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Is VSLAX a Strong Bond Fund Right Now?

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Have you been searching for a Mutual Fund Bond fund? You might want to begin with Invesco Senior Loan A (VSLAX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.

History of Fund/Manager

Invesco is responsible for VSLAX, and the company is based out of Kansas City, MO. The Invesco Senior Loan A made its debut in February of 2005 and VSLAX has managed to accumulate roughly $47.72 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.

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 3.52%, and is in the middle 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 5.42%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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 13.25%, the standard deviation of VSLAX over the past three years is 4.63%. The fund's standard deviation over the past 5 years is 8.3% compared to the category average of 13.9%. This makes the fund less volatile than its peers over the past half-decade.

VSLAX carries a beta of -0.33, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 2.16, which measures performance on a risk-adjusted basis.

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, VSLAX is a load fund. It has an expense ratio of 3% compared to the category average of 0.86%. Looking at the fund from a cost perspective, VSLAX is actually more expensive than its peers.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

This could just be the start of your research on VSLAXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.


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