Investment strategies come and go, but investor priorities often reveal longer-term trends.

Consider, for example, the growth of separately managed accounts (SMAs).

According to JPMorgan, municipal bond SMAs held approximately $1.6 trillion in assets at the end of 2025, roughly 32% of all outstanding municipal bonds. That statistic suggests that more investors are seeking portfolios tailored to their individual goals rather than one-size-fits-all investment solutions.

Personalization, though, isn’t a new concept in municipal bond investing – it’s the bedrock of a sound financial strategy. The important question for individual investors is how best to achieve it.

Individualized approach

Imagine three municipal bond investors.

One expects to retire within a few years and wants to extend maturities to lock in today’s attractive tax-exempt yields for as long as possible.

Another is already retired and wants a dependable stream of income while preserving flexibility for future opportunities.

A third has recently sold her business and is investing a substantial sum for the first time, with an emphasis on long-term income and high credit quality.

Although all three investors are interested in municipal bonds, the portfolios built for them may look very different. Time horizon, existing assets, tax considerations, cash-flow needs, investment objectives and a host of other factors all influence the bonds selected.

That’s why experienced municipal bond investing has never been about finding a one-size-fits-all solution. It’s about selecting individual bonds that fit the investor, not asking the investor to fit the portfolio.

Many SMA programs begin with an investment framework and customize it for the investor. We, on the other hand, believe the better approach is to begin with the investor and build the portfolio from there.

Our approach, honed over nearly 50 years, is to help investors build their portfolios based on their objectives, whether the emphasis is on maximizing tax-free income, locking in today’s unusually attractive yields, emphasizing credit quality or enhancing diversification.

Because the municipal bond market offers thousands of issues across a broad range of sectors, credit qualities and maturities, thoughtful bond selection matters. The most appropriate bonds for one investor may not be the best choice for another, even when both are seeking tax-free income. That’s why we work directly with investors to evaluate available opportunities and discuss the merits of each.

What true customization looks like

The popularity of SMAs confirms that investors increasingly value personalization – but personalization doesn’t require an SMA (“Champagne Prices for Water?”). In our view, the most effective way to achieve true customization is through carefully selected individual municipal bonds and direct collaboration with each investor – without management fees.

Every investment decision begins with the investor’s goals, and every bond is selected for a reason. That’s the advantage of a truly personalized approach to municipal bond investing.