Curian says municipal-bond ETFs offer broad index coverage, tax efficiency. Investment-platform provider Curian Capital has expanded its Custom Style Portfolios program to include a new tax-exempt strategy for fixed-income investing. The approach, which Curian manages in house, is meant to give end-clients more control over their investment options and an opportunity to receive tax-exempt income as part of their fixed-income allocations.

Reduction

"Choice and flexibility are the key advantages that Curian's Custom Style Portfolios hold over one-size-fits-all investment vehicles," says Curian's CEO Michael Bell. "By continuing to expand the range of options available within each of our asset classes, Curian is able to deliver a robust product offering that can address the risk profiles, time horizons and investment objectives of a diverse set of investors that is also consistent with their financial situation."

The new strategy uses ETFs that track the broad U.S. municipal bond market. This strategy can reduce the credit risk associated with investing in a single issuer and diminish the re-investment risk that occurs with a typical laddering strategy, according to Curian.

Denver-based Curian is a subsidiary of Lansing, Mich.-based Jackson National Life Insurance. It had around $3.4 billion in assets under management at the end of June 2008. It does most of its business with independent brokers, but it also works with RIAs, banks and credit-union service organizations. -FWR

Purchase reproduction rights to this article.