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Is Matthews Japan Fund (MJFOX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Japan - Equity fund? Starting with Matthews Japan Fund (MJFOX - Free Report) is one possibility. MJFOX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MJFOX is part of the Japan - Equity section, which is a segment that boasts many possible selections. Japan - Equity mutual funds mostly invest in Japan-based companies, which is one of the world's richest and most diversified economies. Japan's focus on exports allows them to be somewhat exposed to global economic trends, but investors should note that the country's lack of natural resources can also have an impact.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MJFOX. Since Matthews Japan Fund made its debut in December of 1998, MJFOX has garnered more than $988.07 million in assets. Taizo Ishida is the fund's current manager and has held that role since September of 2006.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 9.45%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.38%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of MJFOX over the past three years is 16.27% compared to the category average of 14.98%. Over the past 5 years, the standard deviation of the fund is 14.66% compared to the category average of 13.18%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.7, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a positive alpha of 1.31. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, MJFOX is a no load fund. It has an expense ratio of 0.98% compared to the category average of 1.46%. From a cost perspective, MJFOX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Matthews Japan Fund ( MJFOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Matthews Japan Fund ( MJFOX ) looks like a good potential choice for investors right now.
Want even more information about MJFOX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Matthews Japan Fund (MJFOX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Japan - Equity fund? Starting with Matthews Japan Fund (MJFOX - Free Report) is one possibility. MJFOX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
MJFOX is part of the Japan - Equity section, which is a segment that boasts many possible selections. Japan - Equity mutual funds mostly invest in Japan-based companies, which is one of the world's richest and most diversified economies. Japan's focus on exports allows them to be somewhat exposed to global economic trends, but investors should note that the country's lack of natural resources can also have an impact.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MJFOX. Since Matthews Japan Fund made its debut in December of 1998, MJFOX has garnered more than $988.07 million in assets. Taizo Ishida is the fund's current manager and has held that role since September of 2006.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 9.45%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.38%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of MJFOX over the past three years is 16.27% compared to the category average of 14.98%. Over the past 5 years, the standard deviation of the fund is 14.66% compared to the category average of 13.18%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.7, the fund is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a positive alpha of 1.31. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, MJFOX is a no load fund. It has an expense ratio of 0.98% compared to the category average of 1.46%. From a cost perspective, MJFOX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, Matthews Japan Fund ( MJFOX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Matthews Japan Fund ( MJFOX ) looks like a good potential choice for investors right now.
Want even more information about MJFOX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.