Tax-Sensitive Fixed Income

Tax-Sensitive Fixed Income 2018-03-19T19:32:43+00:00

Invest in High Quality and Market Insight

Karpus Investment Management has been helping clients achieve their fixed income goals for over 30 years. With the focus of managing risk, our Investment Committee formulates our economic overview by reviewing the economic cycle, analyzing historical valuations, analyzing growth and policy prospects, and analyzing liquidity and economic momentum.

Karpus Composite vs Morningstar Average Muni Bond Fund

Periods ending 12/31/17

Investment Managers Tax Sensitive Fixed Income Performance

Karpus Returns
Morningstar Mutual Fund Returns
All returns presented annualized net of fees. Past performance does not guarantee future results.
**10 Year Disclosure

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. Analysts continuously conduct a security-by-security analysis to identify and capitalize on market inefficiencies.


  • Beside often trading at a discount, municipal closed-end funds offer superior liquidity compared to individual municipal bonds.
  • 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 municipal closed-end bond funds provides extensive diversification and protection against event risks.
  • 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

  • By conducting our own proprietary, in-house research, our strategists, analysts, portfolio managers, and traders work together to generate independent and unbiased ideas.
  • Our insight and extensive 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 size also allows us to capitalize on fundamentally attractive market inefficiencies as they arise.

Interested in How Karpus Can Help You?

Schedule a confidential consultation with a Karpus Relationship Manager.
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