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Is Matthews China Small Companies Investor (MCSMX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Pacific Rim - Equity funds, a place to start could be Matthews China Small Companies Investor (MCSMX - Free Report) . MCSMX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Pacific Rim - Equity funds is an area filled with options, such as MCSMX. Pacific Rim - Equity mutual funds usually invest in companies with a big presence in the export-focused markets of Hong Kong, Singapore, Taiwan, and Korea. These funds also invest less than 10% of their assets in Japanese companies since Japan mutual funds are incredibly popular.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MCSMX. Matthews China Small Companies Investor debuted in May of 2011. Since then, MCSMX has accumulated assets of about $58.99 million, according to the most recently available information. Tiffany Hsiao is the fund's current manager and has held that role since July of 2015.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.95%, and it sits in the top 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 16.24%, 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. The standard deviation of the fund over the past 5 years is 20.48% compared to the category average of 1.48%. 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.
Nevertheless, with a 5-year beta of 0.97, the fund is likely to be as volatile as 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. MCSMX has generated a positive alpha over the past five years of 0.79, demonstrating that managers in this portfolio are skilled in picking 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, MCSMX is a no load fund and it has an expense ratio of 1.50%.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
This puts this fund from Matthews Asia in the top 20% of all mutual funds we have a rank on right now. As a result, this is likely an excellent choice for investors seeking an option in the Pacific Rim - Equity category.
For additional information on this product, or to compare it to other mutual funds in the Pacific Rim - Equity, make sure to go to www.zacks.com/funds/mutual-funds 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 Matthews China Small Companies Investor (MCSMX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Pacific Rim - Equity funds, a place to start could be Matthews China Small Companies Investor (MCSMX - Free Report) . MCSMX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Pacific Rim - Equity funds is an area filled with options, such as MCSMX. Pacific Rim - Equity mutual funds usually invest in companies with a big presence in the export-focused markets of Hong Kong, Singapore, Taiwan, and Korea. These funds also invest less than 10% of their assets in Japanese companies since Japan mutual funds are incredibly popular.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MCSMX. Matthews China Small Companies Investor debuted in May of 2011. Since then, MCSMX has accumulated assets of about $58.99 million, according to the most recently available information. Tiffany Hsiao is the fund's current manager and has held that role since July of 2015.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.95%, and it sits in the top 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 16.24%, 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. The standard deviation of the fund over the past 5 years is 20.48% compared to the category average of 1.48%. 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.
Nevertheless, with a 5-year beta of 0.97, the fund is likely to be as volatile as 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. MCSMX has generated a positive alpha over the past five years of 0.79, demonstrating that managers in this portfolio are skilled in picking 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, MCSMX is a no load fund and it has an expense ratio of 1.50%.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
This puts this fund from Matthews Asia in the top 20% of all mutual funds we have a rank on right now. As a result, this is likely an excellent choice for investors seeking an option in the Pacific Rim - Equity category.
For additional information on this product, or to compare it to other mutual funds in the Pacific Rim - Equity, make sure to go to www.zacks.com/funds/mutual-funds 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.