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Having trouble finding an International Bond - Emerging fund? Well, Fidelity New Markets Income (FNMIX - Free Report) would not be a good potential starting point right now. FNMIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FNMIX in the International Bond - Emerging category, an area rife with many investment choices. International Bond - Emerging funds focus on fixed income securities from emerging nations from around the globe. This usually results in exposure to economies like China, Brazil, India, South Africa, and Indonesia, just to name a few. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
FNMIX finds itself in the Fidelity family, based out of Boston, MA. Fidelity New Markets Income made its debut in May of 1993, and since then, FNMIX has accumulated about $1.56 billion in assets, per the most up-to-date date available. Timothy Gill is the fund's current manager and has held that role since January of 2019.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.38%, and is in the top 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 1.12%, 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. Compared to the category average of 13.64%, the standard deviation of FNMIX over the past three years is 10.79%. The fund's standard deviation over the past 5 years is 11.53% compared to the category average of 14.72%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.2, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, FNMIX has a positive alpha of 2.48, 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, FNMIX has 27.1% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 56.3%, giving FNMIX an average quality of BBB. This means that it focuses on medium quality securities.
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, FNMIX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 0.95%. From a cost perspective, FNMIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
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 strong performance, average downside risk, and lower fees, Fidelity New Markets Income ( FNMIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on the International Bond - Emerging 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 FNMIX too 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 FNMIX a Strong Bond Fund Right Now?
Having trouble finding an International Bond - Emerging fund? Well, Fidelity New Markets Income (FNMIX - Free Report) would not be a good potential starting point right now. FNMIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FNMIX in the International Bond - Emerging category, an area rife with many investment choices. International Bond - Emerging funds focus on fixed income securities from emerging nations from around the globe. This usually results in exposure to economies like China, Brazil, India, South Africa, and Indonesia, just to name a few. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
FNMIX finds itself in the Fidelity family, based out of Boston, MA. Fidelity New Markets Income made its debut in May of 1993, and since then, FNMIX has accumulated about $1.56 billion in assets, per the most up-to-date date available. Timothy Gill is the fund's current manager and has held that role since January of 2019.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.38%, and is in the top 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 1.12%, 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. Compared to the category average of 13.64%, the standard deviation of FNMIX over the past three years is 10.79%. The fund's standard deviation over the past 5 years is 11.53% compared to the category average of 14.72%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.2, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, FNMIX has a positive alpha of 2.48, 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, FNMIX has 27.1% in medium quality bonds, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 56.3%, giving FNMIX an average quality of BBB. This means that it focuses on medium quality securities.
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, FNMIX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 0.95%. From a cost perspective, FNMIX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
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 strong performance, average downside risk, and lower fees, Fidelity New Markets Income ( FNMIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on the International Bond - Emerging 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 FNMIX too 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.