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If you've been stuck searching for International Bond - Emerging funds, you might want to consider passing on by T. Rowe Price Emerging Markets Bond (PREMX - Free Report) as a possibility. PREMX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
PREMX is part of the International Bond - Emerging section, a segment that boasts an impressive array of other possible selections. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. With these funds, investors can expect exposure to economies such as China, Brazil, India, South Africa, and Indonesia, just to name a few. While this can be appealing, these funds can also introduce currency risk.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PREMX. T. Rowe Price Emerging Markets Bond debuted in December of 1994. Since then, PREMX has accumulated assets of about $363 million, according to the most recently available information. The fund's current manager, Samy Muaddi, has been in charge of the fund since June of 2020.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.94%, and is 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 0.66%, 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. Compared to the category average of 12.9%, the standard deviation of PREMX over the past three years is 11.67%. The fund's standard deviation over the past 5 years is 13.04% compared to the category average of 14.11%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.24, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PREMX has a positive alpha of 2.15, which measures performance on a risk-adjusted basis.
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, PREMX is a no load fund. It has an expense ratio of 0.98% compared to the category average of 0.94%. Looking at the fund from a cost perspective, PREMX is actually more expensive 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.
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 Emerging Markets Bond ( PREMX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, T. Rowe Price Emerging Markets Bond ( PREMX ) looks like a somewhat weak choice for investors right now.
Your research on the International Bond - Emerging segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is PREMX a Strong Bond Fund Right Now?
If you've been stuck searching for International Bond - Emerging funds, you might want to consider passing on by T. Rowe Price Emerging Markets Bond (PREMX - Free Report) as a possibility. PREMX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
PREMX is part of the International Bond - Emerging section, a segment that boasts an impressive array of other possible selections. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. With these funds, investors can expect exposure to economies such as China, Brazil, India, South Africa, and Indonesia, just to name a few. While this can be appealing, these funds can also introduce currency risk.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PREMX. T. Rowe Price Emerging Markets Bond debuted in December of 1994. Since then, PREMX has accumulated assets of about $363 million, according to the most recently available information. The fund's current manager, Samy Muaddi, has been in charge of the fund since June of 2020.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 0.94%, and is 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 0.66%, 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. Compared to the category average of 12.9%, the standard deviation of PREMX over the past three years is 11.67%. The fund's standard deviation over the past 5 years is 13.04% compared to the category average of 14.11%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.24, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PREMX has a positive alpha of 2.15, which measures performance on a risk-adjusted basis.
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, PREMX is a no load fund. It has an expense ratio of 0.98% compared to the category average of 0.94%. Looking at the fund from a cost perspective, PREMX is actually more expensive 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.
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 Emerging Markets Bond ( PREMX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, T. Rowe Price Emerging Markets Bond ( PREMX ) looks like a somewhat weak choice for investors right now.
Your research on the International Bond - Emerging segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.