There are plenty of choices in the Non US - Equity category, but where should you start your research? Well, one fund that might be worth investigating is T. Rowe Price International Discovery (PRIDX - Free Report) . PRIDX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
We classify PRIDX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.
History of Fund/Manager
T. Rowe Price is responsible for PRIDX, and the company is based out of Baltimore, MD. Since T. Rowe Price International Discovery made its debut in December of 1988, PRIDX has garnered more than $4.82 billion in assets. The fund's current manager, Justin Thomson, has been in charge of the fund since August of 1998.
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 13.35%, and it sits 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 15.26%, which places it in the top third during this time-frame.
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. The standard deviation of PRIDX over the past three years is 10.98% compared to the category average of 10.88%. Looking at the past 5 years, the fund's standard deviation is 10.25% compared to the category average of 10.64%. This makes the fund less volatile than its peers over the past half-decade.
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, PRIDX lost 60.66% and underperformed comparable funds by 2.24%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Nevertheless, with a 5-year beta of 0.77, the fund 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. With a positive alpha of 2.1, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRIDX is a no load fund. It has an expense ratio of 1.19% compared to the category average of 1.29%. PRIDX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Overall, T. Rowe Price International Discovery has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price International Discovery looks like a good potential choice for investors right now.
This could just be the start of your research on PRIDX in the Non US - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.