Custom Muni Bond
Flexible Muni Solutions for Tax-Advantaged Outcomes
The AB Muni Advantage
Hear from muni team members Matt Norton and Daryl Clements about how AB’s municipal strategies infuse legacy with technology on a platform that actively manages over 19K client portfolios and $57B in Municipal assets.
We've honed our municipal skills over three decades. Combining human talent and leading-edge technology, we bring all our capabilities to bear as we strive to deliver better outcomes for clients.
We tailor portfolios to clients' unique needs--actively managed, with the flexibility to pursue opportunities in a dynamic arena.
A powerful mix of fundamental and quantitative research empowers AB to navigate a complex, fragmented muni marketplace.
An active, tech-driven approach uncovers opportunities in real time, using year-round tax harvesting to transform investments that have lost money into tax winners.
Proprietary Technology Accelerates Municipal Trading Capabilities
AB integrates quantitative and fundamental research into the investment process to give investors access to more alpha sources through AbbieOptimizer, AB’s one-of-a-kind technology.
AbbieOptimizer harnesses the power of technology to combine ALFA’s real time liquidity analysis with quantitative and fundamental insights. It’s the key to generating alpha through trading, speed and tax management in AB’s Muni bond portfolios.
The Result? We can take a custom client portfolio from inception to execution faster with more alpha opportunities than traditional processes.
- Mutual Funds
- Separately Managed Accounts
If a recession strikes, it should be no surprise to state leaders. This has been one of the most telegraphed leadups to a possible downturn in decades. What's more, muni issuers have the fiscal strength and budget tools to navigate an economic setback.
Introduce AB to Your Clients
Individual Muni Bond Analysis
AB offers Advisors a custom analysis of individual muni bond portfolios featureing a detailed look at portfolio characteristics, key risks, and transitional analysis.
Custom Client-Facing Proposals
AB offers customized, client-approved presentations to educate investors on positioning and to showcase a sample fully invested portfolio. We help you help your clients.
Deliver Personalized Service
Portfolio Funding Scorecards
For every new muni SMA account, AB provides a portfolio-funding scorecard. It highlights how we leverage trading and portfolio-management innovation, creating potential for additional tech-enabled alpha.
Muni SMA Tax-Loss Scorecard
At AB we don't believe that tax-loss harvesting should only happen at year-end so we offer access to AbbieOptimizer to systematically screen for attractive tax-loss sale candidates any time for any muni SMA account.
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Portfolio team is subject to change. Some individuals are members of multiple teams. As of February 8, 2023.
Experience in Meeting Investors’ Needs
Managing Municipal Portfolios
Firm Assets Under Management
Municipal Assets Under Management
Municipal Investment Portfolios Managed
*as of September 30, 2022
Tax-exempt muni bonds hold numerous advantages over corporate bonds—a big one is that the interest investors earn is exempt from federal taxes and most state and local taxes, considered tax-free income. Munis are also known to have low default rates, help offset equity volatility and add stability.
Munis are available as individual investments or through exchange- traded funds (ETFs), mutual funds and separately managed accounts (SMAs), with strategies that range from simple to highly sophisticated. Investors can put their money in individual bonds, a bond ladder strategy that consists of a series of bonds with different interest rates and maturity dates, or a custom solution that uses technology to design a sophisticated basket of muni bonds based on individual preferences.
AB has the unique flexibility to make “crossover” trades into the taxable bond market, for some portions of portfolios, in order to exploit relatively attractive US Treasury valuations, minimize volatility, boost after-tax portfolio yield and provide more liquidity and a safe haven during market stresses. A recent example was March 2020, as COVID-19 intensified.
The added income accrued by investing portfolios faster than the industry average. With AbbieOptimizer we’ve been able to fully invest a new muni portfolio from cash in 10 days, a 71% improvement from the 35-day average in 2017.
Trading Alpha is the average of AB’s execution price less the bond’s end of day evaluation price on that day divided by the account AUM.
A measure of relative outperformance attributable to tax- optimization strategies.
AB’s Municipal Impact Portfolio promotes and favors investments in historically underserved and low-socioeconomic communities.
This solution uses a proprietary scoring model. Each investment has a specific intention, to deliver positive environmental and/or social impact. The team tracks that intention through key performance indicators specific to individual sectors (education, healthcare, energy efficiency, mass transit, sustainable water and economic community development).
When portfolios realize losses, it generates tax savings that can be reinvested at higher market yields. Active tax optimization scans fixed-income SMAs in conjunction with client tax data coded into our systems. This process identifies and trades to generate the best after-tax returns tailored for each client.
AB first used completion funds in 2010, increasing our flexibility to make strategic and tactical shifts in less liquid market segments. These funds bring access to diversification and opportunities that would be hard to get with individual bonds. The general public can’t invest in completion funds (aka income shares or commingled vehicles)—they’re exclusively for SMAs.
As tax-aware investors, we always assess securities and trade ideas, including inflation protection, in after-tax terms. At times, incorporating inflation protection can add returns and preserve real purchasing power. That’s why AB has the flexibility to allocate to tax-efficient inflation protection via Consumer Price Index swaps, which generally have a favorable tax profile versus other approaches.
A municipal bond (or “muni”), is a debt security issued by a government entity to help fund local civic projects. Think of munis as loans that investors make to local governments. They help fund capital projects like building roads and schools. In exchange, investors receive regular interest payments during the bond’s life and the repayment of the bond’s principal amount when the bond matures.
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Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, contact your financial representative. Please read the prospectus and/or summary prospectus carefully before investing.
There is no assurance that a separately managed account will achieve its investment objective. Separately managed accounts are subject to market risk, the market values of securities owned will fluctuate so that your investment, when redeemed, may be worth more or less than its original cost.