Tax Free Fixed Income

Overview

HighMark’s Intermediate Tax-Free Fixed Income strategy seeks to deliver a high-quality, well-diversified portfolio that provides a high level of current income that is exempt from Federal and California state income taxes. The process is based on our conviction that an intermediate term portfolio captures a substantial amount of the available yield in the tax-exempt market while providing a lower exposure to interest rate and price volatility than longer-term portfolios. The strategy is available in both National and state specific tax-exempt implementations.

Investment Philosophy

MACROECONOMIC ANALYSIS
Portfolio duration is controlled via HighMark’s analysis of macroeconomic projections, relative sector value versus Treasury yields, and federal and state-specific political considerations that may impact fiscal policy.

MARKET ANALYSIS
Yield curve positioning is based on assessments of the shape of the yield curve and curve roll down analysis. The strategies seek to implement tactical positioning to take advantage of market conditions. Sector and credit quality allocation are based on a relative value analysis of sectors and states, issue supply/demand considerations, and rotation among various bond structures.

SECURITY SELECTION
The strategy seeks to take advantage of opportunities arising from the shape of the yield curve, sector and state spread differentials, and changing political climates. Independent credit analysis is performed on individual securities and sectors along with security-level relative value analysis.