Breckinridge Intermediate Municipal Strategy

This separately managed account (SMA) offers professional management of individual investment-grade1 municipal bonds.

Get Started
Or call us at 800-544-1766
 
  

A diversified portfolio of investment-grade municipal bonds1

  

The experience of a firm specializing in investment-grade fixed income portfolio management

  

Focus on high quality investment-grade bonds helps limit risk to your initial investment

Types of investments

Primarily high-quality investment-grade municipal bonds1,2

 

Investment strategy

Seeks to limit risk to principal while generating federally tax-exempt interest income3 by primarily investing in intermediate-term, investment grade bonds

(Both national and state preference options offered)
 

Minimum investment

$500,000

 

Annual Advisory Fee

0.35%–0.40%

(varies based on total assets invested4)

Strategic Advisers, a Fidelity Investments company, and Breckinridge Capital Advisors, Inc., will work together to provide comprehensive investment services for this strategy.


Breckinridge Capital Advisors, a fixed income manager specializing in the municipal bond market, will handle all investment decisions for your portfolio.


  • More than 25 investment professionals5
  • More than $25 billion in assets managed for over 9,800 accounts5
  • More than 20 years of experience investing municipal bond separately managed accounts5

Strategic Advisers will oversee Breckinridge activities to help ensure your portfolio meets the agreed upon investment guidelines.

FAQs: Breckinridge Intermediate Municipal Separately Managed Account

  • How can this strategy help me meet my goals?

    Investing in municipal bonds can be a great way for investors in high tax brackets to generate federally tax-free interest income.* Municipal bonds can also help insulate your portfolio against market volatility, and tend to have lower default risk than corporate bonds. Although this powerful combination makes municipal bonds appealing, many investors find it challenging to navigate the large and fragmented municipal market.

    Our professionally managed account offers investors a diversified portfolio of high-quality bonds, selected to generate federally tax-exempt interest income, while seeking to limit risk to principal. Offering direct ownership of securities enables investors to have transparency into the bonds the manager has selected for their individual account.

  • Who manages my money?

    Strategic Advisers, a Fidelity company, and Breckinridge Capital Advisors, Inc. will work together to provide comprehensive investment services for this strategy.

    Breckinridge Capital Advisors is a fixed income manager specializing in the municipal bond market. Exclusive focus on bonds allows them to provide investors with deeper credit research, broader access to available bonds and potentially more efficient pricing and trading. Their careful analysis of the market enables them to build bond portfolios that include a range of issuers, regions, sectors and maturities to ensure diversification and help limit risk. Unlike other firms, Breckinridge does not hold any bond inventory, so investment decisions are not influenced by internal interests. They buy bonds solely for placement in client accounts.

    Strategic Advisers, Inc. will oversee Breckinridge activities to help ensure your portfolio meets the agreed upon investment guidelines.

  • What kind of investments can I expect in my account?

    Your portfolio will contain a significant portion of bonds that have an S&P credit rating of AA or higher at time of purchase.

    Municipal bonds are debt typically issued by cities, towns or state governments who use the money for public projects like building schools, highways, hospitals, etc. (When you buy a municipal bond from the issuer, you are lending money to a state or local government for a set time—with the promise of a return of your initial investment—plus ongoing tax-free interest payments.)

  • How are the bonds chosen for my account?

    Breckinridge will select all securities for your account. Their research team assesses risk for each proposed bond, using national credit ratings and their own proprietary analysis. This proprietary analysis includes investment quality, price, default, and call and liquidity risk. The team focuses on selecting top-rated securities in an effort to limit risk to your original investment, and with the goal of holding them to maturity to generate a predictable income stream.

    Each account may consist of a variety of issuers, geographies, sectors, maturities, etc., to help ensure it is not concentrated in one area. Your account will align with your personal tax situation, your comfort with risk and your cash flow needs.

  • Can I choose my own investments?

    Breckinridge will select all securities for your account. They will make every effort to include any investment grade1 municipal bonds2 you currently own, provided they meet the selection criteria and overall portfolio construction.

  • Can I request that the manager only buy bonds issued within the state in which I pay taxes?

    The national portfolio can hold bonds issued within any of the 50 states. You can choose a state-preference option if the state in which you are taxed is CA, MA, MD, NJ, NY, PA or VA. Choosing this option will bias your account towards bonds issued within your state. (With the state-preference option, state tax-exempt interest is emphasized over national diversification.)

  • Can I add funds to my account?

    Yes, you can add funds to your account. Funds will remain in cash until there is enough to buy additional bonds.

  • Can I withdraw funds from my account?

    Yes, there are several ways that you can access your funds, including automatic interest income withdrawals.

  • What is the account minimum?

    The minimum funding amount is $500,000. Accounts can be funded with a check, bank wire, an exchange of assets from an existing Fidelity account, or a transfer of eligible assets from an account at another institution.

  • How much does it cost?

    The annual advisory fee ranges from 0.35% to 0.40% based on account balance.4

Next step



Call an investment professional at 800-544-1766