First Eagle Lands in Closed-End Funds Space

First Eagle Investment Management is making a foray into the closed-end fund space with a municipal bond product that will use a leveraged strategy to provide tax-exempt income to investors. A higher interest rate environment may be a sign of poor potential inflows for First Eagle’s new strategy, mainly because closed-end funds are typically used for income, according to Loren Fox, director of research at FUSE Research Network.

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Article published on April 25, 2024