Bonds
First Eagle Targets Higher Yields in Muni Fund That Limits Exits
- Three asset managers opened muni interval funds in past year
- Funds give investors access to illiquid assets for higher fees
This article is for subscribers only.
First Eagle Investments plans to launch a product investing in higher-yielding municipal bonds with a twist: investor withdrawals are limited to a few times per year.
The Tactical Municipal Opportunities Fund will invest at least 75% of its assets in bonds rated BBB or lower as well as unrated debt. The First Eagle interval fund may also target as much of 25% of assets in “special situations” municipal securities, debt of issuers that are in default, bankruptcy or other financial distress, according to a Dec. 31 preliminary prospectus filed with the US Securities and Exchange Commission.