If you’ve been stuck searching for High Yield – Bonds funds, consider Virtus Seix Floating Rate High Income I (SAMBX) as a possibility. SAMBX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SAMBX is classified in the High Yield – Bonds segment by Zacks, an area full of investment possibilities. High Yield – Bonds funds come in below investment grade, and are referred to as ” junk ” bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
Virtus Funds is based in Hartford, CT, and is the manager of SAMBX. Since Virtus Seix Floating Rate High Income I made its debut in March of 2006, SAMBX has garnered more than $1.65 billion in assets. A team of investment professionals is the fund’s current manager.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.4%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 1.1%, which places it in the middle 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 8.19%, compared to the category average of 12.47%. The fund’s standard deviation over the past 5 years is 6.76% compared to the category average of 10.93%. This makes the fund less volatile than its peers over the past half-decade.
SAMBX carries a beta of 0.26, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.98, 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 1.01%. 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 high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Virtus Seix Floating Rate High Income I ( SAMBX ) looks like a good potential choice for investors right now.
Don’t stop here for your research on High Yield – Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SAMBX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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