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If you have been looking for Diversified Bonds funds, it would not be wise to start your search with AlphaCentric Income Opportunities I (IOFIX - Free Report) . IOFIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify IOFIX in the Diversified Bonds category, an area that is rife with potential choices.Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
AlphaCentric is based in San Juan, PR, and is the manager of IOFIX. AlphaCentric Income Opportunities I debuted in May of 2015. Since then, IOFIX has accumulated assets of about $130.06 million, according to the most recently available information. The fund is currently managed by Garrett Smith who has been in charge of the fund since May of 2015.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of -4.39%, 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 2.15%, 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. IOFIX's standard deviation over the past three years is 6.45% compared to the category average of 8.91%. The standard deviation of the fund over the past 5 years is 7.62% compared to the category average of 10.33%. This makes the fund less volatile than its peers over the past half-decade.
Income
It is important to consider the fund's average coupon because income is often a big reason for purchasing a fixed income security. Average coupon is a look at the average payout by the fund in a given year. For example, this fund's average coupon of 4.02% means that a $10,000 investment should result in a yearly payout of $402.
A higher coupon is good for those seeking a strong level of current income, but it could also pose a reinvestment risk if rates are lower in the future when compared to the initial purchase date of the bond. Investors also need to consider risk relative to broad benchmarks, as income is only one part of the bond picture.
IOFIX carries a beta of 0.92, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -6.07, which measures performance on a risk-adjusted basis.
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, IOFIX is a no load fund. It has an expense ratio of 1.05% compared to the category average of 0.93%. IOFIX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,500; 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, AlphaCentric Income Opportunities I ( IOFIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, AlphaCentric Income Opportunities I ( IOFIX ) looks like a somewhat weak choice for investors right now.
Your research on the Diversified Bonds 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 IOFIX a Strong Bond Fund Right Now?
If you have been looking for Diversified Bonds funds, it would not be wise to start your search with AlphaCentric Income Opportunities I (IOFIX - Free Report) . IOFIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify IOFIX in the Diversified Bonds category, an area that is rife with potential choices.Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
AlphaCentric is based in San Juan, PR, and is the manager of IOFIX. AlphaCentric Income Opportunities I debuted in May of 2015. Since then, IOFIX has accumulated assets of about $130.06 million, according to the most recently available information. The fund is currently managed by Garrett Smith who has been in charge of the fund since May of 2015.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of -4.39%, 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 2.15%, 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. IOFIX's standard deviation over the past three years is 6.45% compared to the category average of 8.91%. The standard deviation of the fund over the past 5 years is 7.62% compared to the category average of 10.33%. This makes the fund less volatile than its peers over the past half-decade.
Income
It is important to consider the fund's average coupon because income is often a big reason for purchasing a fixed income security. Average coupon is a look at the average payout by the fund in a given year. For example, this fund's average coupon of 4.02% means that a $10,000 investment should result in a yearly payout of $402.
A higher coupon is good for those seeking a strong level of current income, but it could also pose a reinvestment risk if rates are lower in the future when compared to the initial purchase date of the bond. Investors also need to consider risk relative to broad benchmarks, as income is only one part of the bond picture.
IOFIX carries a beta of 0.92, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -6.07, which measures performance on a risk-adjusted basis.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, IOFIX is a no load fund. It has an expense ratio of 1.05% compared to the category average of 0.93%. IOFIX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,500; 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, AlphaCentric Income Opportunities I ( IOFIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, AlphaCentric Income Opportunities I ( IOFIX ) looks like a somewhat weak choice for investors right now.
Your research on the Diversified Bonds 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.