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Investors in search of a Mutual Fund Bond fund might want to consider looking at T. Rowe Price Global Multi-Sector Bond Investor (PRSNX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
PRSNX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. Since T. Rowe Price Global Multi-Sector Bond Investor made its debut in December of 2008, PRSNX has garnered more than $752.63 million in assets. Kenneth Orchard is the fund's current manager and has held that role since January of 2018.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 0.95%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.18%, 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, PRSNX's standard deviation comes in at 6.51%, compared to the category average of 13.98%. Looking at the past 5 years, the fund's standard deviation is 7.06% compared to the category average of 13.92%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.65, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PRSNX has a negative alpha of -0.14, 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, PRSNX has 44.46% in high quality bonds rated at least 'AA' or higher, while 35.71% 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
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, PRSNX is a no load fund. It has an expense ratio of 0.65% compared to the category average of 0.83%. PRSNX is actually cheaper than its peers when you consider factors like cost.
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
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is PRSNX a Strong Bond Fund Right Now?
Investors in search of a Mutual Fund Bond fund might want to consider looking at T. Rowe Price Global Multi-Sector Bond Investor (PRSNX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
History of Fund/Manager
PRSNX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. Since T. Rowe Price Global Multi-Sector Bond Investor made its debut in December of 2008, PRSNX has garnered more than $752.63 million in assets. Kenneth Orchard is the fund's current manager and has held that role since January of 2018.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 0.95%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.18%, 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, PRSNX's standard deviation comes in at 6.51%, compared to the category average of 13.98%. Looking at the past 5 years, the fund's standard deviation is 7.06% compared to the category average of 13.92%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.65, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PRSNX has a negative alpha of -0.14, 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, PRSNX has 44.46% in high quality bonds rated at least 'AA' or higher, while 35.71% 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
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, PRSNX is a no load fund. It has an expense ratio of 0.65% compared to the category average of 0.83%. PRSNX is actually cheaper than its peers when you consider factors like cost.
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
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.