Topnotch Muni Bond Fund Loses Veteran Manager

Beth Foos: Fidelity's Municipal Income Fund is a solid choice for muni investors. This fund's combination of a strong long-term record, solid analytics, and low expenses earns it a Morningstar Analyst Rating of Gold. 

In April, Fidelity announced that veteran muni manager Jamie Pagliocco would step down from the firm's muni funds to take a position heading the firm's fixed income trading group, effective May 2, 2016. Because the firm takes such a team-based approach when managing its muni funds, we don't expect the development to cause significant disruption to the team or its process. Pagliocco's current co-managers, Mark Sommer and Kevin Ramundo, who have managed muni funds at the firm since 2002 and 2010, respectively, will be named managers on the firm's entire suite of muni offerings, including this fund. Joining the team as a new portfolio manager is Cormac Cullen, a 15-year Fidelity veteran. 

The team is expected to continue to run a relatively high-quality portfolio which steers clear of leverage and the market's most volatile names like tobacco and Puerto Rico. Its trailing 10-year annualized return beats more than 80% of its peers in the muni national long category. This fund's straightforward approach and strong results make it worth a look for muni investors.