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Is T. Rowe Price Japan Fund (PRJPX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Japan - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is T. Rowe Price Japan Fund (PRJPX - Free Report) . PRJPX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Japan - Equity funds is an area filled with choices, and one such option is PRJPX. Japan - Equity mutual funds invest primarily in companies based in Japan, one of the world's richest and most diversified economies. The country remains somewhat exposed to global economic trends with its export focus, while its lack of natural resources also can impact the nation.
History of Fund/Manager
PRJPX finds itself in the T. Rowe Price family, based out of Baltimore, MD. Since T. Rowe Price Japan Fund made its debut in December of 1991, PRJPX has garnered more than $630.99 million in assets. The fund's current manager, Archibald A. Ciganer, has been in charge of the fund since December of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 15.41%, 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 20.12%, 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. PRJPX's standard deviation over the past three years is 10.4% compared to the category average of 15.64%. Over the past 5 years, the standard deviation of the fund is 12.08% compared to the category average of 15.52%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, PRJPX lost 50.7% and outperformed its peer group by 5.92%. This could mean that the fund is a better choice than comparable funds during a bear market.
Nevertheless, with a 5-year beta of 0.62, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. PRJPX has generated a positive alpha over the past five years of 5.75, demonstrating 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, PRJPX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 1.21%. PRJPX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, T. Rowe Price Japan Fund has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Japan Fund looks like a somewhat weak choice for investors right now.
Your research on the Japan - Equity 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is T. Rowe Price Japan Fund (PRJPX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Japan - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is T. Rowe Price Japan Fund (PRJPX - Free Report) . PRJPX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Japan - Equity funds is an area filled with choices, and one such option is PRJPX. Japan - Equity mutual funds invest primarily in companies based in Japan, one of the world's richest and most diversified economies. The country remains somewhat exposed to global economic trends with its export focus, while its lack of natural resources also can impact the nation.
History of Fund/Manager
PRJPX finds itself in the T. Rowe Price family, based out of Baltimore, MD. Since T. Rowe Price Japan Fund made its debut in December of 1991, PRJPX has garnered more than $630.99 million in assets. The fund's current manager, Archibald A. Ciganer, has been in charge of the fund since December of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 15.41%, 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 20.12%, 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. PRJPX's standard deviation over the past three years is 10.4% compared to the category average of 15.64%. Over the past 5 years, the standard deviation of the fund is 12.08% compared to the category average of 15.52%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, PRJPX lost 50.7% and outperformed its peer group by 5.92%. This could mean that the fund is a better choice than comparable funds during a bear market.
Nevertheless, with a 5-year beta of 0.62, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. PRJPX has generated a positive alpha over the past five years of 5.75, demonstrating 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, PRJPX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 1.21%. PRJPX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, T. Rowe Price Japan Fund has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Japan Fund looks like a somewhat weak choice for investors right now.
Your research on the Japan - Equity 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.