If you’ve been stuck searching for Muni – Bonds funds, you might want to consider passing on by Wells Fargo Municipals Bond Fund A (WMFAX) as a possibility. WMFAX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

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Zacks categorizes WMFAX as Muni – Bonds, which is a segment packed with options. Muni – Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are ” general obligation ” and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.

WMFAX finds itself in the Allspring family, based out of San Francisco, CA. Wells Fargo Municipals Bond Fund A debuted in April of 2005. Since then, WMFAX has accumulated assets of about $726.91 million, according to the most recently available information. The fund is currently managed by a team of investment professionals.

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 1.07%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.15%, which places it in the middle 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.

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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. WMFAX’s standard deviation over the past three years is 6.51% compared to the category average of 13.08%. Over the past 5 years, the standard deviation of the fund is 6.04% compared to the category average of 13.71%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.66, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, WMFAX has a negative alpha of -0.35, which measures performance on a risk-adjusted basis.

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