First Eagle Investments plans to launch the Tactical Municipal Opportunities Fund, focusing on higher-yielding municipal bonds while restricting investor withdrawals to a few times annually. The fund will invest at least 75% in BBB-rated or lower and unrated bonds, with up to 25% in distressed municipal securities. As part of a growing trend in interval funds, which have seen a 40% annual growth, this fund allows access to illiquid assets while reducing redemption risks. It may use leverage, allowing up to 33% of assets from borrowing, and will charge a 0.9% management fee.

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