Separately Managed Municipal Bond Accounts

Your Personalized Municipal Bond Portfolio – Professionally Managed.

In today’s market, fixed income investments, including municipal bonds, help individuals balance and diversify their financial portfolios. But what is the best path for individuals to invest?

We Build A Municipal Bond Portfolio - Especially for You
Mutual funds and exchange traded funds (“ETFs”) are the most common methods for individuals investing in municipal bonds, but these come at a considerable risk.

Mutual funds are subject to forced sales - even at unfavorable prices - when too many owners all wish to sell their shares at the same time.

ETFs are at risk when their stock price does not accurately reflect the actual price of the municipal bonds it holds, reducing value in the shareholder’s investment.

Both of these challenges are overcome with an MBPA Separately Managed Account.

Our seasoned professionals work directly with your investment advisor to provide analysis and management services designing a customized portfolio of municipal bonds that matches your goals.

When it’s time to sell - you decide when and how much of your portfolio will move to market - all without worrying that a fund manager is selling at the wrong time or wrong price.

In-Depth: Separately Managed Accounts

MBPA Principals on Bank Compliance

Solutions for an Individual’s Municipal Bond Requirements
Wise investors create a balanced and diversified range of investments. This kind of portfolio can include many components, such as equities, annuities, fixed income investments, municipal bonds and possibly alternative investments.

Unfortunately, most investment advisors focus the majority of their time on the common stocks and alternative investment portions, leaving little time for fixed income investment categories such as municipal bonds. When a municipal bond component is needed, these advisors often place their clients in municipal mutual funds and exchange traded funds (“ETFs”) in an effort to find balance.

Mutual funds and ETF’s cannot offer the benefit of customized portfolio management due to their structure as investments shared by a group of investors. Mutual funds and ETF’s also have substantial costs and risks. For mutual funds, there is the risk of forced sales that can occur when too many owners all wish to sell at the same time, requiring the mutual fund to sell bonds in order to redeem their shares at possibly unfavorable prices. While this doesn’t occur with an ETF, there is often the problem of the ETF’s stock price failing to accurately reflect the price of the municipal bonds held by it.

Separately Managed Accounts overcome all of these barriers. The investor owns individual bonds and decides when to sell and sells the actual bond as opposed to the stock or his/her mutual fund shares.

“Separately Managed Accounts Overcome All Of These Barriers”

One great challenge investor’s face concerning their municipal bond portfolio, whether held in mutual funds, ETFs or individual municipal bond holdings, relates to the credit quality of municipal bonds. While there are thousands of high quality municipal bonds available, there are also many dangers, caused by loosely enforceable legal covenants or poor financials (often caused by large pension liabilities). *See high profile bankruptcies in Detroit and Puerto Rico, among others.*

In today’s market, however, many municipal yields outperform treasuries and many other investments. So it is a time when investors would be well served to have, or increase, their municipal portfolios.

In summary, we believe that MBPA’s approach and services go a long way towards providing the necessary municipal credit analysis, management and portfolio diversity opportunities that investors seek. We provide these services often at a lower cost than mutual funds or ETFs offer, thereby earning the investor the maximum yield on municipal bond holdings. We work alongside the investor’s investment advisor and provide management services only for your municipal bond holdings.

Worth T. Blackwell, Principal
H. Gilmer Nix, Principal
Andrew V. Pittman, Principal

Let's Go To Work - Contact MBPA TODAY!