At least one mutual fund firm aims to tap directly into the federal stimulus package. On Thursday Eaton Vance filed to launch the Eaton Vance Build America Bonds Fund, which will invest in so-called "Build America Bonds," i.e. "taxable municipal obligations pursuant to the American Recovery and Reinvestment Act of 2009 ..."

The Wall Street Journal's Daisy Maxey reports that municipalities have issued $27 billion in direct pay Build America Bonds so far. Fundster consultant Geoff Bobroff confirmed to the WSJ that Eaton Vance's proposal would be the first such fund that he knows of.

The new fund has not yet been approved by the SEC, though the proposed prospectus is dated November 17. The fund would offer A shares (for 475 basis points in maximum load and 95 bps in net expense ratio), C shares (for 100 bps in max deferred load and 170 bps in net expense ratio) and I shares ( for 70 bps in net expense ratio). Class A and C shares both require a minimum initial investment of $1,000, while I shares would require $250,000. Craig Brandon and Adam Weigold, both vice presidents on Eaton Vance's municipals team, will manage the fund. 

Edited by: Neil Anderson, Managing Editor


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