NC Muni Bonds Investment Guide

Investing in North Carolina municipal bonds can be a great way to support local projects and earn a return on your investment. NC muni bonds are issued by local governments and organizations to fund public projects such as schools, hospitals, and infrastructure.

These bonds are typically considered to be a low-risk investment, as they are backed by the credit of the issuing entity. According to the article, NC muni bonds have a high credit rating, with many issuers having AAA or AA ratings.

Investors can purchase NC muni bonds directly from the issuing entity or through a broker. The interest rates on these bonds can vary depending on the term length and credit rating of the issuer.

Bond ratings can vary among share classes, and are based on historical risk-adjusted total returns, which are not indicative of future results.

Ratings are given by national rating agencies like S&P, Moody's, or Fitch, and can change over time. AAA, AA, A, and BBB are considered investment grade ratings, while BB, B, CCC/CC/C, and D are below-investment grade ratings.

Not all bonds are rated by these agencies, and some may be designated as Not Rated.

Lipper rankings are based on total return and related to each share class. The returns assume reinvestment of dividends and do not reflect any applicable sales charge.

Absent expense limitation, total return would be less. Past performance is no guarantee of future results.

A Percentile rank is a percentage value between one and 100 percent assigned to each fund in its respective category. The top percentile (1) is designated as better performing.

The bottom percentile (100) is the worst performing. Absolute rank is the numerical ranking of the fund relative to the total number of funds in the category.

Credit quality is a crucial aspect of bond ratings, and it's essential to understand how it's measured. Ratings shown are the highest rating given by one of the three national rating agencies: S&P, Moody's, or Fitch.

AAA, AA, A, and BBB are investment-grade ratings, which means they're considered safe and stable. BB, B, CCC/CC/C, and D are below-investment-grade ratings, indicating a higher risk of default.

Holdings in a fund can change over time, and positions are subject to change as well. If a fund holds inverse floating rate securities, only the amount of the residual inverse floater is shown, not the underlying bond and associated liability.

Credit ratings are subject to change, and it's essential to keep an eye on them. Holdings and ratings are subject to change, so it's crucial to stay up-to-date with the latest information.

Totals may not add up to 100% due to rounding, so be sure to review the fund's holdings carefully.

North Carolina municipal bonds, also known as NC muni bonds, typically have a minimum investment requirement of $5,000.

These bonds are issued by the state and its local governments to finance public projects such as schools, hospitals, and infrastructure.

NC muni bonds are exempt from federal taxes and, in some cases, state taxes, making them an attractive option for investors looking to reduce their tax liability.

Interest rates for NC muni bonds can vary depending on the credit rating of the issuer and market conditions.

Morningstar Ratings are based on historical risk-adjusted total returns. These ratings can vary among share classes.

They don't predict future results, so keep that in mind.

The pricing of bonds can be a bit tricky to understand, but it's essential to grasp the basics.

The Taxable-Equivalent Yield (TEY) is a key concept to consider when evaluating a bond's pricing. It represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis at a specified tax rate.

The TEY is based on the Fund's Distribution Rate or SEC 30-Day Yield on the indicated date and the combined federal and state (if applicable) income tax rate shown.

You can find the TEY in the Pricing section of the article, but be aware that it's not provided for funds with a negative SEC 30-Day Yield.

The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. It's a useful metric to compare the yield of the Fund against the yield of a taxable investment at the assumed tax rate.

The Pricing History section provides a snapshot of the fund's past performance, including the Net Asset Value (NAV) and the change in NAV since the previous trading day.

Here's a breakdown of the Pricing History:

The Distribution Rate is another important metric to consider when evaluating a bond's pricing. It's the rate at which the fund distributes its income to shareholders.

Here are the Distribution Rates for the fund:

These North Carolina municipal bonds aim to provide total return with an emphasis on income exempt from federal income tax and North Carolina personal income tax, if any.

The investment objective of these bonds is to consider both income and capital appreciation, making them a potentially attractive option for those seeking a stable return.

The investment focus is on sector/security selection and yield curve analysis, which can help identify the most promising investment opportunities.

Here are some key performance metrics to keep in mind:

Investment Focus is a crucial aspect of any investment strategy. The investment focus of a particular fund can greatly impact its performance and suitability for individual investors.

To achieve their investment objectives, some funds focus on sector/security selection and yield curve analysis. This approach aims to identify undervalued sectors or securities that have the potential for growth.

The goal of this type of investment focus is to provide double tax-free income for in-state residents. This means that the income generated by the investment is exempt from both federal and state taxes.

Here are some key investment focus strategies:

Investors should carefully consider their investment focus and objectives before making a decision. By understanding the investment focus of a particular fund, individuals can make more informed decisions and achieve their financial goals.

The share class information is crucial to understand before investing. The fund was launched on October 31, 1984.

To get a clear picture of the fund's performance, you'll want to look at the Net Asset Value (NAV). As of January 3, 2025, the NAV was $10.84, with 3454 changes.

The most recent NAV change was a $0.01 increase, which translates to a 0.09% change.

Here are some key numbers to keep in mind:

Keep in mind that the Net Expense Ratio is subject to change, and these reductions will continue until at least July 31, 2025.

Portfolio Composition is a crucial aspect of any investment, and nc muni bonds are no exception. The structure of a portfolio can greatly impact its overall performance and risk.

The portfolios in question have a significant portion of high-quality bonds, with AAA ratings making up 7.47% and 5.43% of the total net assets, respectively. AAs also play a substantial role, accounting for 49.72% and 51.51% of the portfolios.

In terms of credit quality, the portfolios are well-diversified, with a range of ratings from AAA to CCC, as well as a category for bonds not rated. Here's a breakdown of the credit quality distribution:

Let's take a closer look at the top holdings in the portfolio.

