Is ECMMX a Strong Bond Fund Right Now?

If you’ve been stuck searching for Muni – Bonds funds, you might want to consider passing on by Eaton Vance MA Municipals C (ECMMX) as a possibility. ECMMX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.

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Zacks categorizes ECMMX as Muni – Bonds, which is a segment packed with options. Muni – Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are ” general obligation ” and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.

Eaton Vance is based in Boston, MA, and is the manager of ECMMX. Eaton Vance MA Municipals C debuted in July of 2006. Since then, ECMMX has accumulated assets of about $1.52 million, according to the most recently available information. The fund is currently managed by Craig Brandon who has been in charge of the fund since February of 2010.

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -0.28%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -1.49%, which places it in the bottom third during this time-frame.

It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.

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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. Compared to the category average of 11.92%, the standard deviation of ECMMX over the past three years is 7.67%. Over the past 5 years, the standard deviation of the fund is 6.56% compared to the category average of 12.28%. This makes the fund less volatile than its peers over the past half-decade.

ECMMX carries a beta of 0.8, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -1.58, which measures performance on a risk-adjusted basis.

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