If investors are looking at the Europe - Equity fund category, T. Rowe Price European Stock (
PRESX Quick Quote PRESX - Free Report) could be a potential option. PRESX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance. Objective
The world of Europe - Equity mutual funds is an area filled with options, like PRESX. Europe - Equity mutual funds tend to invest their assets in stocks across the European continent, including countries such as Great Britain, Germany, France, Italy, and Spain. European funds generally offer slower growth but can offer solid levels of stability.
History of Fund/Manager
T. Rowe Price is responsible for PRESX, and the company is based out of Baltimore, MD. T. Rowe Price European Stock made its debut in February of 1990, and since then, PRESX has accumulated about $1.17 billion in assets, per the most up-to-date date available. The fund's current manager, Dean Tenerelli, has been in charge of the fund since October of 2005.
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 6.58%, and it sits 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 2.72%, 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. Over the past three years, PRESX's standard deviation comes in at 12.65%, compared to the category average of 12.36%. Over the past 5 years, the standard deviation of the fund is 12.82% compared to the category average of 12.48%. This makes the fund more 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, PRESX lost 56.18% and outperformed its peer group by 2.48%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Nevertheless, with a 5-year beta of 0.93, 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. Over the past 5 years, the fund has a negative alpha of -4.87. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PRESX is a no load fund. It has an expense ratio of 0.96% compared to the category average of 1.45%. PRESX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Overall, T. Rowe Price European Stock has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Europe - 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 PRESX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.