Tax-Exempt

Philosophy

Municipal securities should exist in tax sensitive portfolios for two reasons, risk reduction and after-tax income generation. The primary objective of the Reinhart Tax Exempt portfolio is principal preservation. We believe that the client’s municipal portfolio should be part of the low risk portion of the overall asset allocation.

Risk Spectrum

Interest Rate Risk Credit Risk Structure Risk

(Click graphs to view risk details)

Our conservative approach to credit risk results in our tax exempt portfolios being of higher overall credit quality than investment-grade US municipal bond indexes. This will lead to tracking error relative to these benchmarks and a lower yield for our portfolios.

Experienced Portfolio Management Team

Portfolio managers average 17 years of investment management experience

Performance Incentive Plan
Aligns managers’ and clients’ interests to reward long-term performance

Michael J. Wachter, CFA

Michael J. Wachter, CFA
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Douglas J. Fry, CFA

Douglas J. Fry, CFA
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Katherine M. Doyle

Katherine M. Doyle
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Peter G. Altobelli, CFA

Peter G. Altobelli, CFA
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William F. Ford, CFA

William F. Ford, CFA
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Adam J. Lynch

Adam J. Lynch
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Sarah L. Thompson, CFA

Sarah L. Thompson, CFA
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Interest Rate Risk

Conservative, long term focus

Interest rate risk is the most prevalent risk in any fixed income portfolio. The fact that interest rates move in cycles presents an opportunity to enhance the income generating ability of a portfolio. In general, we concentrate portfolios in shorter maturities during rising interest rate environments and longer maturities when rates are falling.

Credit Risk — High Quality Focus

HIGH quality provides overall portfolio stability

In order to effectively reduce the risk of an overall portfolio, the fixed income allocation must have a low correlation to other asset classes included in an investor’s overall asset allocation. This is most effectively achieved by concentrating on very high quality securities.

Structure Risk — Selective Exposure

Giving Up Slight Call Protection Can Enhance Yield

We utilize callable bonds to the extent that the additional yield gained from the callable security offsets the loss of cash flow certainty. Typically, this occurs most often when giving up only slight call protection. We are able to enhance the income of our portfolios by owning this type of bond without unduly increasing reinvestment risk. We use far fewer callable bonds than exist in our benchmark.