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Any investors hoping to find a Muni - Bonds fund could think about starting with Nuveen High Yield Municipals Bond A (NHMAX - Free Report) . NHMAX possesses 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
Nuveen is based in Chicago, IL, and is the manager of NHMAX. Nuveen High Yield Municipals Bond A debuted in June of 1999. Since then, NHMAX has accumulated assets of about $7.15 billion, according to the most recently available information. The fund's current manager, John V. Miller, 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. NHMAX has a 5-year annualized total return of 6.04% and it sits 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 6.44%, 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. Compared to the category average of 13.39%, the standard deviation of NHMAX over the past three years is 9.72%. Over the past 5 years, the standard deviation of the fund is 8.27% compared to the category average of 11.23%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.95, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, NHMAX has a positive alpha of 0.11, 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 20.5%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 63 % 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 0.75% compared to the category average of 0.80%. NHMAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $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, Nuveen High Yield Municipals Bond A ( NHMAX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Muni - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is NHMAX a Strong Bond Fund Right Now?
Any investors hoping to find a Muni - Bonds fund could think about starting with Nuveen High Yield Municipals Bond A (NHMAX - Free Report) . NHMAX possesses 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
Nuveen is based in Chicago, IL, and is the manager of NHMAX. Nuveen High Yield Municipals Bond A debuted in June of 1999. Since then, NHMAX has accumulated assets of about $7.15 billion, according to the most recently available information. The fund's current manager, John V. Miller, 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. NHMAX has a 5-year annualized total return of 6.04% and it sits 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 6.44%, 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. Compared to the category average of 13.39%, the standard deviation of NHMAX over the past three years is 9.72%. Over the past 5 years, the standard deviation of the fund is 8.27% compared to the category average of 11.23%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.95, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, NHMAX has a positive alpha of 0.11, 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 20.5%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 63 % 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 0.75% compared to the category average of 0.80%. NHMAX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $3,000, investors should also note that each subsequent investment needs to be at least $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, Nuveen High Yield Municipals Bond A ( NHMAX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Muni - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.