Is LUBIX a Strong Bond Fund Right Now?
Having trouble finding an Investment Grade Bond - Intermediate fund? Thrivent Income Fund A (LUBIX) is a possible starting point. LUBIX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that LUBIX is an Investment Grade Bond - Intermediate option, which is a segment loaded with many different investment options. By targeting bonds that mature in more than three years but less than 15 years, Investment Grade Bond - Intermediate funds are a middle of the curve option. Fixed income instruments at this maturity level usually have medium duration risk, but their yields are respectable, especially in comparison to their short-maturity counterparts. Additionally, a focus on investment grade makes these funds safer, but yields tend to be lower than in the junk bond category.
History of Fund/Manager
LUBIX finds itself in the Thrivent family, based out of Appleton, WI. The Thrivent Income Fund A made its debut in June of 1972 and LUBIX has managed to accumulate roughly $222.79 million in assets, as of the most recently available information. The fund is currently managed by Kent White who has been in charge of the fund since June of 2017.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 0.84%, and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -3.05%, 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.
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 11.49%, the standard deviation of LUBIX over the past three years is 9.04%. The fund's standard deviation over the past 5 years is 8.46% compared to the category average of 11.9%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.95, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, LUBIX has a positive alpha of 1.8, which measures performance on a risk-adjusted basis.
Ratings
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, LUBIX is a load fund. It has an expense ratio of 0.77% compared to the category average of 0.77%. Looking at the fund from a cost perspective, LUBIX is actually on par with its peers.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Thrivent Income Fund A ( LUBIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and on par fees, Thrivent Income Fund A ( LUBIX ) 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 Investment Grade Bond - Intermediate, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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