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Short Tax-Efficient Strategy

The Short Tax-Efficient Strategy is an investment grade, short duration municipal bond portfolio that seeks to maximize liquidity, provide after-tax income and preserve capital.

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

Maturity Based

Sustainable

Allocations to Treasury, government-related and corporate bonds may also be considered based on a client’s tax rate. The shortest of Breckinridge’s Tax-Efficient product offerings, this strategy is appropriate for investors for whom liquidity and principal protection are paramount. Managed in a separate account, the strategy employs active management, bottom-up research, efficient trading and proactive portfolio structuring. In certain cases, this strategy can be customized by benchmark, maturity, duration, credit quality, tax status and state.

Investment Objective

Maximize liquidity and after-tax income while preserving capital

Eligible Investments

Tax-Exempt Municipal Bonds

Treasury Bonds

Government-Related Bonds

Corporate Bonds

Strategy Information

Inception Date: January 2011

Strategy AUM: $964 Million

Benchmark: BBG Barc Muni Bond 1 Yr

Portfolio Characteristics

Average Maturity 1.46 Years

Average Duration 1.39 Years

Average Credit Rating AA

Average Yield to Worst 1.64%

Average Coupon 4.80%

Average Annual Turnover 35-45%

Ratings Profile*

AAA 12.6%

AA 72.6%

A 14.7%

BBB 0.1%

Sector Profile

Local GO 28.6%

Prerefunded 13.0%

Transportation 10.8%

Special Tax 9.0%

Water & Sewer 8.6%

Leasing 8.3%

Electric 6.8%

State GO 5.8%

Other Tax-Exempt Munis 7.3%

Taxable Securities 1.5%

Cash 0.4%

*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 3/31/19. 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.