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Is OOSAX a Strong Bond Fund Right Now?

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Diversified Bonds fund seekers should consider taking a look at Invesco Senior Floating Rate A (OOSAX - Free Report) . OOSAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Diversified Bonds funds is an area filled with options, such as OOSAX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.

History of Fund/Manager

Invesco is based in Kansas City, MO, and is the manager of OOSAX. Invesco Senior Floating Rate A debuted in September of 1999. Since then, OOSAX has accumulated assets of about $1.46 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.51%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 7.53%, which places it in the middle 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. Over the past three years, OOSAX's standard deviation comes in at 3.14%, compared to the category average of 11.8%. Over the past 5 years, the standard deviation of the fund is 3.33% compared to the category average of 11.52%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of -0.19, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, OOSAX has a positive alpha of 5.05, which measures performance on a risk-adjusted basis.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, OOSAX is a load fund. It has an expense ratio of 1.12% compared to the category average of 0.97%. So, OOSAX is actually more expensive than its peers from a cost perspective.

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

Overall, Invesco Senior Floating Rate A ( OOSAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, Invesco Senior Floating Rate A ( OOSAX ) looks like a good potential choice for investors right now.

Want even more information about OOSAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.


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