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Is Matthews Japan Fund (MJFOX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Japan - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is Matthews Japan Fund (MJFOX - Free Report) . MJFOX possesses a Zacks Mutual Fund Rank of 4 (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 MJFOX. 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
MJFOX is a part of the Matthews Asia family of funds, a company based out of San Francisco, CA. Matthews Japan Fund debuted in December of 1998. Since then, MJFOX has accumulated assets of about $297.98 million, according to the most recently available information. The fund is currently managed by Shuntaro Takeuchi who has been in charge of the fund since January of 2019.
Performance
Of course, investors look for strong performance in funds. MJFOX has a 5-year annualized total return of 8.16%, and it sits 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 22.16%, which places it in the middle 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, MJFOX's standard deviation comes in at 15.33%, compared to the category average of 12.52%. Looking at the past 5 years, the fund's standard deviation is 17.39% compared to the category average of 14.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.84, so it is likely going to be 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. MJFOX has generated a negative alpha over the past five years of -3.45, 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, MJFOX is a no load fund. It has an expense ratio of 1.16% compared to the category average of 0.93%. So, MJFOX is actually more expensive than its peers from a cost perspective.
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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Matthews Japan Fund ( MJFOX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Matthews Japan Fund ( MJFOX ) looks like a somewhat weak 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 MJFOX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Matthews Japan Fund (MJFOX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Japan - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is Matthews Japan Fund (MJFOX - Free Report) . MJFOX possesses a Zacks Mutual Fund Rank of 4 (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 MJFOX. 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
MJFOX is a part of the Matthews Asia family of funds, a company based out of San Francisco, CA. Matthews Japan Fund debuted in December of 1998. Since then, MJFOX has accumulated assets of about $297.98 million, according to the most recently available information. The fund is currently managed by Shuntaro Takeuchi who has been in charge of the fund since January of 2019.
Performance
Of course, investors look for strong performance in funds. MJFOX has a 5-year annualized total return of 8.16%, and it sits 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 22.16%, which places it in the middle 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, MJFOX's standard deviation comes in at 15.33%, compared to the category average of 12.52%. Looking at the past 5 years, the fund's standard deviation is 17.39% compared to the category average of 14.23%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.84, so it is likely going to be 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. MJFOX has generated a negative alpha over the past five years of -3.45, 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, MJFOX is a no load fund. It has an expense ratio of 1.16% compared to the category average of 0.93%. So, MJFOX is actually more expensive than its peers from a cost perspective.
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 consideration. Returns would be less if those were included.
Bottom Line
Overall, Matthews Japan Fund ( MJFOX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Matthews Japan Fund ( MJFOX ) looks like a somewhat weak 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 MJFOX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.