Eaton Vance Management has launched the Eaton Vance Municipal Opportunities Fund (Class A: EMOAX and Class I: EMOIX), a new mutual fund that employs an opportunistic approach to investing in municipal obligations, seeking to maximise after-tax total return.
The fund invests at least 80% of its net assets in municipal obligations the interest on which is exempt from regular federal income tax. The fund may invest without limit in obligations the interest from which is subject to the federal alternative minimum tax. The fund may invest in obligations of any duration, and may invest up to 50% of its net assets in obligations rated below investment grade. Up to 20% of the Fund’s net assets may be invested in taxable debt obligations, including, but not limited to, taxable municipal obligations and obligations of the US government, its agencies and instrumentalities.
The fund’s portfolio management team consists of Cynthia J Clemson, Thomas M Metzold (pictured), William H Ahern, Craig R Brandon and Adam A Weigold.
"The fund seeks to leverage our group’s credit analysis and yield curve positioning insights, and to take advantage of supply/demand imbalances we identify," says Metzold, co-director of municipal investments for Eaton Vance. "Our extensive municipal research capabilities and experienced team position us to identify market inefficiencies and exploit special opportunities wherever they may exist across the municipal marketplace."
Eaton Vance intends to limit the Fund’s asset size to approximately USD1.0 billion to maximise investment flexibility.
"This fund seeks to provide municipal investors with the opportunity to maximise after-tax total return by investing across the entire municipal market with limited duration, sector or credit quality constraints," says Clemson, co-director of municipal investments for Eaton Vance. "By enhancing investment flexibility and limiting the size of the Fund, we hope to deliver a performance advantage over competing municipal funds."