Top 8 Best Bank Loan Mutual Funds 2012

By
As part of taxable bond mutual funds, bank loan funds provide high income for investors. Some of the best bank loan funds are: Credit Suisse Floating Rate High Income fund, Eaton Vance Floating-Rate Advantage fund, Fidelity Floating Rate High Income fund, etc.

Top Bank Loan Funds
Intro

There are several types of taxable bond mutual funds. They are corporate bond, government bond, multisector bond, bank loan, etc. Bank loan are popular among investors who are concerned about rising interest rates. Bank loans or floating rate loans are debts that offered by banks to companies as part of a leveraged buyout deal.

These bank loan funds have limited interest rate risk, but they have high credit risk. These bond funds typically have low credit quality or non-investment grade rating. They also have higher yield than investment grade rated bond funds.

Best Bank Loan Funds

You find the fund review from this top mutual fund list. Investors can find the fund performance, management, expense fee, sales load, top holding, effective duration, etc.

Top 8 Best Bank Loan Mutual Funds of 2012 are:
  1. Credit Suisse Floating Rate High Income A (CHIAX)
  2. Eaton Vance Floating-Rate Advantage A (EAFAX)
  3. Fidelity Floating Rate High Income (FFRHX)
  4. Oppenheimer Senior Floating Rate A (OOSAX)
  5. Pioneer Floating Rate A (FLARX)
  6. Eaton Vance Floating-Rate & High Income A (EVFHX)
  7. RidgeWorth Seix Floating RT High Income A (SFRAX)
  8. MainStay Floating Rate Inv (MXFNX)
1. Credit Suisse Floating Rate High Income A (CHIAX)

The Credit Suisse Floating Rate High Income fund objective is to seek high current income and capital appreciation. This mutual fund uses its assets to buy high yield fixed income securities consist of senior secured floating rate loans issued by non-investment grade companies. It may invest some of its assets (<30%) in non-U.S. issuers fixed income. It invests in a diversified portfolio of issuers across a variety of industry sectors.

Credit Suisse FR High Inc
Morningstar rated this Credit Suisse fund with 5-stars rating for its long track performance record. It has 10-years of positive return and 2 years of negative return. It is currently managed by Thomas J. Flannery. Investors of this fund get a dividend yield of 4.66% per year. The latest yield was distributed on March 2012 in the amount of $0.03 per share.

The annual expense ratio of this bank loan fund is 0.95%. The YTD return is 3.18% and the 5-years average return of 6.05%. There are 84 brokerages that provide this fund, such as Merrill Lynch, Scottrade Load, Vanguard, JP Morgan, etc. The average national maturity is 4.83 years and average duration is 0.58 years.

As of December 2011, the top 5 holdings are Colfax Corp (1.1%), Rite Aid Corp (1.1%), Six Flags Theme Parks Inc (1.1%), Pilot Travel Centers LLC (0.9%) and Intelsat Jackson Holdings SA (0.9%). The other classes of this fund are Class B (CHOBX), Class C (CHICX) and Class Institutional (CSHIX).

2. Eaton Vance Floating-Rate Advantage A (EAFAX)

The Eaton Vance Floating-Rate Advantage fund invests majority of total assets in income producing floating rate loans. It invests mainly in senior floating rate loans of domestic and foreign borrowers. Craig P. Russ is the fund manager since November 2007.

Top High Yield Bond Mutual Funds 2012

This top performer fund has total net assets of $1.72 billion. It was first introduced to public in March 17, 2008. It also is ranked 4-stars rating by Morningstar. The most recent monthly dividend was distributed in March 2012 ($0.05). So far, the fund has only positive returns with the highest return in 2009 (65.71%).

The top 3 sectors breakdown as of March 2012 is Health Care (11.45%), Business Equipment and Services (8.46%) and Electronics/ Electrical (7.15%). The top holdings are Intelsat Jackson Holdings SA New Term Loan, EV Cash Reserves Fund, Del Monte Corp Term Loan, Chrysler Group LLC Term Loan and Rite Aid Corporation First Lien.

3. Fidelity Floating Rate High Income (FFRHX)

Fidelity Floating Rate High Income
The investment objective of Fidelity Floating Rate High Income fund is to achieve a high level of current income. This bond fund utilizes its asset to purchase floating rate loans. It may invest in troubled companies; money market and investment-grade debt securities; domestic and foreign issuers.

Christine McConnell is currently managed this bank loan fund. She is also the Fidelity Vice President. The minimum initial investment needed is $2,500. The fund has total net assets of $10.13 billion. Morningstar analysts rated this top bond fund with Gold rating. The annual expense ratio is 0.71%. There is no sales load fee for investing in this fund.

The only year this fund has a negative return since 2002 was in 2008 with -16.47%. It has YTD return of 2.57%. Based on the load adjusted returns, the fund has returned 10.00% over the past 3-year and 4.47% over the past 10-year. The top holdings of this fund represent 15.29% of the total portfolio. The major market sector is Healthcare (16.57%). The 12-month dividend yield is 3.36%.

