RSW Email Disclosures

All investments carry a certain degree of risk and there is no assurance that an investment will provide positive performance over any period of time. An investment in any municipal portfolio should be made with an understanding of the risks involved in municipal bonds. Investing in municipal bonds and a municipal bond investment vehicle involves risks such as interest rate risk, credit risk, call risk, and market risk, including the possible loss of principal.

Since no investment style or manager is appropriate for all types of investors, please review your investment objectives, risk tolerance, tax objectives and liquidity needs before choosing an appropriate style or manager. Investors should consult their attorney, accountant, and/or tax professional for advice concerning their particular situation.

There can be no guarantee that the objective of any strategy will be realized. The implementation of RSW’s investment strategies may be subject to the general level of interest rates, slope of the yield curve, availability of high coupon, callable bonds, and the relative attractiveness of the securities. Since accounts are individually managed, account portfolio holdings and account performance may vary even though the same investment style is used.

Enhanced Intermediate Duration Strategy

  • The Enhanced Intermediate Duration Composite consists of separately managed accounts with an investment objective to maximize total rate of return. The strategy targets a minimum of high quality (“A”) average, discount, par, and premium coupon callable municipal bonds maturing in up to 20-years. Accounts in the composite may have guidelines which include national, state specific or state preference requirements. The composite consists entirely of bundled fee accounts for all periods.
  • Gross returns reflect the deduction of trading costs. Net returns are net of the entire wrap fee. The fee rates accrued for each individual account are based on its actual contractual rates inclusive of sponsor and investment manager fees. Sponsor level fees are bundled fees which include advisory fees, trading, custodial and all transaction and administrative fees for the account.
  • Accounts and performance are calculated and presented in USD base currency.
  • RSW’s management fee schedule for this strategy is as follows: 0.30% on the first $500,000; 0.25% on the next $4,500,000; and 0.20% over $5,000,000. In many circumstances, RSW’s fees may be negotiable. Fees for the wrap sponsor vary by sponsor and may be up to a maximum fee of 1.55%. Although this fee schedule reflects the maximum fee in effect across RSW’s current sponsors, actual fees incurred by clients may vary.  RSW may provide greater visibility into each sponsor’s fee schedule upon request. Wrap accounts in the composite pay an all -inclusive fee based on a percentage of assets under management to the sponsors which included custodial, transaction and service fees in addition to the management fees noted above.

Market Duration Strategy

  • The Market Duration Municipal Composite consists of separately managed accounts with an investment objective to maximize after-tax total return focusing on capturing the yield of longer-maturity bonds, while embracing the volatility normally associated with intermediate term bonds. The strategy targets high quality (“AA”) average premium coupon callable municipal bonds maturing between 10 and 15 years. Accounts in the composite may have guidelines which include national, state specific or state preference requirements.  Prior to 2020, the composite included non-wrap accounts. Starting in 2020 and for all periods after, the composite consists entirely of bundled fee accounts.
  • Gross returns reflect the deduction of trading costs. Net returns are net of the actual fees. Prior to 2020, the composite included non-wrap accounts. Starting in 2020 and for all periods after, the non-wrap accounts were removed from the composite, and it now consists entirely of bundled fee accounts. The fee rates accrued for each individual account are based on its actual contractual rates inclusive of sponsor and investment manager fees. Sponsor level fees are bundled fees which include advisory fees, trading, custodial and all transaction and administrative fees for the account.
  • Accounts and performance are calculated and presented in USD base currency.
  • RSW’s management fee schedule for this strategy is as follows: 0.30% on the first $500,000; 0.25% on the next $4,500,000; and 0.20% over $5,000,000. In many circumstances, RSW’s fees may be negotiable. Fees for the wrap sponsor vary by sponsor and may be up to a maximum fee of 1.55%. Although this fee schedule reflects the maximum fee in effect across RSW’s current sponsors, actual fees incurred by clients may vary.  RSW may provide greater visibility into each sponsor’s fee schedule upon request. Wrap accounts in the composite pay an all -inclusive fee based on a percentage of assets under management to the sponsors which included custodial, transaction and service fees in addition to the management fees noted above.

Low Duration Strategy

  • The Low Duration Municipal Composite consists of separately managed accounts with an investment objective to maximize after-tax total return focusing on capturing the yield of longer-maturity bonds, while embracing the volatility normally associated with intermediate term bonds. The strategy targets high quality (“AA”) average premium coupon callable municipal bonds maturing between 5 and 10 years. Accounts in the composite may have guidelines which include national, state specific or state preference requirements. The composite consists entirely of bundled fee accounts for 2020-2021. The percentage of wrap (bundled fee) accounts in the composites for the years prior is as follows: 2008-2015:100%, 2016-2017:94%, 2018: 93%, 2019: 95%.
  • Gross returns reflect the deduction of trading costs. Net returns are net of the actual fees. Prior to 2020, the composite included non-wrap accounts. Starting in 2020 and for all periods after, the non-wrap accounts were removed from the composite, and it now consists entirely of bundled fee accounts. The fee rates accrued for each individual account are based on its actual contractual rates inclusive of sponsor and investment manager fees. Sponsor level fees are bundled fees which include advisory fees, trading, custodial and all transaction and administrative fees for the account.
  • Accounts and performance are calculated and presented in USD base currency.
  • RSW’s management fee schedule for this strategy is as follows: 0.30% on the first $500,000; 0.25% on the next $4,500,000; and 0.20% over $5,000,000. In many circumstances, RSW’s fees may be negotiable. Fees for the wrap sponsor vary by sponsor and may be up to a maximum fee of 1.55%. Although this fee schedule reflects the maximum fee in effect across RSW’s current sponsors, actual fees incurred by clients may vary.  RSW may provide greater visibility into each sponsor’s fee schedule upon request. Wrap accounts in the composite pay an all -inclusive fee based on a percentage of assets under management to the sponsors which included custodial, transaction and service fees in addition to the management fees noted above.