A 1.5-year-old team at a $152-billion-AUM* asset manager in the Big Apple are rolling out their first first muni bond interval fund.

This morning, John Miller, chief investment officer and head of the municipal credit team at First Eagle Investments [profile], unveiled the launch of the First Eagle Tactical Municipal Opportunities Fund. New York City-based First Eagle Investment Management, LLC serves as the new fund's investment advisor.

The Tactical Municipal Opportunities Fund's inception date was May 30, 2025 (i.e. Friday). Miller is the fund's PM.

First Eagle's new interval fund debuted last week with a single share class, I shares, which come with an expense ratio of 117 basis points (which bakes in a 134bps fee waiver**) and no load. Yet the First Eagle team is set up to potentially launch additional share classes down the line, as the team confirms in the prospectus that they already have the necessary SEC exemptive needed to issue multiple share classes of the new fund.

Miller puts the launch of the Tactical Municipal Opportunities Fund in the context of his team's "conviction that thoughtful credit selection and the ability to invest beyond the confines of traditional benchmarks can uncover opportunities others might miss."

"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," Miller states. "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."

Frank Riccio, head of U.S. wealth solutions at First Eagle, notes that the First Eagle folks see "growing demand from financial advisors and clients for solutions that can help navigate today's rate environment while still delivering reliable, tax-advantaged income."

"This fund expands our municipal offering with a structure that supports less liquid opportunities and a strategy aligned with long-term portfolio resilience," Riccio states. "It's a timely addition for investors seeking more intentional, credit-aware exposure to the muni market."

Miller joined First Eagle and launched the muni credit team about a year and a half ago, while also launching one muni credit fund and transforming another, both as traditional, open-end mutual funds. The transformed fund has since grown to $6.1919 billion in AUM, while the 1.5-year-old fund has grown to $797.2 million.*** Carl Katerndahl, chief operating officer of First Eagle's muni credit team, describes last week's launch of the Tactical Municipal Opportunies Fund as building "on the strong foundation John has established through the expertise and cohesion of this research and trading team."

"It's a natural extension of our platform and reflects our commitment to delivering differentiated income strategies," Katerndahl states.

The First Eagle Tactical Municipal Opportunities Fund is a non-diversified, continuously offered, closed-end interval fund. The fund will offer quarterly liquidity via share repurchases of between 5 percent and 25 percent of outstanding shares, at NAV; the First Eagle team plans to start doing those quarterly share repurchases about 6 months after launch.

The new interval fund's other service providers include:

First Eagle's FEF Distributors, LLC as principal underwriter and distributor;

JPMorgan Chase Bank, N.A. as accounting agent, administrator, and primary custodian;

PricewaterhouseCoopers LLP as independent accounting firm;

Sidley Austin LLP as counsel; and

SS&C GIDS, Inc. as dividend disbursement agent, shareholder servicing agent, and transfer agent.

*As of March 31, 2025.
**The waiver is promised through April 30, 2027.
***Both as of April 30, 2025. 

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