March 19, 2011

Top 10 Best National Muni Bond Closed End Funds Part 2

As explained on my previous article, municipal bond closed end funds can be an attractive investment category for income seeking investor. The yield of this muni bond closed end funds are tax free from federal income tax rate. I will provide review of the part 2 of these best municipal bond closed end funds including Invesco Van Kampen Select Sector Muni, BlackRock MuniVest Fund II, PIMCO Municipal Income III, etc.

Intro

The following article will provide information for the next 5 of national muni bond closed end fund. The list was compiled from cefconnect and cefa website. Some of these funds do use leverage to provide higher yield or distribution rate. Please check my table below for details. If you miss my part 1 article, you can check the first article about Muni CEF.

10 Best National Muni Bond Closed End Funds CEF Part 2Closed End Fund (CEF) can become one of the popular investment vehicle to invest in Municipal bond funds or Muni-Bond funds. The following list only provide the national municipal bond funds.

The Top 10 Best National Municipal Bond Closed End Funds are:
  1. EV Municipal Income
  2. Invesco Van Kampen Municipal Opportunities Trust
  3. Invesco Van Kampen Municipal Investment Grade Trust
  4. EV Municipal Bond
  5. Invesco Van Kampen Advantage Muni Income II
  6. Invesco Van Kampen Select Sector Muni (VKL)
  7. BlackRock MuniVest Fund II (MVT)
  8. PIMCO Municipal Income III (PMX)
  9. Nuveen Muni Market Opportunities (NMO)
  10. Invesco Van Kampen Municipal Trust (VKQ)
updated on 3/17/2011

Note: You can check the previous article: Best Municipal Bond Closed End Funds.

Invesco VanKampen Select Sector Muni

Invesco Van Kampen Select Sector Municipal Trust fund is part of long term maturity muni-bond fund offered by Invesco Advisers Inc. Invesco VanKampen Select Sector Municipal Trust fund objective is to provide a high level of current income exempt from federal income tax and to preserve the fund capital.

This muni bond closed end fund is managed by Thomas Byron, Robert Stryker, and Robert Wimmel. As of January 2011, the fund adjusted duration is 11.12 years. The fund total expense ratio is 1.35% per year. The fund has total net assets of $296.80 million. Its market price is 0.55% higher than its fund NAV. The fund also holds 293 bonds.

The top 5 bond sectors include hospital bonds, IDR/PCR, appropriation, life care, and airport bond. The top 4 state allocation include California, Texas, Illinois, and Washington. The fund has a distribution rate of 7.93% per year which is equivalent to 12.20% per year for the highest level tax payer (35% tax bracket).

BlackRock MuniVest Fund II

This muni bond closed end fund is sponsored by BlackRock Advisors LLC. BlackRock MuniVest Fund II seeks to provide investors with a high level of current income exempt from federal income taxes as is consistent with its investment policies. This BlackRock fund invests most of its assets in a portfolio of long-term investment grade municipal obligations.

BlackRock MuniVest Fund II
MVT Fund profile
Since 2006, Theodore Jaeckel and Walter O'Connor have managed this national municipal bond closed end fund. This closed end fund has $476 million total assets. The annual expense ratio is 1.26% including 1.11% baseline expense and 0.14% interest expense. The fund average duration is 13.05 years. It also has a total of 174 bonds.

Top 10 National Municipal Bond Closed End Funds

As of January 2011, the top 5 state municipals include California, Illinois, Texas, New York, and Michigan. The top 5 bond sectors include tax backed bonds, health, transportation, corporate backed muni’s, and utility. The fund market price has returned 1.1% over the past year and 7.59% over the past decade.

PIMCO Municipal Income III

PIMCO Municipal Income III fund's objective is to provide tax free current income of Federal income tax. This PIMCO fund primarily invests investment grade municipal fixed income securities. The fund is managed by John Cummings. Regular investor will be charged 1.39% expense ratio per year for investing in this CEF. Investor or trader can buy this closed end fund through online brokerage account such as fidelity, TD Ameritrade, Scottrade, etc.

