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Is ACGYX a Strong Bond Fund Right Now?

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Mutual Fund Bond fund seekers may want to consider taking a look at AB Income Advisor (ACGYX - Free Report) . ACGYX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

AllianceBernstein is responsible for ACGYX, and the company is based out of New York, NY. Since AB Income Advisor made its debut in April of 2016, ACGYX has garnered more than $2.36 billion in assets. The fund is currently managed by a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.8%, 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 -0.88%, which places it in the top third during this time-frame.

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. Compared to the category average of 13.14%, the standard deviation of ACGYX over the past three years is 7.76%. Looking at the past 5 years, the fund's standard deviation is 7.42% compared to the category average of 12.85%. This makes the fund less volatile than its peers over the past half-decade.

ACGYX carries a beta of 0.96, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.23, 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, ACGYX has 70.92% in high quality bonds rated at least 'AA' or higher. The fund has an average quality of AA, and focuses on high quality securities.

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, ACGYX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 0.75%. So, ACGYX is actually more expensive than its peers from a cost perspective.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Bottom Line

Overall, AB Income Advisor ( ACGYX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.

Want even more information about ACGYX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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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