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High Yield - Bonds fund seekers should consider taking a look at Virtus Seix Floating Rate High Income I (SAMBX). SAMBX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
SAMBX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Virtus Funds is based in Hartford, CT, and is the manager of SAMBX. Since Virtus Seix Floating Rate High Income I made its debut in March of 2006, SAMBX has garnered more than $1.10 billion in assets. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 5.09%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 6.57%, 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. SAMBX's standard deviation over the past three years is 3.75% compared to the category average of 12.62%. The standard deviation of the fund over the past 5 years is 6.77% compared to the category average of 13.73%. This makes the fund less volatile than its peers over the past half-decade.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, SAMBX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.93%. SAMBX is actually cheaper than its peers when you consider factors like cost.