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Investment Strategies - Municipal Fixed Income

Man on a sailboat, People walking on a bridge
Our municipal fixed income portfolios provide tax-efficient investment solutions with an emphasis on principal preservation and consistent cash flow

At Carret Asset Management we professionally manage Municipal Fixed Income portfolios for total return and tax-free current income. Additionally, a focus on preservation of principal is a key element in all of our bond strategies. 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 investment 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 (AMT) 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 needs 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.

Carret uses a value approach when buying and selling bonds. This method recognizes the inefficiencies of the municipal marketplace and enables clients to benefit from our expertise and market knowledge. Clients may gain advantage 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 Fixed Income 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 revenue bonds with a focus on essential purpose bonds. Final security selection depends on the expected performance characteristics of each type of bond.



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