TAX-EXEMPT MUNICIPAL BOND STRATEGY

Overview

The Tax-Exempt Municipal Bond Strategy is designed for investors seeking income that is exempt from federal income taxes while emphasizing capital preservation and portfolio stability. The strategy invests in high-quality municipal bonds issued by state and local governments and related entities, providing tax-efficient income alongside a focus on risk management.

Strategy Philosophy

We believe municipal bonds can play an important role in a diversified portfolio, particularly for investors in higher tax brackets. Tax-exempt income can enhance after-tax returns while supporting a more stable investment experience compared to many other income-producing assets.

The strategy emphasizes credit quality, financial strength of issuers, and disciplined bond selection to support reliable income generation and long-term capital preservation.

Investment Focus

The portfolio emphasizes municipal bonds that demonstrate:

High credit quality and strong issuer fundamentals
Stable sources of revenue and sound financial management
Attractive tax-exempt income potential
Diversification across sectors, issuers, and regions
Structures designed to support consistent income and risk management

Investments may include general obligation bonds, revenue bonds, and other municipal securities aligned with the strategy’s quality and income objectives.

Portfolio Approach

The strategy is built through disciplined credit analysis and ongoing monitoring of issuer financial health, economic conditions, and market dynamics. Duration, interest rate sensitivity, and sector exposure are carefully considered to support portfolio stability.

The goal is to provide consistent tax-efficient income while managing interest rate and credit risk.

Risk Perspective

Municipal bonds are subject to risks including interest rate changes, credit risk, and market fluctuations. The strategy seeks to manage these risks through a focus on higher-quality issuers, diversification, and active oversight.

While capital preservation is a priority, bond prices can fluctuate based on market conditions.

Objective

To provide federally tax-exempt income and portfolio stability by investing in a diversified portfolio of high-quality municipal bonds, supporting after-tax income and long-term capital preservation.