Top CA Municipal Bond CEFs 2012

This municipal bond closed end fund usually sells at premium range between 2.47% and 24.57%. It has a total of $539 million and a yield of 7.95% per year. The fund pays this distribution rate monthly.  The fund market price has gained 8.71% over the past year and 2.88% since its inception. The fund average duration is 26.15 years. There are 167 bonds in its asset.

As of January 2011, the top 10 bond sectors include hospital revenue, water & sewer, tobacco, industrial development / pollution control, power revenue, transportation, special tax, education revenue, and housing revenue. The top 6 state municipals are Michigan, Texas, California, Illinois, Washington, and New Jersey.

Nuveen Muni Market Opportunities

The investment aim of Nuveen Muni Market Opportunities fund is to provide current income exempt from regular federal income tax. The secondary investment objective is the enhancement of portfolio value. This Nuveen fund has an annual expense ratio of 1.62% including 1.41% baseline expense and 0.20% interest expense. The fund pays a distribution rate of 7.89% per year.  The fund market price has returned -4.67% over the past year and 5.87% over the past three years. The average duration of the fund is 15.47 years. It consists of 229 bonds.

Top Performer Municipal Bond Closed End Funds 2011

As of March 2011, the fund top 5 sectors include transportation, health care, limited tax obligation, general tax obligation, and utilities. The top 6 states allocation includes California, Illinois, Texas, Washington, and Ohio. To invest in this fund, you can try using a discount online brokerage such as Zecco, LightSpeed, Interactive Brokers (IB), etc.

Invesco Van Kampen Municipal Trust
VKQ fund holdings
10. Invesco Van Kampen Municipal Trust

As part of Invesco advisors fund, the Invesco Van Kampen Municipal Trust fund is seeking to provide current income exempt from federal income tax by investing in investment grade municipal bonds and inverse floating rate obligations.

This municipal debt fund is managed by Thomas Byron, Robert Stryker, and Robert Wimmel. As of January 2011, the fund average maturity is 17.16 years. The fund total expense ratio is 1.18% per year. The fund has total net assets of $800.29 million. Its market price is 2.02% higher than its fund NAV.

As of February 2011, this Invesco fund also holds 293 bonds or debts issued by states in USA. The top 5 state municipals include California, Florida, Texas, and New York. The Top 4 bond sectors are hospital, IDR/ PCR, airport, and life care bond.

Disclosure: No Position

Fund Performance

NoFund NameClosing PriceNAVYTD1 Year3 Year
1EV Municipal Income$11.22 $9.97 3.12%-0.76%2.95%
2Invesco VK Muni Opps. Trust$12.59 $12.46 -1.40%0.42%5.97%
3Invesco VK Muni Invst. Grade T$12.95 $13.02 -0.97%0.41%6.63%
4EV Municipal Bond$11.28 $11.05 -0.33%-6.50%3.51%
5Invesco VK Adv Muni Inc II$10.92 $11.11 -1.83%-1%5.75%
6Invesco VK Select Sector Muni$10.95 $10.98 -0.43%-0.42%3.16%
7BlackRock MuniVest Fund II$13.30 $13.29 -3.04%1.57%7.25%
8PIMCO Municipal Income III$10.62 $8.87 3.89%8.81%-0.64%
9Nuveen Muni Mkt Opportunities$12.49 $12.51 -1%-4.80%5.96%
10Invesco VK Municipal Trust$12.32 $12.40 0.61%-1.47%4.31%
11BlackRock Municipal Income$12.31 $12.10 -1.01%0.05%2.57%
12Federated Premier Muni Income$13.42 $12.97 1.86%-1.60%5.93%

Other Closed End Funds post:

March 17, 2011

Top 10 National Municipal Bond Closed End Funds

Municipal bond investment can be done through variety of investment funds. One of them is using Closed End Funds or CEFs. These muni bond closed end funds are traded like stocks. Some of the best national municipal bond closed end funds are: Eaton Vance Municipal Income, Invesco Van Kampen Municipal Opportunities Trust, Invesco Van Kampen Municipal Investment Grade Trust, etc.

