2020 continues to present new challenges for investors across asset classes and geographies. Although many risk markets have weathered the storm well so far, investors should be mindful of key risks as we enter the end of the year. Top-of-mind risks for our team include a vulnerable global economy still grappling with the effects of a devastating pandemic, uncertainty surrounding another round of stimulus spending in the US, and a highly contentious US election season. Although munis have not been immune to market volatility this year, we believe that the asset class presents an attractive opportunity given the current backdrop, which in our view is especially well-suited for skilled active management with the flexibility to leverage a vast, compelling national opportunity set.
Important Risks: Investing involves risk, including the possible loss of principal. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Municipal securities may be adversely impacted by state/local, political, economic, or market conditions. Investors may be subject to the federal Alternative Minimum Tax as well as state and local income taxes. Capital gains, if any, are taxable.
WP560 219752 HFA000854