MARKET BRIEFS

* Mini-Muni Fund Gets Low Draw: California attracted just $18 million in small-investor orders for its novel CalBond Tax Free Fund, which allowed buyers with as little as $250 to invest in a pool of the state’s general obligation bonds sold on Wednesday.

The fund, unveiled March 10 by state Treasurer Kathleen Brown, was marketed as a long-term investment for average Californians saving for retirement or children’s education. Investors were able to choose the term of their bonds, and the yield received was locked in for that term. The bonds are zero-coupon issues, which pay all of their interest at maturity.

Concord Financial Group, a New York-based firm that helped develop the fund, originally hoped to see at least $25 million in initial purchases. Richard Stierwalt, Concord’s chief executive, insisted that “we feel good about the results,” despite the smaller draw.

He said the shortfall occurred in fund orders over the $15,000 mark. Investors purchasing more than that sum were forced to go through a broker and pay a 2.5% commission. That requirement apparently didn’t sit well with potential buyers, Stierwalt conceded.

Brown’s office said she is “committed” to offering similar funds at future state bond sales.