Anchor Muni California Long

Anchor Accounts: Municipal Bond

Summary

The Anchor Muni California Long Account invests at least 80% of assets in California municipal debt. 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 longer than 7.0 years (or, if duration is unavailable, average maturities of five to 12 years).

Benchmark: S&P Municipal Bond California 5+ Year Investment Grade Index

Core Facts

Asset Class Municipal Bond
Category Muni California Long
Expense Ratio [1] 0.0%
Commissions [2] 0.0%
Fee [3] 0.10%
Minimum investment [4] $25,000 US
Account number A012
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

NameForward Annual Div Yield
First Trust California Municipal High Income ETF2.68%
Invesco California AMT-Free Municipal Bond ETF2.48%
iShares California Muni Bond ETF2.03%
Nuveen California High Yield Municipal Bond Fund Class A3.65%
American Century California High Yield Municipal Fund A Class2.98%
MFS California Municipal Bond Fund Class A3.01%
Franklin California Tax Free Income Fund Class A13.35%
Invesco Oppenheimer Rochester California Municipal Fund Class A3.44%
Franklin California High Yield Municipal Fund Class A13.42%
Vanguard California Long-Term Tax-Exempt Fund Investor Shares2.93%

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 Date01/01/2018
End Date12/31/2019
Initial Balance$10,000
Periodic AdjustmentNone
RebalancingRebalance quarterly
Reinvest DividendsYes
BenchmarkVanguard CA Long-Term Tax-Exempt Inv
Portfolio Performance
MetricAnchor Muni California LongVanguard CA Long-Term Tax-Exempt Inv
Start Balance$10,000$10,000
End Balance$11,030$10,928
End Balance (inflation adjusted)$10,582$10,484
CAGR5.02%4.54%
CAGR (inflation adjusted)2.87%2.39%
Stdev3.16%3.11%
Best Year9.14%8.56%
Worst Year1.07%0.67%
Max. Drawdown-1.89%-2.02%
Sharpe Ratio0.950.82
Sortino Ratio1.751.44
US Stock Market Correlation-0.12-0.12
Risk and Return Metrics
MetricAnchor Muni California LongVanguard CA Long-Term Tax-Exempt Inv
Arithmetic Mean (monthly)0.41%0.37%
Arithmetic Mean (annualized)5.07%4.59%
Geometric Mean (monthly)0.41%0.37%
Geometric Mean (annualized)5.02%4.54%
Volatility (monthly)0.91%0.90%
Volatility (annualized)3.16%3.11%
Downside Deviation (monthly)0.42%0.43%
Max. Drawdown-1.89%-2.02%
US Market Correlation-0.12-0.12
Beta (*)1.001.00
Alpha (annualized)0.45%0.00%
R Squared97.27%100.00%
Sharpe Ratio0.950.82
Sortino Ratio1.751.44
Treynor Ratio (%)2.952.50
Active Return0.49%N/A
Tracking Error0.52%N/A
Information Ratio0.93N/A
Skewness0.10-0.03
Excess Kurtosis-0.28-0.51
Historical Value-at-Risk (5%)-1.21%-1.31%
Analytical Value-at-Risk (5%)-1.06%-1.10%
Conditional Value-at-Risk (5%)-1.26%-1.45%
Upside Capture Ratio (%)106.08100.00
Downside Capture Ratio (%)97.41100.00
Safe Withdrawal Rate51.19%50.86%
Perpetual Withdrawal Rate2.79%2.33%
Positive Periods18 out of 24 (75.00%)18 out of 24 (75.00%)
Gain/Loss Ratio1.040.96
(*) Vanguard CA Long-Term Tax-Exempt Inv is used as the benchmark for calculations. Value-at-risk metrics are based on monthly values.
Asset Allocation
CategoryWeight
US Stocks0.02%
Intl Stocks0.00%
US Bonds96.24%
Intl Bonds3.05%
Other0.03%
Cash0.65%
Fixed Income Credit Quality
CategoryWeight
AAA6.15%
AA43.63%
A16.62%
BBB10.72%
Non-Investment Grade6.34%
Not Rated16.54%
Fixed Income Maturity
CategoryWeight
Under 1 Year0.68%
1 - 3 Years1.38%
3 - 5 Years1.47%
5 - 7 Years2.78%
7 - 10 Years5.12%
10 - 15 Years15.59%
15 - 20 Years19.98%
20 - 30 Years47.74%
Over 30 Years5.26%
Drawdowns
RankStartEndLengthRecovery ByRecovery TimeUnderwater PeriodDrawdown
1Sep 2018Oct 20182 monthsDec 20182 months4 months-1.89%
2Jan 2018Feb 20182 monthsMay 20183 months5 months-1.78%
3Sep 2019Sep 20191 month-0.67%
Annual Returns
Year Inflation Anchor Muni California Long Return Vanguard CA Long-Term Tax-Exempt Inv Return Anchor Muni California Long Balance Vanguard CA Long-Term Tax-Exempt Inv Balance Anchor Muni California Long
Income (%)
Anchor Muni California Long
Income ($)
2018 1.91% 1.07% 0.67% $10,107 $10,067 3.22% $322
2019 2.29% 9.14% 8.56% $11,030 $10,928 3.20% $323