Municipal Bond Separately Managed Accounts—Misconceptions and Facts

Portfolio Managers Jeff Snyder and Nick Bucklin address misconceptions about SMAs and provide their views on the intricacies of managing municipal portfolios.

    Jeff Snyder

    Jeff SnyderVice President, Director – Franklin Portfolio Advisors Portfolio Management Municipal Bonds – Separately Managed Accounts

    Nick Bucklin, CFA

    Nick Bucklin, CFAVice President, Portfolio Manager

    MISCONCEPTIONS ABOUT MUNICIPAL SEPARATELY MANAGED ACCOUNTS

    Portfolio Manager, Nick Bucklin debunks common misbeliefs about the portfolio construction process, including the inability to customize managed municipal portfolios, and misconceptions about liquidity.

    THREE REASONS TO USE A PROFESSIONAL MANAGER FOR MUNICIPAL PORTFOLIOS

    Jeff Snyder discusses the importance of credit analysis, access to supply in years of low inventory and purchasing power.

    What Are the Risks?

    All investments involve risks, including possible loss of principal. Before investing in municipal bonds, you should understand the risks involved, including interest rate risk, credit risk and market risk. The value of the portfolio will fluctuate based on the value of the underlying securities, and you may lose some or all of your principal. Please contact your tax advisor regarding the suitability of tax-exempt investments in your portfolio, the applicability of local taxes and the Alternative Minimum Tax to municipal bond income, and any gains or losses on sales prior to maturity.

    Investors should review their investment objectives, risk tolerance and liquidity needs before choosing a manager. There is no guarantee that investment strategies will work under all market conditions and investors should evaluate their ability to invest for the long term, especially during periods of market downturns.

    Franklin Separately Managed Accounts is a division of Franklin Templeton Portfolio Advisors, Inc., a subsidiary of Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton.