For High-Net-Worth investors, tax-exempt income from municipal bonds provides compelling after-tax yield advantages over comparable taxable fixed income. A GMS municipal bond specialist provides Tax Free Income to GMS High Net Worth Clients through the investor’s non-discretionary, customized and professionally monitored “Separately Managed Account” (SMA). A SMA specifically managed by a GMS municipal bond specialist is about potentially beating the market* and “optimizing tax free income”, while managing risk and preserving wealth efficiently over a long period of time.

A SMA is built around your tax profile and financial objectives, it offers direct ownership of individual bonds, full transparency into every position, tax efficiency and the dedicated expertise of a municipal bond specialist to guide you through the complex and very inefficient over-the-counter municipal bond market. Municipal bond SMAs align well with tax efficiency, low volatility, preservation of capital and reliable annual tax-free cash flow.

Direct Ownership & Transparency

Own individual bonds — not fund shares — for full portfolio visibility and control.

1.) Predictable cash flow with known coupon payments and maturity dates

2.) Complete visibility into every issuer, structure, and position

3.) Hold bonds to maturity — avoid forced fund-level selling

4.) No exposure to other investors’ redemption activity

Costs are only incurred when buying or selling, keeping ongoing maintenance fees at or near zero

 Professional Management & Specialist Expertise

GMS municipal bond specialists identify overlooked and undervalued bonds in a fragmented, opaque OTC market unavailable to most investors.

1.) Identify mispriced bonds across thousands of issuers and structures

2.) Exploit market dislocations from technical flows and supply/demand imbalances

3.) Evaluate underfollowed issuers with limited analyst coverage

4.) Capture relative value opportunities across sectors and maturities

 Municipal Market Inefficiencies

With over one million unique CUSIPs, infrequent trading, and limited analyst coverage, the municipal market is highly fragmented. These structural conditions create persistent market inefficiencies — pricing dislocations, underfollowed credits, and relative value opportunities that GMS specialists are uniquely equipped to exploit for clients.

Customized Portfolio Construction

True customization means every GMS SMA is engineered from the ground up for your specific situation:

1.) State-specific tax optimization and in-state bond selection

2.) Income goals, maturity preferences, and ladder structures

3.) Sector diversification: GO, revenue, healthcare, transportation

4.) Credit quality parameters aligned to your risk tolerance

Investor Suitability

GMS SMAs are best suited for investors who:

1.) Are in a high federal and/or state income tax bracket

2.) Hold significant taxable assets seeking tax-efficient income

3.) Value professional management with full transparency

4.) Prefer direct bond ownership and capital preservation

Why Choose a GMS Group Municipal Bond SMA

1.) Tax Efficiency: Federal (and often state) tax-exempt income

2.) Customization: Built to your tax, income, and risk objectives

3) 40+ Years of Expertise: Dedicated municipal bond specialists

4.) Market Opportunities: Active exploitation of market inefficiencies

5.) Transparency & Control:  Full visibility into every holding

*Important Disclosures This material is provided by The GMS Group, LLC for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security. Municipal bond investing involves risk, including the possible loss of principal. Bond values fluctuate in response to changes in interest rates. Some municipal bonds may be subject to the federal Alternative Minimum Tax (AMT). Income may also be subject to state and local taxes. Diversification does not guarantee a profit or protect against loss. Past performance is not indicative of future results. Please consult a qualified financial, tax, or legal professional prior to making investment decisions. The GMS Group, LLC is a registered broker-dealer.

Put a GMS Municipal Bond Specialist to Work for You…