First Eagle Investments Expands Fixed Income Platform with Launch of Tactical Municipal Opportunities Fund

Business Wire

4 days ago

NEW YORK--(BUSINESS WIRE)--First Eagle Investments ("First Eagle") today announced the launch of the First Eagle Tactical Municipal Opportunities Fund (Class I: FTAIX), the firm's first municipal bond interval fund. Designed for investors seeking high current income exempt from regular federal income tax, the Fund also pursues capital appreciation as a secondary objective.
Structured as a continuously offered, closed-end interval fund, the Tactical Municipal Opportunities Fund offers investors quarterly liquidity via scheduled repurchase offers of outstanding shares at net asset value. This structure enables the portfolio management team to invest in less liquid, higher-yielding segments of the municipal market that are typically unavailable to daily-liquidity strategies while still offering shareholders a defined path to liquidity.
Benchmarked to the S&P Municipal Yield Index and distributing income monthly, the Fund will normally invest at least 80% of its net assets in municipal bonds whose interest is exempt from regular federal income taxes. The strategy uses a bottom-up, credit-focused research process to uncover relative value and identify opportunities that may be overlooked by more conventional approaches. Under typical market conditions, the fund will maintain a significant allocation to noninvestment-grade and unrated municipal bonds. It may also invest up to 25% in special situations securities, such as bonds from issuers that seek custom financing due to market or issuer considerations, are in default of their obligations, are in bankruptcy, or that are otherwise determined by the fund's investment adviser to be facing distressed financial or operating circumstances. These scenarios may offer compelling return potential when supported by in-depth credit analysis. The portfolio is constructed by first screening issuers for creditworthiness, limiting exposure to individual credits, mitigating interest rate risk and maximizing overall call protection, and seeks diversification across sectors and geographies.
'Today's municipal bond market demands a more agile and discerning approach, as investors navigate shifting interest rates and disperse and ever-changing credit spreads,' said John Miller, Chief Investment Officer and Head of the Municipal Credit team at First Eagle. 'This fund reflects our conviction that thoughtful credit selection and the ability to invest beyond the confines of traditional benchmarks can uncover opportunities others might miss. By broadening the investable universe and applying a disciplined risk analysis, we aim to deliver meaningful, tax-advantaged income while helping to protect investor capital.'
'We're seeing growing demand from financial advisors and clients for solutions that can help navigate today's rate environment while still delivering reliable, tax-advantaged income,' said Frank Riccio, Head of US Wealth Solutions at First Eagle. 'This fund expands our municipal offering with a structure that supports less liquid opportunities and a strategy aligned with long-term portfolio resilience. It's a timely addition for investors seeking more intentional, credit-aware exposure to the muni market.'
'As we continue to broaden our fixed income capabilities, the launch of this fund builds on the strong foundation John has established through the expertise and cohesion of this research and trading team,' said Carl Katerndahl, Chief Operating Officer of the Municipal Credit Team. 'It's a natural extension of our platform and reflects our commitment to delivering differentiated income strategies.'
The opinions expressed are not necessarily those of the firm. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Any statistics contained herein have been obtained from sources believed to be reliable, but the accuracy of this information cannot be guaranteed. The views expressed herein may change at any time subsequent to the date of issue hereof. The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.
Past performance is not indicative of future results.
Risk Disclosures
First Eagle Tactical Municipal Opportunities Fund (the 'Fund') may invest in high yield, fixed income securities that, at the time of purchase, are non-investment grade. High yield, lower rated securities involve greater price volatility and present greater risks than high rated fixed income securities. High yield securities are rated lower than investment-grade securities because there is a greater possibility that the issuer may be unable to make interest and principal payments on those securities. High yield securities involve greater risk than higher rated securities and portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not.
Municipal bonds are subject to credit risk, interest rate risk, liquidity risk, and call risk. However, the obligations of some municipal issuers may not be enforceable through the exercise of traditional creditors' rights. The reorganization under federal bankruptcy laws of a municipal bond issuer may result in the bonds being cancelled without payment or repaid only in part, or in delays in collecting principal and interest. The Fund's investment in bonds is subject to interest-rate risk and can lose principal value when interest rates rise, while they typically increase their principal values when interest rates decline. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer's ability to make such payments may cause the price of that bond to decline. Income generation is not guaranteed. If dividend paying stocks in the Fund's portfolio stop paying or reduce dividends, the Fund's ability to generate income will be adversely affected.
