TSC Ratings Begins Coverage on 7 Fixed-Income Funds

There is something for just about any bond fund investor in the seven fixed-income funds that attained sufficient history in April to be graded be TheStreet.com Ratings.

With a national tax-exempt fund, a single state muni and a municipal money market fund, the tax-exempt offerings on the accompanying table cover the gamut of fund types in that category.

On the taxable side, the group includes a general "529" college savings bond fund, a loan participation offering, a fund classified as investing in short and intermediate government fixed-income securities and, for geographical diversification, a global income fund.

The list even includes a fund with an unusual redemption structure. The Access Capital Strategic Community Investment Fund(XACSX Quote - Cramer on XACSX - Stock Picks) is an "interval fund" that handles redemptions with quarterly offerings to redeem specified percentages of its outstanding shares.

The Strategic Community Fund states its intention as making fixed-income investments to promote affordable housing, education, small business lending and job creation activities. Its prospectus notes that a large portion of its holdings will be in debt instruments of Fannie Mae(FNM Quote - Cramer on FNM - Stock Picks), Freddie Mac(FRE Quote - Cramer on FRE - Stock Picks), Ginnie Mae and the Federal Housing Administration.

XACSX's altruistic intentions haven't held it back from achieving performance sufficiently steady to earn a grade of B- from TheSteet.com Ratings, making it one of the two funds on the adjoining list with grades that equate with "buy" recommendations. Its companion in the "buy" category is the Columbia New York Tax Exempt Advantage Fund, whose A- grade made it the only newly rated fund in the "A" range.

One of the seven funds, the steady Oppenheimer 529 Scholars Edge Ultra Conservative college savings fund, earned a grade C+ for a "hold" recommendation.

Four members of the group fell into the "D" and "E" grade ranges, which define them as sell" recommendations. They include the Hartford Floating Rate Fund(HFLAX Quote - Cramer on HFLAX - Stock Picks), in the unpopular loan participation category. The performance hit resulting from the credit crunch has burdened it was a mark of E+.

The lowest rated fund in the group is the UBS Absolute Return Bond Fund(BNRAX Quote - Cramer on BNRAX - Stock Picks), which invests in U.S. as well as international fixed-income investments, including up to 20% in emerging markets. Its total return of minus 14.46% over the past 12 months, which includes a 7.05% decline in the latest three months, garnered a grade of "E" from TheStreet.com Ratings.

FIXED-INCOME FUNDS NEWLY GRADED BY TheStreet.com RATINGS
NAME, TICKER & TheStreet.com RATINGS GRADE	INVESTMENT OBJECTIVE	3-MO. TOTAL RET'N (%)	12-MO. TOTAL RET'N (%)	3-YR. Ann'l RET'N (%)	MAX. INIT. SALES CHG. (%)
Access Cap Strat Community Inv Fd (XACSX) B-	US Government - Short & Interm	-0.03	5.01	4.11	0.00
Columbia NY T/E Reserves Adv (N/A) A-	Tax Free Money Market	0.48	2.87	2.82	0.00
Hartford Floating Rate A (HFLAX) E+	Loan Participation	0.69	-4.20	2.98	3.00
Oppenheimer 529 SE Ultra Cons A (N/A) C+	General Bd - Investment Grade	1.10	3.36	6.10	4.75
RidgeWorth MD Municipal Bond A (SMMAX) D	Municipal - Single State	-0.92	2.51	3.01	4.75
UBS Absolute Return Bond Fund A (BNRAX) E	Global Income	-7.05	-14.47	-2.78	2.50
Wells Fargo Avtg Muni Bd A (WMFAX) D	Municipal - National	-0.87	0.38	3.51	4.50
Source: TheStreet.com Ratings - Data as of 4/30/2008. For an explanation of our ratings, click here.