MBIA Asset Management, a unit of the New York insurer MBIA, plans to launch two inflation-protection funds for institutional and retail investors, pension funds, and high-net-worth individuals.
The MBIA Municipal Bond Inflation Protection Fund, set to debut in early November with initial funding of $25 million, creates a municipal bond portfolio that guards against inflation, similar to the protection provided by treasury inflation-protection securities.
But the municipal fund is designed to provide high-tax-bracket investors with after-tax returns that are significantly better than those offered by treasury inflation-protection securities, the company said Monday.
The MBIA Multi-Sector Inflation Protection Fund is set to launch in early 2008. The multisector fund is designed to provide exposure to the major inflation-sensitive sectors of the market, including commodities, treasury inflation-protection securities, and real estate.
