Best Performing High Yield Municipal Bond Mutual Funds 2012

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The best performing high yield municipal bond mutual funds up to September 23, 2012 are Nuveen High Yield Municipal Bond fund, Pioneer High Income Municipal, etc.

High Yield Muni Mutual FundsBest Performing High Yield Muni Mutual Funds 2012

High yield muni mutual funds invest most of its assets in lower rated municipal bonds. These bond funds provide tax free high yield income for investors. They usually provide the distribution yield regularly (i.e. monthly or quarterly). They have higher risk than investment grade municipal bond funds.

From this best performing funds list, you may find each individual fund review. You can find the fund performance, expense ratio, and yield or dividend from the table below. The list is sorted based on its year to date performance in 2012 (up to September 23, 2012).

The 10 top performer high yield municipal bond mutual funds 2012 are:
  1. Nuveen High Yield Municipal Bond Fund (NHMAX)
  2. Pioneer High Income Municipal Fund (PIMAX)
  3. Oppenheimer AMT-Free Municipals Fund (OPTAX)
  4. Lord Abbett High Yield Municipal Bond Fund (HYMAX)
  5. MainStay High Yield Municipal Bond Fund (MMHVX)
  6. AllianceBernstein High Income Municipal Fund (ABTHX)
  7. Delaware National High-Yield Muni Bond Fund (CXHYX)
  8. Goldman Sachs High Yield Muni Fund (GHYAX)
  9. Eaton Vance High-Yield Municipal Income Fund (ETHYX)
  10. BlackRock High Yield Municipal Fund (MDYHX)
Updated on 9/29/2012

Nuveen High Yield Municipal Bond Fund (Ticker: NHMAX)

This Nuveen High Yield Municipal Bond Fund utilizes its assets to invest in lower rated municipal bonds. It is ranked Neutral and 3-stars rating by Morningstar. It has total net assets of $7.90 billion. The dividend yield is 6.25%. The annual expense ratio of this fund is 0.83%.

This best performing high yield muni fund has average maturity of 22.33 years. The modified duration is 7.41 years. For 2012, the year to date return is 17.21%. It has 5-year annualized return of 2.33%. The top portfolio allocation as of August 2012 is Municipal Bonds (86.25%) and Inverse Floaters (11.61%). The top 3 bond sectors are Tax Obligation/ Limited (27.5%), Health Care (16.7%) and Transportation (10.7%).

Pioneer High Income Municipal Fund (PIMAX)

This Pioneer High Income Municipal Fund objective is to provide high yield income exempt from federal income tax. It has $813.59 million of total net assets. The 12-month yield is 5.67%. Morningstar has ranked it with 3-stars rating. The expense ratio is 0.88%. Timothy Pynchon is the fund manager. The CUSIP number is 72387N846.

The fund’s YTD return is 15.75%. It has returned 6.23% over the past 1-year, 10.63% over the past 3-year, and 1.95% over the past 5-year. The other classes are Class C (HICMX) and Class Y (HIMYX). The top holdings are Illinois Finance (2.7%), Greater Orlando Avia (1.9%), West Virginia Hospital (1.9%), Illinois Finance Aut (1.8%), Northern Tobacco Sec (1.7%), Capital Trust Agency (1.7%) and New York City Industry (1.7%).

Oppenheimer AMT-Free Municipals Fund (OPTAX)

Oppenheimer AMT-Free Municipals fund invests primarily in municipal debt securities. It may invest in investment grade or non-investment grade muni bonds. Daniel G. Loughran has managed this high yield muni mutual fund.

It was first introduced to public in October 1976. It has total net assets of $2.78 billion. The dividend is 5.65%. The most recent yield was distributed in August 2012 ($0.03). The expense ratio (0.74%) is lower than the average in the High Yield Muni category (0.98%). The current shares price is $7.21.

This best performing high yield muni bond mutual fund also has YTD return of 15.81%. It has 2-stars rating from Morningstar. It has 26 years of positive return since inception. The top holdings as of August 2012 are TX Municipal Gas Acquisition & Supply Corp (2.3%), Buckeye, OH Tobacco Settlement Financiang Authority (2.3%), CA Golden State Tobacco Securitization Corp (2.0%) and IL Finance Authority (1.2%).

Lord Abbett High Yield Municipal Bond Fund (HYMAX)

This Lord Abbett High Yield Municipal Bond fund has 13.48% YTD return. With $1.91 billion of total net assets, Morningstar analysts rate it with Negative rating. Investors of this fund gets dividend yield of 5.23% per year. The portfolio turnover as of September 6, 2012 is 40.94%. There is 0.20% management fee and 2.25% front-end sales load fee.

This top performer high yield muni mutual fund has its best 1-year total return in 2009. During 2009, it managed to return 35.91% per year. The largest issues are Buckeye Tobacco Settlement Finance Authority (2.2%), NJ Tobacco Settlement Finance Corp (1.8%), Golden St. Tobacco Securitization Corp (1.2%), Central Plains Energy (1.1%) and VA Tobacco Settlement Financing Corp (1.0%).

MainStay High Yield Municipal Bond Fund (MMHVX)

MainStay High Yield Municipal Bond fund hasn’t been ranked by Morningstar. It seeks a high level of current income exempt from federal income taxes. With total net assets of $952.22 million, it has 13.31% YTD return. The dividend yield is 4.40%. You can buy this fund with $2,500 minimum initial investment. The total expense ratio is 0.90%. The fund NAV is $11.78.

Last year, the fund has returned 11.79%. The CUSIP is 56063U554. Other classes are Class A (MMHAX), Class C (MMHDX) and Class Institutional (MMHIX). The effective maturity is 15.4 years. The top holdings are Clark County NV (2.0%), Philadelphia PA Hospitals & Higher Education Facilities Authority (1.6%), Vermont Economic Development Authority (1.4%), Capital Beltway Funding Corp (1.4%) and Indiana Finance Authority (1.3%).

Disclosure: No Position

Fund Performance

NoFund DescriptionTickerRatingYTD Return (%)Expense Ratio (%)Total Assets (Mil)
1Nuveen High Yield Municipal Bond ANHMAX317.210.837901
2Pioneer High Income Municipal APIMAX316.380.88814
3Oppenheimer AMT-Free Municipals AOPTAX215.980.742758
4Lord Abbett High Yield Municipal Bond AHYMAX214.040.821948
5MainStay High Yield Municipal Bond InvMMHVXN/A13.740.9971
6AllianceBern High Income Municipal AABTHXN/A13.130.81170
7Delaware National Hi-Yld Muni Bd ACXHYX412.840.85426
8Goldman Sachs High Yield Muni AGHYAX212.830.883725
9Eaton Vance High-Yield Municipal Inc AETHYX212.80.93726
10BlackRock High Yield Municipal Inv AMDYHX312.440.97327

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