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Muni-Bond Fund Repricings Hurt Heartland Redemptions In An Illiquid, Weak Market Unmasked Problems.(B)(Making Money In Mutuals)

Investor's Business Daily

| October 31, 2000 | COPYRIGHT 2003 Investor's Business Daily, Inc. (Hide copyright information)Copyright

Byline: Claire Mencke

Investor's Business Daily

Little could have prepared investors, analysts and advisers for what happened after late September to two high-yield municipal bond funds managed by Heartland Funds. Or could it?

Investors who sued the fund family Friday in federal court in Wisconsin thoughtso.

Money started flowing out of Heartland High-Yield Municipal Bond Fund and Heartland Short Duration High-Yield Municipal Fund before Sept. 28. That day, the fun

ds' manager, Thomas Conlin, resigned and a new manager, Philip Fiskow, took over. Money outflows accelerated.

That doesn't sound so unusual. Both taxable and tax-exempt high-yield funds …

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