The fund will invest at least 80% of its portfolio in municipal obligations of any duration, and up to 50% of its assets in obligations below investment grate. The remaining 20% of the portfolio may be invested in taxable debt obligations, be they issued by municipalities or the U.S. government and its agencies.
The fund is being run by a team of five managers: Cynthia J. Clemson, Thomas M. Metzold, 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,” said 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.”
Clemson, also a co-director of municipal investments, added: “The fund seeks to maximize after-tax total return by investing across the entire municipal market with limited duration, sector or credit quality constraints. By enhancing investment flexibility and limiting the size of the fund, we hope to deliver a performance advantage over competing municipal funds.”
