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If you have been looking for Muni - Bonds funds, a place to start could be Nuveen Intermediate Duration Municipals I (NUVBX - Free Report) . NUVBX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
NUVBX 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
Nuveen is responsible for NUVBX, and the company is based out of Chicago, IL. Nuveen Intermediate Duration Municipals I debuted in November of 1976. Since then, NUVBX has accumulated assets of about $7.62 billion, according to the most recently available information. The fund is currently managed by Paul L. Brennan who has been in charge of the fund since December of 2007.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 1.45%, and it sits 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 5.28%, 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. Compared to the category average of 9.69%, the standard deviation of NUVBX over the past three years is 5.22%. Over the past 5 years, the standard deviation of the fund is 5.25% compared to the category average of 10.55%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a specific bond's interest rate sensitivity, and is an excellent way to judge how fixed income securities will respond to a shifting rate environment.
For investors who think interest rates will rise, this is an important factor to consider. NUVBX has a modified duration of 5.3, which suggests that the fund will decline 5.3% for every hundred-basis-point increase in interest rates.
With a beta of 0.49, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, NUVBX has a negative alpha of -0.04 , 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, NUVBX has 47% in high quality bonds rated at least "AA" or higher, while 38.9% 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, NUVBX is a no load fund. It has an expense ratio of 0.43% compared to the category average of 0.83%. From a cost perspective, NUVBX is actually cheaper than its peers.
While the minimum initial investment for the product is $100,000, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Nuveen Intermediate Duration Municipals I ( NUVBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Nuveen Intermediate Duration Municipals I ( NUVBX ) looks like a good potential choice for investors right now.
Want even more information about NUVBX? 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is NUVBX a Strong Bond Fund Right Now?
If you have been looking for Muni - Bonds funds, a place to start could be Nuveen Intermediate Duration Municipals I (NUVBX - Free Report) . NUVBX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
NUVBX 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
Nuveen is responsible for NUVBX, and the company is based out of Chicago, IL. Nuveen Intermediate Duration Municipals I debuted in November of 1976. Since then, NUVBX has accumulated assets of about $7.62 billion, according to the most recently available information. The fund is currently managed by Paul L. Brennan who has been in charge of the fund since December of 2007.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 1.45%, and it sits 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 5.28%, 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. Compared to the category average of 9.69%, the standard deviation of NUVBX over the past three years is 5.22%. Over the past 5 years, the standard deviation of the fund is 5.25% compared to the category average of 10.55%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a specific bond's interest rate sensitivity, and is an excellent way to judge how fixed income securities will respond to a shifting rate environment.
For investors who think interest rates will rise, this is an important factor to consider. NUVBX has a modified duration of 5.3, which suggests that the fund will decline 5.3% for every hundred-basis-point increase in interest rates.
With a beta of 0.49, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, NUVBX has a negative alpha of -0.04 , 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, NUVBX has 47% in high quality bonds rated at least "AA" or higher, while 38.9% 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, NUVBX is a no load fund. It has an expense ratio of 0.43% compared to the category average of 0.83%. From a cost perspective, NUVBX is actually cheaper than its peers.
While the minimum initial investment for the product is $100,000, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Nuveen Intermediate Duration Municipals I ( NUVBX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, Nuveen Intermediate Duration Municipals I ( NUVBX ) looks like a good potential choice for investors right now.
Want even more information about NUVBX? 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.