“We believe that a high conviction, credit-driven, disciplined and pure high yield tax-exempt strategy will translate into strong long-term investment performance through different economic cycles.”
– Timothy Pynchon, Portfolio Manager, GSCA Boston
We believe our strategy can offer investors the following:
- Higher yields on a relative and absolute basis
- Favorable risk / reward characteristics compared to other asset classes
- Low correlation* to other asset classes
- Good value relative to investment grade municipals and taxable high yield
- A means to lower the overall tax liability – provides federally tax free income
- A partial offset to price declines in the event of higher interest rates
MARKET AND ASSET CLASS APPEAL
We believe this is a timely opportunity to capture yield and total return in the high yield tax-exempt securities market. Today, the market and asset class are buoyed by the narrow trading band for Treasuries, the absence of inflation, a strengthening economy, higher spreads and the continued supply/demand imbalance on the long end of the interest rate curve, driven by investors’ seemingly insatiable appetite to find yield.
“Rather than simply mirroring a benchmark, we focus on those sectors that we believe present the best relative value and greatest upside potential in an effort to uncover investment opportunities that may produce a high stream of federally tax-free income.”
– Joseph Gulli, Portfolio Manager, GSCA Boston
Top 10 Holdings as of 06/30/19
|Port Beaumont Navigation District, 8.000%, 2/1/2039||5.47%|
|Brazoria County Industrial Development Corp., 9.000%, 3/1/2039||4.08%|
|South Carolina Jobs-Economic Development Authority, Series A, 7.000%, 5/1/2039||3.08%|
|Capital Trust Agency, Inc., 10.000%, 11/1/2020||2.97%|
|Wisconsin Public Finance Authority, Series B, 7.125%, 6/1/2041||2.91%|
|Oregon State Business Development Commission, Series 248-D, 6.500%, 4/1/2031||2.88%|
|Kountze Economic Development Corp., 15.000%, 11/1/2027||2.77%|
|Lake County Florida, Series A1, 7.125%, 1/1/2052||2.42%|
|Pennsylvania Economic Development Financing Authority, Series A, 6.750%, 12/1/2053||2.35%|
|Tarrant County Cultural Education Facilities Finance Corp., 10.000%, 3/15/2023||2.28%|
For full holdings list click here.
Top Sector Allocation as of 5/31/19
|Continuing Care Retirement Communities||18.9%|
Important Notice Concerning Capital Gain Distribution – GSTAX
Green Square Asset Management has released the following capital gain payment for its mutual fund, Green Square High Income Municipal Fund.
|Ticker||Total Per Share||Short-Term Per Share||Long-Term Per Share||NAV as of 12/20/18||Record Date||Ex-Date & Payable Date|
Performance as of 06/30/2019 (Monthly)
Average Annual Total Return
|Fund||YTD||1 Year||Since Inception (9/15/17)|
|Green Square Tax Exempt High Income Fund Institutional Class||5.99%||6.87%||8.76%|
|Bloomberg Barclays High Yield Municipal Bond Index||6.66%||7.79%||7.26%|
Performance as of 06/30/2019 (Quarterly)
Average Annual Total Return
|Fund||3 Month||1 Year||Since Inception (9/15/17)|
|Green Square Tax Exempt High Income Fund Institutional Class||2.10%||6.87%||8.76%|
|Bloomberg Barclays High Yield Municipal Bond Index||2.73%||7.79%||7.26%|
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance is annualized for periods greater than 1 year.
Gross Expense Ratio: 1.02% Net Expense Ratio: 0.75%
The Operating Expenses Limitation Agreement is indefinite, but cannot be terminated through at least December 29, 2019. The minimum initial investment for the institutional class is $25,000.
* The correlation coefficient is a measure that determines the degree to which two variables’ movements are associated. The range of values for the correlation coefficient is -1.0 to 1.0. A correlation of -1.0 indicates a perfect negative correlation, while a correlation of 1.0 indicates a perfect positive correlation.
Diversification does not assure a profit or protect against a loss in a declining market.
Bloomberg Barclays High Yield Municipal Bond Index – the Index covers the high yield portion of the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and pre-refunded bonds. It is not possible to invest in an index.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
The Green Square Funds are offered only to United States residents, and information on this website is intended only for such persons. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Green Square Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
Mutual Fund investing involves risk. Principal loss is possible. The Fund’s value investments are subject to the risk that their intrinsic values may not be recognized by the broad market or that their prices may decline. Investments in larger companies are subject to the risk that they are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion. Variable and floating rate securities provide for a periodic adjustment in the interest rate paid on the obligations. ETNs are subject to the credit risk of the issuer. Fixed-income securities are or may be subject to interest rate, credit, liquidity, prepayment and extension risks. Interest rates may go up resulting in a decrease in the value of the fixed-income securities held by the Fund. High-yield fixed income securities or “junk bonds” are fixed-income securities held by the Fund that are rated below investment grade are subject to additional risk factors such as increased possibility of default, illiquidity of the security, and changes in value based on public perception of the issuer. The municipal market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities.
Green Square Capital Asset Management, LLC is the Investment Adviser to the Green Square High Income Municipal Fund, which is distributed by Quasar Distributors, LLC.