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					i n v e s t i n y o u r s e l f . . . y o u ’ r e w o r t h e v e r y p e n n y sm



  Why Municipal Bond Funds Now
  When uncertainty hovers over the financial markets, professional money managers, such as those at BB&T Asset
  Management, look for a silver lining. The current market mayhem is no exception, and Robert Millikan, CFA, Director
  of Fixed Income for BB&T Asset Management, Inc., is positioning the BB&T intermediate tax-free funds to capitalize
  on today’s unprecedented opportunities.
  Short-term pricing glitch...                                                  ...Creates historic investment climate
  The ongoing credit crisis has created an environment in which                 Municipal securities trade according to their price/yield
  many hedge funds and other structured investment programs                     relationship to comparable Treasuries. In today’s current
  have been forced to liquidate their holdings, including a                     environment, that relationship is unparalleled—and is
  significant supply of municipal securities.                                   working in favor of municipal securities.
  This barrage of selling has led to an unusual supply/demand                   In fact, as the chart below illustrates, the taxable equivalent
  imbalance—that is, the supply of munis is far exceeding what                  yield for municipal securities (for investors in the 25% tax
  traditional mutual fund demand can absorb. And, to borrow                     bracket) was 7.59% as of 10/9/08, compared to a taxable
  from the lessons of Economics 101, when supply outweighs                      yield of 3.87% for Treasuries.
  demand, prices fall.                                                          It’s important to note, that regardless of the outcome of the
                                                                                Presidential election, we believe the marginal tax brackets will
                                                                                be higher next year.

  municipal vs. trea sury constant maturit y yield curve                                               (10/9/08)
  7.60%                                                                                        7.60%
  7.40%                                                                                        7.40%
  7.20%                                                                                        7.20%
  7.00%                                                                                        7.00%
  6.80%                                                                                        6.80%
  6.60%                                                                                        6.60%
  6.40%                                                                                        6.40%
  6.20%                                                                                        6.20%
  6.00%                                                                                        6.00%
  5.80%                                                                                        5.80%               Municipal Securities Tax
  5.60%                                                                                        5.60%
                                                                                                                   Equivalent Yield Rate
  5.40%                                                                                        5.40%
  5.20%                                                                                        5.20%               (25% tax bracket)
  5.00%                                                                                        5.00%
                                                                                                                   Treasury Securities
  4.80%                                                                                        4.80%
  4.60%                                                                                        4.60%               Taxable Yield Rate
  4.40%                                                                                        4.40%
  4.20%                                                                                        4.20%         Source: Ned Davis Research,
  4.00%                                                                                        4.00%         Inc., October 2008.
  3.80%                                                                                        3.80%
  3.60%                                                                                        3.60%         Unlike individual municipal
  3.40%                                                                                        3.40%         bonds, municipal bond
  3.20%                                                                                        3.20%         mutual funds do not offer
  3.00%                                                                                        3.00%         fixed interest payments
  2.80%                                                                                        2.80%         and do not mature or repay
  2.60%                                                                                        2.60%         principal upon maturity. The
  2.40%                                                                                        2.40%         yields represented in the
  2.20%                                                                                        2.20%         chart are not reflective of
  2.00%                                                                                        2.00%
  1.80%                                                                                        1.80%
                                                                                                             the performance or return
  1.60%                                                                                        1.60%         of any BB&T Bond Funds.
  1.40%                                                                                        1.40%         The value of bond funds
  1.20%                                                                                        1.20%         can decline and an investor
  1.00%                                                                                        1.00%         can lose principal.

      3-M          6-M          1-Y         2-Y    3-Y       5-Y   7-Y   10-Y         20-Y   30-Y

  An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or
  sending money. This and other important information about the BB&T Funds can be found in the Funds’ prospectus. To obtain
  more information, please call 1-800-228-1872 or visit us online at www.bbtfunds.com. Please read the prospectus carefully
  before investing.
  BB&T Asset Management, Inc., a wholly owned subsidiary of BB&T Corporation, serves as investment adviser to the BB&T Funds and is paid
  a fee for its services. Shares of the BB&T Funds are not deposits or obligations of, or guaranteed or endorsed by, Branch Banking and Trust
  Company or its affiliates. The Funds are not insured by the FDIC or any other government agency. The Funds are distributed by BB&T AM
  Distributors, Inc., which is not affiliated with Branch Banking and Trust Company or its affiliates.


