Invest in High Quality and Market Insight

Karpus Investment Management has been helping clients achieve their fixed income goals for over 30 years.

We are an enhanced indexer that utilizes closed-end funds while boosting returns through the use of shareholder activism.

Karpus Composite vs Morningstar General Bond Mutual Fund

Periods ending 12/31/16

Fixed Income Performance through 12:31:16

Karpus Returns
vs
Morningstar Mutual Fund Returns

All returns presented annualized net of fees. Past performance does not guarantee future results.
**10 Year Disclosure

Our Methodology

Our nationally recognized methodology for both taxable and tax-advantaged bonds emphasizes:

  • Intermediate duration
    Average duration of three to seven years controls interest rate risk.
  • Upper-investment-grade securities
    AA+/- average ratings provide high credit quality.
  • Sector allocation
    KIM shifts allocation weightings in response to anticipated market trends.
  • Historical trend analysis
    Historical data analysis provides insights into recurring patterns.
  • Opportunity-focused trading
    Portfolio managers constantly monitor price movements and market activity for optimal buy and sell opportunities.
  • Extensive diversification
    KIM diversifies across Treasury and government bonds, closed-end funds, exchange-traded funds and open-end funds invested broadly across domestic and international bond markets.
  • Exploitation of market inefficiencies
    KIM researchers uncover securities that offer uncommon value and that are commonly overlooked by other money managers.

Advantages

  • By buying at a discount, we are able to enhance the investment’s current yield, while offering the potential for capital appreciation.
  • Many taxable bond closed-end funds often times offer attractive intra-day liquidity.
  • They have outperformed their mutual fund counterparts over the longterm according to the Morningstar Universe Rankings.
  • Their strategic use of leverage often increases long-term returns and current yields. By statute, there must be at least two times the amount of bonds backing the leverage. Indeed, many funds have an asset coverage ratio over 300%.
  • Using taxable closed-end bond funds provides extensive diversification and protection against company-specific risks or event risks.

Interested in How Karpus Can Help You?

Schedule a confidential consultation with a Karpus Relationship Manager.
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