Investing in Municipal Bond CEF

To invest in Municipal bond funds or muni bond funds, there are 3 ways such as Mutual Funds, Exchange Traded Funds (ETFs), and Closed End Funds (CEFs). In this article, I’ll discuss about investing in National Muni Bond CEFs (i.e. not single state bond fund). Bond fund can be divided into 2 categories such as taxable bond fund and non taxable bond fund.

Top 10 National Municipal Bond Closed End FundsGovernment bond, corporate bond, high yield bond, limited duration bond, mortgage bond and senior loan bond are considered as taxable income bonds. Some of these CEFs can include short term bond, intermediate term bond, and long term bond CEFs. This taxable bond fund distribution or yield will be taxed in federal and state tax system.

The other bond CEFs are non taxable bond CEFs. These non taxable bond CEFs are also known as municipal bond CEFs. The municipal bond has advantages especially for people that pay high income tax on Federal and State level since the dividend or yield is tax free or tax exempt from federal income tax and state income tax. These municipal bond funds mostly consist of bonds issued by variety of US States such as Pennsylvania, Texas, New York, California, Arizona, Michigan etc. I will focus especially on diversified national municipal bond CEFs. Please note, all fixed income bonds carry interest rate risk and credit risk. These funds may use leverage to provide higher yield or distribution. This yield may be paid either monthly or quarterly.

Top 10 Muni Bond CEF

I have used the following criteria to select this top 10. Firstly, the funds have high yield or high distribution. Secondly, the dividend will be paid monthly. Finally, the funds need to be liquid by having more than $100 million asset. The list was compiled from cefconnect, closed-endfunds, and cefa website.

The Top 10 Best National Municipal bond Closed End Funds are:
    Best Muni CEF Funds
  1. EV Municipal Income (EVN)
  2. Invesco Van Kampen Municipal Opportunities Trust (VMO)
  3. Invesco Van Kampen Municipal Investment Grade Trust (VGM)
  4. EV Municipal Bond (EIM)
  5. Invesco Van Kampen Advantage Muni Income II (VKI)
  6. Invesco Van Kampen Select Sector Muni
  7. BlackRock MuniVest Fund II
  8. PIMCO Municipal Income III
  9. Nuveen Muni Market Opportunities
  10. Invesco Van Kampen Municipal Trust
updated on 3/17/2011

EV Municipal Income Fund

This EV Municipal Income fund is part of Eaton Vance Management closed end funds. The EV Municipal Income Fund objective is seeking free tax current income from Federal income tax through investment in investment grade municipal securities. The fund manager is Thomas M. Metzold since January 1999. It is rated as 2 stars fund in Morningstar rating. The total expense is 2.07% per year (including 1.73% baseline expense and 0.33% interest expense). The fund total net asset is 464 million with 51.3% effective leverage.

As of March 2011, the top 5 municipal bond sectors of this closed end fund are Healthcare, Transportation, Housing, Education, and Industrial. The top 5 state municipals are New York, Florida, California, Texas, and Massachusetts. There are 191 bonds in its holding currently. It currently sells at premium from its NAV.

Invesco Van Kampen Municipal Opportunity Trust

Invesco Van Kampen Municipal Opportunity Trust (VMO)The Invesco Van Kampen Municipal Opportunity Trust fund (Ticker: VMO) seeks to provide current income exempt from Federal income tax through investment in investment grade municipal bonds and inverse floating rate obligations. The fund managers are Wimmel since 2001, Byron since 2009, and Stryker since 2009. The fund expense ratio is 1.29% per year. The distribution rate is 8.20% per year; this fund distributes the yield monthly. The fund total net assets are 744 million. The average credit rating is A which is investment grade municipal bond.

