Municipal securities should exist in tax sensitive portfolios for two reasons, risk reduction and after-tax income generation. The primary objective of the Reinhart Tax Exempt portfolio is principal preservation. We believe that the client’s municipal portfolio should be part of the low risk portion of the overall asset allocation.

Risk Spectrum

(Click graphs to view risk details)

Our conservative approach to credit risk results in our tax exempt portfolios being of higher overall credit quality than investment-grade US municipal bond indexes. This will lead to tracking error relative to these benchmarks and a lower yield for our portfolios.