Optimize After-Tax Returns
Aim to Enhance After-Tax Returns and Support Stability With Historically Resilient Municipal Bonds
Highly rated MMIT and MTFGX offer compelling tax-efficient income potential and important diversification benefits.
2025 INVESTMENT OPPORTUNITES FROM NYLIM
Optimize After-Tax Returns
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Disclosure
1 Complement or Replace Municipal Bond Solutions to Aim to Enhance Performance - Source: Morningstar, as of 03/31/25. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole. Beta is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. Performance shown is for period: 10/19/17-03/31/25. Passively Managed Fund Category Avg is represented by the Morningstar Passive Muni National Intermediate Category. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index.
2 The Time is Right for Municipal Bonds - Source: Bloomberg as of 3/31/2025. Yield is represented by yield to worst of Bloomberg Municipal Bond Index. Past performance is not indicative of future results. It is not possible to invest directly in an index. Yield to Worst (YTW) is the lowest yield a bond investor can earn if the bond is called or redeemed early, assuming no default.
3 Opportunistic When Market Conditions Change - Source: MacKay Municipal Managers and Bloomberg, as of March 31, 2025. Chart shows change in HY allocation with change in HY Muni Spread. % HY Allocation – Percentage allocation of a portfolio towards high-yield bonds. HY Muni Spread – Difference in yield between high-yield municipal bonds and comparable US Treasury securities. It is a measure of the credit risk premium for investing in high-yield municipal bonds.
All investments are subject to market risk, including the potential loss of principal. Past performance is not indicative of future results. Investment returns and principal value will fluctuate, and investors may experience gains or losses upon redemption.
The Sharpe Ratio is a measure of risk-adjusted return, calculated by dividing the excess return of an investment over the risk-free rate by its standard deviation. It is used to understand the return of an investment compared to its risk. A higher Sharpe Ratio indicates better risk-adjusted performance.
This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information provided does not consider the specific objectives or circumstances of any particular investor. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with their financial professionals.
About Risk - Growth stocks can face significant price declines if earnings fall short of investor expectations, even if they grow. Early-stage growth companies face higher risks. The main risk of value stock is that a security's price may not reach its expected value. Small and mid-cap securities carry higher risks, including sharp price fluctuations, limited liquidity, and unpredictable changes, especially over the short term. Investing in foreign securities carries risks, such as currency fluctuations, unstable markets, limited information, and political or economic challenges. Emerging markets often face higher risks than developed ones.
Featured Resources
Muni360.com: Insights from MacKay Municipal Managers
Tax-Equivalent Yields
NYLI MacKay Strategic Muni Allocation Fund Investment Idea
NYLI MacKay Strategic Muni Allocation Fund Product Snapshot
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All investments are subject to market risk, including the potential loss of principal. Past performance is not indicative of future results. Investment returns and principal value will fluctuate, and investors may experience gains or losses upon redemption.
Fixed income securities are subject to interest rate risk; when interest rates rise, bond prices generally fall. They are also subject to credit risk, where the issuer may fail to make timely payments of interest or principal. High-yield (non-investment-grade) securities carry a greater risk of default and price volatility compared to higher-rated securities. Short-duration strategies may help mitigate interest rate risk but can still be affected by changes in interest rates and market conditions.
Tax-equivalent yields are used to compare taxable and tax-exempt investments. They are based on federal income tax rates and do not account for state or local taxes. Actual after-tax returns will vary based on an investor's tax situation. Investors should consult with their tax advisors to understand the implications of their investments.
Diversification cannot assure a profit or protect against loss in a declining market.
The Sharpe Ratio is a measure of risk-adjusted return, calculated by dividing the excess return of an investment over the risk-free rate by its standard deviation. It is used to understand the return of an investment compared to its risk. A higher Sharpe Ratio indicates better risk-adjusted performance.
This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information provided does not consider the specific objectives or circumstances of any particular investor. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with their financial professionals.
Yield to Worst (YTW) refers to the lowest yield an investor can receive from a bond if it is called or matures early.
The Bloomberg Municipal Bond Index tracks the performance of investment-grade U.S. municipal bonds issued by state and local governments.
The Morningstar Passive Muni National Intermediate Category includes mutual funds and exchange-traded funds (ETFs) that passively track the performance of a broad, intermediate-term U.S. municipal bond index. These funds typically invest in investment-grade municipal bonds with maturities ranging from 5 to 10 years.