Nuveen All-American Municipal Bond: Attractive, Aggressive

Brian Moriarty: Nuveen All-American Municipal Bond fund was recently added to the list of funds that Morningstar covers, and earned an initial analyst rating of Bronze. This is a long-term muni bond fund that is sensitive to changes in interest rates, and can be more aggressive than many peers, so it isn't for everyone. For example, it is allowed to invest up to 20% in high-yield bonds, but that number stood at 12% at the end of August. And while the fund doesn't have any leverage at the moment, it is allowed by prospectus to take leverage up to 15%.

The fund is distinguished by Nuveen's municipal investment team, which is one of the strongest in the industry. There are 23 muni credit analysts with an average 17 years' experience, and managers John Miller and Doug White are two of the most tenured managers in the muni fund business.

Performance has been impressive. At the end of August, the fund was ranked in the top 1% over the trailing 10 and 15 years, and in the top 3% over the trailing five years. The price tag is also cheap, making this fund an attractive option for investors comfortable with the risks.