Municipal bonds offer investors another avenue for income generation beyond the traditional Aggregate Bond Index exposures, providing opportunities to enhance and diversify yields.
In the upcoming webcast, Insights into the Evolving Municipal Bond Market, David Dowden, Managing Director, Portfolio Manager, MacKay Municipal Managers; and Christopher Roberti, Managing Director, Senior Client Portfolio Manager, MacKay Municipal Managers, will look to the current municipal bond landscape and identify strategies to help financial advisors incorporate municipal bonds into a fixed-income portfolio.
For instance, New York Life Investments, in partnership with IndexIQ, offers two actively manage muni bond ETFs, including the IQ MacKay Shields Municipal Intermediate ETF (NYSE Arca: MMIT) and the IQ MacKay Shields Municipal Insured ETF (NYSE Arca: MMIN). The two actively managed muni bond strategies could better help investors navigate changing market conditions. MMIT invests primarily in investment-grade municipal bonds. MMIN principally invests in investment-grade municipal bonds covered by an insurance policy guaranteeing the payment of principal and interest.
MMIT seeks current income exempt from federal income tax. The ETF invests primarily in investment-grade municipal bonds and will also try to enhance total return potential through the subadvisor’s active management approach.
MMIN also seeks current income exempt from federal income tax. Additionally, the ETF principally invests in investment-grade municipal bonds covered by an insurance policy guaranteeing the payment of principal and interest, and will seek to enhance total return potential through the subadvisor’s active management approach.
The two strategies both seek to maintain 100% of assets in investment-grade munis diversified across states and sectors with a duration neutral approach, an expected annual turnover of 20% to 30%, and no leveraged exposure.
Financial advisors who are interested in learning more about the municipal bond market can register for the Thursday, April 2, webcast here.