The Tax Free Portfolio is our tax-exempt income strategy.
Objective:
The primary objective of the Tax Free Portfolio is capital preservation. The benchmark for this portfolio is the Barclays Municipal 3-Year Total Return index.
Construction:
The portfolio’s default asset is iShares Short Term National AMT-Free Municipal Bond Fund (SUB). Alternative fixed income assets are added to the portfolio and SUB is reduced using the dynamic process described below.
Dynamic Investment Process:
Our corporate objective is to add value through enhanced return and reduced risk. In pursuit of this objective, there are three variables we consider in constructing our Tax Free fixed income portfolio:
- The shape of the yield curve
- The yield spread across the quality spectrum
- The business cycle and macro economy
Based on our internal analyses and capital markets expectations, we will alter the duration, credit quality and structure of the portfolio. These strategies expose our clients to strategies intended to opportunistically pursue higher returns when the risk/return ratio is favorable.
If you would like more detailed information about this or any Alhambra portfolio, please call your Alhambra representative or contact us at info@alhambrapartners.com.
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