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Nomura Tax-Free USA Intermediate C Overview

Nomura Tax-Free USA Intermediate C (DUICX) is an actively managed Municipal Bond Muni National Interm fund. Nomura launched the fund in 1995.

The investment seeks as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital. The fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities the income from which is exempt from federal income tax, including the federal alternative minimum tax. It will invest primarily in municipal debt obligations that are issued by state and local governments to raise funds for various public purposes such as hospitals, schools, and general capital expenses.

About Nomura Tax-Free USA Intermediate C (DUICX)

There are 3 members of the management team with an average tenure of 11.94 years: William Roach (2023), Stephen Czepiel (2007), Gregory Gizzi (2012). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Municipal 3-15Y Blend 2-17Y TR index with a weighting of 100%. Nomura Tax-Free USA Intermediate C has 329 securities in its portfolio. The top 10 holdings constitute 14.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Nomura Tax-Free USA Intermediate C is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Nomura Tax-Free USA Intermediate C has 11.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.3% (87.5% domestic bond, 11.8% foreign bond and 0.0% convertible bond). Nomura Tax-Free USA Intermediate C has 0.6% of the portfolio in cash.

Assets Under Management

The fund has $3 million in total assets, which is below the $1 billion average for the Muni National Interm category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

DUICX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Nomura Tax-Free USA Intermediate C expense ratio is high compared to funds in the Muni National Interm category. Nomura Tax-Free USA Intermediate C has an expense ratio of 1.50%, which is 121% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Nomura Tax-Free USA Intermediate C has a portfolio turnover rate of 30%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 39% for the Muni National Interm category.

Recently, in the month of July 2026, Nomura Tax-Free USA Intermediate C returned -2.0%, which earned it a grade of F, as the Muni National Interm category had an average return of -1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Nomura Tax-Free USA Intermediate C has a trailing yield of 3.25%, which is below the 3.27% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Nomura Tax-Free USA Intermediate C Grades

Year to date, the fund has returned -0.0%, 0.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 4.9% over the past year (grade of B), 2.4% over the past three years (grade of F) and -0.8% per year over the past five years (grade of F) and 0.9% per year over the past 10 years (grade of F).

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