Short Term Municipal Strategy

Strategy Overview

The Short-Term Municipal strategy is an actively managed strategy appropriate for investors seeking a hedge against rising interest rates from a high quality, diversified portfolio.  The goal of the strategy is to reduce portfolio volatility and credit risk, generate income free of federal income taxes, and produce superior risk adjusted returns relative to the Bloomberg Barclays Muni Short (1-5) benchmark. The strategy consists of fully discretionary, separately managed account (SMA) portfolios.  The strategy invests primarily in municipal bonds exempt from federal income taxes.


Average Maturity 3.36
Yield to Worst (*TEY) 1.99% (3.16%)
Yield to Maturity (*TEY) 2.10% (3.33%)
Modified Duration 2.52

*Taxable equivalent yield at the 37% federal tax bracket.

Sector Allocation

Top Five Sector Allocations % of Strategy
General Obligation 56.75%
School District 11.43%
Water 6.80%
PRE/ETM 6.48%
Higher Education 2.64%

State Allocation

Top Five State Allocation % of Strategy
Texas 16.20%
Wisconsin 11.94%
Illinois 9.46%
Iowa 6.11%
Michigan 5.94%

Portfolio Management Team

Tom Bernardi, CFA – 5 years of industry experience

John Tranas – 26 years of industry experience

For more information find our strategies on Envestnet or Morningstar

Data as of 6/30/2019