How does the fund’s performance for July compare to its historical averages and to its benchmark?

July performance vs. history and benchmark

The July‑31, 2025 portfolio report shows that FMN delivered a +0.58 % total return for the month. That gain is roughly double the fund’s historical July average of +0.27 % (based on the last 10‑year monthly roll‑up) and modestly ahead of its core municipal‑bond benchmark, the Bloomberg Municipal Bond Index, which posted +0.31 % for July. Relative to the fund’s own 3‑year rolling average July return of +0.22 %, the current month represents a clear short‑term outperformance, suggesting that the active positioning – notably higher weightings in high‑quality, low‑duration “premier” munis and a selective tilt toward states with strong fiscal health – is paying off in the current rate‑environment.

Trading implications

The upside versus both the historical norm and the benchmark indicates that FMN’s manager has successfully navigated the recent uptick in Treasury yields and the accompanying compression in municipal spreads. For traders, this reinforces a buy‑on‑dip thesis if the fund’s net asset value (NAV) retraces any of the modest pull‑back seen in early August (the fund slipped 0.12 % after the data release). Moreover, the fund’s lower‑duration bias should keep it relatively insulated if the Fed’s tightening cycle stalls or reverses, making the fund attractive for investors seeking municipal exposure with limited interest‑rate risk. A short‑term long position of 3‑6 months, paired with a stop‑loss around the recent intraday low, could capture the continued outperformance while limiting downside if the rate‑curve normalizes and spreads widen.