The Intermediate Tax-Efficient Strategy is an investment approach centered on municipal bonds with maturities ranging from three to 10 years. The focus on investment-grade securities prioritizes preservation of capital while aiming to maximize after-tax returns.

Active management is crucial in this strategy, involving meticulous bottom-up research of individual bonds. This approach allows for dynamic portfolio adjustments based on evolving market conditions and investor-specific tax profiles. While the primary focus is on municipal bonds, the flexibility of the strategy allows allocations to Treasury, government-related, and corporate bonds to optimize overall performance.

A distinguishing feature of the Intermediate Tax-Efficient strategy is the ability to tailor the portfolio to investors residing in over 30 states. By potentially overweighting bonds issued by these states, the strategy seeks to enhance after-tax returns for individuals subject to state income taxes.

Ultimately, the Intermediate Tax-Efficient Strategy is designed to provide a relatively stable income stream while mitigating tax liabilities, making it a potential choice for investors seeking to balance income generation with risk management.