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Short Term Tax Aware Fixed Income

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Investment Objective

Maximum after-tax total return consistent with reasonable preservation of capital.

We believe that investor biases and mandates often lead to disconnects between the relative risk/reward of taxable versus tax exempt bonds.

Key Tenets of Our Approach


  • At least 50% of the value of the Portfolio’s total assets invested in investment grade municipal securities that pay interest exempt from regular Federal income tax, but may, in certain instances, be subject to to Federal alternative minimum tax
  • At least 80% of the value of its net assets in fixed income securities, primarily in short-term municipal securities, corporate bonds, exchange-traded funds (“ETFs”) and closed-end funds that invest in fixed income securities and U.S. Government Securities
  • May also invest in preferred stocks


  • Bank of America Merrill Lynch 1-3 Year U.S. Municipal Securities Index

  Operating Target

  • Typically own 75- 150 holdings. Initial weightings from 0.50% – 2.5%
  • All main sectors main sectors of benchmark represented

Limiting Exposure

  • Aggregate issuers weight is 5%
  • Individual position size is 2.5%
  • Duration to the benchmark is +/- 1 to 2 year
  • Weighted average maturity 1-3 years

The Bank of America Merrill Lynch 1-3 US Year Municipal Securities Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years.

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.