First Security Municipal Bond Fund plans to launch in May

By Toni Weeks

San Luis Obispo, Calif., March 6 – Capitol Series Trust announced in an N-1A filing with the Securities and Exchange Commission its plans to launch in May a new municipal fund, the First Security Municipal Bond Fund.

The fund will seek income and capital appreciation. Under normal circumstances, it will invest at least 80% of its net assets in taxable and tax-exempt municipal bonds, including general obligation municipal bonds, revenue municipal bonds and private activity bonds. The fund will primarily focus on fixed-income securities of U.S. issuers but may invest up to 20% in fixed-income securities of issuers operating in jurisdictions outside of the United States, including emerging markets.

James S. Jones is the portfolio manager

The fund will offer institutional and A shares. The ticker symbols have not been set.

Class A shares will be subject to a maximum sales load of 2%. Including a management fee of 0.49%, and taking into account the effects of an expense reduction and reimbursement agreement, total annual fund operating expenses are expected to be 0.99% for institutional shares and 1.24% for A shares.

Little Rock, Ark.-based First Security Fund Advisers, Inc. will be the investment adviser.

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