California State Preference Mandate
The California State Preference Mandate is a customization of our tax-efficient strategies.
With 58 counties, 480 municipal governments, over 1,000 school districts, and 3,400 “special” districts, California is the nation’s largest and most diverse issuer of municipal debt. These characteristics, combined with the state’s high income tax rate, make California in-state exposure highly desirable. The California State Preference Mandate is an investment grade municipal bond portfolio that seeks to maximize after-tax income and preserve capital. Managed in a separate account, this mandate employs active management, bottom-up research, efficient trading and proactive portfolio structuring.
Maximize after-tax income and preserve capital
Tax-Exempt Municipal Bonds
Strategy AUM: $2.2 billion
Available Maturity Structures
Limited (3 year average maturity)
Intermediate (5 year average maturity)
Long Intermediate (7 year average maturity)
Sample State Distribution*
Sample Sector Distribution
Local GO 35.0%
Water & Sewer 20.3%
Special Tax 6.7%
State GO 4.4%
Other Tax-Exempt Munis 9.1%
Taxable Securities 1.2%
*Sample portfolio characteristics provided above are intended to illustrate general strategy information for our Intermediate California State Preference Mandate and are subject to change given market conditions and client objectives. Actual portfolios may vary. Breckinridge’s Intermediate California State Preference Mandate typically invests 75-100% in-state. In-state percentages adjust according to market conditions and changes in tax rates. Data provided is as of 3/31/19.