Tax-exempt strategies

You should never feel confused or in the dark about your portfolio. For our active tax-exempt fixed income strategies, we start with an analysis of your tax rate, which we continually monitor for you. We build each custom portfolio to match your goals and expectations. These actively managed accounts are designed either as stand-alone portfolios or as overlays to your existing equity portfolio managed at SAC.

We also use a crossover strategy to actively measure the tax-adjusted yield value of municipals vs. comparable US Treasuries and other taxable instruments. Then, we invest in taxable issues only when they offer better returns over municipals.

This strategy provides after-tax stable income and principal protection.

Core municipal tax-exempt strategy:

  • Provides a high degree of liquidity with an asset allocation weighted in high quality securities.
  • Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.

Our goal with the short municipal strategy is to provide a stable income stream, principal protection, and to outperform market-weighted inflation on a risk-adjusted total return basis vs. the relevant benchmark.

The short municipal tax-exempt strategy

  • Provides a high degree of liquidity with an asset allocation heavily weighted in high quality fixed income securities.
  • Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.

Our goal with the limited duration municipal strategy is to provide after-tax stable income and principal protection on a risk-adjusted total return basis vs. the relevant composite benchmark.

The limited duration municipal tax-exempt strategy:

  • Provides high degree of liquidity with an asset allocation heavily weighted in high quality fixed income securities.
  • Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.

Investment Philosophy

Our top-down duration management is maintained within a band relative to the benchmark. Decision-making points that determine band optimization are based on

These factors are combined with your guidelines, diversification requirements, and portfolio benchmarks.

Our senior portfolio managers actively manage bottom-up yield curve exposure using quantitative swap models based on the criteria below in the context of our top-down view.

Risk-Management Strategy

Using a forward-looking approach, we identify, analyze, quantify, and prioritize the types of risk affecting portfolio investments across four dimensions: bottom-up, core, tail and liquidity risk.

To do this, we:

Testimonials

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