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Breckinridge Intermediate Municipal Separately Managed Account (SMA)

This account offers professional management of individual investment-grade1 municipal bonds.

Benefits

Professional investment management An actively managed account focused on risk management, diversification, credit research, and generating federally tax-exempt interest income
Credit research and ongoing monitoring Credit research is performed on each and every bond in the portfolio, and credit ratings are monitored to help limit risk to principal
Favorable bond pricing Leverage industry experience and institutional trading relationships to seek access to favorable bond pricing
A personal relationship A dedicated financial consultant and portfolio specialist who work together to help ensure your managed account and overall financial needs are taken care of

Account details

Description A portfolio constructed primarily with intermediate term, investment grade municipal bonds1 seeking diversification across sectors, issuers, and maturities
Minimum investment $500,000
Annual advisory fee An annual advisory fee will be charged—between 0.25% and 0.35%—and will vary based on total assets invested.2

Investment management

Investment team

Strategic Advisers, Inc., a Fidelity Investments company and Breckinridge Capital Advisors, Inc., both registered investment advisers

Your Investment Team

Investment strategy A portfolio constructed primarily of intermediate-term, investment grade municipal bonds offered for both national and state preference options. Portfolios seek to limit risk to principal while generating federally tax-exempt interest income.3 With the state preference option, state tax-exempt interest income is emphasized over national diversification.
Investment holdings Primarily investment-grade municipal bonds. A significant portion of the bonds in your portfolio will have an Aaa or Aa credit quality rating from Moody's at the time of purchase and/or an AAA or AA credit quality rating from S&P at the time of purchase.4

How we keep in touch

Fidelity contacts

You will have two people ready to help you:

  • financial consultant will be your primary contact for all of your financial needs across Fidelity.
  • A portfolio specialist will be your dedicated contact for all your managed account needs.
Customized communications Monthly statements, quarterly investment reviews, and an exclusive client website with access to account-specific information, investment commentary, and market insights from Fidelity and Breckinridge

Next step

To open a Breckinridge Intermediate Municipal SMA with Fidelity, start by telling us your financial needs and goals.

Call an investment professional at 800-544-1766.

Ready to get started?

Tell us your financial goals and we'll send you a complimentary investment proposal.

1. Investment-grade municipal bonds are bonds rated BBB/Baa or higher by S&P and/or Moody’s respectively. Such ratings indicate that a municipal or corporate bond has a relatively low risk of default.
2. You will also incur underlying expenses associated with the investment vehicles selected.
3. All investment strategies, including the investment strategy of the Service, involve the risk of loss of a portion of or all assets. In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties.
As with any investment, your investment through the Breckinridge Municipal SMA could have tax consequences for you. The Breckinridge Municipal SMA seeks to earn income exempt from federal income tax. Income exempt from federal income tax may be subject to state or local tax. A portion of the income you receive may be subject to federal and state income taxes and may also be subject to the federal alternative minimum tax. You may also receive taxable income attributable to the sale of municipal bonds, because certain income, including short-term capital gains and gains on the sale of bonds characterized as market discount, are generally taxable as ordinary income, while long-term capital gains are typically taxable as capital gains. The municipal market can be affected by adverse tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Such changes can affect the tax treatment of municipal bonds. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets or account types. Tax laws are subject to change and the preferential tax treatment of municipal bond interest income may be removed or phased out for investors at certain income levels. You should consult your tax adviser for questions pertaining to your specific situation.
4. Pre-refunded and escrowed-to-maturity bonds are also considered eligible for funding and invested by Breckinridge, regardless of credit rating.
Strategic Advisers, Inc., and Breckinridge Capital Advisors, Inc., are independent entities and are not legally affiliated.

Fidelity Portfolio Advisory Service® and Fidelity® Strategic Disciplines are services of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. Fidelity® Personalized Portfolios may be offered through the following Fidelity Investments companies: Strategic Advisers, Inc., Fidelity Personal Trust Company, FSB ("FPTC"), a federal savings bank, or Fidelity Management Trust Company ("FMTC"). Non-deposit investment products and trust services offered through FPTC and FMTC and their affiliates are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, are not obligations of any bank, and are subject to risk, including possible loss of principal. These services provide discretionary money management for a fee.

Brokerage services are provided by Fidelity Brokerage Services LLC. Custody and other services are provided by National Financial Services LLC. Both are Fidelity Investments companies and Members of NYSE and SIPC.

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