Carret’s Municipal Fixed Income Strategy seeks to maximize tax efficiency through opportunistic portfolio management while preserving principal through practical portfolio structuring and fundamental credit analysis. We actively manage investment grade intermediate duration portfolios with a diversified blend of issuers, sectors, and maturities aimed at delivering consistent, risk-adjusted returns with an emphasis on tax-efficient cash flows. We employ a high-level macro view with a bottom-up credit research process. Final security selection focuses on the economics and fundamentals of each municipality.

Investment Philosophy

  • After-tax total return orientation focusing on preservation of principal, liquidity, and income
  • Identify the sweet spot on the yield curve and structure maturities accordingly
  • Active management includes forecasting the long term direction of interest rates and municipal credit spreads
  • The strategy reflects the relative value of a state-specific, state-focused, or non-state-specific approach
  • Anticipate change and capitalize on it

Investment Process

  • Team approach
  • Actively managed portfolio with an after-tax, total return focus
  • Analyze yield curve to identify optimal maturities
  • Diversified by sector, municipality and maturity
  • Monitor and maintain investment grade credit quality
  • Portfolio construction emphasizes diversification, liquidity, flexibility, and creativity