Expanding its tax-exempt offerings the Pioneer Group has introduced a New York triple tax-free mutual fund.
The Boston mutual fund company, which counts banks among its distribution channels, said the fund will invest in bonds with maturities of 15 to 20 years. These include essential-service bonds, such as power and sewer bonds, as well as revenue bonds.
Single-state municipal funds are generally exempt from federal, state, and local taxes. That makes them attractive to investors who are worrying about rising tax rates, said Pioneer portfolio manager Kathleen McClaskey.
So far this year, industry-wide sales of single-state muni funds are running 55% higher than last year, Ms. McClaskey said.