Anchor High-Yield Muni

Anchor Accounts: Municipal Bond

Summary

The Anchor High-Yield Muni Account invests a substantial portion of its assets in high-income municipal securities that are either not rated, or that are rated at the level of or below BBB (considered high-yield within the municipal-bond industry) by a major ratings agency such as Standard & Poor’s or Moody’s. The portfolio manager seeks municipal bonds that provide higher-than-average tax-free, current income vs. long-term capital appreciation. The manager may include direct investments in individual bonds, ETFs and/or mutual funds that fall into the high-yield muni category, and other securities.

Benchmark: S&P Municipal Bond High Yield Index

Core Facts

Asset Class Municipal Bond
Category High-Yield Muni
Expense Ratio [1] 0.0%
Commissions [2] 0.0%
Fee [3] 0.10%
Minimum investment [4] $1000 US
Account number A010
Account manager Galleon Wealth Management
Region North America/US
Market Developed

Credit Quality

Ltd

Mod

Ext
High


Med

Low

Interest Rate Sensitivity

Portfolio composition by security (top holdings)

Top Holdings

IssueMaturity Date
BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5.12%06/01/24
ILLINOIS ST 5%11/01/26
ILLINOIS ST 5%11/01/27
DOMINION WTR & SANTN DIST COLO TAP FEE REV 5.25%12/01/27
ILLINOIS ST 5%11/01/28
OHIO ST AIR QUALITY DEV AUTH REV 3.25%09/01/29
BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5.88%06/01/30
GODDARD KANS SALES TAX SPL OBLIG REV 3.6%06/01/30
TUSCALOOSA CNTY ALA INDL DEV GULF OPPORTUNITY ZONE 4.5%05/01/32
BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5.75%06/01/34
OHIO ST AIR QUALITY DEV AUTH REV 2.4%12/01/38
STC MET DIST NO 2 COLO 5%12/01/38
WASHINGTON ST HSG FIN COMMN NONPROFIT HSG REV 5%01/01/39
CUMBERLAND CNTY PA MUN AUTH REV 5%01/01/39
WISCONSIN ST HEALTH & EDL FACS AUTH REV 5%11/01/39
PUERTO RICO SALES TAX FING CORP SALES TAX REV 4.33%07/01/40
OHIO ST AIR QUALITY DEV AUTH REV 2.5%08/01/40
NEW YORK LIBERTY DEV CORP LIBERTY REV 5%11/15/44
TOBACCO SETTLEMENT FING CORP N J 5.25%06/01/46
DISTRICT COLUMBIA TOB SETTLEMENT FING CORP 0.01%06/15/46
BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5.88%06/01/47
GOLDEN ST TOB SECURITIZATION CORP CALIF TOB SETTLEMENT REV 5%06/01/47
FLORIDA DEV FIN CORP SURFACE TRANSN FAC REV 6.25%01/01/49
FLORIDA DEV FIN CORP SURFACE TRANSN FAC REV 6.38%01/01/49
FLORIDA DEV FIN CORP SURFACE TRANSN FAC REV 6.5%01/01/49
PUBLIC FIN AUTH WIS LTD OBLIG PILOT REV 7%12/01/50
PUERTO RICO SALES TAX FING CORP SALES TAX REV 4.75%07/01/53
PUERTO RICO SALES TAX FING CORP SALES TAX REV 5%07/01/58

Overall Risk

The risk rating is based on the account’s past performance as compared to mutual funds and/or ETFs within the same category. It represents a starting point from which investors evaluate if the core makes sense for their own risk tolerance, suitability, goals and objectives. It is not a buy or sell recommendation. There are many types of risk, including interest rate, market, political, and currency. Each type of risk can affect the value of the securities in your account.

Overview       
Start Date1/1/18
End Date12/31/19
Initial Balance$10,000.00
Periodic AdjustmentNone
RebalancingRebalance quarterly
Reinvest DividendsYes
BenchmarkVanguard High-Yield Tax-Exempt
Portfolio Performance
MetricAnchor High-Yield MuniVanguard High-Yield Tax-Exempt
Start Balance$10,000.00 $10,000.00
End Balance$11,270.00 $11,058.00
End Balance (inflation adjusted)$10,812.00 $10,609.00
CAGR6.16%5.16%
CAGR (inflation adjusted)3.98%3.00%
Stdev2.41%2.96%
Best Year9.12%9.17%
Worst Year3.28%1.29%
Max. Drawdown-1.72%-1.59%
Sharpe Ratio1.691.06
Sortino Ratio3.572.03
US Stock Market Correlation-0.06-0.11
Risk and Return Metrics
MetricAnchor High-Yield MuniVanguard High-Yield Tax-Exempt
Arithmetic Mean (monthly)0.50%0.42%
Arithmetic Mean (annualized)6.19%5.20%
Geometric Mean (monthly)0.50%0.42%
Geometric Mean (annualized)6.16%5.16%
Volatility (monthly)0.70%0.85%
Volatility (annualized)2.41%2.96%
Downside Deviation (monthly)0.26%0.37%
Max. Drawdown-1.72%-1.59%
US Market Correlation-0.06-0.11
Beta (*)0.761
Alpha (annualized)2.15%0.00%
R Squared86.77%100.00%
Sharpe Ratio1.691.06
Sortino Ratio3.572.03
Treynor Ratio (%)5.293.09
Active Return1.00%N/A
Tracking Error1.13%N/A
Information Ratio0.89N/A
Skewness0.090.13
Excess Kurtosis0.61-0.29
Historical Value-at-Risk (5%)-0.93%-1.09%
Analytical Value-at-Risk (5%)-0.62%-0.98%
Conditional Value-at-Risk (5%)-1.00%-1.17%
Upside Capture Ratio (%)96.43100
Downside Capture Ratio (%)42.2100
Safe Withdrawal Rate52.31%51.32%
Perpetual Withdrawal Rate3.82%2.91%
Positive Periods19 out of 24 (79.17%)18 out of 24 (75.00%)
Gain/Loss Ratio1.661.16
(*) Vanguard High-Yield Tax-Exempt is used as the benchmark for calculations. Value-at-risk metrics are based on monthly values.
Asset Allocation
CategoryWeight
US Stocks0.00%
Intl Stocks0.00%
US Bonds93.56%
Intl Bonds5.52%
Other0.00%
Cash0.93%
Fixed Income Credit Quality
CategoryWeight
AAA0.03%
AA1.20%
A9.67%
BBB22.45%
Non-Investment Grade25.27%
Not Rated41.43%
Fixed Income Maturity
CategoryWeight
Under 1 Year0.04%
1 - 3 Years3.04%
3 - 5 Years6.84%
5 - 7 Years7.87%
7 - 10 Years17.79%
10 - 15 Years16.13%
15 - 20 Years17.78%
20 - 30 Years23.95%
Over 30 Years6.56%
Drawdowns
RankStartEndLengthRecovery ByRecovery TimeUnderwater PeriodDrawdown
1Sep-18Oct-182 monthsJan-193 months5 months-1.72%
2Sep-19Sep-191 monthNov-192 months3 months-0.31%
3Jan-18Feb-182 monthsMar-181 month3 months-0.23%
Annual Returns
Year Inflation Anchor High-Yield Muni Return Vanguard High-Yield Tax-Exempt Return Anchor High-Yield Muni Balance Vanguard High-Yield Tax-Exempt Balance
2018 1.91% 3.28% 1.29% $10,328.00 $10,129.00
2019 2.29% 9.12% 9.17% $11,270.00 $11,058.00