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If you have been looking for Muni - Bonds funds, a place to start could be Nuveen High Yield Municipals Bond A (NHMAX - Free Report) . NHMAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes NHMAX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
NHMAX is a part of the Nuveen family of funds, a company based out of Chicago, IL. The Nuveen High Yield Municipals Bond A made its debut in June of 1999 and NHMAX has managed to accumulate roughly $6.51 billion in assets, as of the most recently available information. The fund is currently managed by John V. Miller who has been in charge of the fund since December of 2000.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 5.29%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 4.72%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. NHMAX's standard deviation over the past three years is 9.46% compared to the category average of 12.38%. The fund's standard deviation over the past 5 years is 8.06% compared to the category average of 11%. This makes the fund less volatile than its peers over the past half-decade.
NHMAX carries a beta of 1.2, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -1.11, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, NHMAX 's junk bond component-bonds rated 'BB' or below-is at 24.71%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 51 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, NHMAX is a load fund. It has an expense ratio of 0.74% compared to the category average of 0.82%. NHMAX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Nuveen High Yield Municipals Bond A ( NHMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Muni - Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is NHMAX a Strong Bond Fund Right Now?
If you have been looking for Muni - Bonds funds, a place to start could be Nuveen High Yield Municipals Bond A (NHMAX - Free Report) . NHMAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes NHMAX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
NHMAX is a part of the Nuveen family of funds, a company based out of Chicago, IL. The Nuveen High Yield Municipals Bond A made its debut in June of 1999 and NHMAX has managed to accumulate roughly $6.51 billion in assets, as of the most recently available information. The fund is currently managed by John V. Miller who has been in charge of the fund since December of 2000.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 5.29%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 4.72%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. NHMAX's standard deviation over the past three years is 9.46% compared to the category average of 12.38%. The fund's standard deviation over the past 5 years is 8.06% compared to the category average of 11%. This makes the fund less volatile than its peers over the past half-decade.
NHMAX carries a beta of 1.2, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -1.11, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, NHMAX 's junk bond component-bonds rated 'BB' or below-is at 24.71%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 51 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, NHMAX is a load fund. It has an expense ratio of 0.74% compared to the category average of 0.82%. NHMAX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Nuveen High Yield Municipals Bond A ( NHMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Muni - Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.