Straightforward Approach Pays Off for This Muni Fund

Elizabeth Foos: The experienced team running T. Rowe's Summit Muni Intermediate Fund is focused on in-depth, bottom-up research. The effort has resulted in impressive risk-adjusted returns over the long term and supports the fund's Morningstar Analyst Rating of Gold.

Manager Charlie Hill has been running this fund since its inception in 1993. He's supported by large staff of dedicated muni analysts and traders, most of whom have at least a decade of industry experience themselves. They scour the muni market for an ideal mix of value and quality to add to this portfolio, and that straightforward approach has paid off over time.

Over Hill's tenure, the fund has gained an annualized return of 4.6% through October 2017, which was enough to beat more than three fourths of a group of distinct peers in its category. Over the past decade, the fund saw similar results; a 4.1% annualized return beat more than a third of those rivals while its volatility remained below average.