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Having trouble finding a Diversified Bonds fund? PGIM Total Return Bond Z (PDBZX - Free Report) is a potential starting point. PDBZX holds 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 Diversified Bonds funds is an area filled with options, such as PDBZX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
PGIM is based in Providence, RI, and is the manager of PDBZX. PGIM Total Return Bond Z debuted in September of 1996. Since then, PDBZX has accumulated assets of about $29.10 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. PDBZX has a 5-year annualized total return of 5.39% 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 5.8%, which places it in the middle 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, PDBZX's standard deviation comes in at 5.82%, compared to the category average of 12.15%. The standard deviation of the fund over the past 5 years is 4.97% compared to the category average of 10.47%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.26, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, PDBZX has a positive alpha of 0.3, 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, PDBZX has 41.9% in high quality bonds rated at least 'AA' or higher, while 34.9% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high 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, PDBZX is a no load fund. It has an expense ratio of 0.49% compared to the category average of 0.88%. From a cost perspective, PDBZX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, PGIM Total Return Bond Z ( PDBZX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, PGIM Total Return Bond Z ( PDBZX ) looks like a good potential choice for investors right now.
Want even more information about PDBZX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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 PDBZX a Strong Bond Fund Right Now?
Having trouble finding a Diversified Bonds fund? PGIM Total Return Bond Z (PDBZX - Free Report) is a potential starting point. PDBZX holds 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 Diversified Bonds funds is an area filled with options, such as PDBZX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
PGIM is based in Providence, RI, and is the manager of PDBZX. PGIM Total Return Bond Z debuted in September of 1996. Since then, PDBZX has accumulated assets of about $29.10 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. PDBZX has a 5-year annualized total return of 5.39% 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 5.8%, which places it in the middle 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, PDBZX's standard deviation comes in at 5.82%, compared to the category average of 12.15%. The standard deviation of the fund over the past 5 years is 4.97% compared to the category average of 10.47%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.26, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, PDBZX has a positive alpha of 0.3, 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, PDBZX has 41.9% in high quality bonds rated at least 'AA' or higher, while 34.9% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high 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, PDBZX is a no load fund. It has an expense ratio of 0.49% compared to the category average of 0.88%. From a cost perspective, PDBZX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, PGIM Total Return Bond Z ( PDBZX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, PGIM Total Return Bond Z ( PDBZX ) looks like a good potential choice for investors right now.
Want even more information about PDBZX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.