Nuveen Mortgage Opportunity Term Fund 2Find Ratings Reports
- Last Ratings Update:07/31/2016
- Price as of 07/31/2016 :$22.92
- Net Assets:$118.28 Million
- Peer Rank:6 of 16
- Investment Rating:C+
We rate Nuveen Mortgage Opportunity Term 2 at C+. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund invests approximately 82% of its assets in bonds and may be considered for investors seeking a General Mortgage strategy.
POSITIVES AND RISKS
Total return ranks above peers over the last three years. The Nuveen Mortgage Opportunity Term 2 has returned an annual rate of 7.42% since inception. More recently, the fund has generated a total return of 9.05% in the last five years, 7.34% in the last three years, and 10.95% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 56% of them. It has also outpaced 60% of its competitors on a three year basis and 74% of them over the last year for the period ending 7/31/2016. On a year to date basis, JMT has returned 6.91%.
Downside risk has been below average. JMT has a draw down risk of -12.65%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 5.9%. This fund has had very little volatility in its monthly performance over the last 36 months. As of 7/31/2016, the fund was trading at a price of $22.92, which is 1.2% below its 52-week high of $23.19 and 3.2% above its 52-week low of $22.20.
High expense ratio hinders performance. On total assets of $118.28 million, JMT maintains a high expense ratio compared to its General Mortgage peers of 2.47% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As JMT is a closed end fund, it has no front end or back end load.