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Is PIFZX a Strong Bond Fund Right Now?

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If you've been stuck searching for Mutual Fund Bond funds, consider PGIM Short-Term Corporate Bond Z (PIFZX - Free Report) as a possibility. PIFZX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

PGIM is based in Providence, RI, and is the manager of PIFZX. Since PGIM Short-Term Corporate Bond Z made its debut in December of 1996, PIFZX has garnered more than $8.96 billion in assets. The fund is currently managed by a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.71%, 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 4.17%, 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 12.68%, the standard deviation of PIFZX over the past three years is 4.09%. The fund's standard deviation over the past 5 years is 3.3% compared to the category average of 10.49%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.6, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PIFZX has a positive alpha of 0.54, which measures performance on a risk-adjusted basis.

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, PIFZX is a no load fund. It has an expense ratio of 0.47% compared to the category average of 0.72%. So, PIFZX is actually cheaper than its peers from a cost perspective.

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 Short-Term Corporate Bond Z ( PIFZX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, PGIM Short-Term Corporate Bond Z ( PIFZX ) looks like a good potential choice for investors right now.

For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PIFZX too 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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