To diversify your investment portfolio, investor should consider to have several bond mutual funds. One of the best rated taxable bond funds is Frost Total Return Bond fund. This fund is rather new but is has provided consistent return. The following article will provide the fund's review.
Frost Total Return Bond A (MUTF: FATRX)
The Frost Total Return Bond fund seeks to maximize total return (i.e. provide income and capital appreciation), consistent with the preservation of principal. The fund usually invests majority of net assets (>80%) in investment grade fixed income securities. The fund typically has the average weighted duration of plus or minus 3 years of the fund benchmark's duration. This Frost fund may invest in below investment grade bonds.
FATRX Fund Details
Jeffery G. Elswick has managed this top rated Intermediate-Term bond fund since June 1981, even though this FATRX fund was officially introduced to public in July 2008. This fund has an expense ratio of 0.79% per year. It charges 0.25% 121b fee and 3.75% front-end sales load fee. It has a yield of 4.57%. The fund's effective duration is 3.24 years
The minimum balance to invest in this best mutual fund is $2,500 for brokerage account and $1,500 for retirement (IRA) account. This fund requires $500 for the minimum subsequent investment. This fund can be purchased from a limited list of 22 brokerages, such as JP Morgan, Scottrade Load, Schwab Retail, ETrade No Load Fee, Fidelity Retail Funds Network, Pershing Fund Center, etc. The other class of this fund is the Institutional Class (Ticker: FIJEX).
This FATRX fund has returned 4.37% over the past one year and 8.16% over the past three years. This fund has been rated with 4-stars Morningstar Return Rating. For the previous two years after its inception, this top rated bond fund has given positive return (19.12% in year 2009 and 8.57% in year 2010). It has 4.06% YTD return. Currently, the three-year beta of this fund is 0.58%.
The top 10 bond holdings in this fixed income fund as of June 2011 are US Treasury Note (2.55%), GNMA Pool (2.40%), Transocean Inc (1.95%), NAVOT (1.92%), WCP (1.86%), Ohain (1.83%), DT Auto Owner TR (1.51%), MSSR 2011 Keya (1.44%), Farmer Mac (1.42%) and FNMA Pool (1.37%). These are the top holdings out of 182 total holdings that represent 18.25% of total portfolio. As of June 2011, the top bond credit quality based on the portfolio percentage is US Government (27%), BBB (20%), AAA (15%) and A/A2 (15%).
Disclosure: No Position
If you are interested in best rated bond funds, please check these articles:
Frost Total Return Bond A (MUTF: FATRX)
The Frost Total Return Bond fund seeks to maximize total return (i.e. provide income and capital appreciation), consistent with the preservation of principal. The fund usually invests majority of net assets (>80%) in investment grade fixed income securities. The fund typically has the average weighted duration of plus or minus 3 years of the fund benchmark's duration. This Frost fund may invest in below investment grade bonds.
FATRX Fund Details
 |
| Frost Total Return Bond fund |
- Fund Inception Date: July 1, 2008
- Ticker Symbol: FATRX
- CUSIP: 00766Y679
- Beta (3yr): 0.58
- Rank in category (YTD): 20%
- Category: Intermediate-Term Bond
- Yield: 4.57%
- Capital Gains: N/A
- Sales Load: 3.75%
- Number of Years Up: 2 years
- Number of Years Down: 0 years
- Total Net Assets: $544.26 million
- Effective Duration: 3.24 years
- Average Maturity: 5.13 years
Jeffery G. Elswick has managed this top rated Intermediate-Term bond fund since June 1981, even though this FATRX fund was officially introduced to public in July 2008. This fund has an expense ratio of 0.79% per year. It charges 0.25% 121b fee and 3.75% front-end sales load fee. It has a yield of 4.57%. The fund's effective duration is 3.24 years
The minimum balance to invest in this best mutual fund is $2,500 for brokerage account and $1,500 for retirement (IRA) account. This fund requires $500 for the minimum subsequent investment. This fund can be purchased from a limited list of 22 brokerages, such as JP Morgan, Scottrade Load, Schwab Retail, ETrade No Load Fee, Fidelity Retail Funds Network, Pershing Fund Center, etc. The other class of this fund is the Institutional Class (Ticker: FIJEX).
This FATRX fund has returned 4.37% over the past one year and 8.16% over the past three years. This fund has been rated with 4-stars Morningstar Return Rating. For the previous two years after its inception, this top rated bond fund has given positive return (19.12% in year 2009 and 8.57% in year 2010). It has 4.06% YTD return. Currently, the three-year beta of this fund is 0.58%.
The top 10 bond holdings in this fixed income fund as of June 2011 are US Treasury Note (2.55%), GNMA Pool (2.40%), Transocean Inc (1.95%), NAVOT (1.92%), WCP (1.86%), Ohain (1.83%), DT Auto Owner TR (1.51%), MSSR 2011 Keya (1.44%), Farmer Mac (1.42%) and FNMA Pool (1.37%). These are the top holdings out of 182 total holdings that represent 18.25% of total portfolio. As of June 2011, the top bond credit quality based on the portfolio percentage is US Government (27%), BBB (20%), AAA (15%) and A/A2 (15%).
Disclosure: No Position
If you are interested in best rated bond funds, please check these articles:
No comments:
Post a Comment