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Is T. Rowe Price Japan Fund (PRJPX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Japan - Equity fund category, make sure to pass over T. Rowe Price Japan Fund (PRJPX - Free Report) . PRJPX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Japan - Equity funds is an area filled with choices, and one such option is PRJPX. Japan - Equity mutual funds invest primarily in companies based in Japan, one of the world's richest and most diversified economies. The country remains somewhat exposed to global economic trends with its export focus, while its lack of natural resources also can impact the nation.
History of Fund/Manager
T. Rowe Price is responsible for PRJPX, and the company is based out of Baltimore, MD. T. Rowe Price Japan Fund made its debut in December of 1991, and since then, PRJPX has accumulated about $192.40 million in assets, per the most up-to-date date available. Archibald Ciganer is the fund's current manager and has held that role since December of 2013.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.25%, and is 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 -10.95%, which places it in the bottom 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, PRJPX's standard deviation comes in at 16.74%, compared to the category average of 14.76%. The fund's standard deviation over the past 5 years is 17.48% compared to the category average of 15.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PRJPX has a 5-year beta of 0.7, which means it is likely to be less volatile than the market average. 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. PRJPX has generated a negative alpha over the past five years of -8.52, demonstrating 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, PRJPX is a no load fund. It has an expense ratio of 1.08% compared to the category average of 0.99%. From a cost perspective, PRJPX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Japan Fund ( PRJPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund 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 Japan - Equity, make sure to go to www.zacks.com/funds/mutual-funds 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 T. Rowe Price Japan Fund (PRJPX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Japan - Equity fund category, make sure to pass over T. Rowe Price Japan Fund (PRJPX - Free Report) . PRJPX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Japan - Equity funds is an area filled with choices, and one such option is PRJPX. Japan - Equity mutual funds invest primarily in companies based in Japan, one of the world's richest and most diversified economies. The country remains somewhat exposed to global economic trends with its export focus, while its lack of natural resources also can impact the nation.
History of Fund/Manager
T. Rowe Price is responsible for PRJPX, and the company is based out of Baltimore, MD. T. Rowe Price Japan Fund made its debut in December of 1991, and since then, PRJPX has accumulated about $192.40 million in assets, per the most up-to-date date available. Archibald Ciganer is the fund's current manager and has held that role since December of 2013.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.25%, and is 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 -10.95%, which places it in the bottom 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, PRJPX's standard deviation comes in at 16.74%, compared to the category average of 14.76%. The fund's standard deviation over the past 5 years is 17.48% compared to the category average of 15.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. PRJPX has a 5-year beta of 0.7, which means it is likely to be less volatile than the market average. 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. PRJPX has generated a negative alpha over the past five years of -8.52, demonstrating 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, PRJPX is a no load fund. It has an expense ratio of 1.08% compared to the category average of 0.99%. From a cost perspective, PRJPX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Japan Fund ( PRJPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund 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 Japan - Equity, make sure to go to www.zacks.com/funds/mutual-funds 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.