Anchor Muni California Intermediate

Anchor Accounts: Municipal Bond

Summary

The Anchor Muni California Account invests at least 80% of assets in California municipal debt. The portfolio manager may include long,  intermediate, and short-duration bonds. The account is structured to provide income that is free from both federal taxes and California state taxes; thus, the account is most appealing to residents of California. The primary goal is to provide current, tax-free income vs. capital appreciation. The bonds held in the account typically exhibit durations of 4.5 to 7.0 years (or, if duration is unavailable, average maturities of five to 12 years).

Benchmark: S&P Intermediate Term California AMT-Free Municipal Bond Index

Core Facts

Asset Class Municipal Bond
Category Muni California Intermediate
Expense Ratio [1] 0.0%
Commissions [2] 0.0%
Fee [3] 0.10%
Minimum investment [4] $50,000 US
Account number A011
Account manager Galleon Wealth Management
Region North America/US/CA
Market Developed

Credit Quality

Ltd

Mod

Ext
High

Med


Low


Interest Rate Sensitivity

Portfolio composition by security (top holdings)

Top Holdings

Company NameForward Annual Div Yield
Principal California Municipal Fund Class A2.54%
Eaton Vance California Municipal Opportunities Fund Class A2.29%
Schwab California Tax-Free Bond Fund2.24%
Northern California Intermediate Tax-Exempt Fund2.51%
BlackRock California Municipal Opportunities Fund Institutional shares2.38%
Payden California Municipal Income Fund2.35%
Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares2.45%
First Trust California Municipal High Income ETF2.68%
Invesco California AMT-Free Municipal Bond ETF2.48%
iShares California Muni Bond ETF2.03%

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
Periodic AdjustmentNone
RebalancingRebalance quarterly
Reinvest DividendsYes
BenchmarkVanguard CA Interm-Term Tax-Exempt Inv
Portfolio Performance
MetricAnchor Muni California IntermediateVanguard CA Interm-Term Tax-Exempt Inv
Start Balance$10,000 $10,000
End Balance$10,825 $10,801
End Balance (inflation adjusted)$10,385 $10,362
CAGR4.04%3.93%
CAGR (inflation adjusted)1.91%1.79%
Stdev2.64%2.39%
Best Year7.43%6.74%
Worst Year0.77%1.19%
Max. Drawdown-1.57%-1.36%
Sharpe Ratio0.770.81
Sortino Ratio1.311.35
US Stock Market Correlation-0.09-0.08
Risk and Return Metrics
MetricAnchor Muni California IntermediateVanguard CA Interm-Term Tax-Exempt Inv
Arithmetic Mean (monthly)0.33%0.32%
Arithmetic Mean (annualized)4.08%3.96%
Geometric Mean (monthly)0.33%0.32%
Geometric Mean (annualized)4.04%3.93%
Volatility (monthly)0.76%0.69%
Volatility (annualized)2.64%2.39%
Downside Deviation (monthly)0.37%0.33%
Max. Drawdown-1.57%-1.36%
US Market Correlation-0.09-0.08
Beta (*)1.091
Alpha (annualized)-0.22%0.00%
R Squared96.51%100.00%
Sharpe Ratio0.770.81
Sortino Ratio1.311.35
Treynor Ratio (%)1.851.89
Active Return0.12%N/A
Tracking Error0.54%N/A
Information Ratio0.22N/A
Skewness-0.13-0.25
Excess Kurtosis-0.62-0.86
Historical Value-at-Risk (5%)-1.06%-0.92%
Analytical Value-at-Risk (5%)-0.89%-0.81%
Conditional Value-at-Risk (5%)-1.13%-0.97%
Upside Capture Ratio (%)106.01100
Downside Capture Ratio (%)111.73100
Safe Withdrawal Rate50.65%50.70%
Perpetual Withdrawal Rate1.87%1.76%
Positive Periods18 out of 24 (75.00%)18 out of 24 (75.00%)
Gain/Loss Ratio0.971.02
(*) Vanguard CA Interm-Term Tax-Exempt Inv 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 Bonds97.55%
Intl Bonds1.18%
Other1.15%
Cash0.13%
Fixed Income Credit Quality
CategoryWeight
AAA8.26%
AA59.78%
A16.65%
BBB8.16%
Non-Investment Grade2.74%
Not Rated4.41%
Fixed Income Maturity
CategoryWeight
Under 1 Year2.44%
1 - 3 Years3.84%
3 - 5 Years4.13%
5 - 7 Years6.48%
7 - 10 Years11.05%
10 - 15 Years21.13%
15 - 20 Years21.23%
20 - 30 Years27.09%
Over 30 Years2.60%
Drawdowns
RankStartEndLengthRecovery ByRecovery TimeUnderwater PeriodDrawdown
1Jan-18Feb-182 monthsJul-185 months7 months-1.57%
2Sep-18Oct-182 monthsDec-182 months4 months-1.57%
3Sep-19Sep-191 month-0.69%
Annual Returns
Year Inflation Anchor Muni California Intermediate Return Vanguard CA Interm-Term Tax-Exempt Inv Return Anchor Muni California Intermediate Balance Vanguard CA Interm-Term Tax-Exempt Inv Balance Anchor Muni California Intermediate Income (%) Anchor Muni California IntermediateIncome ($)
2018 1.91% 0.77% 1.19% $10,077 $10,119 2.78% $278
2019 2.29% 7.43% 6.74% $10,825 $10,801 2.82% $284