Wasmer, Schroeder & Company Inc.

Short-Term Tax Exempt Fixed Income Strategy

Strategy Objectives

Wasmer, Schroeder & Company, Inc. (WSC) portfolios are managed primarily for maximum income and capital preservation.  Growth of principal is not a material consideration.

The Short-Term Tax Exempt Fixed Income (STTE) portfolios are structured using a “core ladder” approach, with 2/3 of the portfolio positioned in a short-term ladder providing minimal volatility irrespective of interest rate movements.

Incremental return is achieved through allocating the remaining 1/3 of the portfolio to portions of the yield curve which offer the maximum risk-adjusted returns.  This duration-neutral structure exploits variables such as yield curve shape and supply/demand dynamics in order to maximize income and minimize volatility of the portfolio.  The Strategy’s primary benchmark is the Barclays Capital 1-Year Municipal Bond Index and the secondary benchmark is the Barclays Capital 3-Year Municipal Bond Index. 

Composite Statistics

(As of 12/31/2011)

*Barclays Capital 1-Year Municipal Bond Index
Note: Top Sectors breakdown for the Index is unavailable

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