We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mutual Fund Bond fund seekers should consider taking a look at Principal Spectrum Preferred and Capital Securities Income A (PPSAX - Free Report) . PPSAX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Principal Financial Group is based in Des Moines, IA, and is the manager of PPSAX. The Principal Spectrum Preferred and Capital Securities Income A made its debut in October of 2005 and PPSAX has managed to accumulate roughly $691.71 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.66%, and is 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 -1.54%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, PPSAX's standard deviation comes in at 7.68%, compared to the category average of 14.08%. The fund's standard deviation over the past 5 years is 9.34% compared to the category average of 14.93%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.12, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PPSAX has a positive alpha of 1.98, which measures performance on a risk-adjusted basis.
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, PPSAX is a load fund. It has an expense ratio of 1.05% compared to the category average of 0.98%. Looking at the fund from a cost perspective, PPSAX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Principal Spectrum Preferred and Capital Securities Income A ( PPSAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and higher fees, Principal Spectrum Preferred and Capital Securities Income A ( PPSAX ) looks like a good potential choice for investors right now.
Your research on the Mutual Fund Bond 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is PPSAX a Strong Bond Fund Right Now?
Mutual Fund Bond fund seekers should consider taking a look at Principal Spectrum Preferred and Capital Securities Income A (PPSAX - Free Report) . PPSAX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Principal Financial Group is based in Des Moines, IA, and is the manager of PPSAX. The Principal Spectrum Preferred and Capital Securities Income A made its debut in October of 2005 and PPSAX has managed to accumulate roughly $691.71 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.66%, and is 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 -1.54%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, PPSAX's standard deviation comes in at 7.68%, compared to the category average of 14.08%. The fund's standard deviation over the past 5 years is 9.34% compared to the category average of 14.93%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.12, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PPSAX has a positive alpha of 1.98, which measures performance on a risk-adjusted basis.
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, PPSAX is a load fund. It has an expense ratio of 1.05% compared to the category average of 0.98%. Looking at the fund from a cost perspective, PPSAX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Principal Spectrum Preferred and Capital Securities Income A ( PPSAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and higher fees, Principal Spectrum Preferred and Capital Securities Income A ( PPSAX ) looks like a good potential choice for investors right now.
Your research on the Mutual Fund Bond 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.