Deutsche Bank filed regulatory paperwork to bring to market a
U.S. long-term municipal bond fund. This is Deutsche Bank's second
filing within two weeks, after the bank filed to bring a
utilities fund to market on Jan. 25.
This time, Deutsche Bank plans to market the db X-trackers
Municipal Infrastructure Revenue Fund, which targets tax-exempt
revenue and insured bonds issued by states, cities, counties,
districts and other tax-exempt issuers. The ETF will track bonds
issued to fund projects such as water and sewer systems, public
power systems, toll roads, bridges, tunnels and many other public
The proposed fund will to tap into a somewhat untouched corner
of the ETF market, joining just one other ETF that follows a
long-term municipal bond index-Van Eck's Market Vectors Long
Municipal Index Fund (NYSEArca:MLN), which has $120 million in
assets, according to data compiled by IndexUniverse.
Unlike MLN, which invests in federally tax-exempt muni bonds,
the db X-tracker Municipal Infrastructure Revenue Fund will again
focus its holdings on bonds issued with the intention of funding
federal, state and local infrastructure projects. Income generated
by bonds of this nature is wholly contingent on the municipal
project they finance.
This passively invested fund will hold a representative sample
of the DBIQ Municipal Infrastructure Revenue Index, with at least
80 percent of its holdings selected from that index, but not
necessarily replicating its exact holdings.
Deutsche didn't say what the fund would cost or what its ticker
would be, but it did say that the fund would have its primary
listing on Arca, the New York Stock Exchange's electronic trading
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