Core Tax-Exempt Portfolio
Current as of June 30, 2010.
The objective of this tax exempt strategy is tax exempt income with a secondary emphasis on capital preservation. We seek to meet
these objectives by selecting municipal securities that have an intermediate maturity and investment grade quality. Bottom up security
valuation analysis is a critical tool for portfolio construction and management while top down economic analysis leads to an intermediate
targeted duration. Portfolios will be personalized to the tax situation of the end client, giving careful consideration to the state of
residence and tax bracket. Our seasoned managers seek opportunities for improving income and risk adjusted returns through careful
security selection, yield curve analysis, bond swapping, portfolio diversification, and credit monitoring. Unusual market conditions
may cause some securities in the portfolio to temporarily exhibit characteristics outside the investment objectives. Ongoing communications
with advisors complete our high touch service model.
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Portfolio Characteristics
|
|
AAM Portfolio |
BC
Muni
1-10 Yr Blend Index |
BC
Muni
Bond Index |
|
|
|
Avg Credit Quality |
Aa3/AA- |
AA2/AA3 |
AA2/AA3 |
|
Avg Coupon |
4.71 |
4.97 |
4.98 |
|
Avg Yield to Worst |
2.69 |
2.23 |
3.41 |
|
Avg Modified Duration |
4.52 |
4.42 |
8.28 |
|
Avg Maturity |
7.06 |
5.78 |
13.51 |
Source: AAM and Barclays Capital Indices.
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Asset Diversification
|
|
AAM Portfolio |
BC
Muni
1-10 Yr Blend Index |
BC Muni Bond Index |
|
Agency |
0% |
0% |
0% |
|
Corporate |
0% |
0% |
0% |
|
Mortgage/ABS |
0% |
0% |
0% |
|
Municipal |
100% |
100% |
100% |
|
Treasury |
0% |
0% |
0% |
|
Other* |
0% |
0% |
0% |
*Other categories may include municipal debt, equities, convertible debt,
floating rate, inflation-linked, structured notes, derivative debt, funds and
other securities which may be greater than 10% of the portfolio.
The Barclays Capital Municipal 1-10 Yr Blend Index is a component of the Barclays Capital Municipal Bond Index.
The Barclays Capital Municipal Bond Index covers the USD-denominated long term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds.
Composite Performance
|
Period (Pd)
|
Total Return (Gross of Fee %)
|
Total Return (Net of Fee %)
|
BC
Municipal
1-10 Yr Blend Index*
|
BC
Municipal
Bond Index**
|
No. of Portfolios
(End of Pd)
|
Composite Dispersion
|
|
|
|
2004***
|
0.11%
|
0.08%
|
0.13%
|
0.48%
|
NM
|
NM
|
|
2005
|
4.46%
|
4.26%
|
1.67%
|
3.51%
|
NM
|
NM
|
|
2006
|
4.61%
|
4.26%
|
3.74%
|
4.84%
|
26
|
1.21%
|
|
2007
|
3.95%
|
3.68%
|
4.79%
|
3.36%
|
30
|
0.22%
|
|
2008
|
1.18%
|
0.93%
|
4.23%
|
-2.47%
|
62
|
1.79%
|
|
2009
|
8.03%
|
7.71%
|
7.18%
|
12.91%
|
77
|
1.26%
|
|
2010 Q1
|
0.95%
|
0.88%
|
0.86%
|
1.25%
|
75
|
0.32%
|
|
2010 Q2
|
2.23%
|
2.10%
|
1.81%
|
2.03%
|
88
|
0.21%
|
|
2010
|
3.20%
|
3.00%
|
2.68%
|
3.20%
|
88
|
N/A
|
Results shown in US $. Gross returns are presented after all transaction costs, but before management fees. Net of fee results reflect the deduction of actual dollar-weighted fee rate paid by all accounts in the composite. The fees charged by AAM are described in Part II of its Form ADV. It is not possible to invest directly in an index. This managed discipline may invest in Registered Investment Company securities which may have additional fees and expenses.
*The Barclays Capital Municipal 1-10 Yr Blend Index is a component of the Barclays Capital Municipal Bond Index.
**Benchmark is Barclays Capital Municipal Bond Index.
*** Partial period return from 11/1/2004 to 12/31/2004.
Composite dispersion is the relative consistency of a firm's composite performance as measured against the individual portfolio returns within a composite.
Advisors Asset Management claims compliance with the Global Investment Performance Standards (GIPS®). Advisors Asset Management (“AAM”) is a registered broker dealer, member FINRA and SIPC, and SEC registered investment adviser. AAM offers individual account advisory services under the business name Advisors Asset Management and AAM’s Separately Managed Accounts (SMA) department. AAM also sponsors Unit Investment Trusts (“UITs”), which are excluded from the GIPS definition of the firm. To obtain a presentation that complies with the requirements of GIPS and/or a list and description of all firm composites, contact your financial professional. You may also obtain by logging onto our website at www.AAMmanagedmoney.com, or email SMAadministration@aam.us.com.
This report is for informational purposes only and subject to change. All content has been obtained from sources believed reliable; however, we do not guarantee its accuracy or completeness. Each account will be managed on an individual basis and will have variations. Investment return and principal value will fluctuate and there can be no assurance that the portfolio's objective will be achieved. Past performance does not guarantee comparable future results. Actual returns may be lower. Bonds are subject to a variety of risks, including interest rate, income, credit and inflation risk. Composite returns are presented Gross and Net of investment management fees, are calculated in U.S. Dollars, and assume reinvestment of dividends, interest, capital gains and other earnings.