How To Invest In Municipal Bonds – An experienced approach to finding tax-free income markets, the economy and potential tax policy are in transition – a backdrop that requires a nimble portfolio led by some of the industry’s most experienced managers.
The fund invests in a diversified national group of investment-grade municipal bonds focused on sectors that are essential to the functioning of America, including health care, electric power, energy and public/private education.
How To Invest In Municipal Bonds
The fund is uniquely positioned in terms of resource and investment flexibility. The Municipal team benefits from the significant resources and insight of our US Fixed Income Department. Compared to many of our larger peers, managing a relatively smaller and more flexible pool of city assets across multiple strategies allows us to be more nimble.
Tax Equivalent Yield Definition
The net cost ratio reflects the contractual spending limits currently in effect until 5/1/2025. for Class I shares. There can be no guarantee that the US will sign on to the spending limits after that time period. For more information, see the prospectus and financial statements.
Call 1-800-225-6292 or visit our performance page for the latest month-end performance results. Current performance may be lower or higher than the stated performance data. The data reflects past performance, which is not a guarantee of future results. Investment returns and principal value will vary, and the shares, when redeemed, may be worth more or less than the original price.
Class I shares are not subject to sales charges and are available to limited groups of investors, including institutional investors. Initial investments are subject to a minimum investment of $5 million, which may be waived in certain cases. All returns are historical and it is assumed that dividends and capital gains will be reinvested. There are other share classes available for which performance and costs will vary. Performance results reflect all applicable cost waivers in effect during the periods shown. Without such an exemption, the fund’s performance would be lower. The waiver may not apply to all funds. Certain fees are waived on the basis of the contract for a certain period. Otherwise, the fee waiver may be revoked at any time. For more information, see the prospectus and financial statements.
AMT-Free Pioneer Municipal Fund was created on 13.12.2004. through the reorganization of the previous fund, SafeCo Municipal Bond Fund. The performance of the Fund’s Class A shares is the same as the Class A NAV performance of the predecessor fund (as of 12/31/1996) prior to the reorganization, and has been recalculated to reflect differences in all applicable sales charges (but not expense differences). . Performance for the periods before the beginning of the acquisition of class I shares on October 11, 2006. reflects the performance of the NAV of the Fund’s Class A shares. The performance of Class I shares does not reflect differences in expenses, including 12b-1 fees, associated with Class A shares. Because the fees for Class A Shares are generally higher than those for Class I Shares, there would have been performance shown for Class I Shares before the increase began.
Municipal Bonds: Opportunity At The Long End Of The Curve
The BBG US Municipal Bond Index (benchmark) is a broad measure of the municipal bond market. The Morningstar National Municipal Long Category Average represents the average annual return for long national municipal bond funds within the Morningstar universe. The indices are not managed and their returns assume that dividends will be reinvested, and unlike the returns of the Fund, they do not reflect fees or expenses. You cannot invest directly in the index.
The 30-day SEC yield is based on the hypothetical annual earning power (investment income only) of the Fund’s portfolio over the specified period.
The fund benefits from an experienced collaborative investment team. Portfolio managers David Eurkus and Jonathan Chirunga have managed municipal bonds through various market cycles and changing economic conditions, enabling them to develop a deep understanding of the municipal bond universe and its market dynamics.
Market prices of securities may rise or fall, sometimes rapidly or unpredictably, due to general market conditions, such as actual or perceived adverse economic, political or regulatory conditions, recessions, inflation, changes in interest or currency rates, lack of liquidity. in bond markets, the spread of infectious disease or other public health issues or negative investor sentiment. The market price of a security can fluctuate when interest rates change. When interest rates rise, the prices of the Fund’s fixed income securities will typically fall. Conversely, when interest rates fall, the prices of the Fund’s fixed income securities will generally rise. Investments in the Fund are subject to potential loss due to the financial failure of the issuers of the underlying securities and their inability to meet their debt obligations. The value may be adversely affected by changes in the financial condition of municipal issuers, lower revenues and regulatory and political developments related to municipal securities. A portion of the income may be subject to local, state, federal and/or other minimum taxes. Capital gains, if any, are subject to capital gains tax. From time to time, the Fund’s investments may represent industries or sectors that are interrelated or have common risks, making them more susceptible to any economic, political or regulatory developments or other risks affecting those industries and sectors.
Muni Bonds Vs. Bond Funds: Better Together?
Individuals are encouraged to seek the advice of their own financial, legal, tax and other appropriate professionals before making any investment or financial decision or before purchasing any financial, securities or investment product or service, including any product or service described in these materials. USA does not provide investment advice or investment recommendations.
Before investing, consider the investment objectives, risks, costs and costs of the product. Contact your financial professional or US for a prospectus or summary prospectus containing this information. Read carefully. For a free prospectus or prospectus summary and for information about any Pioneer Fund, download it from our literature section.
Not FDIC insured | It could lose value | No bank guarantee USA Asset Management, Inc. Form CRS Distributor US, Inc. CRSO form One question we have been asked many times in light of the pandemic and the economic crisis that followed is whether we recommend investing in bonds. Bonds are generally described as less volatile than traditional stock investing, making them a more stable option and can play a central role in your investment strategy.
A bond (for example, fixed income) is an instrument that governments and companies use to raise money by borrowing from investors. Think of them as loans. They are usually issued by the government and companies to finance specific projects, rather than actually issuing shares in the company. Many of these bonds receive ratings that determine how reliable they are.
Are Municipal Bonds A Safe Source Of Retirement Income Now?
The two categories are investment grade and high yield. Their ratings are similar to a credit score, except for governments and companies. The better the rating, the less interest you will pay and the less risk they carry. It’s the same as having a good credit score: you get lower interest rates on your loans.
Bonds tend to promise back. Unless you’re investing in a junk bond or the inflation rate is very high, you’ll usually get a return when you buy a bond. This does NOT mean that all bonds bring returns, or that the returns will be high, but investing in bonds is considered a relatively safe investment.
Bonds can help you diversify your portfolio. Whether you’re new to investing or not, it’s important to have a diversified portfolio – this includes investments in stocks and bonds.
Municipal bonds are a way to invest directly in your community. They may not bring a high return, but you are giving back and possibly helping to provide a resource that will improve the value of life for individuals in the community.
A Tax Exempt Municipal Bond Strategy For A Time Of Transition
Of course, as with any investment, there are always risks. If interest rates rise, the value of the bond decreases. Likewise, if the rate of inflation rises faster than the value of the goods you supply, it can overtake the bond and therefore the bond can lose value. Bonds do not earn value until they mature, but stocks can be sold at any time.
If you’re still confused about how to incorporate bonds into your portfolio, it’s a good idea to check if you already own bonds! For example, if you have maturity funds (such as Deadline 2060 or LifeCycle 2055) in your retirement accounts, then it’s a pretty safe bet to include bonds. If you have a brokerage account with a robo-advisor like Betterment or Wealthfront, check to see if you have, for example, a US high-grade bond ETF or a US utility bond ETF.
As with any investment, we recommend that you speak with a financial coach about your overall financial picture and your financial goals before purchasing anything. We always recommend having an emergency fund and any debt on a repayment plan before you start investing!
To get started, schedule a free 20-minute consultation call to speak with a member of our team. We’ll ask you some basic questions to get to know you better, guide you through the steps of our financial training program and, of course, answer any questions you may have. No pressure to join! After you have decided to invest in bonds, then you need to decide on the type of bond investment
Should You Consider Muni Bonds?
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