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
Maturity Based
State Based
Maturity Based
Maturity Based
Sustainable
Maturity Based
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: $1.0 Billion
Benchmark: BBG Barc Muni Bond 1 Yr
Portfolio Characteristics
Average Maturity 1.40 Years
Average Duration 1.34 Years
Average Credit Rating AA+/AA
Average Yield to Worst 1.38%
Average Coupon 4.81%
Average Annual Turnover 35-45%
Ratings Profile*
AAA 28.0%
AA 61.0%
A 11.0%
BBB 0.0%
Sector Profile
Local GO 30.1%
Prerefunded 15.2%
Transportation 9.6%
Special Tax 9.0%
Leasing 8.3%
Water & Sewer 7.0%
State GO 7.0%
Electric 4.8%
Other Tax-Exempt Munis 7.4%
Taxable Securities 1.3%
Cash 0.3%
*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 6/30/19. 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.