Sector - Energy fund seekers should not consider taking a look at Columbia Global Energy & Natural Resources Fund Z at this time. UMESX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify UMESX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.
History of Fund/Manager
Columbia is based in Boston, MA, and is the manager of UMESX. The Columbia Global Energy & Natural Resources Fund Z made its debut in December of 1992 and UMESX has managed to accumulate roughly $69.04 million in assets, as of the most recently available information. The fund's current manager, Josh Kapp, has been in charge of the fund since July of 2011.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of -2.33%, 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 7.07%, 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. Compared to the category average of 10.71%, the standard deviation of UMESX over the past three years is 14.94%. Looking at the past 5 years, the fund's standard deviation is 17.05% compared to the category average of 11.28%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In UMESX's case, the fund lost 47.3% in the most recent bear market and outperformed its peer group by 8.03%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.07, so it is likely going to be more volatile than the market at large. 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. UMESX's 5-year performance has produced a negative alpha of -11.89, which means managers in this portfolio find it difficult to pick 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, UMESX is a no load fund. It has an expense ratio of 1.05% compared to the category average of 1.48%. From a cost perspective, UMESX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Global Energy & Natural Resources Fund Z ( UMESX ) has a low Zacks Mutual Fund rank, strong performance, worse downside risk, and lower fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Sector - Energy, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Columbia Global Energy & Natural Resources Fund Z (UMESX) a Strong Mutual Fund Pick Right Now?
Sector - Energy fund seekers should not consider taking a look at Columbia Global Energy & Natural Resources Fund Z at this time. UMESX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify UMESX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.
History of Fund/Manager
Columbia is based in Boston, MA, and is the manager of UMESX. The Columbia Global Energy & Natural Resources Fund Z made its debut in December of 1992 and UMESX has managed to accumulate roughly $69.04 million in assets, as of the most recently available information. The fund's current manager, Josh Kapp, has been in charge of the fund since July of 2011.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of -2.33%, 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 7.07%, 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. Compared to the category average of 10.71%, the standard deviation of UMESX over the past three years is 14.94%. Looking at the past 5 years, the fund's standard deviation is 17.05% compared to the category average of 11.28%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. In UMESX's case, the fund lost 47.3% in the most recent bear market and outperformed its peer group by 8.03%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.07, so it is likely going to be more volatile than the market at large. 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. UMESX's 5-year performance has produced a negative alpha of -11.89, which means managers in this portfolio find it difficult to pick 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, UMESX is a no load fund. It has an expense ratio of 1.05% compared to the category average of 1.48%. From a cost perspective, UMESX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Columbia Global Energy & Natural Resources Fund Z ( UMESX ) has a low Zacks Mutual Fund rank, strong performance, worse downside risk, and lower fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Sector - Energy, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.