Tax-Efficient Sustainable Strategy

Sustainable investing requires a more comprehensive and forward looking assessment of risk.

Government Credit

It is supported by research that goes beyond financial statements to analyze material environmental, social and governance (ESG) factors that can impact present and future performance. At Breckinridge, we believe sustainability is a natural match for investment grade fixed income strategies. We have developed formal frameworks for analyzing sustainability using rigorous processes, a seasoned investment team and proprietary technology.

Breckinridge’s sustainable tax-efficient strategies are designed for taxable investors seeking to maximize after-tax income and preserve capital while emphasizing environmental, social and governance (ESG) performance. Guided by proprietary ESG research, these strategies selectively invest in municipal issuers with above-average ESG profiles and/or bonds that fund essential environmental, social or economic development projects. Employing a separate account structure, these strategies can accommodate values-based customizations.  

Investment Objective

Maximize risk-adjusted return, preserve capital and emphasize ESG performance

Eligible Investments

Municipalities with above average ESG profiles

Sustainable public purpose projects

State-issued green bonds

Strategy Information

Inception Date: April 2011

Strategy AUM: $1.4 Billion

Benchmark: BBG Barc Muni 1-10 Yr Blend

Portfolio Characteristics

Average Maturity 5.03 Years

Average Duration 4.12 Years

Average Credit Rating AA

Average Yield to Worst 1.68%

Average Coupon 4.75%

Average Annual Turnover 10-20%

Sample Rating Distribution

AAA 14.2%

AA 68.3%

A 15.9%

BBB 0.7%

Unrated 0.0%

Cash 0.9%

Sample ESG Purpose Allocation

Education 35.0%

General Purpose 20.0%

Infrastructure 20.0%

Environmental 20.0%

Healthcare 3.0%

Other 2.0%

The information above is current as of 3/31/17. Sample portfolio characteristics provided above are intended to illustrate general information for our Intermediate Tax-Efficient Sustainable Strategy and are subject to change given market conditions and client objectives. Actual portfolios may vary.