Yahoo Finance Is AGDYX a Strong Bond Fund Right Now?
If you're looking for a Mutual Fund Bond fund category, then a potential option is AB High Income Fund Adviser (AGDYX). AGDYX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
AllianceBernstein is based in New York, NY, and is the manager of AGDYX. AB High Income Fund Adviser made its debut in January of 2008, and since then, AGDYX has accumulated about $1.83 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 1.56%, and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 5.83%, which places it in the top 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. AGDYX's standard deviation over the past three years is 9.22% compared to the category average of 14.3%. The standard deviation of the fund over the past 5 years is 11.32% compared to the category average of 14.25%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.31, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, AGDYX has a positive alpha of 0.88, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, AGDYX 's junk bond component-bonds rated 'BB' or below-is at 73.18%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, AGDYX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.97%. So, AGDYX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, AB High Income Fund Adviser ( AGDYX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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