Capital Group Short Municipal
- Vehicle
- SMA
- Objective
- Tax-Exempt
SMAs offer the flexibility to help you address complex tax and investment needs for your clients, with customizable portfolios backed by active management and a long-term focus.
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Morningstar Medalist Rating™ as of 4/27/26 for the Intermediate Municipal SMA Composite. The Morningstar Medalist Rating is a forward-looking assessment assigned by Morningstar s research analysts. It reflects their qualitative evaluation of an investment strategy s potential to outpace its category benchmark over a full market cycle on a risk-adjusted basis and net of fees. Morningstar bases its ratings on three key pillars – People, Parent and Process – alongside a fee assessment. The Medalist Rating does not reference a specific time period but is based on qualitative and select quantitative data through April 27, 2026, respectively. Capital Group has paid Morningstar a licensing fee to access and publish its ratings data.
Note: Some options are subject to account minimums and/or Capital Group approval.
Income from municipal bonds is generally exempt from federal income tax, which may help you reduce taxable income for your clients. Because your clients directly own the bonds in their portfolios, muni SMAs can be tailored to emphasize securities from their state of residence potentially extending tax advantages to the state and local level.
In addition, the SMA structure itself can support tax efficiency:
Tax efficiency: Your client has more opportunities to reduce the impact of federal tax on investment returns.
Transparency: Portfolio holdings can be viewed at all tirnes because your client owns the underlying securities.
Customization and control: Your client can request that specific cornpanies or business sectors be excluded from the portfolio (as agreed to by the investment manager).
The primary difference is that with an SMA, your client directly owns the stocks and bonds. With a mutual fund or ETF, your client owns shares of the fund, which in turn invests in stocks and bonds.
Capital Group's SMA strategies are rooted in over 90 years of investment experience and 50 years of experience managing separate accounts for high-net-worth individuals and institutional clients, with the goal of delivering superior results for our long-term investors.
Stand out in a competitive market by bringing Capital Group's tax-aware solutions to clients and prospects.