Printer Friendly

FUNDAMENTAL FAMILY OF FUNDS: BEST PERFORMING TAX-EXEMPT BOND PORTFOLIO MANAGER SEES GOLDEN OPPORTUNITY IN CALIFORNIA OBLIGATIONS

 FUNDAMENTAL FAMILY OF FUNDS: BEST PERFORMING TAX-EXEMPT BOND
 PORTFOLIO MANAGER SEES GOLDEN OPPORTUNITY IN CALIFORNIA OBLIGATIONS
 NEW YORK, July 14 /PRNewswire/ -- The portfolio manager who scored the best performance of a municipal bond fund both last year and so far this year by investing heavily in New York City tax-exempt obligations when most investors found them too risky says state of California bonds present a similar opportunity, Fundamental Family of Funds announced today.
 "New York City didn't go broke. In fact, it's now regarded as an improving credit. I believe the State of California is no different. Sure it has problems, but the state will continue to meet its obligations. I think its general obligation bonds are money good."
 So says Lance M. Brofman, a Ph.D. who is chief portfolio strategist at the Fundamental Family of Funds, which sponsors both The New York Muni Fund and The California Muni Fund -- both single state tax-exempt mutual funds.
 Under Brofman's management, New York Muni Fund in 1991 achieved a 15.76 percent total return, outperforming all of the nation's tax-exempt bond funds. According to Lipper Analytical Service, New York Muni through the first six months of 1992 has racked up a similar feat, with a 6.3 percent total return that places it first among all of the single state New York bond funds. Also, according to Lipper, The New York Muni Fund for the 12 months through June 30, 1992, scored a 19.56 percent total return, ranking it first among all municipal funds.
 "Last year, New York City bonds were perceived in the marketplace as a dubious investment," recalls Brofman. "The city clearly had its fiscal troubles, but what most people refused to recognize was that its obligations, which were backed by proceeds from real estate taxes, would not go into default. We were able to invest in New York City bonds with very attractive yields, and now that the market is recognizing what we saw, and especially with the city rebounding economically, prices have started to improve."
 He adds, "California will turn out to be a similar story, and the recent downgradings of its bonds, I believe, will turn out to be a buying opportunity."
 Brofman says that despite the high unemployment rate, the loss of defense business, the recent inability of the state's legislature to agree on a budget and even earthquakes, California is far from down and out.
 "The economy overall remains diversified, but even more important the state won't and cannot afford to disappoint investors in its securities. California is still a very wealthy state, and the interest and principal on its bonds will prove to be as secure as any around," states Brofman.
 "Moreover," he adds, "the political turmoil and downgradings of the state's bond ratings by the credit rating agencies, just as with New York City, confuses the issue for investors. Almost regardless of the political process, it seems safe to say, a default is not in the cards."
 He also notes that with one of the highest personal tax rates in the country, California residents should especially look closely at investing in the state's tax-exempt bonds. "From where I sit, it makes a good deal of sense for those who can afford it to have part of their assets in a portfolio of the state's obligations, which are free of both state and federal taxes, and where yields are well in excess of money market rates," says Brofman.
 Brofman was the founder of the New York Muni Fund, the first mutual fund to offer investors income that was tax-exempt on the federal, state and local levels. The Fundamental Family of Funds, in addition to tax exempt funds, is also sponsor of the Fundamental U.S. Government Strategic Income Fund, a high-yielding mutual fund - with a current return in excess of 10 percent -- that invests in triple-A U.S. government bonds.
 -0- 7/14/92
 /CONTACT: Lance Brofman of Fundamental Family of Funds, 212-635-3000, or Steven S. Anreder of Anreder and Company, 212-421-4020, for Fundamental Family of Funds/ CO: Fundamental Family of Funds ST: New York, California IN: FIN SU:


PS-TS -- NY035 -- 9056 07/14/92 11:20 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 14, 1992
Words:696
Previous Article:BELL ATLANTIC UNVEILS WIRELESS VISION TO INDUSTRY ANALYSTS
Next Article:MICROCOM INTRODUCES LANLORD LAN MANAGEMENT SOFTWARE AT PC EXPO


Related Articles
THE VOYAGEUR COMPANY INVESTMENT MANAGERS AVAILABLE TO MEDIA FOR POST-ELECTION INVESTMENT COVERAGE
THE SECURITY OF AN INSURED WASHINGTON MUNICIPAL BOND FUND LETS PEOPLE SLEEP AT NIGHT
THE SECURITY OF AN INSURED OREGON MUNICIPAL BOND FUND LETS PEOPLE SLEEP AT NIGHT
CALIFORNIA MUNICIPAL BONDS CAN BE A GOOD INVESTMENT FOR INVESTORS SEEKING TAX FREE INCOME
BANK OF AMERICA WILL ADVISE FOUR NEW PACIFIC HORIZON MUTUAL FUNDS
NATIONAL CITY ANNOUNCES ADDITIONS TO NCC FUNDS FAMILY
Swayze Among Three Added to Colonial's MuniBond Staff
Colonial Promotes Four in Muni Department.
First American Funds Introduces Four New Mutual Funds; U.S. Bancorp's Mutual Fund Division Expands Fixed-Income Offerings.
BB&T Funds Family Adds OVB Funds.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters