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Any investors hoping to find a Muni - Bonds fund might consider looking past Dreyfus High Yield Municipals Bond A (DHYAX - Free Report) . DHYAX 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 DHYAX 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
BNY Mellon is based in New York, NY, and is the manager of DHYAX. Dreyfus High Yield Municipals Bond A debuted in March of 2007. Since then, DHYAX has accumulated assets of about $82.15 million, according to the most recently available information. The fund's current manager, Jeffrey Burger, has been in charge of the fund since November of 2011.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 0.67%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -1.68%, 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. The standard deviation of DHYAX over the past three years is 10.96% compared to the category average of 13.23%. The standard deviation of the fund over the past 5 years is 10.99% compared to the category average of 13.97%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.04, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, DHYAX has a positive alpha of 0.24, 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, DHYAX has 45.01% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 16.05%, giving DHYAX an average quality of BBB. This means that it focuses on medium quality securities.
However, it is worth noting that 30 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, DHYAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 0.93%. Looking at the fund from a cost perspective, DHYAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Dreyfus High Yield Municipals Bond A ( DHYAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Dreyfus High Yield Municipals Bond A ( DHYAX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Muni - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is DHYAX a Strong Bond Fund Right Now?
Any investors hoping to find a Muni - Bonds fund might consider looking past Dreyfus High Yield Municipals Bond A (DHYAX - Free Report) . DHYAX 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 DHYAX 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
BNY Mellon is based in New York, NY, and is the manager of DHYAX. Dreyfus High Yield Municipals Bond A debuted in March of 2007. Since then, DHYAX has accumulated assets of about $82.15 million, according to the most recently available information. The fund's current manager, Jeffrey Burger, has been in charge of the fund since November of 2011.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 0.67%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -1.68%, 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. The standard deviation of DHYAX over the past three years is 10.96% compared to the category average of 13.23%. The standard deviation of the fund over the past 5 years is 10.99% compared to the category average of 13.97%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.04, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, DHYAX has a positive alpha of 0.24, 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, DHYAX has 45.01% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 16.05%, giving DHYAX an average quality of BBB. This means that it focuses on medium quality securities.
However, it is worth noting that 30 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, DHYAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 0.93%. Looking at the fund from a cost perspective, DHYAX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Dreyfus High Yield Municipals Bond A ( DHYAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Dreyfus High Yield Municipals Bond A ( DHYAX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Muni - Bonds, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.