tax-free current income. Additionally, preservation of principal is a key element in all of our Bond portfolios. Our active top-down style uses macro-economic analysis as a framework for all buy/sell decisions. Interest rate trends are forecasted as part of our process. We combine key economic inputs with individual client needs to determine the appropriate duration and structure of portfolios. Our custom-active strategy offers superior advantages versus a passive "buy and hold" or "ladder" approach.
Portfolios are managed to meet individual client objectives, residency, federal and state income tax requirements, and other specified needs. Federal Alternative Minimum Tax status is also considered.
Out-of-state bonds are considered when attractive on a net after-tax basis. "Tax swapping" is an integral part of meeting each client's investment and tax requirements.
Bond selection is limited to high quality investment grade bonds. Credit enhanced, escrowed and pre-refunded issues may be selected when they are consistent with our market outlook and are within specific client parameters.
Carret uses a value approach when buying and selling bonds; this method recognizes the inefficiencies of the municipal marketplace and allows us to benefit from our expertise and market knowledge. Clients may benefit from the efficiencies of block trading as we obtain institutional pricing for the benefit of all portfolios regardless of size and objective.
Custom-active management of Municipal Bond portfolios takes into account relative market values and yield with respect to credit quality and maturity. Our market strategy takes into consideration how pricing, coupon, duration, rating, and call features work together. Our sector analysis considers choices including general obligation, school district, and various types of essential purpose revenue bonds. Final security selection depends on the expected performance characteristics of each type of bond.
