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There are plenty of choices in the Muni - Bonds category, but where should you start your research? Well, one fund that you should consider investigating is AI Kansas Tax-Exempt Bond I (SEKSX - Free Report) . SEKSX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SEKSX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
AIF is responsible for SEKSX, and the company is based out of New York, NY. Since AI Kansas Tax-Exempt Bond I made its debut in December of 1990, SEKSX has garnered more than $178.83 million in assets. The fund is currently managed by Neil Klein who has been in charge of the fund since December of 2016.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.76%, 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 3.6%, 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. The standard deviation of SEKSX over the past three years is 2.96% compared to the category average of 9.03%. Over the past 5 years, the standard deviation of the fund is 2.67% compared to the category average of 7.94%. This makes the fund less volatile than its peers over the past half-decade.
SEKSX carries a beta of 0.54, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.2, 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, SEKSX has 47.22% in high quality bonds rated at least 'AA' or higher, while 38.45% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
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, SEKSX is a no load fund. It has an expense ratio of 0.48% compared to the category average of 0.83%. Looking at the fund from a cost perspective, SEKSX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3 million and that each subsequent investment needs to be at $5,000.
Bottom Line
Overall, AI Kansas Tax-Exempt Bond I ( SEKSX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SEKSX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is SEKSX a Strong Bond Fund Right Now?
There are plenty of choices in the Muni - Bonds category, but where should you start your research? Well, one fund that you should consider investigating is AI Kansas Tax-Exempt Bond I (SEKSX - Free Report) . SEKSX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SEKSX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
AIF is responsible for SEKSX, and the company is based out of New York, NY. Since AI Kansas Tax-Exempt Bond I made its debut in December of 1990, SEKSX has garnered more than $178.83 million in assets. The fund is currently managed by Neil Klein who has been in charge of the fund since December of 2016.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.76%, 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 3.6%, 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. The standard deviation of SEKSX over the past three years is 2.96% compared to the category average of 9.03%. Over the past 5 years, the standard deviation of the fund is 2.67% compared to the category average of 7.94%. This makes the fund less volatile than its peers over the past half-decade.
SEKSX carries a beta of 0.54, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.2, 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, SEKSX has 47.22% in high quality bonds rated at least 'AA' or higher, while 38.45% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
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, SEKSX is a no load fund. It has an expense ratio of 0.48% compared to the category average of 0.83%. Looking at the fund from a cost perspective, SEKSX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $3 million and that each subsequent investment needs to be at $5,000.
Bottom Line
Overall, AI Kansas Tax-Exempt Bond I ( SEKSX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SEKSX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.