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Is AHITX a Strong Bond Fund Right Now?

On the lookout for a Mutual Fund Bond fund? Starting with American Funds High Income Trust A (AHITX) is one possibility. AHITX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

American Funds is responsible for AHITX, and the company is based out of Los Angeles, CA. American Funds High Income Trust A debuted in February of 1988. Since then, AHITX has accumulated assets of about $11.18 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 2.53%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.97%, which places it in the top third during this time-frame.

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. Over the past three years, AHITX's standard deviation comes in at 10.89%, compared to the category average of 16.09%. The standard deviation of the fund over the past 5 years is 8.92% compared to the category average of 14.11%. This makes the fund less volatile than its peers over the past half-decade.

AHITX carries a beta of 0.29, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 2.98, which measures performance on a risk-adjusted basis.

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, AHITX is a load fund. It has an expense ratio of 0.68% compared to the category average of 0.98%. From a cost perspective, AHITX is actually cheaper than its peers.

This fund requires a minimum initial investment of $250, and each subsequent investment should be at least $50.

Bottom Line

Overall, American Funds High Income Trust A ( AHITX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, American Funds High Income Trust A ( AHITX ) looks like a good potential choice for investors right now.

Your research on the Mutual Fund Bond segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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