If you've been stuck searching for Muni - Bonds funds, you might want to consider passing on by Nuveen Municipals Total Return Managed Accounts Portfolio (NMTRX) as a possibility. NMTRX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify NMTRX 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
Nuveen is responsible for NMTRX, and the company is based out of Chicago, IL. Nuveen Municipals Total Return Managed Accounts Portfolio made its debut in January of 2008, and since then, NMTRX has accumulated about $1.59 billion in assets, per the most up-to-date date available. The fund's current manager, Martin J. Doyle, has been in charge of the fund since January of 2008.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1%, and is in the bottom 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 -0.89%, which places it in the bottom 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. NMTRX's standard deviation over the past three years is 7.3% compared to the category average of 8.23%. The fund's standard deviation over the past 5 years is 6.84% compared to the category average of 8.22%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.72, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, NMTRX has a negative alpha of -0.27, 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, NMTRX has 55.3% in high quality bonds rated at least 'AA' or higher, while 31.3% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
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, NMTRX is a no load fund. It has an expense ratio of 0% compared to the category average of 0.56%. So, NMTRX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and lower fees, Nuveen Municipals Total Return Managed Accounts Portfolio ( NMTRX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
Want even more information about NMTRX? 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
