Income funds that work
for you and your clients

WHY DUPREE?

As demographics shift and life expectancy increases, the demand for high quality and affordable fixed-income products will continue to grow.  Top advisors, like you, are always in search of money management firms that can produce strong and reliable performance for clients at any age—in any market circumstances. That’s where Dupree Mutual Funds can help.

(The Taxable Municipal Bond Series inception date was 11/1/2010)

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance is no guarantee of future results.

Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Our Strategy for Investor Success

At Dupree we diligently adhere to a straightforward two-part investment strategy that has served our shareholders well since 1979: focus on the tangible and excel at the intangible. This strategy is based on the investing philosophy created by our founder, Tom Dupree, Sr.

WE FOCUS ON SPECIFIC TANGIBLE ASPECTS OF THE BONDS

This means we actively manage our portfolios to:

• Buy and hold the highest quality investment grade bonds, with higher institutional coupons, which provide better price protection in volatile interest environments.
• Maximize tax-free income for our investors and minimize expenses associated with trading.
• Guard against taking undue risk to principal by avoiding reaching for higher yields with greater risk

To achieve these objectives, we look for specific bonds that have the potential to maximize income through a combination of:

• A high interest rate coupon that delivers higher tax-free income versus returns through capital gains
• Bonds with a premium price structure versus bonds bought at a discount
• Bonds issued for Essential Services such as water, sewer and schools – these are the types of bonds that most often meet the stringent criteria for our funds.
• Bonds that fall in an optimal range on the interest rate yield curve we call “the shoulder zone”

(Explanation of the Shoulder Zone) As the interest rate yield curve begins to flatten out, each increment of additional return comes at a greater cost or higher level of risk. By maintaining our focus on high quality investment grade bonds on the shoulder of the yield curve, we strive for the highest return with the least amount of risk.

Our approach to the bond market:

• We buy bonds in the primary market, whenever possible and secondary market through our extensive network of bond dealers and investment advisors to municipalities.
• We never try to time the market
• We hang on to the bonds we buy, as long as possible

WE EXCEL AT THE INTANGIBLE ASPECTS OF THE MARKET TOO

At Dupree, we believe that personal investing should be personal and that it all starts with the relationships we have built over the years. We have been actively engaged in the municipal bond space for close to 40 years having built strong relationships with many market participants along the way.

We are well known as an institutional buyer always looking for bonds in our markets. We’ve taken the time to get to know the right people at the most local levels of the market, which has given us the advantage of knowing where to look for the bonds we are seeking.  So whether it is a trading desk in New York City or a local municipality in Kentucky, Tennessee, North Carolina, Alabama or Mississippi we know where to find the right bonds that fit our criteria.

Our mastery of the tangible and intangible aspects of the municipal bond business creates a win-win for all involved.