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On the lookout for a High Yield - Bonds fund? Starting with Virtus Seix Floating Rate High Income I (SAMBX - Free Report) should not be a possibility at this time. SAMBX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SAMBX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Virtus Funds is based in Hartford, CT, and is the manager of SAMBX. The Virtus Seix Floating Rate High Income I made its debut in March of 2006 and SAMBX has managed to accumulate roughly $2.65 billion in assets, as of the most recently available information. The fund is currently managed by George Goudelias who has been in charge of the fund since March of 2006.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.97%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 3.46%, which places it in the bottom 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. Over the past three years, SAMBX's standard deviation comes in at 2.74%, compared to the category average of 8%. The standard deviation of the fund over the past 5 years is 3.29% compared to the category average of 8.44%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of -0.21, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, SAMBX has a positive alpha of 3.33, which measures performance on a risk-adjusted basis.
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, SAMBX is a no load fund. It has an expense ratio of 0.63% compared to the category average of 1.02%. From a cost perspective, SAMBX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $100,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Virtus Seix Floating Rate High Income I ( SAMBX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on SAMBXin the High Yield - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is SAMBX a Strong Bond Fund Right Now?
On the lookout for a High Yield - Bonds fund? Starting with Virtus Seix Floating Rate High Income I (SAMBX - Free Report) should not be a possibility at this time. SAMBX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SAMBX is part of the High Yield - Bonds section, which is a segment that boasts many possible options. Often referred to as " junk " bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. However, one advantage to junk bonds is that they generally pay out higher yields while posing similar interest rate risks to their investment grade counterparts.
History of Fund/Manager
Virtus Funds is based in Hartford, CT, and is the manager of SAMBX. The Virtus Seix Floating Rate High Income I made its debut in March of 2006 and SAMBX has managed to accumulate roughly $2.65 billion in assets, as of the most recently available information. The fund is currently managed by George Goudelias who has been in charge of the fund since March of 2006.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.97%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 3.46%, which places it in the bottom 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. Over the past three years, SAMBX's standard deviation comes in at 2.74%, compared to the category average of 8%. The standard deviation of the fund over the past 5 years is 3.29% compared to the category average of 8.44%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of -0.21, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, SAMBX has a positive alpha of 3.33, which measures performance on a risk-adjusted basis.
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, SAMBX is a no load fund. It has an expense ratio of 0.63% compared to the category average of 1.02%. From a cost perspective, SAMBX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $100,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Virtus Seix Floating Rate High Income I ( SAMBX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on SAMBXin the High Yield - Bonds category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.