The top 10 holdings are comprised of a diverse range of investments, including bonds issued by universities, government agencies, and other organizations.

Here are the top 10 holdings, listed in order of their allocation:

The portfolio also includes several other investments, but these top 10 holdings make up the majority of the allocation.

Portfolio Structure (%) is a crucial aspect of a portfolio's overall composition. It reveals how a portfolio's assets are allocated across different credit ratings.

The Portfolio Structure (%) is based on equivalent exposure, which measures how a portfolio's value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly.

Here's a breakdown of the credit ratings in the portfolio:

Short positions, unlike long positions, lose value if the underlying asset gains value.

Investing in North Carolina municipal bonds comes with some fees to consider. The Net Expense Ratio is 0.84%, which is a reduction from the Gross Expense Ratio of 0.86% due to contractual fee waivers and reimbursements.

These reductions are temporary and will continue until at least July 31, 2025. If these waivers and reimbursements were to end, the Net Expense Ratio would likely increase, affecting the fund's performance.

The maximum sales charge for Class A shares is 4.25%. This is an important consideration when evaluating the overall cost of investing in this fund.

Investing in a fund can be a bit of a gamble, and it's essential to be aware of the potential risks. The fund may not achieve its objective, and you could end up losing money on your investment.

Bonds can be particularly volatile, especially if the issuer's credit quality declines. This can cause the value of your investment to drop significantly.

Debt instruments, in general, are sensitive to interest rate changes, and rising rates can cause prices to fall. Portfolios with longer durations are more sensitive to interest rate changes than those with shorter durations.

Derivatives can be highly volatile and involve leverage, which can magnify losses. They also carry additional risks beyond the underlying indicator, such as counterparty and liquidity risk.

Municipal bonds can be affected by adverse tax or court rulings, legislative or political changes, and market and economic conditions. This can cause the value of your investment to fluctuate wildly.

Investing in a concentrated portfolio can be riskier than investing in a more geographically diversified portfolio. This is because the performance of a concentrated portfolio can be closely tied to the economic, political, and other conditions in a specific region.

Fees are a crucial aspect of investing, and it's essential to understand what you're paying for. The Net Expense Ratio is 0.84%, which is a reduction from the Gross Expense Ratio due to contractual fee waivers and reimbursements.

These reductions will continue until at least July 31, 2025, so it's essential to keep an eye on this. The Gross Expense Ratio, on the other hand, is 0.86%, which is the fund's total operating expense ratio from the latest prospectus.

The Maximum Sales Charge for Class A shares is 4.25, which means you'll pay this amount upfront. This charge can eat into your returns, so it's essential to factor it into your investment plans.

The performance of North Carolina municipal bonds (nc muni bonds) can be a bit complex, but let's break it down. Average Annual Total Returns, Annual Rate of Return, and Pricing & Distributions are all important metrics to consider.

Over the years, NAV (Net Asset Value) has fluctuated, with a notable increase of $0.01 on January 3, 2025, and a change of 0.09% since January 2, 2025. This might not seem like a lot, but it's essential to keep an eye on these changes.

Here's a snapshot of the NAV at close of trading on various dates:

If you're looking for more detailed information, the Performance Statistics Table provides a wealth of data, including Alpha, Beta, R-squared, and Standard Deviation % for 10-year, 5-year, and 3-year periods.

Performance is a crucial aspect of any investment, and it's essential to understand how it's measured. The average annual total returns are a key indicator of an investment's performance over time.

Looking at the data from the article, we can see that the average annual total returns have fluctuated significantly over the years. In some years, the returns have been as high as 7.22% (At NAV in 2020), while in others, they've been as low as -9.55% (At NAV in 2022).

Here's a breakdown of the average annual total returns for At NAV and the Bloomberg Municipal Bond Index from 2015 to 2024:

As you can see, the returns have been quite volatile, and it's essential to consider this when making investment decisions. The Bloomberg Municipal Bond Index has generally performed better than At NAV, but there have been exceptions.

The annual rate of return is another important metric to consider. It's the rate of return an investment earns over a specific period, usually a year. Looking at the data, we can see that the annual rate of return for At NAV has ranged from -9.74% (With Sales Charge in 2022) to 7.22% (At NAV in 2020).

The sales charge can also impact the annual rate of return. In some years, the returns have been significantly lower with the sales charge compared to At NAV. For example, in 2022, the annual rate of return for With Sales Charge was -13.58%, while it was -9.74% for At NAV.

Overall, it's essential to consider multiple factors when evaluating an investment's performance, including average annual total returns, annual rate of return, and sales charges. By doing so, you can make more informed decisions and achieve your investment goals.

The Pricing History of a fund is a crucial aspect to understand its performance over time. The Net Asset Value (NAV) at close of trading on January 3, 2025, was $3454, with a change of $0.01 since January 2, 2025.

This change represents a 0.09% increase in value. It's essential to note that historical NAV may not be available for all dates.

The fund's distribution rate is 3.16% not including sales charges, and 3.03% including sales charges. This means that investors can expect a certain level of return on their investment, although sales charges may eat into these returns.

Here is a breakdown of the fund's distribution rate and yield value over time:

This table highlights the impact of waivers on the fund's yield value.

When investing in NC muni bonds, you'll likely come across various documents that provide essential information about the investment.

A Summary Prospectus is a concise document that summarizes the key features and risks of the investment.

The Statement of Additional Information (SAI) is a more detailed document that provides additional information about the investment, including the investment's fees and expenses.

A Prospectus is a comprehensive document that provides detailed information about the investment, including its features, risks, and fees.

Here are the key documents you'll need to review when considering an NC muni bond investment: