Benefits

• Avoid duplication of client-specific risks
• Generate tax losses to offset gains recognized outside the managed portfolio
• Minimize transaction costs
• Optimize use of the tax attributes of each account

• Purchase securities not available at low cost (or at all) in fund structures (e.g., Minnesota municipal bonds, municipal inflation-protected securities)
• Maximize after-tax yield by considering tax posture of each account
• Achieve incremental yield through purchase of lots too small for institutions (e.g., CDs, secondary market municipal bonds)
• Match maturities of individual instruments to client cash needs

• Avoid significant explicit and hidden costs of structured products, foreign currency bank accounts, and other alternative vehicles
• Reduce taxes, by avoiding substantial, taxable ordinary income associated with alternative vehicles