Best Municipal Bond Mutual Funds September 2011

As of February 2011, the top 5 sectors are Transportation, Health sector, Industrial, Utilities, and Education. The top 5 state municipals are Texas, California, Illinois, New Jersey, and Florida. There are 348 bonds in its holding currently. It currently sells at 1.04% premium from its NAV.

Invesco Van Kampen Municipal Investment Grade Trust

Similar to VMO fund, this Invesco VK Muni Investment Grade Trust fund is part of Invesco Advisers CEFs. The Invesco Van Kampen Municipal Investment Grade Trust fund seeks high current income exempt from Federal income tax with capital preservation by investing in investment grade municipal debts or bonds. The fund managers are Byron since 1997, Wimmel since 2001, and Stryker since 2009. The total expense is 1.23% per year. The total net asset of this fund is 1.22 billion.

As of February 2011, the top 5 sectors are healthcare sector, transportation, industrial, education, and advanced refunded. The top 5 state municipals are Florida, California, Texas, New York, and Illinois. There are 477 bonds in its holding currently. It currently sells at premium from its NAV.

EV Municipal Bond Fund

This Eaton Vance Municipal fund objective is to provide tax free income from federal income tax. The fund will invest primarily in investment grade bonds or debts. The fund is managed by William H Ahern since February 2010.  This national municipal bond closed end  fund has total net assets of 1.37 billion. The fund annual expense ratio is 1.66% (1.12% baseline expense and 0.54% interest expense).

YTD Top Performer Closed End Funds CEF August 2011

As of February 2011, the top 5 sectors are transportation, general obligation, education, and healthcare sector. The top 5 state municipals are Texas, New York, Florida, California, and Illinois. There are 171 bonds in its holding currently. It currently sells at premium from its NAV.

Invesco Van Kampen Advantage Municipal Income II

Invesco Van Kampen Advantage Municipal Income II (VKI)
Invesco VK Advantage Muni Inc
As part of Invesco Advisers fund, this Invesco Van Kampen Advantage Municipal Income II fund's objective is to seek high current income exempt from Federal income tax with capital preservation through investment in investment grade municipal securities.

The fund managers are Thomas Byron, Robert Wimmel, and Robert Stryker since 2010. The top 3 sectors are hospital, IDR / PCR and airport. The top 5 states municipal are California, Illinois, Texas and Florida. There are 368 bonds in its holding currently. The total expense is 1.53% per year.  It currently sells at premium from its NAV.

You will find more top national municipal closed end fund on my part 2 article.
Disclosure: No Position (as of 4/14/2012)
Other Related Closed End Funds:

March 14, 2011

Large Cap Value Stocks | Low PEG with Buy Ratings

This post is about large cap value stocks which have low PEG with buy ratings. The top stocks are Marvell Technology Group, Kinross Gold Corporation, Nidec Corp, Ford Motor Co, Xerox Corp, etc.

The following top 10 large cap has low peg and buy rating from analysts. The companies have a market capitalization of 10 billion or more. The companies also have a peg lower than 2.

1. Marvell Technology Group Ltd. (Ticker: MRVL)
  • Market Cap: 10.19 Billion
  • Sector: Technology (Semiconductor – Integrated circuits)
  • P/E: 11.69
  • Forward P/E: 9.50
  • Rating: 2.1 
  • Beta: 1.33
  • PEG: 0.85
  • Past 12 quarters: 10 positive quarters, 1 in-line quarter and 1 negative quarter
  • Bad: Bad last quarter, bad guidance
MRVL Stock Chart


2. Kinross Gold Corporation (Ticker: KGC)
  • Market Cap: 17.41 Billion
  • Sector: Basic Materials (Gold)
  • P/E: 16.52
  • Forward P/E: 18.51
  • Rating: 2.1 
  • Beta: 0.52
  • PEG: 0.83
  • Past 12 quarters: 3 positive quarters, 1 in-line quarter and 8 negative quarters
  • Bad: Bad last quarter

February 14, 2011

Top 3 PIMCO Fixed Income Closed End Funds of 2011

Top 3 PIMCO Fixed Income Closed End Funds of 2011 are PIMCO Global StocksPLUS & Income, PIMCO High Income Fund, and PIMCO Municipal Income. These CEFs are popular among investors.

