Intermediate Tax-Efficient Strategy
The Intermediate Tax-Efficient 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 tax rate. 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.
Maximize after-tax income and preserve capital
Tax-Exempt Municipal Bonds
Inception Date: July 1994
Strategy AUM: $12.2 billion
Benchmark: BBG Barc Muni 1-10 Yr Blend
Average Maturity 5.36 years
Average Duration 4.14 years
Average Credit Rating AA+/AA
Average Yield to Worst 1.55%
Average Coupon 4.88%
Average Annual Turnover 10-20%
Local GO 31.7%
Special Tax 11.6%
Water & Sewer 10.0%
State GO 8.8%
Other Tax-Exempt Munis 8.8%
*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.