Laddering municipal bonds involves buying municipal bonds that mature at staggered future dates to help minimize overall exposure to interest rate fluctuations while providing tax-exempt income.
The Schwab-sponsored Pimco Municipal Bond Ladder SMAs employ buy-and-hold strategy with a focus on investment selection and ongoing credit monitoring. Investors work with their Schwab consultant or an independent investment advisor to select from four municipal bond ladder strategies that use Pimco’s bond selection expertise.
The priced strategies are designed for fixed income investors seeking tax-advantaged solutions and income generation as well as ongoing professional management.
Andy Gill, senior vice president of fixed income at Charles Schwab, said: “The new municipal bond ladder SMA strategies were built to make investing in fixed income easier and more transparent, while offering professional ongoing management by Pimco. Because of continued market volatility and the distinct possibility of tax hikes, we are seeing more investors looking for ways to protect their retirement portfolios and generate predictable, tax-advantaged income.”
