American Century CA Intermediate Term Tax-Free Bond Fund BCITX

California is one of the largest states in USA. It also contributes significantly to total GDP of United States of America. To invest in California, you can do so in variety of ways. One of the safest ways is investing in California Muni bond mutual fund. One of the best California muni bond fund review is listed below. If you are interested in other best mutual fund, please check MEPB Financial. Single state muni bond fund can be more volatile than national muni bond fund. The following is the top national muni bond funds:
American Century California Intermediate-Term Tax-Free Bond Fund (Ticker: BCITX)

The American Century California Intermediate-Term Tax-Free Bond fund’s objective is to achieve safety of principal and high current income that is exempt from federal and California income taxes. The fund invests >80% of assets in investment-grade debt securities with interest payments exempt from federal and California income taxes. This Municipal bond fund may also invest <20% of assets in below investment-grade securities. The fund’s weighted average maturity is about three years to ten years. However, there is no maturity limit on individual securities.

BCITX fund details

Fund Details
  • Fund Inception Date: November 9. 1983
  • Ticker Symbol: BCITX (Investor Class)
  • CUSIP: 025075508
  • Beta (3yr): 0.87
  • Rank in category (YTD): 8
  • Category: Muni California Intermediate
  • Distribution Yield: 3.54%
  • Net Assets: $ 826.33 million
  • Sales Load: 0.0%
  • Expense Ratio: 0.48%
  • Capital Gains: N/A
  • Number of Years Up: 24 years
  • Number of Years Down: 3 years
  • Average Duration: 5.11 years
Updated on 10/1/2011

The portfolio management team of this American Century fund consists of Joseph Gotelli, Alan Kruss, Steven Permut and G. David MacEwen. The fund’s expense ratio is 0.48% per year. This expense fee is lower than the average expense ratio of muni California intermediate fund which is 0.83%. BCITX fund has no management fee. It is also a no-load fund therefore it doesn’t charge any front-end sales load fee or deferred sales load fee. The fund’s total net assets are $ 826.33 million. This best rated bond fund also has a dividend yield of 3.54%. The current fund’s average duration is 5.11 years.

This fund has 5-stars rating from Morningstar. Since its inception, this fund has recorded 24 years with positive return and 3 years with negative return. The best 1-year total return was recorded in 2000 with 10.01%. The worst performance year occurred in 1999 with -1.07%.  It has returned 3.36% over the past one year and 4.14% over the past ten years. This top municipal bond fund is available in other classes such as BCIAX (Class A), BCIYX (Class C) and BCTIX (Class Institutional). The lowest expense ratio is the BCTIX (0.28%). The fund’s benchmark is Barclays Capital 7 Year Municipal Bond Index.

There are around 82 brokerages which offer this American Century fund, such as Schwab Retail, T Rowe Price, Merrill Lynch, JP Morgan, E Trade Financial, Firstrade, Dreyfus NTF, TD Ameritrade Inc, etc. You will need $5,000 minimum initial investment to invest in this fund in regular brokerage account. For retirement account (IRA) available.

As of May 2011, the investment blend of this fund is Electric Revenue Bonds (18.36%), General Obligation Bonds (17.54%), Hospital Revenue Bonds (11.70%), Water/ Sewer/ Gas Revenue Bonds (9.43%), Pre-Refunded (7.74%) and Other (35.23%). This BCITX fund has total of 321 fixed income holdings.

Disclosure: No Position


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