The smart-beta, multi-sector approach is represented by five sectors of the municipal debt market, with a focus on yield, quality, maturity, liquidity, and interest rate sensitivity.
The five sectors include the Municipal Core Revenue Sector at 45%; health care-related debt or the Municipal Health Care Sector at 20%; high quality revenue bonds or the Municipal High Quality Revenue Sector at 15%; general obligation (GO) bonds or the Municipal Core GO Sector at 10%; and high yield debt or the Municipal High Yield Sector at 10%. The first four segments are component bonds taken from a subset index or indices of the Bloomberg Barclays Municipal Bond Index.
MUST excludes California bonds, Guam bonds, Puerto Rico bonds, U.S. Virgin Island bonds, other U.S. territories, commonwealths and possessions, pre-funded bonds, insured bonds, floaters, callable bonds with less than 1 year to call, tobacco bonds, and derivatives.
Financial advisors who are interested in learning more about the municipal bond market can register for the Thursday, October 25 webcast here.