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On the lookout for a Muni - Bonds fund? Starting with American Century High Yield Municipals Investor (ABHYX - Free Report) is one possibility. ABHYX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
ABHYX 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
American Century is based in Kansas City, MO, and is the manager of ABHYX. American Century High Yield Municipals Investor debuted in March of 1998. Since then, ABHYX has accumulated assets of about $267.85 million, 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 has delivered a 5-year annualized total return of 3.66%, 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 2.92%, 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. Over the past three years, ABHYX's standard deviation comes in at 6.9%, compared to the category average of 10.96%. Over the past 5 years, the standard deviation of the fund is 6.09% compared to the category average of 10.02%. This makes the fund less volatile than its peers over the past half-decade.
ABHYX carries a beta of 0.9, 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 -1.24, 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, ABHYX has 24.88% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 23.86%, giving ABHYX an average quality of BBB. This means that it focuses on medium quality securities.
However, it is worth noting that 36 % 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, ABHYX is a no load fund. It has an expense ratio of 0.60% compared to the category average of 0.82%. So, ABHYX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, American Century High Yield Municipals Investor ( ABHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about ABHYX? 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. 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 ABHYX a Strong Bond Fund Right Now?
On the lookout for a Muni - Bonds fund? Starting with American Century High Yield Municipals Investor (ABHYX - Free Report) is one possibility. ABHYX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
ABHYX 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
American Century is based in Kansas City, MO, and is the manager of ABHYX. American Century High Yield Municipals Investor debuted in March of 1998. Since then, ABHYX has accumulated assets of about $267.85 million, 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 has delivered a 5-year annualized total return of 3.66%, 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 2.92%, 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. Over the past three years, ABHYX's standard deviation comes in at 6.9%, compared to the category average of 10.96%. Over the past 5 years, the standard deviation of the fund is 6.09% compared to the category average of 10.02%. This makes the fund less volatile than its peers over the past half-decade.
ABHYX carries a beta of 0.9, 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 -1.24, 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, ABHYX has 24.88% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 23.86%, giving ABHYX an average quality of BBB. This means that it focuses on medium quality securities.
However, it is worth noting that 36 % 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, ABHYX is a no load fund. It has an expense ratio of 0.60% compared to the category average of 0.82%. So, ABHYX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, American Century High Yield Municipals Investor ( ABHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about ABHYX? 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. 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.