Back to top

Image: Bigstock

Is Fidelity Japan Fund (FJPNX) a Strong Mutual Fund Pick Right Now?

Read MoreHide Full Article

Have you been searching for a Japan - Equity fund? You might want to begin with Fidelity Japan Fund (FJPNX - Free Report) . FJPNX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that FJPNX is a Japan - Equity option, an area loaded with different choices. Primarily invest in companies in one of the world's richest and most diversified economies, Japan. While the country remains partially exposed to global economic trends due to its export focus, its lack of natural resources can also impact the nation.

History of Fund/Manager

Fidelity is responsible for FJPNX, and the company is based out of Boston, MA. Fidelity Japan Fund debuted in September of 1992. Since then, FJPNX has accumulated assets of about $180.44 million, according to the most recently available information. The fund's current manager, Kirk Neureiter, has been in charge of the fund since March of 2014.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. FJPNX has a 5-year annualized total return of 8.33% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 8.73%, 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, FJPNX's standard deviation comes in at 17.24%, compared to the category average of 14.02%. The fund's standard deviation over the past 5 years is 16.35% compared to the category average of 13.83%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.77, so investors should note that it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -3.51, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FJPNX is a no load fund. It has an expense ratio of 0.68% compared to the category average of 0.94%. So, FJPNX is actually cheaper than its peers from a cost perspective.

Investors need to be aware that with this product, the minimum initial investment is $0; 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, Fidelity Japan Fund ( FJPNX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Japan Fund ( FJPNX ) looks like a somewhat average choice for investors right now.

Don't stop here for your research on Japan - Equity funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FJPNX to its peers 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity Japan (FJPNX) - free report >>

Published in