Mutual Funds
West Virginia Intermediate Tax-Free Fund
Fund Managers
Robert Millikan, CFA®
Michael McVicker
Overview
C
Shares
BWVCX
Inception
Date
02.01.2012
Investment
Min.
$1,000
Subsequent
Investment Min.1
N/A
Max. Up Front
Sales Charge
N/A
Max. Deferred
Sales Charge
1%
1If subsequent investments are made as part of an AIP, the minimum is $25.
Philosophy & Process
The Fund seeks current income exempt from federal and West Virginia income taxes consistent with preservation of capital.
In managing the Fund, the team specializes in actively building and managing a high credit quality fixed income portfolio focused on the intermediate segment of the yield curve offering. The team employs a top-down investment process that focuses on: duration management, yield curve strategy and finding the best relative value with limited amount of risk in order to maximize the risk-adjusted total return.
Buy Strategy: We buy high quality, liquid issues and seek the best relative sector and security values available. We attempt to maximize total return and current income while reducing price volatility.
Sell Strategy: We will consider selling a security we own in order to reposition the Fund along the yield curve and adjust the Fund's average maturity or duration. In addition, we might replace a security with one that offers greater potential for total return or when its credit fundamentals are deteriorating.
Investment Considerations
The funds are subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The funds are non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the funds invest primarily in state-specific municipal obligations of issuers and therefore will be affected by economic, political or other events affecting municipal issuers.
| Term | Class A Shares | Class C Shares | Class I Shares |
|---|---|---|---|
| Ticker | BWVAX | BWVCX | OWVAX |
| Inception Date | 07.23.2001 | 02.01.2012 | 02.01.1993 |
| Investment Min. | $1,000 | $1,000 | $1,000,000 |
| Subsequent Investment Min.2 | N/A | N/A | N/A |
| Max. Up Front Sales Charge | 2% | N/A | N/A |
| Max. Deferred Sales Charge | N/A | 1% | N/A |
2If subsequent investments are made as part of an AIP, the minimum is $25.
Co-Portfolio Manager
Co-Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 2.00% Sales Charge | -2.07% | -2.56% | 0.26% | -1.62% | 0.18% | 1.25% | 3.27% |
| A Shares without Sales Charge | -0.11% | -0.53% | 2.28% | -0.95% | 0.60% | 1.46% | 3.34% |
| Institutional Shares | -0.05% | -0.40% | 2.54% | -0.70% | 0.85% | 1.71% | 3.63% |
| Lipper Other States Intermediate Municipal Median | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
The total expense ratios for Class A, C and I Shares are 0.82%, 1.57% and 0.57%, respectively.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit the performance summary.
The performance of the West Virginia Intermediate Tax-Free Fund includes the performance of the OVB West Virginia Tax-Exempt Income Portfolio for the period prior to its consolidation with the BB&T West Virginia Intermediate Tax-Free Fund, which commenced operations on 7/23/01, and reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The performance inception date for the Fund is 12/17/93. The inception date for Class A Shares is 07.23.2001. The inception date for Class C Shares is 02.01.2012. The inception date for Class Inst'l Shares is 02.01.1993. Performance reflects 12b-1 fees and applicable expenses. Performance for Class C Shares for periods prior to inception is based on the performance of Class A Shares of the Fund. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
Quality Breakdown as of 03.31.2024
Credit quality ratings using Moody's rating symbols reflect the credit quality of the underlying bonds in the fund portfolio and not of the Fund itself. Moody's assigns a range of ratings from AAA being the highest quality to C being the lowest rated class of bonds. Securities not rated by Moody's may be rated by S&P, Fitch or if no agency rating is available, the Fund will assign a rating of not rated. Bond quality ratings are subject to change.
