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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 Mutual Fund Equity Report fund? Starting with Matthews Japan Fund (MJFOX - Free Report) is one possibility. MJFOX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MJFOX. Matthews Japan Fund debuted in December of 1998. Since then, MJFOX has accumulated assets of about $1.16 billion, according to the most recently available information. Taizo Ishida and Shuntaro Takeuchi are lead managers of the fund.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 3.82%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.95%, 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. Over the past three years, MJFOX's standard deviation comes in at 15.85%, compared to the category average of 15.01%. The standard deviation of the fund over the past 5 years is 15.75% compared to the category average of 13.72%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.7, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -5.06, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MJFOX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.43%. Looking at the fund 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 similar performance, average downside risk, and lower fees, Matthews Japan Fund ( MJFOX ) looks like a good potential choice for investors right now.
This could just be the start of your research on MJFOXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Matthews Japan Fund (MJFOX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mutual Fund Equity Report fund? Starting with Matthews Japan Fund (MJFOX - Free Report) is one possibility. MJFOX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MJFOX. Matthews Japan Fund debuted in December of 1998. Since then, MJFOX has accumulated assets of about $1.16 billion, according to the most recently available information. Taizo Ishida and Shuntaro Takeuchi are lead managers of the fund.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 3.82%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.95%, 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. Over the past three years, MJFOX's standard deviation comes in at 15.85%, compared to the category average of 15.01%. The standard deviation of the fund over the past 5 years is 15.75% compared to the category average of 13.72%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.7, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -5.06, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MJFOX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.43%. Looking at the fund 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 similar performance, average downside risk, and lower fees, Matthews Japan Fund ( MJFOX ) looks like a good potential choice for investors right now.
This could just be the start of your research on MJFOXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.