Tax-Efficient Strategies
Tax-efficient strategies seek to produce higher after-tax yields by investing across the U.S. investment-grade fixed income universe, whether they be municipal, corporate, or government issuers.
While municipal bonds are the primary asset class, selective investments in corporate and government securities at opportune times can increase after-tax yield. This vertical is refined by interest rate risk into short-, intermediate-, and longer-term strategies.
Each strategy – short, intermediate, and customized – has a different set of potential opportunities to increase after-tax yield by selectively investing in non-municipal securities. The focus on after-tax yield incorporates each investor's federal, state, and local taxation to the extent applicable. For clients that are not governmental entities, state and local taxes are the primary factor in the selection of in-state or out-of-state municipals, as well as whether it is tax-efficient to invest in corporate securities.
While municipal bonds are the primary asset class, selective investments in corporate and government securities at opportune times can increase after-tax yield. This vertical is refined by interest rate risk into short-, intermediate-, and longer-term strategies.
Each strategy – short, intermediate, and customized – has a different set of potential opportunities to increase after-tax yield by selectively investing in non-municipal securities. The focus on after-tax yield incorporates each investor's federal, state, and local taxation to the extent applicable. For clients that are not governmental entities, state and local taxes are the primary factor in the selection of in-state or out-of-state municipals, as well as whether it is tax-efficient to invest in corporate securities.
- Tax-Efficient Short:
The Short Tax-Efficient Strategy focuses on shorter-term maturities of 1-5 years with income generation, preservation of principal, and liquidity the main investment objectives. Potential buy candidates are generally municipals and corporate securities.
- Tax-Efficient Intermediate:
The Intermediate Tax-Efficient Strategy focuses on intermediate-term maturities of 1-15 years with income generation and liquidity as the main investment objectives. Potential buy candidates are generally municipals and hybrid tax-advantaged corporate securities.
- Tax-Efficient Customized:
The Tax-Efficient Customized Strategy is for investors who have very specific investment guidelines that do not fit into one of the other strategies. Account types that have customized portfolios include: limited liability corporations, insurance companies, captive insurance entities, government contractors, foundations, trusts, and individuals.