation to the prevailing budgetary and economic environments and taking into account the entity’s investment risk constraints and the cash flow characteristics of the portfolio.