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Is AllianzGI Global Water A (AWTAX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Sector - Utilities funds, consider AllianzGI Global Water A (AWTAX - Free Report) as a possibility. AWTAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
AWTAX is classified in the Sector - Utilities segment by Zacks, an area full of potential. Sector - Utilities mutual funds focus on companies that provide essential servicessuch as electric power, gas distribution, and water supplyto millions of people on a daily basis. Overall, the utility industry is known for its stability and reduced volatility.
History of Fund/Manager
AWTAX finds itself in the Virtus Funds family, based out of Hartford, CT. The AllianzGI Global Water A made its debut in April of 2008 and AWTAX has managed to accumulate roughly $270.04 million in assets, as of the most recently available information. Andreas Fruschki is the fund's current manager and has held that role since April of 2008.
Performance
Of course, investors look for strong performance in funds. AWTAX has a 5-year annualized total return of 12.72% and is 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 17.39%, 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 AWTAX over the past three years is 16.06% compared to the category average of 18.4%. Over the past 5 years, the standard deviation of the fund is 13.54% compared to the category average of 15.14%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.77, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -0.79, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, AWTAX is a load fund. It has an expense ratio of 1.22% compared to the category average of 1.23%. So, AWTAX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, AllianzGI Global Water A ( AWTAX ) 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.
Don't stop here for your research on Sector - Utilities 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 AWTAX to its peers as well 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 AllianzGI Global Water A (AWTAX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Utilities funds, consider AllianzGI Global Water A (AWTAX - Free Report) as a possibility. AWTAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
AWTAX is classified in the Sector - Utilities segment by Zacks, an area full of potential. Sector - Utilities mutual funds focus on companies that provide essential servicessuch as electric power, gas distribution, and water supplyto millions of people on a daily basis. Overall, the utility industry is known for its stability and reduced volatility.
History of Fund/Manager
AWTAX finds itself in the Virtus Funds family, based out of Hartford, CT. The AllianzGI Global Water A made its debut in April of 2008 and AWTAX has managed to accumulate roughly $270.04 million in assets, as of the most recently available information. Andreas Fruschki is the fund's current manager and has held that role since April of 2008.
Performance
Of course, investors look for strong performance in funds. AWTAX has a 5-year annualized total return of 12.72% and is 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 17.39%, 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 AWTAX over the past three years is 16.06% compared to the category average of 18.4%. Over the past 5 years, the standard deviation of the fund is 13.54% compared to the category average of 15.14%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.77, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -0.79, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, AWTAX is a load fund. It has an expense ratio of 1.22% compared to the category average of 1.23%. So, AWTAX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, AllianzGI Global Water A ( AWTAX ) 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.
Don't stop here for your research on Sector - Utilities 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 AWTAX to its peers as well 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.