Dupree Taxable Municipal Bond Series (DUTMX)

Overview

This investment vehicle is designed to generate a consistent flow of income, focusing on taxable municipal securities that maintain an investment grade quality at acquisition. Investment grade securities are defined as those having a rating of BBB or Baa and above, as per U.S. nationally recognized rating organizations (NRSROs). The fund targets a weighted average nominal maturity that typically exceeds 10 years, indicating a long-term investment approach. It predominantly invests in taxable municipal bonds that have nominal maturities ranging between 10 to 30 years, showcasing a specific interest in longer-duration bonds within the municipal sector. This focus on taxable municipal securities of a certain maturity length is intended to secure a steady income stream for investors, particularly appealing to those seeking exposure to municipal bonds without significant diversification.

Products and Services

• Taxable Municipal Bonds Investment

This service caters to investors looking for taxable income through investment in municipal bonds. Specifically, the fund targets bonds with nominal maturities ranging from 10 to 30 years, which are of investment grade quality at the time of purchase. This strategy aims to provide a reliable income stream while focusing on securities that have a lower risk of default, based on their investment-grade status.

• Long-Term Investment Strategy

The fund emphasizes a long-term investment approach, with a weighted average nominal maturity of more than 10 years. By doing so, it aims to offer investors a stable and potentially growing income over a longer horizon, which could be particularly attractive for those with a more extended investment timeframe. This strategy might also benefit from the potential for capital appreciation over the long term, alongside the primary goal of income generation.

• Non-Diversified Fund Structure

Unlike diversified funds that spread investments across a wide range of securities to mitigate risk, this fund adopts a non-diversified strategy. This approach allows for a concentrated investment in taxable municipal bonds as its core asset class, which may offer higher income opportunities. However, investors should consider the increased risk associated with a lack of diversification, as the fund’s performance is more directly tied to the specifics of the taxable municipal bond market.