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Massachusetts State Preference Mandate

The Massachusetts State Preference Mandate is a customization of our tax-efficient strategies.

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

Maturity Based

Sustainable

With 351 cities, strong fiscal oversight and high per capita incomes, diverse and stable Massachusetts portfolios are achievable. Despite the commonwealth’s low income tax rate, Massachusetts state bias portfolios are appropriate when credit quality and after-tax rates warrant. The Massachusetts State Preference Mandate is an investment grade municipal bond portfolio that seeks to maximize after-tax income and preserve capital. Managed in a separate account, this mandate employs active management, bottom-up credit research, opportunistic trading and proactive portfolio structuring.

Investment Objective

Maximize after-tax income and preserve capital

Eligible Investments

Tax-exempt Municipal Bonds (strategic)

Taxable Municipal Bonds (tactical)

Strategy Information

Strategy AUM: $1.4 billion

Available Maturity Structures

Limited (3 year average maturity)

Intermediate (5 year average maturity)

Long Intermediate (7 year average maturity)

Sample State Distribution*

MA 48.3%

Other 51.7%

Sample Sector Distribution*

Local GO 36.9%

Dedicated Tax 10.6%

Transportation Revenue 10.0%

Water/Sewer Revenue 9.6%

Prerefunded 9.2%

University 6.2%

State GO 5.6%

Lease Revenue 4.7%

Electric Revenue 3.1%

Other 3.2%

Cash 1.1%

*Sample portfolio characteristics provided above are intended to illustrate general information for our Intermediate Massachusetts State Preference Mandate and are subject to change given market conditions and client objectives. Actual portfolios may vary. Breckinridge’s Intermediate Massachusetts State Preference Mandate typically invests 45-60% in-state. In-state percentages adjust according to market conditions and changes in tax rates. Data provided is as of 9/30/18.