Best Performing Municipal Bond CEFs
In 2012, municipal bond funds have a good year to date performance. These top performer muni bond CEFs are classified into various categories such as diversified national municipal bond, high yield muni, California municipal bond, Ohio municipal debt, etc. Most of these top performers are highly leveraged.
YTD Top Performer Municipal Bond Closed End Funds up to July 10, 2012 are
- PIMCO CA Muni Income (PCQ)
- PIMCO CA Muni Income III (PZC)
- Eaton Vance OH Muni Bond (EIO)
- PIMCO Muni Income II (PML)
- PIMCO Muni Income III (PMX)
- Nuveen NJ Div Adv Muni 2 (NUJ)
- MFS Inv Gr Muni Tr (CXH)
- Alliance CA Muni Inc (AKP)
- PIMCO NY Muni Income II (PNI)
- Pimco CA Muni Income II (PCK)
1. PIMCO California Municipal Income (PCQ)
This PIMCO California Municipal Income fund objective is to provide income exempt from Federal and California income tax. This closed end fund utilizes its assets to purchase investment grade fixed income municipal bonds. Sponsored by Allianz Global Investors Fund Management LLC, it is managed by Joe Deane since 2011. The annual expense ratio is 1.43%. The distribution rate is 5.62%.
Top California Municipal Bond Closed End Funds
As of July 10th 2012, this CEF is trading 18.75% premium to its NAV (Net Asset Value). The year to date return is 26.56%. This fund has returned 23.62% over the past 3 year, and 7.56% over the past 5 year. Rated with 4 stars, this fund has an average duration of 33.51 years.
2. PIMCO CA Muni Income III (Ticker: PZC)
This PIMCO CA Muni Income III fund is ranked with 3 star rating by Morningstar. The total net assets are $257 million. The total leverage ratio is 43.07%. This bond CEF has a taxable equivalent yield of 9.39%. The average coupon is 5.75%.
As of April 2012, the top 2 sectors are long duration muni debt (96.61%), and floating rate muni debt (0.34%). The top 3 holdings are California Statewide Cmntys De Hlth Fac 5.50 01 Oct 2033, San Diego Calif Cmnty College Go Bds 5% 5.00 01 May 2028, and San Marcos Calif Pub Facs Auth 5% 5.00 01 Aug 2033.
3. Eaton Vance Ohio Municipal Bond (EIO)
The investment aim of Eaton Vance Ohio Municipal Bond fund is to provide tax free income from federal and Ohio income taxes. It invests majority of its assets in investment grade municipal bonds. The dividend yield is 4.96% per year. It is paid on monthly basis. The fund has average earnings per share of $0.0623. The average UNII per share is $0.0755.
The fund has a 5 year average return of 7.68%. The YTD return is 22.21%. This fund has 57 bonds in its holdings. The AMT (alternative minimum tax) part in its assets is 0%.
4. PIMCO Municipal Income II (Ticker: PML)
PIMCO Municipal Income II fund uses its assets to buy a portfolio of investment grade muni bonds. It has total net assets of $1.09 billion. Its expense ratio is 1.37% per year. The fund has a fiscal year end in May 31.
Morningstar has ranked this top performer muni bond CEF with bronze rating. The top 5 municipal states are Illinois, Texas, Massachusetts, Rhode Island, and California. These CEFs can be bought from regular brokerages such as Merrill Edge, TD Ameritrade, Schwab, Fidelity, etc.
6. Nuveen NJ Dividend Advantage Muni 2 (NUJ)
This Nuveen New Jersey Dividend Advantage Municipal 2 fund is ranked with 3 stars. It has a yield of 5.05%. The expense ratio is 2.59%. Paul Brennan is the fund manager. The average maturity is 16.22 years and the average duration is 10.96 years.
The fund has low annual portfolio turnover rate of 9%. The average bond price is $95.01. This best performing bond fund has a YTD return of 20.24%.
Disclosure: No Position
Fund Performance
| No | Fund Description (Ticker) | Category | YTD Return | Lipper Rating | Expense ratio | Yield |
|---|---|---|---|---|---|---|
| 1 | PIMCO CA Muni Income (PCQ) | CA Municipal Debt | 26.56% | 4 | 1.36% | 5.96% |
| 2 | PIMCO CA Muni Income III (PZC) | CA Municipal Debt | 25.42% | 8 | 1.48% | 6.34% |
| 3 | Eaton Vance OH Muni Bd (EIO) | Other States Muni | 22.21% | 4 | 1.44% | 5.11% |
| 4 | Pimco Muni Income II (PML) | Gen & Ins Leveraged | 20.53% | 2 | 1.37% | 6.00% |
| 5 | PIMCO Muni Income III (PMX) | Gen & Ins Leveraged | 20.49% | 3 | 1.44% | 6.70% |
| 6 | Nuveen NJ Div Adv Muni 2 (NUJ) | NJ Municipal Debt | 20.22% | 8 | 1.81% | 5.19% |
| 7 | MFS Inv Gr Muni Tr (CXH) | Gen & Ins Leveraged | 19.95% | 4 | 1.30% | 5.94% |
| 8 | Alliance CA Muni Inc (AKP) | CA Municipal Debt | 19.36% | 12 | 1.30% | 5.80% |
| 9 | PIMCO NY Muni Income II (PNI) | NY Municipal Debt | 19.19% | 4 | 1.55% | 6.10% |
| 10 | Pimco CA Muni Income II (PCK) | CA Municipal Debt | 19.12% | 15 | 1.55% | 7.30% |
| 11 | Nuveen Muni Hi Inc Opp 2 (NMD) | High Yield Muni | 19.12% | 7 | 1.61% | 6.17% |
| 12 | DWS Strat Muni Inc Tr (KSM) | High Yield Muni | 18.69% | 14 | 1.29% | 6.04% |
| 13 | BlackRock Muni Inc (BFK) | Gen & Ins Leveraged | 18.58% | 5 | 1.24% | 6.12% |
| 14 | Delaware Inv CO Muni Inc (VCF) | Other States Muni | 18.55% | 7 | 0.73% | 3.90% |
| 15 | Nuveen Enh Muni Val (NEV) | Gen & Ins Leveraged | 17.84% | 6 | 1.17% | 6.06% |
| 16 | Eaton Vance PA Muni Bd (EIP) | PA Municipal Debt | 17.40% | 10 | 1.49% | 5.88% |
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