Enhanced Yield US Municipal Bond

The Enhanced Yield US Municipal Bond strategy is designed to provide investors with a high level of tax-exempt income through exposure to high-quality municipal bonds. The strategy’s diverse exposure profile captures excess yield through a research process that identifies undervalued sectors and securities.

Objective

The strategy seeks to provide passive exposure to higher yielding, investment grade municipals.

Approach

We take a pragmatic, long-term approach to municipal bond investing, utilizing a combination of bottom-up and top-down processes, which allows us to identify bonds that are attractive on a risk-adjusted basis. This approach has the potential to result in an emphasis on essential purpose revenue bonds that are fundamentally stable to improving and may provide meaningful income with attractive yields.

Through our research expertise and trading acumen we seek to achieve best execution on relative value opportunities rather than relying on interest rate forecasting to deliver excess return. We focus on sectors and securities with stable, investment grade credit characteristics. We avoid bonds with deteriorating credit fundamentals or poor relative valuations as well as those that deliver excessive volatility to portfolio returns.