Fund overview
Exploiting municipal market inefficiencies
The High Yield Municipal Bond Fund seeks high current income exempt from federal income tax and capital appreciation by investing in a diversified portfolio of municipal securities—the majority (50% or more) of which will be rated BBB or lower.

A relative value approach is conducted by actively managing the four key elements of total return: security selection, sector rotation, duration management, and yield curve positioning.
Key differentiators

  • Leverages a large, seasoned team of municipal fixed income analysts that’s supported by compliance and portfolio analytics systems
  • Collaborates across asset classes, such as using taxable fixed income analysts to gain intelligence on corporate bonds
  • May exercise the willingness and ability to move down in credit without compromising the investment process


Average annual returns

Average annual returns

(as of 6/30/2024)
High Yield Municipal Bond Blended Index
Bloomberg Municipal Bond Index
Bloomberg High Yield Municipal Bond Index
Expenses (as of 11/1/2023)
Gross Expense Ratio
0.70 %
Net Expense Ratio
0.51 %

One-month, three-month and year-to-date returns are not annualized.

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment return, principal value, and yields of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. 

Net asset value (NAV) is the value of one share of the fund excluding any sales charges.

R6 Class shares are sold without a front-end sales charge or contingent deferred sales charge.

The manager has contractually committed, through 10/31/2024, to waive fees and/or reimburse expenses to the extent necessary to cap the fund's total annual fund operating expenses after fee waivers at 0.5%. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the fund's returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus.

Calendar year

Calendar year

(as of 12/31/2023)
Growth of $10,000

Growth of a $10,000 investment

(as of 6/30/2024)

This chart shows the value of a hypothetical $10,000 investment in the fund over the specified time period up to 10 years or since its inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes.

Does not include sales charges and assumes reinvestment of dividends and capital gains. If sales charges were included, returns would be lower.

Performance and volatility metrics

Performance and volatility metrics

(as of 6/30/2024)
3 Year 5 Year 10 Year
Alpha -0.32 -0.58 1.19
Beta 0.95 0.99 0.95
Excess Return -0.30 -0.62 -0.08
Information Ratio -0.21 -0.44 -0.05
Sharpe Ratio -0.45 -0.07 0.34
R2 0.97 0.97 0.94
Tracking Error 1.44 1.42 1.62
Standard Deviation 8.32 8.36 6.34
Upside Market Capture Ratio 95.37 95.04 90.40
Downside Market Capture Ratio 98.98 101.39 93.36
Morningstar ratings and rankings

Morningstar ratings and rankings

(as of 6/30/2024)
High Yield Muni (Out of 185 funds)
Three Year
18th percentile (32 out of 185)
Five Year
33rd percentile (62 out of 178)
Ten Year
22nd percentile out of 118

The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) ratings.

Morningstar rankings represent a fund's total return rank relative to all funds that have the same category. The percentile ranking is based on the fund's total return percentile rank relative to all funds that have the same category for the same time period. The highest (most favorable) percentile rank is 1% and the lowest (least favorable) percentile rank is 100%. Morningstar rankings do not include the effect of sales charges. The absolute ranking is based on the fund’s total return rank relative to all funds that have the same category for the same time period. Past performance is no guarantee of future results.

Prices, yields and distributions

Historical prices

YTD high $9.62 7/17/2024
YTD low $9.37 4/25/2024
52-week high $9.62 7/17/2024
52-week low $8.70 10/31/2023
2023 high $9.63 2/2/2023
2023 low $8.70 10/31/2023
Best quarterly return 7.35% 12/31/2023
Worst quarterly return -6.86% 3/31/2022
Best annual return 15.90% 12/31/2014
Worst annual return 0.00% 12/31/2013

Distribution summary

Dividends Monthly/Daily accrual
Capital gains Annually


Yield (as of 7/17/2024) Statistic
Distribution yield 4.47%
30-day SEC yield (as of 7/16/2024) 4.36%
30-day unsubsidized SEC yield (as of 7/16/2024) 4.21%
Yield to maturity 5.43%
Yield to worst 5.25%

