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Mutual Fund Bond fund seekers should not consider taking a look at T. Rowe Price Emerging Markets Bond (PREMX - Free Report) at this time. PREMX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PREMX. Since T. Rowe Price Emerging Markets Bond made its debut in December of 1994, PREMX has garnered more than $540 million in assets. Samy Muaddi is the fund's current manager and has held that role since June of 2020.
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 -1.68%, and it sits in the bottom 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 -2.02%, which places it in the bottom 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, PREMX's standard deviation comes in at 11.98%, compared to the category average of 15.7%. The fund's standard deviation over the past 5 years is 13.03% compared to the category average of 13.47%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.47, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PREMX has a negative alpha of -1.63, 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, PREMX has 37.68% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 53.5%, giving PREMX an average quality of BBB. This means that it focuses on medium 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, PREMX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.12%. From a cost perspective, PREMX 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 Emerging Markets Bond ( PREMX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Emerging Markets Bond ( PREMX ) looks like a somewhat weak choice for investors right now.
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 PREMX a Strong Bond Fund Right Now?
Mutual Fund Bond fund seekers should not consider taking a look at T. Rowe Price Emerging Markets Bond (PREMX - Free Report) at this time. PREMX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PREMX. Since T. Rowe Price Emerging Markets Bond made its debut in December of 1994, PREMX has garnered more than $540 million in assets. Samy Muaddi is the fund's current manager and has held that role since June of 2020.
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 -1.68%, and it sits in the bottom 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 -2.02%, which places it in the bottom 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, PREMX's standard deviation comes in at 11.98%, compared to the category average of 15.7%. The fund's standard deviation over the past 5 years is 13.03% compared to the category average of 13.47%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.47, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PREMX has a negative alpha of -1.63, 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, PREMX has 37.68% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 53.5%, giving PREMX an average quality of BBB. This means that it focuses on medium 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, PREMX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.12%. From a cost perspective, PREMX 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 Emerging Markets Bond ( PREMX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, T. Rowe Price Emerging Markets Bond ( PREMX ) looks like a somewhat weak choice for investors right now.
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.