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Is Semper MBS Total Return Investor (SEMPX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding an Index fund? Semper MBS Total Return Investor (SEMPX - Free Report) is a potential starting point. SEMPX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Semper is based in New York, NY, and is the manager of SEMPX. Semper MBS Total Return Investor debuted in July of 2013. Since then, SEMPX has accumulated assets of about $14.52 million, according to the most recently available information. The fund is currently managed by Thomas Mandel who has been in charge of the fund since January of 2015.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.7%, and it sits in the bottom 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 2.07%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, SEMPX's standard deviation comes in at 5.33%, compared to the category average of 11.05%. Over the past 5 years, the standard deviation of the fund is 11.31% compared to the category average of 12.12%. 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 0.36, which means it is hypothetically less volatile than the market at large. 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. With a negative alpha of -0.07, 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, SEMPX is a no load fund. It has an expense ratio of 1.17% compared to the category average of 1.04%. Looking at the fund from a cost perspective, SEMPX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $1,000.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and higher fees, Semper MBS Total Return Investor ( SEMPX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
For additional information on the Index 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 SEMPX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Semper MBS Total Return Investor (SEMPX) a Strong Mutual Fund Pick Right Now?
Having trouble finding an Index fund? Semper MBS Total Return Investor (SEMPX - Free Report) is a potential starting point. SEMPX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Semper is based in New York, NY, and is the manager of SEMPX. Semper MBS Total Return Investor debuted in July of 2013. Since then, SEMPX has accumulated assets of about $14.52 million, according to the most recently available information. The fund is currently managed by Thomas Mandel who has been in charge of the fund since January of 2015.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.7%, and it sits in the bottom 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 2.07%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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, SEMPX's standard deviation comes in at 5.33%, compared to the category average of 11.05%. Over the past 5 years, the standard deviation of the fund is 11.31% compared to the category average of 12.12%. 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 0.36, which means it is hypothetically less volatile than the market at large. 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. With a negative alpha of -0.07, 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, SEMPX is a no load fund. It has an expense ratio of 1.17% compared to the category average of 1.04%. Looking at the fund from a cost perspective, SEMPX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $1,000.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and higher fees, Semper MBS Total Return Investor ( SEMPX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
For additional information on the Index 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 SEMPX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.