First Eagle to Launch Third Muni-Bond Fund Under John Miller
First Eagle Investments is set to introduce its third municipal-bond fund led by John Miller, focusing on high-yield opportunities.
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New York: First Eagle Investments is gearing up to launch its third municipal-bond fund, and it’s all under the guidance of John Miller. He’s the head honcho of their high-yield municipal credit team. This news comes straight from a filing with US securities regulators.
The new fund, called the Core Plus Municipal Fund, is set to focus on higher-quality state and local government debt. But here’s the twist: it can also invest up to 30% of its net assets in junk or unrated securities. That’s according to a prospectus filed with the SEC.
They plan to keep at least 80% of the net assets in tax-exempt munis. Plus, they’ll generally aim for a weighted average maturity of three to ten years. Interestingly, there won’t be any limits on investing in securities that could generate taxable income for shareholders who are subject to the federal alternative minimum tax.
Pholida Barclay, a spokesperson for First Eagle, didn’t have any comments to share on this. But it’s worth noting that Miller joined First Eagle in January after spending nearly 30 years at Nuveen. Investors have really taken to his First Eagle High Yield Municipal Fund, pouring in about $4.4 billion this year alone, which is nearly a third of the cash added to riskier muni-bond funds.
This high-yield fund has been performing well, returning 11.5% year-to-date, making it the top choice among high-yield muni funds. It currently boasts around $5 billion in assets. First Eagle also has a short-duration high-yield muni fund that holds about $333 million in assets.