Intro

Investing always involves risk. One of the investment strategies is investing in fixed income or bond. This article will provide list of PIMCO closed end funds (CEF). PIMCO is well known in bond investment management. The PIMCO Bond CEFs include PIMCO Income Opportunity, PCM Fund and more
  • PIMCO Global StocksPLUS & Income
  • PIMCO High Income Fund
  • PIMCO Municipal Income
Some of these funds are managed by Bill Gross. Please check closed end fund website such as cefa.com or cefconnect.com for details. You can find many fund information such as expense ratio, fund performance, leverage information, distribution rate, price history, ranking, lipper rating, and more. Please check my website for future reference.

Best Performing Stocks of S&P 500 Index of 2010

This article will discuss about the 20 Top Performer Stocks of S&P 500 index or leader stocks. The  list includes Cummins Inc, Huntington Bancshares Inc, Wynn Resorts Limited, and Zions Bancorporation.

Top 8 list is
  1. Cummins Inc.
  2. Huntington Banc. Inc
  3. Wynn Resorts, Limited
  4. Zions Bancorporation
  5. American Int. Grp Inc
  6. priceline.com Inc
  7. Akamai Tech Inc
  8. Cliffs Nat Resrcs Inc

February 4, 2011

Top Performer International Stock Mutual Funds of 2010

Top Performer International Stock Mutual Funds of 2010 are Oakmark International I, TIAA-CREF International Equity Retail, Oppenheimer International Small Co, etc.

Intro

In my previous article, I have provided Top Performer Domestic Stock Mutual Fund for 2010. The following article is about Top Performer International Equity Mutual Fund. The list include Oakmark International, TIAA-CREF International Equity, Mutual European,  JHancock Global Opportunities and more.

Best Performer International Stock Mutual Funds of 2010:
  • Foreign Large Value - Oakmark International I
  • Foreign Large Blend - TIAA-CREF International Equity Retail
  • Foreign Large Growth - Laudus International MarketMasters Inv
  • Foreign Small/Mid Value - Oakmark International Small Cap I
  • Foreign Small/Mid Growth - Oppenheimer International Small Co A
  • World Stock - JHancock Global Opportunities A

February 2, 2011

Top Performer Domestic Stock Mutual Fund of 2010

Top Performer Domestic Stock Mutual Funds of 2010 are Fairholme, Gabelli Asset Fund, Fidelity Spartan Extended Market Index, etc. These best funds has managed to achieve good performance during 2010.

Intro

With the year 2010 is near its end, I always like to check the Best Performer Domestic Stock Mutual Funds or Equity Mutual Fund list for year 2010. The mutual fund list primarily consists of domestic stocks such as large cap, small cap, mid cap,  real estate (REIT), Precious Metal Equity and more. The list include Fairholme, Gabelli Asset Fund, T. Rowe Price Small Cap Stock and more.

Top Performer Domestic Stock Mutual Funds of 2010 are:
  • Large value - Fairholme
  • Large Blend - Gabelli Asset Fund
  • Large Growth - Morgan Stanley Focus Growth A
  • Mid Cap value - RidgeWorth Mid-Cap Value Equity A
  • Mid Cap Blend - Fidelity Spartan Extended Market Index
  • Mid Cap Growth - Waddell & Reed New Concepts A
more on Hubpages: Top Best Performer Domestic Stock Mutual Fund of 2010

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