Van Kampen Trust changes policy to allow investments in munis insured by lower-rated insurers

By Cristal Cody

Springdale, Ark., Aug. 21 - The Van Kampen Trust for Insured Municipals announced Thursday a policy change to allow investments in municipal securities that are insured by lower-rated insurers.

The trust had required all investments in municipal securities to be insured by an insurer rated AAA.

Because of the recent insurer ratings downgrades, the trust now will require an investment of at least 80% of its net assets in municipal securities that are insured by insurers rated A or better.

The changed policy reflects that the claims-paying ability of many insurers may not be upgraded again to AAA in the near future, the trust said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.