Intermediate Municipal SMA

Separately Managed Accounts . Intermediate Bond .

Overview

 
STRATEGY

A composite of separately managed account portfolios seeking to provide tax-exempt income and capital preservation from portfolios of high quality municipal securities. Utilizing Federated Hermes' primary institutional fixed-income approach, the composite concentrates on analysis of municipal credit sector and quality allocation, duration, yield curve and security characteristics and is benchmarked against the S&P High Quality AMT-Free Intermediate Index.

KEY FACTS
Key Facts - Part 1
Benchmark S&P High Quality AMT-Free Intermediate Index
Key Facts - Part 2
Strategy Inception Date April 1 2019
INVESTMENT GOALS Retirement
Income
KEY INVESTMENT TEAM
R.J. Gallo, CFA
Senior Vice President
Senior Portfolio Manager
Head of Municipal Bond Investment Group
Head of Duration Committee

joined Federated Hermes
29 years of experience
Ann Ferentino, CFA
Vice President
Senior Portfolio Manager

joined Federated Hermes
26 years of experience

Commentary

Documents

 
DISCLOSURES

Investment strategies described on this site are not necessarily available through every sponsor program. Please check with your Federated Hermes representative or your home office to ascertain accessibility.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

Income generated by municipal bonds may be subject to the federal alternative minimum tax (AMT) and state and local taxes.

Weighted average market capitalization: Is calculated as the average market capitalization of the stocks within the portfolio, weighted by the amount of each stock owned. 

Yield to worst (YTW): On a corporate bond, the yield to worst is the lowest yield that a buyer can expect among the reasonable alternatives, such as yield to maturity, yield to call, and yield to refunding.

Weighted average maturity: Is the average time to maturity of debt securities held in the fund.

Weighted Average Life (WAL): The average time a dollar of principal is outstanding at an assumed prepayment rate.

Modified duration: A measure of a security’s price sensitivity to changes in interest rates calculated by assuming that a callable bond will be redeemed on the appropriate call date if the bond is priced to a call date or at maturity if priced to maturity.

Effective Duration: A measure of a security’s price sensitivity to changes in interest rates. One of the methods of calculating the risk associated with interest rate changes on securities such as bonds.

Weighted average coupon: This figure is calculated by weighting each bond's coupon by its relative size in the portfolio. This figure indicates whether the portfolio has more high- or low-coupon bonds.

For a detailed discussion of Managed Account strategies or to receive additional information, please Contact Us.

Refer to the GIPS report found on this website in the Performance Profile found in the Documents section.

The characteristics are based on a portfolio which is used as a guide for cloning (or managing) underlying accounts to a particular strategy. Taking into consideration individual investor circumstances could cause deviation from this guide (e.g. restrictions, tax requests, etc.). Portfolio characteristics are as of the date shown above and are based on individual securities in the portfolio on that date. Securities in the portfolio are subject to change.

Risk statistics are based on gross performance. Statistics shown are not indicative of future statistics and are not representative of future portfolio performance.

For printing purposes, this commentary must be accompanied by the full GIPS report.

Issues discussed within this communication represent the investment manager's explanation of factors that were considered when executing transactions or holding specific securities on the prior date indicated. Because this is a managed portfolio, the investment mix will change and the holdings are not indicative of future portfolio composition. Marketplace conditions fluctuate suddenly and frequently, and investment manager's opinions may change. These comments are not intended to be and do not constitute recommendations that others buy, sell or hold any of the securities discussed. 

Past performance is no guarantee of future results.

For additional information, including definitions of related terms and indexes, see the Financial Glossary and Benchmark Index Glossary.

Federated Investment Counseling