Seeking Capital Preservation and
Tax-Exempt Income

The Intermediate Municipal Fixed Income strategy focuses on generating tax-efficient income for investors, with a highly-tailored approach to credit selection based on client circumstance. We emphasize investments in sectors with high credit quality, thoughtful diversification, and opportunistic trading to help drive cash flow.

This strategy is designed for investors seeking a relatively stable, tax-conscious, and high quality bond portfolio tailored to reflect their state income tax situation.

The portfolio generally holds 10-25 individual bonds and a small allocation to ETFs for enhanced liquidity and tactical positioning. The strategy is actively managed with regard to duration and portfolio structure.

How We Manage the Portfolio

Capital Preservation and Tax-Exempt Income

  • Focus on investment-grade, intermediate maturities
  • Resilient to credit stress, changing interest rates, and volatile markets
  • Emphasis on predictable income flow and principal stability

Aligned to Client Tax Situation

  • Review legacy positions for suitability
  • Manage turnover and gain/loss realization
  • Consider changes in tax landscape

Seek Incremental Return Opportunities

  • Portfolio maturity structuring in response to yield curve changes
  • Seek opportunities that arise at sector and security levels
  • Capitalize on the seasonality of supply and demand

Insights

Trends 2024

Davidson Investment Advisors provides insight into exciting, disruptive or otherwise new development...

Perspective & Commentary

  • Exploring the Risks of Top-Heavy Markets

    Concentration has become a defining feature of today's financial markets, with just a handful of companies surging in both value and influence, propelling the market to all-time highs.
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  • Now Might Be the Time to Extend Duration on Cash Holdings

    Generally, risk is thought of in terms of volatility or the possibility of loss. However, we often remind ourselves that opportunity cost is another potential hinderance to long-term investment result...
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  • Q3 2024 Commentary

    In Like a Bear, Out Like a Bull – Equity markets open the third quarter on a severe losing streak but finished at, or near, all-time highs.
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  • Q2 2024 Commentary

    The narrow, technology-driven market rally continues ... but a market where few gain and most tread water - or begin to sink - is less than ideal.
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  • Q1 2024 Commentary

    Despite higher interest rates, the economy and labor markets are doing better than most economists anticipated.
    Read More