Having trouble finding a Mutual Fund Bond fund? Invesco High Yield Municipals Y (ACTDX) is a potential starting point. ACTDX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ACTDX. Since Invesco High Yield Municipals Y made its debut in March of 2006, ACTDX has garnered more than $2.03 billion in assets. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 1.31%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 1.34%, which places it in the bottom 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. ACTDX's standard deviation over the past three years is 8.81% compared to the category average of 15.73%. Looking at the past 5 years, the fund's standard deviation is 8.74% compared to the category average of 13.7%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.13, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, ACTDX has a negative alpha of -0.22, 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, ACTDX 's junk bond component-bonds rated 'BB' or below-is at 22.05%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 55 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, ACTDX is a no load fund. It has an expense ratio of 1.14% compared to the category average of 0.78%. From a cost perspective, ACTDX is actually more expensive than its peers.