Colorado Muni Bond Funds Offer Tax Free Returns

Colorado muni bond funds offer a unique investment opportunity that's hard to beat. They provide tax-free returns, which can be a huge advantage for investors in higher tax brackets.

Investing in Colorado muni bond funds can also help support local projects and infrastructure. This can be a great way to give back to your community while also earning a return on your investment.

One of the benefits of muni bond funds is that they are generally considered to be a low-risk investment. This is because they are backed by the credit of the issuing entity, such as a city or county in Colorado.

Colorado muni bond funds typically offer a higher yield than other types of investments, such as U.S. Treasury bonds. This is because the returns are tax-free, which can make up for the slightly lower yield.

Investing in a Colorado municipal bond fund can be a smart move, especially for those in higher tax brackets. An investor in the 37% tax bracket could potentially earn a tax-equivalent yield of 2.49% by investing in the Segall Bryant & Hamill Colorado Tax Free Fund.

This is significantly higher than the nominal yields of Treasury and Corporate (A-rated) index yields. In fact, even investors in lower tax brackets, such as a 24% bracket, can still earn a tax-equivalent yield of 2.06%, which is higher than nominal yields of Treasury and Corporate index yields.

The Colorado municipal market is diverse and offers a range of individual credits in which to invest. This diversity can provide a more stable investment option compared to other types of investments.

Here are some of the benefits of investing in a Colorado-Only Municipal Bond Fund:

Segall Bryant & Hamill, the Fund's investment manager, brings decades of experience to the table. The firm has a consistently applied investment process and extensive expertise in Colorado municipal securities.

The Fund's portfolio managers, Nicholas Foley and Kenneth Harris, CFA, have over four decades of combined municipal bond investing expertise. They're backed by the entire Fixed Income team at SBH.

The team's experience managing fixed income assets for large institutional clients is a significant advantage.

Investing in a Colorado municipal bond fund is a great way to support your home state's public projects and infrastructure. You can invest in a fund that supports local projects like fire protection districts, school districts, hospitals, libraries, and sewer and sanitation systems.

One of the benefits of investing in a Colorado municipal bond fund is the satisfaction of investing in your own backyard. You can participate in a fund that invests in municipal securities that provide valuable funding for these local projects.

Colorado has a healthy and diverse economy that is experiencing strong growth, providing a positive environment for municipalities across the state. This growth creates opportunities for local governments to issue debt and invest in new projects.

The Colorado municipal market is diverse and offers a range of individual credits in which to invest. This means you can choose from a variety of municipal bonds to suit your investment goals and risk tolerance.

Some of the entities issuing debt in Colorado include the University of Colorado, the Colorado Housing and Finance Authority, and the E-470 Public Highway Authority. These entities issue debt to fund various projects and initiatives, providing opportunities for investors to support their local communities.

Here are some examples of the types of projects that municipal bonds in Colorado can fund:

Colorado muni bond funds offer a range of performance metrics to help investors gauge their investments.

One key metric is total return, which for the Colorado Muni Bond Fund has averaged 4.5% over the past five years.

The fund's yield, which is the rate of return on investment, has consistently been above 3%, with a current yield of 3.8%.

Colorado muni bond funds have historically provided stable returns, with the lowest quarter-to-quarter decline being 2.1% in 2019.

The fund's standard deviation, which measures volatility, has been relatively low at 3.4% over the past year.

Colorado muni bond funds offer a way to invest in the state's municipalities, providing a relatively stable source of income.

These funds typically invest in municipal bonds issued by local governments, such as cities and counties, to finance infrastructure projects and other public purposes.

The Colorado muni bond funds have a relatively low minimum investment requirement, making it accessible to a wide range of investors.

In contrast to other types of investments, muni bond funds are generally exempt from federal income tax, making them an attractive option for tax-conscious investors.

Colorado muni bond funds have historically provided a stable source of income, with average annual returns ranging from 2-4% over the past decade.

Some Colorado muni bond funds have a higher credit quality, with a lower risk of default, while others may offer higher yields but with a slightly higher risk.