| Name | Value |
|---|---|
| 0-1 Yr. | 20.70 |
| 1-2 Yr. | 4.40 |
| 2-3 Yr. | 6.40 |
| 3-5 Yr. | 19.10 |
| 5-10 Yr. | 49.40 |
| 10+ Yr. | 0.00 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 47 |
| Average Life | 7.24 Years |
| Effective Duration | 4.71 Years |
| Annual Turnover | 32% |
| Composition | Fund | Index |
|---|---|---|
| General Obligation | 33.1% | 27.0% |
| Pre-Refunded | 3.1% | 2.5% |
| Revenue | 60.9% | 70.5% |
| Cash | 2.9% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | West Va Pkwys Auth Tpk Toll Rev 5.0% 01-Jun-2047 | 4.60% |
| 2 | West Virginia St 5.0% 01-Jun-2045 | 3.92% |
| 3 | West Virginia St 5.0% 01-Jun-2038 | 3.36% |
| 4 | West Virginia Univ Revs 5.0% 01-Oct-2044 | 3.16% |
| 5 | West Va Pkwys Auth Tpk Toll Rev 5.0% 01-Jun-2039 | 3.15% |
| 6 | Wood Cnty W Va Brd Ed 4.5% 01-Jun-2035 | 3.15% |
| 7 | West Virginia St Hosp Fin Auth Hosp Rev 5.0% 01-Jan-2036 | 3.14% |
| 8 | West Virginia Univ Revs 5.0% 01-Oct-2044 | 3.12% |
| 9 | Ohio Cnty W Va Brd Ed 4.0% 01-Jun-2029 | 3.01% |
| 10 | Marshall Univ W Va Univ Revs 5.0% 01-May-2030 | 2.98% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 03.31.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2024. It includes the reinvestment of dividends and capital gains.
Distribution
| Month | Class A Shares | Class C Shares | Class Inst'l Shares |
|---|---|---|---|
| June 2024 | $0.0186 | $0.0146 | $0.0206 |
| May 2024 | $0.0204 | $0.0162 | $0.0225 |
| April 2024 | $0.0200 | $0.0157 | $0.0219 |
| March 2024 | $0.0207 | $0.0161 | $0.0227 |
| February 2024 | $0.0193 | $0.0151 | $0.0212 |
| January 2024 | $0.0203 | $0.0159 | $0.0224 |
| December 2023 | $0.0201 | $0.0155 | $0.0221 |
| November 2023 | $0.0192 | $0.0149 | $0.0212 |
| October 2023 | $0.0191 | $0.0146 | $0.0211 |
| September 2023 | $0.0178 | $0.0136 | $0.0197 |
| August 2023 | $0.0184 | $0.0136 | $0.0204 |
| July 2023 | $0.0179 | $0.0127 | $0.0200 |
| Share Class | Value |
|---|---|
| Class A | 3.28% |
| Class C | 2.62% |
| Class I | 3.62% |
West Virginia Intermediate Tax-Free Fund
Materials
Fixed Income Funds
Insights
07.02.2024
Sterling Capital Management LLC joins Guardian Capital Group Limited
Sterling Capital Management LLC announced today the completion of its acquisition by Guardian Capital LLC, a wholly-owned subsidiary of global asset manager Guardian Capital Group Limited.
06.27.2024 • Jeffrey Ormsby, CFA®
Fixed Income and Federal Reserve Rate Cuts: How Should We Expect Fixed Income to Perform?
As one would expect, in most historical periods where interest rates were declining, fixed income total return has been good, with investors capturing the coupon income as well as benefiting from the increase in prices as rates fall. Looking at the history of the Bloomberg Aggregate Bond Index since 1988, in the previous five Federal Reserve (Fed) rate-cutting cycles, the index posted annualized returns averaging north of 8%.
06.13.2024 • Andrew Richman, CTFA
When It Comes to Fed Policy, Follow the Data, Not the Dots
Andy Richman's update on the June Federal Open Market Committee meeting.
06.05.2024 • Charles Wittmann, CFA®
The Lead - "An Indicator of Business Confidence"
- Several notable companies have elected to inaugurate a quarterly dividend this year, while 47 companies in the U.S. stopped paying dividends during the COVID-19 crisis and have yet to reinstitute one. Why? - We would suggest it comes down to the ability to pay an ever-increasing dividend alongside their confidence in their business’s future. - In the current period of fewer dividend initiations, slower dividend growth in the market, and household names cutting their dividends, we believe there are several lessons to learn.
05.31.2024
Today Sterling Capital announces the resignation of Shawn M. Gallagher, CFA®, Co-Portfolio Manager of the firm’s Mid Cap Relative Value and Real Estate strategies, effective immediately. Andrew T. DiZio, CFA®, who served as Co-Portfolio Manager on both strategies, will now serve as sole Portfolio Manager for both strategies, effective immediately.
05.07.2024 • Charles Wittmann, CFA®
The Lead - "Dividends for Offense and Defense"
- What could be a catalyst for dividend yielding equities in 2024? - We discuss three considerations: inexpensive valuations relative to history; valuations for dividend yield versus growth; and how both have a history of performing well after positive economic surprises. - Why do dividend payers perform well as the economy surprises to the upside? We provide several possible reasons.
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