The Empire Builder Tax-Free Bond Fund

Investment Goal:  To seek a high level of current income exempt from Federal, New York State and New York City personal income taxes while preserving shareholder capital.  (More ideal for the conservative investor.)

Strategy:  Invests primarily in New York Tax-Exempt Bonds, including

  • debt obligations issued by the State of New York and its political subdivisions, or other governmental authorities (i.e., U.S. territories such as Puerto Rico, Guam and the Virgin Islands); and
  • interest which is exempt from both Federal income tax (but not, in some cases, from the alternative minimum tax) and New York State and City personal income taxes.

Main Risks of Investing in the Fund:  As with any investment, there are certain risks to consider including:

  • Interest Rate Risk - the Fund's investments will fluctuate in value as the general level of interest rates changes.
  • Credit Risk - the debt securities in which the Fund invests are subject to credit risk, which is the risk that the issuer may fail or refuse to make timely payments on its obligations. Generally, changes in the issuer's ability to make payments and/or changes in the credit rating of the obligation will impact the value of the Fund's investments.
  • Market Risk - securities may decline in value due to factors in the securities markets, which are not specifically related to a particular issuer (such as economic outlook, currency rates, etc.).
  • Effect of Credit Strategy on Yield & Total Return - the portion of the Fund's assets that may be invested in lower-rated bonds is limited compared with some other New York municipal bond funds. The higher risk of lower-rated bonds is typically accompanied by yields and anticipated total returns that are higher than those of higher-rated bonds. The Fund's yield and total return may, therefore, be significantly lower than those of other New York municipal bond funds that invest in lower-rated bonds.
  • Special Risks of New York Tax Exempt Bonds - most issuers of New York Tax-Exempt Bonds are located in New York, so the performance of the Fund will be significantly affected by the condition of the New York economy.

These risks and other pertinent information are explained in more detail in Empire Builder's full prospectus, available for download on this website. Please read it carefully and consult with a financial professional before investing.

Typical Shareholders:  Investors in the Fund seek

  • regular monthly tax-free dividend income;
  • tax reduction on investment income; and
  • a long-term goal (such as retirement).

The Fund would not be appropriate for those investing through a tax-exempt retirement plan or have a high-growth investment objective.  It is not intended as a complete investment program.

Fund Management:

  • Investment Adviser:  Glickenhaus & Co., founded in 1961, has approximately $324 million in municipal securities under management as of February 28, 2010.   Glickenhaus makes the day-to-day investment decisions while continuously reviewing, supervising and administering the Fund's investment program.
  • Portfolio Manager:  James R. Vaccacio joined Glickenhaus as Manager of Municipal Trading in 1977, and has been primarily responsible for the day-to-day management of the Fund's portfolio since 1988.

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