Long Intermediate Tax-Efficient Strategy
The Long Intermediate Tax-Efficient Strategy is an investment grade, long-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. The longest of Breckinridge’s Tax-Efficient product offerings, this strategy is appropriate for investors who seek higher income but have a higher tolerance for price volatility. 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: January 2005
Strategy AUM: $904 million
Benchmark: BBG Barc Muni 3-15 Yr Blend
Average Maturity 6.82 years
Average Duration 5.14 years
Average Credit Quality AA
Average Yield to Worst 2.26%
Average Coupon 4.94%
Average Annual Turnover 10-20%
Local GO 29.5%
Special Tax 13.9%
State GO 10.2%
Water & Sewer 9.5%
Other Tax-Exempt Munis 0.7%
*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 12/31/18. 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.