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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.

EXPLORE OUR INVESTMENT STRATEGIES
Tax-Efficient
Government Credit
Core Government Credit

Maturity Based

Sustainable

Allocations to taxable municipal, corporate, Treasury and government agency 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.

Investment Objective

Maximize after-tax income and preserve capital

Eligible Investments

Tax-exempt Municipal Bonds (strategic)

Taxable Municipal Bonds (tactical)

Corporate Bonds (tactical)

U.S. Treasury Securities (tactical)

Strategy Information

Inception Date: June 2012

Strategy AUM: $11.6 billion

Benchmark: BBG Barc Managed Money Short/Intermediate

Portfolio Characteristics

Average Maturity 5.93 years

Average Duration 4.69 years

Average Credit Rating AA

Average Yield to Worst 2.44%

Average Coupon 4.88%

Average Annual Turnover 10-20%

Rating Distribution

AAA 13.9%

AA 75.3%

A 9.6%

BBB 0.0%

Unrated 0.3%

Cash 1.0%

Sector Distribution

Local GO 32.3%

Dedicated Tax 11.8%

State GO 11.3%

Water/Sewer Revenue 10.0%

Transportation Revenue 9.9%

Lease Revenue 6.4%

University 4.8%

Electric Revenue 4.3%

Hospital 3.8%

Other 4.4%

Cash 1.0%

The information above is current as of 9/30/18. 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.