Distribution history

Distribution history Type Per share amount Re investment price
2024-06-28 Dividend $0.037917461 $9.59
2024-05-31 Dividend $0.038793709 $9.41
2024-04-30 Dividend $0.039473467 $9.39
2024-03-28 Dividend $0.039568429 $9.54
2024-02-29 Dividend $0.039548903 $9.52
2024-01-31 Dividend $0.039056098 $9.49
2023-12-29 Dividend $0.038802399 $9.48
2023-11-30 Dividend $0.037764671 $9.26
2023-10-31 Dividend $0.036329603 $8.70
2023-09-29 Dividend $0.036001414 $8.94
2023-08-31 Dividend $0.035937246 $9.28
2023-07-31 Dividend $0.035764714 $9.43
2023-06-30 Dividend $0.035667204 $9.44
2023-05-31 Dividend $0.035490281 $9.36
2023-04-28 Dividend $0.034649143 $9.44
2023-03-31 Dividend $0.034687711 $9.43
2023-02-28 Dividend $0.035795872 $9.34
2023-01-31 Dividend $0.035006987 $9.58
2022-12-30 Dividend $0.035309834 $9.31
2022-11-30 Dividend $0.035244758 $9.39
2022-10-31 Dividend $0.03439244 $8.99
2022-09-30 Dividend $0.034227696 $9.18
2022-08-31 Dividend $0.033822929 $9.66
2022-07-29 Dividend $0.033798033 $9.88
2022-06-30 Dividend $0.0324731 $9.58
2022-05-31 Dividend $0.033546825 $9.90
2022-04-29 Dividend $0.032580288 $9.78
2022-03-31 Dividend $0.033764131 $10.15
2022-02-28 Dividend $0.030584228 $10.55
2022-01-31 Dividend $0.034003037 $10.71
2021-12-31 Dividend $0.034134598 $11.00
2021-12-09 Long-term capital gain $0.00053 $11.00
2021-12-09 Short-term capital gain $0.03927 $11.00
2021-11-30 Dividend $0.033132905 $11.05
2021-10-29 Dividend $0.034189666 $10.95
2021-09-30 Dividend $0.033332376 $11.06
2021-08-31 Dividend $0.034200982 $11.18
2021-07-30 Dividend $0.034191079 $11.24
2021-06-30 Dividend $0.033111687 $11.16
2021-05-28 Dividend $0.034459867 $11.05
2021-04-30 Dividend $0.033359253 $10.97
2021-03-31 Dividend $0.035042708 $10.85
2021-02-26 Dividend $0.034249076 $10.78
2021-01-29 Dividend $0.035636869 $10.96
2020-12-31 Dividend $0.038348784 $10.87
2020-11-30 Dividend $0.037627302 $10.75
2020-10-30 Dividend $0.038136579 $10.57
2020-09-30 Dividend $0.038539764 $10.59
2020-08-31 Dividend $0.038126673 $10.61
2020-07-31 Dividend $0.037883355 $10.63
2020-06-30 Dividend $0.040568376 $10.44
2020-05-29 Dividend $0.04008456 $10.17
2020-04-30 Dividend $0.039112683 $9.92
2020-03-31 Dividend $0.039999678 $10.25
2020-02-28 Dividend $0.039223029 $11.36
2020-01-31 Dividend $0.038891995 $11.23
2019-12-31 Dividend $0.038643014 $11.10
2019-11-29 Dividend $0.039264053 $11.10
2019-10-31 Dividend $0.039337613 $11.10
2019-09-30 Dividend $0.039464936 $11.12
2019-08-30 Dividend $0.039159366 $11.18
2019-07-31 Dividend $0.03867555 $11.02
2019-06-28 Dividend $0.038794384 $10.98
2019-05-31 Dividend $0.038319054 $10.95
2019-04-30 Dividend $0.037287763 $10.82
2019-03-29 Dividend $0.036812435 $10.77
2019-02-28 Dividend $0.037007661 $10.63
2019-01-31 Dividend $0.035409793 $10.60
2018-12-31 Dividend $0.035126861 $10.56
2018-11-30 Dividend $0.037027465 $10.50
2018-10-31 Dividend $0.031375869 $10.48
2018-09-28 Dividend $0.02405179 $10.57
2018-08-31 Dividend $0.035423585 $10.61
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The 30-day SEC yield is calculated with a standardized formula mandated by the SEC. The formula is based on maximum offering price per share and includes the effect of any fee waivers. Without waivers, yields would be reduced. The 30-day unsubsidized SEC yield does not reflect waivers in effect. A fund’s actual distribution rate will differ from the SEC yield and any income distributions from the fund may be higher or lower than the SEC yield.


