Colorado BondShares – A Tax-Exempt Fund (HICOX)

Overview

The company specializes in managing investments primarily focused on tax-exempt bonds and other securities. It aims to allocate up to 100% of its net assets, with a minimum commitment of 80%, towards tax-exempt obligations. These investments are particularly directed towards entities within the State of Colorado, including its political subdivisions, municipalities, and public authorities. The strategic emphasis on tax-exempt securities is designed to offer investors potential tax advantages, aligning with the company’s expertise in identifying high-quality, tax-efficient investment opportunities.

Products and Services

• Tax-Exempt Bonds

  These are primary investment vehicles for the company, focusing on municipal bonds that offer income exempt from federal taxes. The investments might also be exempt from state and local taxes, especially for residents of Colorado. By investing in these bonds, the company provides its clients with a steady stream of tax-free income, potentially enhancing the after-tax return of their portfolios.

• Other Tax-Exempt Securities

  In addition to tax-exempt bonds, the company diversifies its portfolio with a variety of other tax-exempt securities. This category includes tax-exempt notes and municipal leases, which are investments structured to provide tax-free income. These securities are carefully selected to balance risk and reward, focusing on high credit quality issuers within the State of Colorado.

• Temporary Investments

  For short-term investment strategies and liquidity management, the company engages in temporary investments. These are typically not tax-exempt but are chosen for their safety and liquidity. This strategy allows the company to manage cash flow efficiently while awaiting opportunities to invest in its primary tax-exempt products.