LOS ANGELES, Jan. 21, 2014 (GLOBE NEWSWIRE) -- City National Rochdale has launched a new open-end mutual fund that is designed to generate high levels of tax-exempt income primarily from a diversified portfolio of sub-investment grade and unrated municipal bonds. Securities will be selected by the fund's sub-advisor, Waddell & Reed Investment Management Co., a specialist in this area of municipal finance. The fund is a new addition to the firm's investment strategies and adds to the growing family of nearly 20 mutual funds that City National Rochdale currently provides.
The City National Rochdale Municipal High Income Fund may be suitable for clients looking for higher levels of tax-exempt income than is typically available from traditional municipal bond portfolios. Specifically, the fund may:
- Identify inefficiently priced, credit-worthy municipal securities within a risk-managed framework.
- Employ a research-intensive investment process, investing primarily in sub-investment grade and unrated bonds.
- Provide a portfolio diversified across individual securities, geographies and sectors.
"City National Rochdale is committed to portfolio management services and this new fund was created in that tradition - with a strategy that seeks to invest in a diverse selection of high-yield municipal bonds with a long-term approach," said Garrett D'Alessandro, chief executive officer of City National Rochdale. "Our clients who are looking for diversification in fixed income and seeking a potentially higher level of tax-exempt income could be interested in this fund. Higher yielding municipal bonds have historically had lower default rates than similarly rated corporate bonds and may offer high levels of income with an exemption from federal taxes."The City National Rochdale Municipal High Income Fund is benchmarked to the Barclays High Yield Municipal Bond Index. City National Rochdale is the advisor to the fund and Waddell & Reed Investment Management Co., with more than $2 billion in high-yield municipal bond strategies, will sub-advise the fund.