Karpus Composite vs Morningstar Average Muni Bond Fund

Periods ending 12/31/20
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Once an overview is established, a target investment matrix is then created. Sector weightings, yield curve positioning, and duration targets are guided by this research. On a daily basis, analysts conduct a security-by-security analysis to identify and capitalize on market inefficiencies.


  • Besides often trading at a discount, we believe municipal closed-end funds can offer greater liquidity compared to individual municipal bonds.
  • Their strategic use of leverage may increase long-term returns and current yields. Using municipal closed-end bond funds can be used as a diversifier. We believe that owning a pool of municipal bonds can lessen the event risk of owning a single issuer.
  • When premium bonds are amortized in a fund, an investor can realize a loss when the fund is sold. In contrast, individual muni bonds purchased at a premium must be amortized over the life of the bond and are not a deductible loss.

How Our Process is Different

  • Through internal research, our investment team works together to generate independent ideas.
  • Our insight and experience in closed-end funds identifies opportunities others may miss. It also allows us to avoid pitfalls that others may not be aware of.
  • Our firm’s structure of portfolio manager, trader, analyst all rolled into one allows us to identify and act on fundamentally market inefficiencies as they arise. The agility of our firm’ structures allows us to identify and act on fundamentally market inefficiencies as they arise.

Interested in How Karpus Can Help You?

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