Tax-Exempt Fixed Income Strategy

Tax-Exempt Fixed Income Strategy

The Vanward Tax-Exempt Fixed Income Strategy aims to protect investors capital and generate attractive after-tax returns by identifying undervalued municipal securities through a combination of exhaustive, independent research and our valuation discipline. Our Intermediate municipal bond strategy targets 75 to 125 credits in the main subsectors of the U.S. municipal bond market, such as general obligation bonds, revenue bonds, and pre-refunded securities. We make long-term, tax-sensitive investments with an expected annual turnover rate of less than 25 percent.

Investment Criteria:
When constructing our portfolios, we use a disciplined investment-selection process that concentrates on the following seven issuer attributes:
- Provides essential functions
- Solid competitive standing
- Financial vitality
- Operating paradigm with pricing flexibility and robustness
- Supported by a verified revenue source
- Robust protection and covenant coverage
- Timely monetary filings

Whenever applicable, we also take the following management characteristics into account:
- Political disposition to exercise rate independence
- Profitable operational efficiency
- Sound capital expenditure plans
- Prudent use of derivatives

Vanward Partners has entrusted the investment team with the management of Vanward own investment portfolio, thereby aligning the firm's interests with those of our clients.

- Municipal bond income may be subject to state and local taxes and the alternative minimum tax.
- Investing in the bond market is subject to certain risks, including market, interest-rate, issuer, credit, and inflation risk; when redeemed, investments may be worth more or less than their initial cost.