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.
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 credit research, opportunistic trading and proactive portfolio structuring. Customizations are available by benchmark, maturity, duration, credit quality, tax status and state.
Maximize after-tax income and preserve capital
Tax-Exempt Municipal Bonds
Inception Date: June 2012
Strategy AUM: $12.1 billion
Benchmark: BBG Barc Managed Money Short/Intermediate
Average Maturity 5.99 years
Average Duration 4.65 years
Average Credit Rating AA
Average Yield to Worst 1.81%
Average Coupon 4.90%
Average Annual Turnover 10-20%
Local GO 31.8%
Special Tax 11.8%
State GO 11.6%
Water & Sewer 10.3%
Other Tax-Exempt Munis 7.5%
*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 3/31/19. 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.