Natixis announces plans for McDonnell Intermediate Municipals fund

By Toni Weeks

San Diego, Oct. 17 - Natixis Funds Trust II announced it will launch a new municipal fund in late December.

According to an N-1A filing with the Securities and Exchange Commission, the McDonnell Intermediate Municipal Bond Fund will seek a high level of federal tax-exempt current income consistent with the preservation of capital.

Under normal market conditions, it will invest at least 80% of its net assets, plus borrowings made for investment purposes, in municipal securities that pay interest exempt from federal income taxes. The fund may invest up to 20% of its assets in debt securities that are subject to the federal alternative minimum tax. Although the fund invests primarily in investment-grade securities, it may invest up to 10% of its assets in high-yield bonds.

The fund's portfolio is expected to maintain a dollar-weighted average maturity of between three and 10 years.

Dawn Daggy-Mangerson, James Grabovac, Lawrence Jones and Steve Wlodarski are the portfolio managers. All are employed by McDonnell Investment Management, LLC, the fund's subadviser.

The fund will launch with class A, class C and class Y shares. The ticker symbols have not yet been set.

Shareholder fees and annual fund operating expenses have not yet been determined.

Boston-based NGAM Advisors, LP will be the investment adviser.

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