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Is T. Rowe Price Global Stock (PRGSX) a Strong Mutual Fund Pick Right Now?

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There are plenty of choices in the Global - Equity category, but where should you start your research? Well, one fund that might be worth investigating is T. Rowe Price Global Stock (PRGSX - Free Report) . PRGSX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that PRGSX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.

History of Fund/Manager

PRGSX finds itself in the T. Rowe Price family, based out of Baltimore, MD. The T. Rowe Price Global Stock made its debut in December of 1995 and PRGSX has managed to accumulate roughly $3.31 billion in assets, as of the most recently available information. David Eiswert is the fund's current manager and has held that role since October of 2012.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 26.4%, and is 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 24.87%, 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 16.14%, the standard deviation of PRGSX over the past three years is 20.61%. Looking at the past 5 years, the fund's standard deviation is 16.93% compared to the category average of 13.42%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PRGSX has a 5-year beta of 1.04, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. PRGSX's 5-year performance has produced a positive alpha of 7.89, which means 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, PRGSX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 1.14%. From a cost perspective, PRGSX is actually cheaper than its peers.

While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.

Bottom Line

Overall, T. Rowe Price Global Stock ( PRGSX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Want even more information about PRGSX? 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. 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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