Massachusetts State Preference Mandate
The Massachusetts State Preference Mandate is a customization of our tax-efficient strategies.
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.
Maximize after-tax income and preserve capital
Tax-exempt Municipal Bonds (strategic)
Taxable Municipal Bonds (tactical)
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*
Sample Sector Distribution*
Local GO 36.9%
Dedicated Tax 10.6%
Transportation Revenue 10.0%
Water/Sewer Revenue 9.6%
State GO 5.6%
Lease Revenue 4.7%
Electric Revenue 3.1%
*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.