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Limited Tax-Efficient Strategy

The Limited Tax-Efficient Strategy is an investment grade, limited 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 agency bonds may also be considered based on a client’s tax rate. The duration of this strategy is appropriate for investors who value liquidity but seek higher after-tax income than is available in our Short 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: January 2005

Strategy AUM: $2.3 billion

Benchmark: BBG Barc Muni 1-5 Yr Blend

Portfolio Characteristics

Average Maturity 2.92 years

Average Duration 2.65 years

Average Credit Rating AA+

Average Yield to Worst 2.21%

Average Coupon 4.75%

Average Annual Turnover 15-25%

Rating Distribution

AAA 20.4%

AA 67.8%

A 9.6%

BBB 0.0%

Unrated 1.1%

Cash 1.2%

Sector Distribution

Local GO 34.5%

State GO 11.4%

Dedicated Tax 11.0%

Transportation Revenue 7.9%

Water/Sewer Revenue 7.1%

Prerefunded 5.9%

Electric Revenue 5.9%

Lease Revenue 5.7%

University 3.8%

Other 5.7%

Cash 1.2%

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.