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New York State Preference Mandate

The New York 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 62 counties, 1,647 sub-county general purpose governments, 62 cities, 932 towns and over 733 school districts, New York is a broad and diverse issuer of municipal debt. These characteristics, combined with the state’s high income tax rate, make in-state exposure highly desirable. The New York 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: $1.6 billion

Available Maturity Structures

Limited (3 year average maturity)

Intermediate (5 year average maturity)

Long Intermediate (7 year average maturity)

Sample State Distribution*

NY 91.6%

Other 8.4%

Sample Sector Distribution

Local GO 28.4%

Dedicated Tax 16.8%

Transportation Revenue 16.1%

Lease Revenue 9.2%

Water/Sewer Revenue 8.2%

Prerefunded 7.3%

University 5.3%

Other Revenue 3.4%

State GO 1.3%

Other 2.6%

Cash 1.4%

*Sample portfolio characteristics provided above are intended to illustrate general information for our Intermediate New York State Preference Mandate and are subject to change given market conditions and client objectives. Actual portfolios may vary. Breckinridge’s Intermediate New York State Preference Mandate typically invests 80-100% in-state. In-state percentages adjust according to market conditions and changes in tax rates. Data provided is as of 9/30/18.