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Intermediate Tax-Efficient II Strategy

The Intermediate Tax-Efficient II Strategy is an investment grade, intermediate duration municipal bond portfolio that seeks to maximize after-tax income and preserve capital.

Government Credit
Core Government Credit

Maturity Based


Allocations to Treasury, government-related and corporate bonds may also be considered based on a client’s specific tax rate. This strategy employs a slightly longer duration than available in our Intermediate Tax-Efficient Strategy. Managed in a separate account, the strategy employs active management, bottom-up research, efficient trading and proactive portfolio structuring. Customizations are available by benchmark, maturity, duration, credit quality, tax status and state.

Investment Objective

Maximize after-tax income and preserve capital

Eligible Investments

Tax-Exempt Municipal Bonds

Treasury Bonds

Government-Related Bonds

Corporate Bonds

Strategy Information

Inception Date: June 2012

Strategy AUM: $12.3 billion

Benchmark: BBG Barc Managed Money Short/Intermediate

Portfolio Characteristics

Average Maturity 6.01 years

Average Duration 4.63 years

Average Credit Rating AA+/AA

Average Yield to Worst 1.57%

Average Coupon 4.88%

Average Annual Turnover 10-20%

Ratings Profile*

AAA 17.6%

AA 73.5%

A 8.9%

BBB 0.0%

Sector Profile

Local GO 32.3%

Special Tax 11.3%

State GO 11.3%

Water & Sewer 10.4%

Transportation 10.0%

Leasing 7.6%

Education 4.5%

Electric 4.1%

Other Tax-Exempt Munis 7.2%

Cash 1.2%

*Methodology uses lowest of S&P and Moody’s, but Prerefunded and Treasury bonds default to AAA category.

The information above is current as of 6/30/19. Characteristics provided are representative of fully invested portfolios managed to this strategy and are intended to illustrate general strategy information. These characteristics are subject to change given market conditions and client objectives. Actual portfolios may vary.