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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 taxable municipal, corporate, Treasury and government agency 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 credit research, opportunistic 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 (strategic)

Taxable Municipal Bonds (tactical)

Corporate Bonds (tactical)

U.S. Treasury Securities (tactical)

Strategy Information

Inception Date: January 2011

Strategy AUM: $817 Million

Benchmark: BBG Barc Muni Bond 1 Yr

Portfolio Characteristics

Average Maturity 1.43 Years

Average Duration 1.37 Years

Average Credit Rating AA

Average Yield to Worst 2.05%

Average Coupon 4.80%

Average Annual Turnover 35-45%

Rating Distribution

AAA 19.9%

AA 64.1%

A 14.8%

Unrated 0.7%

Cash 0.6%

Sector Distribution

Local GO 24.4%

Prerefunded 14.6%

Dedicated Tax 10.9%

Transportation Revenue 10.9%

State GO 10.6%

Lease Revenue 7.0%

Water/Sewer Revenue 6.1%

Electric Revenue 5.9%

University 5.2%

Other 3.7%

Cash 0.6%

The information above is current as of 9/30/18. 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.