California Municipal Bond Funds
Municipal bond funds are popular among investors who pay high income tax. As one of the highest tax income state in U.S, California residents can reduce their income tax by investing in CA municipal bond funds. These CA municipal bond funds invest mainly in California municipal debts. The income from these bond funds is generally free from federal taxes and California state taxes.For California residents, these investment funds are very attractive. Typically, the bonds have long average duration of more than 7 years. Investing in closed end funds can enhance your income as well due to its higher yield and leverage usage.
Best Closed End Funds
These top closed end funds list is selected based on its year to date return in 2014. For details about the closed end fund screener, you can find the below table. Some of these top highest yield CEFs are among the best closed end funds.Top California municipal bond closed end funds 2014 are:
- PIMCO CA Municipal Income III (PZC)
- EV CA Muni Bond II (EIA)
- Nuveen CA Div Adv Muni 2 (NVX)
- Nuveen CA AMT-Tax Free Muni Income (NKX)
- PIMCO CA Municipal Income (PCQ)
- Nuveen CA Div Adv Muni 3 (NZH)
- EV CA Municipal Bond (EVM)
- Neuberger Berman CA Inter Muni (NBW)
- EV CA Municipal Income (CEV)
- BlackRock MuniYield CA (MYC)
- Nuveen CA Municipal Value 2 (NCB)
- Nuveen CA Div Adv Muni (NAC)
- Nuveen CA Inv Quality Muni (NQC)
- Nuveen CA Premium Income Muni (NCU)
- MFS California Municipal Fund (CCA)
- BlackRock MuniHoldings CA Quantity (MUC)
- BlackRock CA Municipal Income (BFZ)
- Nuveen CA Select Quality Muni (NVC)
- Nuveen CA Municipal Market Opportunities (NCO)
- BlackRock MuniYield CA Quality (MCA)
PIMCO CA Municipal Income III (PZC)
The investment objective of this PIMCO CA Municipal Income III Fund is to provide current income exempt from federal and California income tax. The fund’s CUSIP is 72201C109. The market value of the PZC is $234.9 million. It has 3-stars and Neutral rating from Morningstar. This California muni bond fund was incepted in October 2002. Joe Deane is the current fund manager of this PZC fund. It is currently traded at premium 7.89% from its NAV.More: Best California Municipal Bond Closed End Funds 2012
The YTD return is 19.59%. This top CA muni bond closed end fund has 3-year annualized return of 13.23% and 10-year annualized return of 5.41%. Last year, 2013, it returned in -12.21%. It has total leverage ratio of 42.18%.
As of April 2014, the top sectors are Hospital Revenue (29.0%), Tobacco (15.0%) and State/ Local Government (10.0%). It has effective maturity of 13.26 years.
Nuveen CA AMT-Tax Free Muni Income (NKX)
As one of the best California Muni mutual funds, this NKX fund is currently traded at $13.85. It has $581.2 million of market value. The distribution rate is 6.05%. It also has annual expense ratio of 1.05%.Morningstar analysts rank this Nuveen CA AMT-Tax Free Muni Income Fund with 3-stars and Neutral rating. For the past years, the fund’s performance is as below:
- Year 2013: -11.85%
- Year 2012: 7.11%
- Year 2011: 28.01%
- Year 2010: 2.05%
EV CA Municipal Bond Fund (EVM)
Craig R. Brandon has just managed this Eaton Vance CA Municipal Bond Fund starting this year, 2014. The investment of this fund seeks to provide current income exempt from federal income tax, including alternative minimum tax (AMT), and California personal income tax. The market value is $252.2 million. It has total leverage ratio is 40.16%.More: Top Performing Municipal Bond Closed End Funds 2013
This top EVM Fund has 16.26% YTD return. The fund has 5.62% of 10-year annualized return. The highest return within the last 10 years was in 2009 with 53.34% and the lowest in 2008 with -37.46%.
The top 3 bonds in its holdings as of April 2014 are Torrance Unified School District (3.09%), Coast Community College District (2.97%) and University of Southern California (2.65%).
Muni Closed End Funds Performance
| No | Fund Name | Ticker | NAV | Yield | Total Assets | YTD Return % |
|---|---|---|---|---|---|---|
| 1 | PIMCO CA Municipal Income III | PZC | $9.88 | 6.79% | $234M | 18.92% |
| 2 | EV CA Muni Bond II | EIA | $13.00 | 5.93% | $48M | 18.19% |
| 3 | Nuveen CA Div Adv Muni 2 | NVX | $15.24 | 6.28% | $212M | 16.73% |
| 4 | Nuveen CA AMT-Tax Free Muni In | NKX | $15.02 | 6.07% | $579M | 16.72% |
| 5 | PIMCO CA Municipal Income | PCQ | $13.95 | 6.27% | $273M | 16.54% |
| 6 | Nuveen CA Div Adv Muni 3 | NZH | $14.02 | 6.24% | $311M | 16.02% |
| 7 | EV CA Municipal Bond | EVM | $12.67 | 5.66% | $251M | 15.86% |
| 8 | Neuberger Berman CA Inter Muni | NBW | $15.21 | 5.18% | $87M | 15.67% |
| 9 | EV CA Municipal Income | CEV | $13.63 | 5.82% | $92M | 15.62% |
| 10 | BlackRock MuniYield CA | MYC | $16.42 | 6.16% | $329M | 14.80% |
| 11 | Nuveen CA Municipal Value 2 | NCB | $17.16 | 4.79% | $54M | 14.09% |
| 12 | Nuveen CA Div Adv Muni | NAC | $15.24 | 6.22% | $336M | 14.08% |
| 13 | Nuveen CA Inv Quality Muni | NQC | $15.74 | 6.32% | $199M | 13.94% |
| 14 | Nuveen CA Premium Income Muni | NCU | $15.43 | 5.86% | $82M | 13.61% |
| 15 | MFS California Municipal Fund | CCA | $12.32 | 5.75% | $31M | 13.61% |
| 16 | BlackRock MuniHoldings CA Qty | MUC | $15.87 | 5.91% | $596M | 12.76% |
| 17 | BlackRock CA Municipal Income | BFZ | $15.87 | 6.21% | $478M | 12.68% |
| 18 | Nuveen CA Select Quality Muni | NVC | $15.93 | 6.61% | $351M | 12.52% |
| 19 | Nuveen CA Municipal Mkt Opp | NCO | $15.98 | 6.47% | $121M | 12.47% |
| 20 | BlackRock MuniYield CA Quality | MCA | $16.19 | 6.10% | $514M | 12.45% |
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