(Bloomberg News) -- Brown Brothers Harriman & Co., the closely held asset-management firm, has created a new municipal-bond mutual fund as state and city debt is rallying the most in five years.

The BBH Intermediate Municipal Bond Fund, BBINX, will focus on tax-exempt securities with an investment-grade ranking from at least one nationally recognized ratings firm, according to the fund’s prospectus, dated April 1. The fund’s size is $50 million, Gregory Steier, head of tax-exempt fixed income at New York-based BBH, said in a telephone interview.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.