Northern California Tax-Exempt Fund (NCATX)

One of the largest municipal bond funds is California Municipal bond fund. One of this best California municipal bond funds is listed below. Muni bond fund is attractive hence its distribution rate or yield is not subjected to federal tax rates. For single state municipal bond fund such as California muni bond fund, the dividend is even exempt from California state tax. This fund may also use as a way to diversify your asset portfolio.

Northern California Tax-Exempt Fund (MUTF: NCATX)

The Northern California Tax-Exempt Fund is seeking to provide high current income exempt from federal income tax and California personal income tax. This Muni bond fund generally invests majority of the fund's net assets (>80%) in debt instruments that pay interest which is exempt from regular federal income tax especially in California municipal instruments. This best bond fund may also invest to a limited extent in obligations that are rated below investment-grade or junk bonds. The average weighted maturity typically ranges between 10 and 30 years.

NCATX Fund Details
Northern California Tax Exempt fund
  • Fund Inception Date: April 8, 1997
  • Ticker Symbol: NCATX
  • CUSIP: 665162731
  • Beta (3yr): 1.28
  • Rank in category (YTD): 2
  • Category: Muni California Long
  • Distribution Rate: 3.81%
  • Net Assets: $ 121.7 million
  • Sales Load: 0.0%
  • Expense Ratio: 0.74%
  • Capital Gains: N/A
  • Number of Years Up: 11 years
  • Number of Years Down: 2 years
  • Average Maturity: 18.1 years
  • Modified Duration: 7.1 years
Updated on 9/26/2011

Since 1998, the fund’s manager of this Northern fund is Eric V. Boeckmann. This fund total common net asset is $121.7 million. This NCATX fund also has an annual expense ratio of 0.74%. The average expense ratio in the Muni California Long category is 0.96%. The fund has a dividend yield of 3.81% and is distributed monthly. There is no other class available beside this no-load fund. There is also no management fee to invest in this fund. You will need a minimum of $2,500 for the initial investment in brokerage account with $50 minimum subsequent investment. For IRA account, the minimum initial investment is $500.

As of July 31, 2011, the fund has returned 4.08% over the past year. On the longer term, the fund has returned 4.67% over the past 5 year and 4.80% over the past decade. This Northern California fund has 5-stars rating from Morningstar as since its inception. This top rated muni bond fund has 11 years of positive return and 2 years of negative return. The best return was in year 2000 with 13.97%. The 5-year average return is 4.67% with 7.46% of YTD return.

This fund uses Barclays Capital CA Muni Bond Index as the benchmark. It can be purchased from a list of 68 brokerages, like Schwab Retail, Ameriprise Brokerage, JP Morgan, T Rowe Price, E Trade Financial, Vanguard NTF, Royal Alliance, Raymond James, etc.

The economic sector weightings of this fund as of June 2011 are General Obligation (46.4%), Revenue (38.5%), Insured (8.2%), Short-Term (5.0%)and Government Backed (1.9%).

Investment Risks of this bond fund include Bond Risk, Non-Diversified Risk, Tax-Free/AMT Risk, Regional Investment Risk, etc. Details can be found in the fund’s website and fund’s prospectus.

Disclosure: No Position

Other related national muni bond mutual funds:


Post a Comment