Investment Objective
As high a level of current income exempt from Federal income tax as is consistent with preservation of capital
The highly fragmented and inefficient nature of the municipal bond market lends itself to active management. The team seeks to build portfolios that will maximize total return through long-term balanced risk taking and shorter-term opportunistic trading.
Key Tenets of Our Approach
High quality bias balanced with opportunistic risk taking and rigorous credit analysis
Broadly diversified across credit, sector, structure, liquidity & taxability
Blended qualitative and quantitative analysis
Efficient use of technology to identify opportunity, efficiently execute, quantify results & manage risk
Universe
- At least 80% of the value of net assets (including borrowings for investment purposes) invested in intermediate and long-term obligations of the states, territories and possessions of the United States, the District of Columbia and their political subdivisions, agencies, instrumentalities, and authorities that pay interest exempt from regular Federal income tax but may be subject to Federal alternative minimum tax
- Securities that are rated at the time of purchase within the three highest ratings assigned by Moody’s (i.e., Aaa, Aa, A) or (AAA, AA, A) in the case of bonds, or rated SP-1 or higher by S&P or MIG-2 or higher by Moody’s
- Municipal obligations may also include tax-exempt commercial paper rated A-1 or higher by S&P or Prime-1 or higher by Moody’s
Benchmark
- Bloomberg Municipal Bond 1-10 Year Blend
Operating Target
- Typically, 100-150 Securities
Limiting Exposure
- Individual position size: 2.5%
- Aggregate issuer weight: 5%
- Duration to benchmark: +/- 1 year
- Weighted average maturity 3 to 10 years
The Bloomberg Municipal Bond 1-10 Year Blend Index tracks tax-exempt Municipal General Obligation, Revenue, Insured, and Prefunded bonds with a minimum $5 million par amount outstanding, issued as part of a transaction of at least $50 million, and with a remaining maturity from 1 up to (but not including) 12 years. The Index is unmanaged.
One cannot invest directly in an index.
This website is for informational purposes only. GIM products are actively managed and their characteristics will vary. All investment has risk, including the risk of loss of principal. There can be no assurance that efforts to manage risk or to achieve any articulated investment objective will be successful. An investor should consider investment objectives, risks, charges and expenses carefully before investing. For additional information regarding risks and about the firm, please refer to Related Literature and Disclosures.