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Is John Hancock Regional Bank A (FRBAX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, John Hancock Regional Bank A (FRBAX - Free Report) could be a potential option. FRBAX has 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
John Hancock is based in Boston, MA, and is the manager of FRBAX. John Hancock Regional Bank A made its debut in January of 1992, and since then, FRBAX has accumulated about $672.61 million in assets, per the most up-to-date date available. The fund is currently managed by Susan Curry who has been in charge of the fund since May of 2006.
Performance
Of course, investors look for strong performance in funds. FRBAX has a 5-year annualized total return of 3.92% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.62%, which places it in the middle 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. FRBAX's standard deviation over the past three years is 29.78% compared to the category average of 17.69%. Over the past 5 years, the standard deviation of the fund is 26.69% compared to the category average of 15.69%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FRBAX has a 5-year beta of 1.12, which means it is likely to be more 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. FRBAX's 5-year performance has produced a negative alpha of -5.85, which means 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, FRBAX is a load fund. It has an expense ratio of 1.20% compared to the category average of 1.45%. So, FRBAX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, John Hancock Regional Bank A ( FRBAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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 John Hancock Regional Bank A (FRBAX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, John Hancock Regional Bank A (FRBAX - Free Report) could be a potential option. FRBAX has 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
John Hancock is based in Boston, MA, and is the manager of FRBAX. John Hancock Regional Bank A made its debut in January of 1992, and since then, FRBAX has accumulated about $672.61 million in assets, per the most up-to-date date available. The fund is currently managed by Susan Curry who has been in charge of the fund since May of 2006.
Performance
Of course, investors look for strong performance in funds. FRBAX has a 5-year annualized total return of 3.92% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.62%, which places it in the middle 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. FRBAX's standard deviation over the past three years is 29.78% compared to the category average of 17.69%. Over the past 5 years, the standard deviation of the fund is 26.69% compared to the category average of 15.69%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FRBAX has a 5-year beta of 1.12, which means it is likely to be more 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. FRBAX's 5-year performance has produced a negative alpha of -5.85, which means 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, FRBAX is a load fund. It has an expense ratio of 1.20% compared to the category average of 1.45%. So, FRBAX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, John Hancock Regional Bank A ( FRBAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a great potential choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.