Portfolio statistics

Portfolio statistics

(as of 5/31/2024)
Fund Benchmark
Number of Holdings 175 63824
Effective Duration 8.61 7.85
Weighted Average Effective Maturity 20.98 14.62
AMT 15.00 0.00
Average Credit Rating BBB- BBB
Average Maturity 22.40 17.21
Credit Spread Duration 7.92 6.93

Placement within the Morningstar Equity Style Box is based on two variables: relative median market capitalization and relative price valuations (price/book and price/earnings) of the fund’s portfolio holdings. These numbers are drawn from the fund’s portfolio holdings figures most recently entered into Morningstar’s database and the corresponding market conditions. The Ownership Zone is represented by a shaded area surrounding the centroid. This zone encompasses 75% of a portfolio’s holdings on an asset-weighted basis and is designed to be a visual measure of how wide-ranging the portfolio is.

Credit quality

Credit quality

(as of 5/31/2024)
0.50% 6.50%
6.91% 22.01%
15.17% 9.31%
25.72% 2.20%
12.47% 15.46%
0.30% 1.94%
CCC/Caa and below
0.20% 1.43%
Not rated
39.38% 41.16%
Cash & equivalents
-0.65% -

The ratings indicated are from Standard & Poor's, Fitch Ratings Ltd., and/or Moody's Investors Service. The percentages of the fund's portfolio with the ratings depicted in the chart are calculated based on total investments of the fund. If a security was rated by all three rating agencies, the middle rating was used. If rated by two of three rating agencies, the lower rating was used, and if rated by one of the agencies, that rating was used. Credit quality is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.



(as of 5/31/2024)
Maturity Range
0 - 1 year
1 - 3 years
3 - 5 years
5 - 10 years
10 - 20 years
20+ years

Maturity distribution is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.


Top 10 holdings

(as of 6/30/2024)
Basis TX Charter
Texas Private Activity Bond Surface Transportation Corp.
Build NYC Resource Corp NY REV BUIGEN 04/53 FIXED OID 7
Indiana Finance Authority
Hempstead Town Local Development Corp. (New York)
Virginia Small Business Finance Authority
State Treasurer of Ohio
Los Angeles Department of Water
New York St Dorm Auth Revs Non St Supported Debt
Top 10 represents 13.75% of total net assets
Portfolio composition

Portfolio composition

Data is unavailable at this time, please check back later.


Literature Details Frequency
Fact Sheet Administrator, Institutional, R6, C, A Quarterly Download
Regulatory Document Details Date
Annual Report Administrator, Institutional, R6, C, A 6/30/2023 Download
Full Prospectus R6 11/1/2023 Download
Quarterly Holdings Administrator, Institutional, R6, C, A 3/31/2024 Download
Quarterly Holdings Administrator, Institutional, R6, C, A 9/30/2023 Download
Semi-annual Report Administrator, Institutional, R6, C, A 12/31/2023 Download
Statement of Additional Information Administrator, Institutional, R6, C, A 11/1/2023 Download
Summary Prospectus R6 11/1/2023 Download
Our team
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Contact Us

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Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to municipal securities risk. Consult the fund's prospectus for additional information on these and other risks. A portion of the fund's income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

The Morningstar Rating™ for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.

Some of Morningstar’s proprietary calculations, including the Morningstar Rating™, are not customarily calculated based on adjusted historical returns. However, for new share classes/channels, Morningstar may calculate an extended-performance Morningstar Rating. The extended performance is calculated by adjusting the historical total returns of the oldest share class of a fund to reflect the fee structure of the younger share class/channel, attaching this data to the younger share class’s performance record, and then compounding the adjusted plus actual monthly returns into the extended-performance Morningstar risk-adjusted return for the 3-, 5-, and 10-year time periods. The Morningstar risk-adjusted returns are used to determine the extended-performance Morningstar Rating. The extended-performance Morningstar Rating for this fund does not affect the retail fund data published by Morningstar, as the bell curve distribution on which the ratings are based includes only funds with actual returns. The Overall Morningstar Rating for multi-share funds is based on actual performance only or extended performance only. Once the share class turns three years old, the Overall Morningstar Rating will be based on actual ratings only. The Overall Morningstar Rating for multi-share variable annuities is based on a weighted average of any ratings that are available.

While the inclusion of pre-inception data in the form of extended performance can provide valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can provide only an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. The underlying investments in the share classes used to calculate the pre-performance string likely will vary from the underlying investments held in the fund after inception. Calculation methodologies used by Morningstar may differ from those applied by other entities, including the fund itself.

The manager has contractually committed to certain fee waivers and/or expense reimbursements. Without these reductions, the fund’s returns would have been lower and rankings may have been lower. These reductions may be discontinued.

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Performance for the fund or the class shown may reflect a predecessor fund's or class' performance and may be adjusted to reflect the fund's or class' expenses as applicable.