Naotsune Alliance Launches Tax-Exempt Bond Index Fund

The fund will offer three low-cost share classes, including exchange-traded fund (ETF) shares

OSAKA, KANSAI, JAPAN, March 27, 2020 / — Naotsune Alliance, a financial adviser for the world of business that provides discretionary investment advisory services for individual clients, wealthy families, institutional investors and investment trusts today introduced its first municipal bond index fund, Naotsune Alliance Tax-Exempt Bond Index Fund.

“Our new fund enables us to leverage our experience and expertise in both of these areas,” said Arinobu V. Saito, Chief Executive Officer. “Not only did we offer the first index mutual fund to individual investors, but we were also the first to offer investors a choice among municipal bond funds of differing maturities. We are pleased to now provide a low-cost tax-exempt option for investors who prefer an index approach.”

Conventional share classes include a purchase fee to defray portfolio transaction costs and enable the fund to more closely track its benchmark.

The fund seeks to offer diversified exposure to the national municipal bond market, representing bonds with maturities across the yield curve and an effective duration between 5-8 years. The index reflects a higher-quality, investment-grade universe that focuses on the more liquid portion of the market.

“We believe a fund focused on high-quality municipal securities with greater liquidity relative to the overall municipal bond market will reduce credit and liquidity risk. The fund will also benefit from our deep and long-tenured municipal market team, as well as our scale, to minimize trading costs and closely match the benchmark’s risk characteristics. At the same time, the fund will carry the interest rate risk consistent with medium- to long-term bonds,” said Genjiro Ono, Head of Naotsune Alliance’s Municipal Bond Group.

Tax-Exempt Bond Index Fund, Naotsune Alliance manages 12 actively managed municipal bond funds and 6 tax-exempt money market funds, including both national and state-specific funds.

About Naotsune Alliance
Naotsune Alliance is a financial adviser for the world of business, a world in which community is key. The company’s memberships, partnerships and associations are chosen with care, and its selectiveness ensures it is connected to the right people and have access to the best and most up-to-date knowledge. Our main products are Japanese equity funds utilizing Naotsune Alliance’s research ability for Japanese companies cantered on mid-small cap companies, start-ups and IPOs. Naotsune Alliance also manages funds with external asset managers and funds managed by prominent asset managers located all over the world.

Wilhelm Wagner
Naotsune Alliance
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Source: EIN Presswire