First Investors Corp. plans to file a registration statement with the Securities and Exchange Commission to launch its first fund made up of insured municipal bonds with intermediate maturities.
"It will fill a need in our family of funds," said Clark D. Wagner, chief investment officer at First Investors.
Though the fund itself carries no insurance, the underlying bond investments are insured by various companies. According to Lipper Analytical Services Inc., there is only one similar fund, launched last November by T. Rowe Price.
First Investors now has 20 long-term funds, with total assets of $1.9 billion, that invest in insured municipal bonds. The company also has an uninsured tax-exempt money market fund with assets of $21 million.