   Not a deposit • Not FDIC insured • Not guaranteed by the bank • Not insured by any government agency • May lose value
Muni bond funds may have a place in your portfolio                             He also structures the funds to seek to achieve attractive
Given the opportunities in today’s market, Millikan believes                   risk-adjusted return potential, consistent with preservation
that fixed income investors should consider municipal bond                     of capital. (see chart below)
funds. In addition to providing tax-free investment income,                    Risk Factors: Although bond funds tend to be less volatile than
muni bond funds can offer attractive long-term total return                    stocks funds, bond fund prices can fluctuate and lose value,
potential and important diversification benefits.                              especially longer-term bond funds in periods of rising interest
At BB&T, Millikan manages the municipal bond funds                             rates. The income from tax-free funds may be subject to certain
to provide more than current tax-exempt income potential.                      state and local taxes and, depending on your tax status, the
                                                                               federal alternative minimum tax (AMT).
performance and r atings summary
                                         Overall Lipper Leaders                 Average Annual Total Returns (9/30/08)                  Expense Ratio
                                               (9/30/08)
                                           Total      Consistent                     One     Three      Five      Ten        Since
 BB&T Funds Class A Shares                Return        Return                YTD    Year    Years     Years     Years     Inception     Gross     Net
 Kentucky Intermediate                                                 NAV   -0.25% 1.34%     2.55%    2.25%      N/A        2.92%       1.34%    0.89%
 Tax-Free Fund                             Total Return   Consistent
                                                           Return      POP   -3.22% -1.69%    1.52%    1.62%      N/A        2.36%
 Maryland Intermediate                                                 NAV    0.08% 1.84%     3.06%    2.56%      N/A        2.88%       1.39%    0.84%
 Tax-Free Fund                             Total Return   Consistent
                                                           Return      POP   -2.96% -1.18%    2.01%    1.95%      N/A        2.32%
 North Carolina Intermediate                                           NAV   -0.33% 1.42%     2.68%    2.32%     3.49%       3.95%       1.28%    0.88%
 Tax-Free Fund                             Total Return   Consistent
                                                           Return      POP   -3.31% -1.63%    1.66%    1.71%     3.17%       3.75%
 South Carolina Intermediate                                           NAV   -0.35% 0.94%     2.37%    2.22%     3.43%       3.85%       1.32%    0.92%
 Tax-Free Fund                             Total Return   Consistent
                                                           Return      POP   -3.37% -2.11%    1.32%    1.59%     3.12%       3.56%
 Virginia Intermediate                                                 NAV   -0.06% 1.79%    2.69%     2.31%      N/A        3.84%       1.28%    0.88%
 Tax-Free Fund                             Total Return   Consistent
                                                           Return      POP   -3.05% -1.27%   1.64%     1.69%      N/A        3.50%
 West Virginia Intermediate                                            NAV   -1.12% -0.08%    2.28%    2.26%     3.45%       4.14%       0.89%    0.89%
 Tax-Free Fund*                            Total Return   Consistent
                                                           Return      POP   -4.08% -3.08%    1.26%    1.63%     3.14%       3.92%

NAV = Net Asset Value. POP = Public Offering Price, which reflects the maximum sales charge of 3.0% associated with the Funds.

          Lipper Leaders key   Highest                        Lowest




Put the BB&T Municipal Bond Funds to work in your portfolio
When investing in complex financial markets, it’s important to have an experienced team of investment professionals, such as
those at BB&T Asset Management, working for you to help you capitalize on market opportunities. To learn more about putting
BB&T’s municipal bond funds to work in your portfolio, call 1-800-228-1872, or visit us online at www.bbtfunds.com.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be
lower or higher. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may
be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit
www.bbtfunds.com.
The Fund’s Adviser has contractually agreed to limit the management fees paid by the Funds for the period 2/1/2008 through 1/31/2009.
Had this waiver not been in effect, the performance would have been lower.
The performance for all BB&T Funds shown reflects the reinvestment of all dividends and capital gains distributions. Performance shown also
reflects the deduction of fees for value-added services associated with mutual funds, such as investment management and fund accounting fees.
*The performance of the BB&T West Virginia Intermediate Tax-Free Fund, which commenced operations on 7/23/01, is based on the historical
performance of the OVB West Virginia Tax Exempt Income Portfolio, which commenced operations on 12/17/93. The Funds merged on 7/23/01.
Lipper Leaders for Total Return reflects a fund’s historical total return performance relative to its peer group. Lipper Leaders for Consistent Return
reflects a fund’s historical risk-adjusted returns, adjusted for volatility, relative to its peer group. The highest 20% in each peer group (Other States
Intermediate Muni Debt Funds) are named Lipper Leaders (5), the next 20% receive a score of 4, the middle 20% receive a score of 3, the next 20%
receive a score of 2 and the lowest 20% score 1. Lipper Leaders are subject to change every month, are not intended to predict future results and
Lipper does not guarantee the accuracy of the information. The Kentucky Intermediate Tax-Free Fund received the following ratings for the 3 Year,
5 Year and Overall periods, respectively: Total Return: 5 out of 132 funds; 4 out of 126 funds; 5 out of 132 funds. Consistent Return: 5 out of 128
funds; 4 out of 126 funds; 5 out of 132 funds. The Maryland Intermediate Tax-Free Fund received the following ratings for the 3 Year, 5 Year and
Overall periods, respectively: Total Return: 5 out of 132 funds; 5 out of 126 funds; 5 out of 132 funds. Consistent Return: 5 out of 132 funds; 5 out
of 126 funds; 5 out of 132 funds. The North Carolina Intermediate Tax-Free Fund received the following ratings for the 3 Year, 5 Year, 10 Year and
Overall periods, respectively: Total Return: 5 out of 132 funds; 5 out of 126 funds; 4 out of 92 funds; and 5 out of 132 funds. Consistent Return: 5
out of 128 funds; 5 out of 126 funds; 5 out of 92 funds; and 5 out of 132 funds. The South Carolina Intermediate Tax-Free Fund received the
following ratings for the 3 Year, 5 Year, 10 Year and Overall periods, respectively: Total Return: 5 out of 132 funds; 4 out of 126 funds; 4 out of 92
funds; and 4 out of 132 funds. Consistent Return: 5 out of 128 funds; 5 out of 126 funds; 5 out of 92 funds; and 5 out of 132 funds. The Virginia
Intermediate Tax-Free Fund received the following ratings for the 3 Year, 5 Year and Overall periods, respectively: Total Return: 5 out of 128 funds;
5 out of 126 funds; 5 out of 132 funds. Consistent Return: 5 out of 128 funds; 5 out of 126 funds; and 5 out of 132 funds. The West Virginia
Intermediate Tax-Free Fund received the following ratings for the 3 Year, 5 Year, 10 Year and Overall periods, respectively: Total Return: 5 out of
132 funds; 4 out of 126 funds; 4 out of 92 funds; 4 out of 132 funds. Consistent Return: 3 out of 128 funds; 2 out of 126 funds; 4 out of 92 funds;
3 out of 132 funds.

BBT1848                                                                                                                                           10/08