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If investors are looking at the Muni - Bonds fund category, Colorado Bond Shares Tax-Exempt A (HICOX) could be a potential option. HICOX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify HICOX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.
History of Fund/Manager
HICOX is a part of the Freedom Funds family of funds, a company based out of Denver, CO. Colorado Bond Shares Tax-Exempt A made its debut in June of 1987, and since then, HICOX has accumulated about $1.82 billion in assets, per the most up-to-date date available. Fred R. Kelly Jr. Is the fund's current manager and has held that role since November of 1990.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 3.47%, and is 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 3%, 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. Over the past three years, HICOX's standard deviation comes in at 5.9%, compared to the category average of 6.53%. The fund's standard deviation over the past 5 years is 5.35% compared to the category average of 5.61%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.59, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, HICOX has a positive alpha of 2.09, which measures performance on a risk-adjusted basis.