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If investors are looking at the Muni - Bonds fund category, Nuveen Intermediate Duration Municipals I (NUVBX) could be a potential option. NUVBX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes NUVBX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
Nuveen is based in Chicago, IL, and is the manager of NUVBX. The Nuveen Intermediate Duration Municipals I made its debut in November of 1976 and NUVBX has managed to accumulate roughly $6.49 billion in assets, as of the most recently available information. Paul L. Brennan is the fund's current manager and has held that role 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 1.29%, 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 -0.76%, 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 11.55%, the standard deviation of NUVBX over the past three years is 6.18%. Over the past 5 years, the standard deviation of the fund is 5.71% compared to the category average of 12.03%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.69, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, NUVBX has a negative alpha of -0.07, which measures performance on a risk-adjusted basis.