Special situations municipal securities present both unusual opportunities and challenges. The investment adviser's ability to succeed in these efforts will require skills and techniques that are different from or in addition to the skills and techniques used by a typical municipal investment manager. There is no assurance that the investment adviser will succeed in its efforts, or that market circumstances will end up being favorable to deriving outsized returns from investments in special situations municipal securities.
All investments involve the risk of loss of principal. Diversification does not guarantee investment returns and does not eliminate the risk of loss. The Fund is not subject to prospectus or regulatory diversification requirements.
All or a portion of the exempt-interest dividends may be taken into account in determining the alternative minimum tax on shareholders who are individuals. Shareholders that are generally exempt from U.S. federal income tax, such as shareholders investing through tax qualified accounts and nonresident aliens or foreign entities, will not gain additional tax benefit from the exempt-interest dividends that are expected to be paid by the Fund or gain any other tax benefit. Because the Fund's pre-tax returns generally will be lower than those of funds that own taxable debt instruments of comparable quality, an investment in the Fund may not be suitable investment for those kinds of investors. The information is not intended to provide and should not be relied on for accounting or tax advice. You should consult your tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to you of the acquisition, ownership and disposition of shares in the Fund.
S&P Municipal Yield Index measures the performance of high yield and investment grade municipal bonds. Index constituents are market value-weighted and adjusted for credit rating and concentration limits.
Indexes are unmanaged and one cannot invest directly in an index.
Investors should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the Funds and may be viewed at www.firsteagle.com. You may also request printed copies by calling us at 800-747-2008. Please read our prospectus carefully before investing.
Investments are not FDIC insured or bank guaranteed and may lose value.
FEF Distributors, LLC ('FEFD') (SIPC), a limited purpose broker-dealer, distributes certain First Eagle products. FEFD does not provide services to any investor, but rather provides services to its First Eagle affiliates. As such, when FEFD presents a fund, strategy, or other product to a prospective investor, FEFD and its representatives do not determine whether an investment in the fund, strategy or other product is in the best interests of, or is otherwise beneficial or suitable for, the investor. No statement by FEFD should be construed as a recommendation. Investors should exercise their own judgment and/or consult with a financial professional to determine whether it is advisable for the investor to invest in any First Eagle fund, strategy, or product.
First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers.
The First Eagle Funds are offered by FEF Distributors, LLC, a subsidiary of First Eagle Investment Management, LLC, which provides advisory services.
© 2025 First Eagle Investment Management, LLC. All rights reserved.
About First Eagle Investments
First Eagle Investments is an independent, privately owned investment management firm headquartered in New York with approximately $152 billion in assets under management as of March 31, 2025. * Dedicated to providing prudent stewardship of client assets, the firm focuses on active, fundamental and benchmark-agnostic investing, with a strong emphasis on downside mitigation. With a heritage dating back to 1864, First Eagle strives to help clients avoid permanent impairment of capital and earn attractive returns through widely varied economic cycles. The firm's investment capabilities include equities, fixed income and currencies, alternative credit and real assets. For more information, please visit www.firsteagle.com.
All figures related to assets under management (AUM) are preliminary figures based on management's estimates and as such are subject to change.
*The total AUM represents the combined AUM of (i) First Eagle Investment Management, LLC, (ii) its subsidiary investment advisers, First Eagle Separate Account Management, LLC, First Eagle Alternative Credit ('FEAC') and Napier Park Global Capital ('Napier Park'), and (iii) Regatta Loan Management LLC, an advisory affiliate of Napier Park as of March 31, 2025. It includes $0.6 billion of committed and other non-fee-paying capital from First Eagle Alternative Credit, LLC and $3.1 billion of committed and other non-fee-paying capital from Napier Park Global Capital, inclusive of assets managed by Regatta Loan Management LLC.
First Eagle Investments is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers.