14 important things you should know about American Century Investments BGNMX mutual fund

Updated: June 28, 2020
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Before we start: if you’re looking for BGNMX “stock” price, you can quickly find it out by visiting Finny and typing "BGNMX quote". If you’re looking for a quick scoop on BGNMX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "BGNMX". You’ll get all this info in one place.

Are you looking to buy or sell BGNMX? Or perhaps you’re looking for BGNMX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this BGNMX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: BGNMX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: BGNMX buy or sell; the pros and cons of investing in BGNMX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to BGNMX.

And here is the list of questions we’ll answer:

  1. Describe American Century Government Income Trust: Ginnie Mae Fund; Investor Class Shares (BGNMX).
  2. What are BGNMX holdings?
  3. What is BGNMX performance? What are BGNMX historical returns?
  4. How many up and down years did BGNMX have historically?
  5. What is BGNMX dividend yield?
  6. What is BGNMX minimum initial investment amount?
  7. What is BGNMX expense ratio?
  8. Does BGNMX have any sales loads or 12b-1 distribution expenses?
  9. What is BGNMX tax efficiency (tax-cost ratio)?
  10. What is BGNMX beta? How would you assess BGNMX risk?
  11. What is BGNMX Sharpe ratio?
  12. What is BGNMX Finny Score? BGNMX buy or sell?
  13. What are the pros of investing in BGNMX? What are BGNMX buy reasons?
  14. What are the cons of investing in BGNMX? What are BGNMX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Century Government Income Trust: Ginnie Mae Fund; Investor Class Shares (BGNMX).

The Fund seeks high current income while maintaining liquidity and safety of principal. The Fund invests at least 80% of its assets in securities issued by the Government National Mortgage Association which represent interests in pools of mortgage loans and in the cash flows from these loans.

2. What are BGNMX top holdings?

BGNMX has 0 stock holdings and 401 bond holdings.

The top 4 holdings represent 9.05% of total assets. Here are the top holdings:

Name Symbol % Assets
Government National Mortgage Association 4.5% N/A 2.48%
Government National Mortgage Association 4% N/A 2.30%
Government National Mortgage Association 3% N/A 2.15%
Government National Mortgage Association 3.5% N/A 2.12%

3. What is BGNMX performance? What are BGNMX historical returns?

BGNMX has generated the following returns:

  • 1-month return is 0.08%;
  • 3-month return is 2.48%;
  • 1-year return is 6.95%;
  • 3-year return is 3.47%;
  • 5-year return is 2.39%;
  • 10-year return is 2.77%;
  • 15-year return is 3.71%.

4. How many up and down years did BGNMX have historically?

In the last 10 years, BGNMX had 9 up years and 1 down year.

5. What is BGNMX dividend yield?

BGNMX yield is 2.68%.

6. What is BGNMX minimum initial investment amount?

BGNMX minimum initial investment amount is $3.00K.

7. What is BGNMX expense ratio?

BGNMX expense ratio is 0.55%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does BGNMX have any sales loads or 12b-1 distribution expenses?

BGNMX 12b-1 distribution fee is 0. BGNMX front-end sales load is 0. BGNMX back-end sales load is 0.

9. What is BGNMX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.15%;
  • 3-year ax cost ratio is 1.09%.

10. What is BGNMX beta? How would you assess BGNMX risk?

  • 3-year beta is 0.57;
  • 5-year beta is 0.56;
  • 10-year beta is 0.63;
  • 15-year beta is 0.66.

11. What is BGNMX Sharpe ratio?

  • 3-year Sharpe ratio is 0.72;
  • 5-year Sharpe ratio is 0.54;
  • 10-year Sharpe ratio is 1.01.

Analysis

12. What is BGNMX Finny Score? BGNMX buy or sell?

BGNMX Finny Score is 45. Our quantitative analysis shows 5 reasons to buy BGNMX and 6 reasons to sell it, resulting in the Finny Score of 45.

13. What are the pros of investing in BGNMX? What are BGNMX buy reasons?

The following are BGNMX strengths from our perspective:

  • Good news: this fund does not have 12b1, front-end or back-end sales fees.
  • BGNMX 3-year Beta is 0.57, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.
  • BGNMX 5-year Beta is 0.56, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.
  • BGNMX 10-year Beta is 0.63, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.
  • BGNMX 15-year Beta is 0.66, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.

14. What are the cons of investing in BGNMX? What are BGNMX negatives?

The following are BGNMX weaknesses from our perspective:

  • BGNMX net assets are $887.50 million. This fund is not a popular choice with retail investors.
  • BGNMX 3-year return is 3.47%, which is lower than the 3-year return of the benchmark index (Bloomberg Barclays GNMA TR USD), 3.93%.
  • BGNMX 5-year return is 2.39%, which is lower than the 5-year return of the benchmark index (Bloomberg Barclays GNMA TR USD), 2.9%.
  • BGNMX 10-year return is 2.77%, which is lower than the 10-year return of the benchmark index (Bloomberg Barclays GNMA TR USD), 3.27%.
  • BGNMX 15-year return is 3.71%, which is lower than the 15-year return of the benchmark index (Bloomberg Barclays GNMA TR USD), 4.18%.
  • BGNMX expense ratio is 0.55%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the BGNMX review, we covered BGNMX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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