RidgeWorth Highlights the Tax Advantage of Munis in White Paper and Interactive Tool

Jun 07, 2010, 11:28 ET from RidgeWorth Investments

ATLANTA, June 7 /PRNewswire/ -- RidgeWorth Investments announced today that it has published another white paper in its series of educational resources and tools that help advisors add value for their clients.  This new white paper entitled "Identifying Opportunities in the Municipal Bond Market" outlines the historical benefits of municipal bonds, the changing market dynamics in 2009 as well as RidgeWorth's outlook for municipal bonds in 2010 and why now may be an opportune time to make an allocation to muni bonds.

To help illustrate the tax advantage municipal bonds may provide to investors, RidgeWorth supports the launch of its white paper with a dynamic interactive tool that allows advisors to compare the tax-equivalent yield of a muni bond across select income levels. Using the tool, advisors will see that since 1991 the tax-equivalent yield of a municipal bond for a household with income equivalent to $100,000 in today's dollars has outpaced the yield of Treasuries. This tax advantage was more pronounced for investors in higher tax brackets. RidgeWorth plans to update the data for the tool quarterly which will capture changes to tax rates and the relationship between Treasury and municipal yields.

"While obtaining tax-free income is the primary benefit of owning a portfolio of municipal bonds, I think both affluent and average investors should benefit handsomely from the attractive yields that municipal bonds offer relative to Treasuries, especially in light of an anticipated increase in marginal tax rates at year-end 2010," explained Ron Schwartz, Director and Portfolio Manager of the RidgeWorth Investment Grade Tax-Exempt Bond Fund. "Basically, the higher an investor's tax bracket, the higher the taxable-equivalent yield of municipal securities currently held."

Advisors can access the interactive tool by visiting www.ridgeworth.com/muni-bonds.

About RidgeWorth Investments

RidgeWorth Investments serves as a holding company that owns interests in eight investment boutiques with approximately $65.5 billion of assets under management as of March 31, 2009. RidgeWorth's investment boutiques manage a wide variety of investment disciplines across the fixed income, equity, and liquidity management asset classes. Our boutiques provide investment management services to a growing client base that includes endowments, foundations, corporations, healthcare organizations, municipalities, public funds, associations, insurance companies, labor unions and high net worth individuals. In addition, RidgeWorth serves as the investment adviser to the RidgeWorth Funds mutual fund family. RidgeWorth Investments is a trade name for RidgeWorth Capital Management, Inc., an investment adviser registered with the SEC headquartered in Atlanta. For more information about RidgeWorth, visit www.ridgeworth.com.

An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the RidgeWorth Funds can be found in the fund's prospectus. To obtain a prospectus, please call 888-784-3863 or visit www.ridgeworth.com. Please read the prospectus carefully before investing.

Past performance does not guarantee future results. Mutual fund investing involves risk, including possible loss of principal. Bond investors should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. Indexes are unmanaged and investors cannot invest directly in an index. Tax-equivalent yield is a calculation used to compare the yield of a municipal bond to the yield of a taxable bond. The yields illustrated do not represent any RidgeWorth Fund. A tax-exempt municipal bond's income may be subject to certain state and local taxes and, depending on an investor's tax status, the federal alternative minimum tax. RidgeWorth does not provide tax advice. Please consult your tax advisor for your particular situation.

®2010 RidgeWorth Funds. RidgeWorth Funds are distributed by RidgeWorth Distributors LLC. RidgeWorth Investments is the trade name for RidgeWorth Capital Management, Inc., the adviser to the RidgeWorth Funds, and is not affiliated with the distributor.




SOURCE RidgeWorth Investments