First Eagle plans to launch third Muni-Bond fund below Miller’s management

(Bloomberg) — First Eagle Investments plans to launch its third municipal bond fund below John Miller, head of its high-yield municipal credit score workforce, based on a submitting with U.S. securities regulators.

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First Eagle’s Core Plus Municipal Fund will make investments primarily in larger high quality state and native authorities debt, however shall be permitted to speculate as much as 30% of its internet property in junk or unrated securities, based on a prospectus filed on December 27 with the Securities and Trade Fee.

The fund, which can use leverage, will make investments not less than 80% of its internet property in tax-exempt munis and usually preserve a weighted common maturity of between three and ten years. There shall be no limits on investing in securities that generate taxable revenue for shareholders topic to the federal different minimal tax.

Pholida Barclay, a spokeswoman for First Eagle, declined to remark.

Miller joined First Eagle Investments in January after practically three many years at Nuveen. Traders poured practically $4.4 billion into its First Eagle Excessive Yield Municipal Fund this 12 months by November, practically a 3rd of the money they added to riskier muni-bond funds, based on knowledge from Morningstar Direct.

The high-yield fund, which has returned 11.5% year-to-date, tops amongst high-yield muni funds, at present has about $5 billion in property, knowledge exhibits compiled by Bloomberg.

First Eagle additionally has a short-term, high-yield muni fund with roughly $333 million in property.

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