Client Profile
Private Client (Customized Tax-Exempt Portfolio)
The consultant for a large multi-generational family’s remainder trust was conducting a manager search to implement a strategy that better balanced the investment objectives and risk tolerances of both the principal and income beneficiaries.
- The principal beneficiaries were concerned about lower credit quality and volatility of the existing portfolio.
- The income beneficiaries were concerned about a potential reduction of income resulting from an upgrade in the portfolio's sector and credit profile.
Breckinridge balanced interests of the two parties by restructuring the portfolio into a long-intermediate mandate to generate income while upgrading credit quality to limit principal risk.
