Appleton Partners, a $10.4 billion investment adviser, has launched a unique separate-account strategy designed to help investors benefit from the anticipated positive economic impact of opportunity zones.
“The creation of opportunity zones is unleashing new development potential in locations around the country where it is most needed,” said Nathan Harris, CFA, senior vice president and co-director, municipal research at Appleton Partners. “While attention to date has largely focused on direct investment in these census tracts, we created the Municipal Opportunity Zone Credit strategy because we believe the economic dynamic generated by the opportunity zone initiative may also benefit select tax-exempt bond issuers.”
The Municipal Opportunity Zone Credit strategy targets municipal bonds nationwide where Appleton’s research has identified both underlying fundamental value and the potential for positive credit catalysts driven by increased business activity within opportunity zones. The strategy represents a new dimension for tax-exempt investing, capitalizing on the considerable potential originating from the opportunity zone program for municipalities with areas of economic need.
The new strategy is available to high-net-worth investors seeking tax-advantaged strategies with the potential to generate higher yields and greater capital appreciation than traditional investment-grade portfolios. This focused strategy can complement or replace a core municipal bond portfolio and is accessible through registered investment advisers, family offices, private banks and other wealth management platforms.
