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If you have been looking for International Bond - Emerging fund category, a potential starting could be Fidelity New Markets Income (FNMIX - Free Report) . FNMIX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that FNMIX is an International Bond - Emerging option, which is loaded with different choices. International Bond - Emerging funds focus on fixed income securities from a variety of emerging international markets. Typically, investors can expect exposure to economies like China, Brazil, India, South Africa, Indonesia, and many others. These funds are appealing because of their geographic diversification, but this can also mean that currency risk is a factor.
History of Fund/Manager
FNMIX finds itself in the Fidelity family, based out of Boston, MA. Fidelity New Markets Income made its debut in May of 1993, and since then, FNMIX has accumulated about $5.60 billion in assets, per the most up-to-date date available. The fund is currently managed by John Carlson who has been in charge of the fund since June of 1995.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 5.02%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 6.04%, 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, FNMIX's standard deviation comes in at 6.85%, compared to the category average of 7.75%. Over the past 5 years, the standard deviation of the fund is 6.9% compared to the category average of 7.56%. This makes the fund less volatile than its peers over the past half-decade.
Income
It is important to consider the fund's average coupon because income is often a big reason for purchasing a fixed income security. This metric takes a look at the average payout by the fund in a given year. For example, this fund's average coupon of 6.74% means that a $10,000 investment should result in a yearly payout of $674.
If you are looking for a strong level of current income, a higher coupon is a good choice, though it could pose a reinvestment risk; these risks can occur if rates are lower in the future when compared to the initial purchase date of the bond.
Because income is only one part of the bond picture, investors should also consider risk relative to broad benchmarks. This fund has a beta of 1.05, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, FNMIX has a positive alpha of 2.82, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, FNMIX has 23% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 58.9%, giving FNMIX an average quality of BBB. This means that it focuses on medium quality securities.
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, FNMIX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 1.18%. From a cost perspective, FNMIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity New Markets Income has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity New Markets Income looks like a somewhat average choice for investors right now.
Don't stop here for your research on International Bond - Emerging funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FNMIX to its peers 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.
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Is FNMIX a Strong Bond Fund Right Now?
If you have been looking for International Bond - Emerging fund category, a potential starting could be Fidelity New Markets Income (FNMIX - Free Report) . FNMIX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that FNMIX is an International Bond - Emerging option, which is loaded with different choices. International Bond - Emerging funds focus on fixed income securities from a variety of emerging international markets. Typically, investors can expect exposure to economies like China, Brazil, India, South Africa, Indonesia, and many others. These funds are appealing because of their geographic diversification, but this can also mean that currency risk is a factor.
History of Fund/Manager
FNMIX finds itself in the Fidelity family, based out of Boston, MA. Fidelity New Markets Income made its debut in May of 1993, and since then, FNMIX has accumulated about $5.60 billion in assets, per the most up-to-date date available. The fund is currently managed by John Carlson who has been in charge of the fund since June of 1995.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 5.02%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 6.04%, 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, FNMIX's standard deviation comes in at 6.85%, compared to the category average of 7.75%. Over the past 5 years, the standard deviation of the fund is 6.9% compared to the category average of 7.56%. This makes the fund less volatile than its peers over the past half-decade.
Income
It is important to consider the fund's average coupon because income is often a big reason for purchasing a fixed income security. This metric takes a look at the average payout by the fund in a given year. For example, this fund's average coupon of 6.74% means that a $10,000 investment should result in a yearly payout of $674.
If you are looking for a strong level of current income, a higher coupon is a good choice, though it could pose a reinvestment risk; these risks can occur if rates are lower in the future when compared to the initial purchase date of the bond.
Because income is only one part of the bond picture, investors should also consider risk relative to broad benchmarks. This fund has a beta of 1.05, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, FNMIX has a positive alpha of 2.82, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, FNMIX has 23% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 58.9%, giving FNMIX an average quality of BBB. This means that it focuses on medium quality securities.
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, FNMIX is a no load fund. It has an expense ratio of 0.82% compared to the category average of 1.18%. From a cost perspective, FNMIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Fidelity New Markets Income has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity New Markets Income looks like a somewhat average choice for investors right now.
Don't stop here for your research on International Bond - Emerging funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FNMIX to its peers 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.