4. Oppenheimer Senior Floating Rate A (OOSAX)

The Oppenheimer Senior Floating Rate fund invests mainly in senior floating rate loans of U.S. and foreign corporations, partnerships or other business entities. This Oppenheimer fund has been managed by Joseph Welsh since its inception in September 1999.

This bank loan fund has total net assets of $5.57 billion. To buy it using your brokerage account, you will need a minimum initial funding of $1,000. The maximum sales charge is 3.50%. The annual holdings turnover as per April 17, 2012 is 52.00%. The fund is ranked with 5-stars rating and Bronze rating by Morningstar. The best 1-year total return was achieved in 2009 with 43.51%.

As of April 2012, the top issuers are Institutional Money Market Fund (4.1%), First Data Corp (1.6%), Nuveen Investments (1.2%), Revel Entertainment (1.1%) and Asurion Corp (1.0%). The average duration is 0.2 years.

5. Pioneer Floating Rate A (FLARX)

Pioneer Floating Rate
The Pioneer Floating Rate fund objective is to provide a high level of current income. This mutual fund invests its net assets in floating rate loans, unsecured or subordinated loans, revolving credit facility loans, high yield corporate bonds, investment grade fixed income debt securities, preferred stocks and convertible securities. It may invest in non-U.S. country.

To invest in this best performing bank loan fund, you will need a minimum initial funding of $1,000 for brokerage account and $250 for retirement account. It can be purchased from 74 brokerages. There is a management fee of 0.25% and maximum sales charge of 4.50%.

Since its inception in 2007, this best mutual fund has been managed well by Jonathan Sharkley. The fund has 5-year average return of 3.66%. This Pioneer Floating Rate fund is available in Class A (FLARX), Class C (FLRCX) and Class Y (FLYRX). The fund’s benchmarks are Lipper Loan Participation Funds Average and Barclay High Yield Loans Performing Index. The top portfolio allocation is Bank Loans (91.7%).

6. Eaton Vance Floating-Rate & High Income A (EVFHX)

This Eaton Vance Floating-Rate & High Income fund is managed by Craig P. Russ. It also has a dividend yield of 4.46%. The current total net assets are $1.02 billion. Morningstar has rated this bank loan fund with 3 stars rating.

As of March 2012, the top sector breakdown is Health Care (11.88%), Business Equipment and Services (8.05%), Electronics/ Electrical (6.88%), Automotive (4.73%) and Food Products (4.35%). The top country is United States of America (88.15%).

7. RidgeWorth Seix Floating Rate High Income A (SFRAX)

The RidgeWorth Seix Floating Rate High Income fund is ranked with 3 stars rating. Its portfolio turnover rate is 104%. The minimum initial investment is $2,000. Its expense ratio is 0.84% per year. This top mutual fund also has a sales load of 2.50%.

Best Taxable Bond Mutual Funds 2012

This taxable bond mutual fund has returned 3.27% over the past year, 10.30% over the past 3 year, and 3.56% over the past 5 year. The other classes of this bank loan fund are Class C (SFRCX), and Class I (SAMBX). The SAMBX fund has an expense ratio of 0.51% and there is no sales load. This Class I fund also has a yield of 5.15%.

8. MainStay Floating Rate Inv (MXFNX)

This MainStay Floating Rate fund is open to new investors. You can purchase this fund with $1,000 minimum funding. The fund’s yield is 3.65%. It also has a sales load of 3%. The expense ratio is 1.06%.

As of January 2012, the top sector in its holding is corporate bond (86%). The top 3 holdings are Wi Treasury Sec, Hertz Corporation, and Intelsat Jackson Holdings S.A. It is ranked with 1 star rating.

Disclosure: No Position

Fund Information

NoNameTicker1 Year Return %3 Year Return %5 Year Return %10 Year Return %Expense Ratio
1Credit Suisse Floating Rate Hi Inc ACHIAX3.82%22.58%5.95%7.94%1.63%
2Eaton Vance Floating-Rate Advantage AEAFAX3.31%20.96%4.52%4.75%1.49%
3Fidelity Floating Rate High IncomeFFRHX2.45%10.45%4.06%4.51%0.71%
4Oppenheimer Senior Floating Rate AOOSAX2.91%18.67%3.79%5.35%1.01%
5Pioneer Floating Rate AFLARX2.98%12.91%3.60%-1.12%
6Eaton Vance Floating-Rate & Hi Inc AEVFHX3.11%16.68%3.54%4.41%1.10%
7RidgeWorth Seix Floating RT High Inc ASFRAX2.58%12.04%3.51%-0.85%
8MainStay Floating Rate InvMXFNX2.72%11.77%3.25%-1.06%
9Eaton Vance Floating Rate AEVBLX2.68%15.40%3.14%3.82%1.01%
10Columbia Floating Rate ARFRAX2.50%15.45%2.85%-1.07%

0 comments:

Post a Comment