Core Plus Municipal Strategy
Inception Date: DEC 1, 2025
Seeks to provide current income exempt from regular federal income taxes. Capital appreciation is a secondary objective when consistent with the Strategy's primary objective.
Overview
Investment Philosophy
The team believes investment grade and high yield municipal securities offer the potential for attractive returns.
The Strategy employs a disciplined, research-driven approach to high-quality municipal bond investing that can deliver attractive risk-adjusted returns, preserve capital, and provide consistent income over time. Our philosophy is built on a commitment to rigorous analysis, prudent risk management, and a long-term perspective—principles that guide every decision we make.
Strategy Highlights
After-Tax Income PotentialThe municipal securities market may offer the potential for higher after-tax income when compared with other fixed income markets.
Diverse Credit ProfileWith an emphasis on investment grade securities and tactical exposure to high yield municipals, the core-plus approach provides exposure to a broad range of municipal issues and offers the potential to outperform a traditional core muni bond portfolio over time.
Strategy at a glance
| Approach | Bottom-up fundamental analysis |
| Duration | 4.5 - 7 years |
| Benchmark | S&P Municipal Bond Index |
| Investment Universe Includes | Municipal Bond Market At least 80% Investment Grade and up to 20% High Yield Municipal |
| Capabilities | Separate account, contact for additional capabilities |
The above are not investment guidelines or restrictions and are subject to change without notice.
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.
Risk Disclosures
All investments involve the risk of loss of principal.
The First Eagle Core Plus Municipal Strategy (the “Strategy”) is new and may not be successful under all future market conditions. The Strategy may not attract sufficient assets to achieve investment, trading or other efficiencies.
Strategies that invest in bonds are 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.
The Strategy invests 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.
Disclosures
These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.
The information is not intended to provide and should not be relied on for accounting or tax advice. Any tax information presented is not intended to constitute an analysis of all tax considerations.
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.
Definitions
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
A debt instrument's "duration'' is a way of measuring a debt instrument's sensitivity to a potential change in interest rates.
Benchmark Definitions
Indexes are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index.
The S&P Municipal Bond Index (Gross/Total) measures the performance of fixed-rate tax-free bonds subject to the alternative minimum tax, including bonds of all quality and from all sectors of the municipal bond market. A total-return index tracks price changes and reinvestment of distribution income.
Team & Process
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John Miller
Head and Chief Investment Officer of Municipal Credit TeamIndustry start:1993Year joined:2024
Our Process
The team emphasizes a fundamental bottom-up research approach that drives the identification of investment opportunities in all market environments. The three phases of the process are:
- 01Bottom Up Fundamental Analysis
Team to screen for issuers that meets the investment team's fundamental tests of creditworthiness
Team favors those issuers with attractive return potential from a combination of price improvement and yield through solid coverage of debt service and a priority lien on hard assets, dedicated revenue streams or tax resources
Strategic inputs include:
- Credit analysis
- Security structure
- Sector analysis
- Yield curve positioning
- 02Portfolio Construction
Team seeks to invest in a large number of sectors, states and specific issuers in order to help create a diversified portfolio and help mitigate the portfolio from events that may affect any individual industry, geographic location or credit
Team seeks to limit exposure to individual credits, mitigate interest rate risk, and maximize overall call protection
Portfolio assessment:
- Position sizing
- Performance and attribution analysis
- Duration management
- Leverage analysis
- 03Sell Discipline
Team may sell a security if, among other factors, it:
- Determines a security is overvalued
- Detects credit deterioration
- Modifies its portfolio strategy, such as sector or state allocation
Team may also sell a security when it exceeds the portfolio’s diversification targets
The investment process may change over time. The information set forth above is intended as a general illustration of some of the criteria the investment team considers in selecting securities. Not all investments will meet such criteria.
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
These are among factors to be considered when deciding whether to sell, this is not a comprehensive list.
A debt instrument’s “duration’’ is a way of measuring a debt instrument’s sensitivity to a potential change in interest rates.
Risk Disclosures
All investments involve the risk of loss of principal.
The First Eagle Core Plus Municipal Strategy (the “Strategy”) is new and may not be successful under all future market conditions. The Strategy may not attract sufficient assets to achieve investment, trading or other efficiencies.
Strategies that invest in bonds are 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.
The Strategy invests 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.
Disclosures
These are not investment guidelines or restrictions and will be subject to change. Actual portfolio will differ.
The information is not intended to provide and should not be relied on for accounting or tax advice. Any tax information presented is not intended to constitute an analysis of all tax considerations.
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.
Definitions
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
A debt instrument's "duration'' is a way of measuring a debt instrument's sensitivity to a potential change in interest rates.
Benchmark Definitions
Indexes are unmanaged and do not incur management fees or other operating expenses. One cannot invest directly in an index.
The S&P Municipal Bond Index (Gross/Total) measures the performance of fixed-rate tax-free bonds subject to the alternative minimum tax, including bonds of all quality and from all sectors of the municipal bond market. A total-return index tracks price changes and reinvestment of distribution income.
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