Johnson Municipal Income Fund (JMUNX)

Overview

The fund is designed with a focus on investing primarily in investment-grade municipal securities that are exempt from regular federal income tax. This investment strategy is aimed at investors looking for tax-efficient income. Given its flexibility in not being confined to securities of a specific maturity range, the fund actively chooses to allocate a major portion of its assets to instruments with intermediate to long-term maturities, specifically those extending three years or longer. This approach is indicative of a strategy that seeks to balance the pursuit of returns with managing interest rate risk, a consideration that is critical in the municipal bond market. By maintaining the option to invest a small portion of its portfolio in assets other than investment-grade municipal securities, the fund can potentially enhance its income or adapt to changing market conditions, while predominantly focusing on tax-exempt income.

Products and Services

The fund's products and services are carefully curated to meet the needs of investors looking for tax-efficient income opportunities through the municipal bond market. Each product or service is tailored to capitalize on the fund's strategic focus on investment-grade, tax-exempt securities.

• Investment Grade Municipal Securities: The fund primarily invests in a diversified portfolio of investment-grade municipal securities. These are bonds issued by local and state governments or their agencies, which are deemed to have a low risk of default. The income generated from these securities is exempt from regular federal income tax, making them an attractive option for investors seeking tax-advantaged income. By focusing on investment-grade offerings, the fund aims to balance the pursuit of income with the management of risk.
• Tax-Efficient Income Strategies: Tailored strategies are employed to maximize the tax efficiency of the income generated from the fund's investments. Since the fund concentrates on municipal securities whose income is exempt from regular federal income tax, it serves as an effective tool for investors to enhance their after-tax returns. The fund's strategic allocation to intermediate to long-term maturities further optimizes its yield potential relative to tax and interest rate considerations, catering to investors with specific income needs and risk tolerances.