Yahoo Finance Is Matthews Asia Growth Fund Investor (MPACX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Well, Matthews Asia Growth Fund Investor (MPACX) would not be a good potential starting point right now. MPACX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and is the manager of MPACX. Since Matthews Asia Growth Fund Investor made its debut in October of 2003, MPACX has garnered more than $309.88 million in assets. The fund is currently managed by Taizo Ishida since January of 2007 and Michael Oh has been the co-manager since 2020
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of -2.82%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -3.95%, which places it in the bottom 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, MPACX's standard deviation comes in at 24.55%, compared to the category average of 19.21%. The fund's standard deviation over the past 5 years is 21.59% compared to the category average of 16.85%. 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 0.79, which means it is hypothetically 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. MPACX's 5-year performance has produced a negative alpha of -9.23, which means 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, MPACX is a no load fund. It has an expense ratio of 1.14% compared to the category average of 1.27%. So, MPACX is actually cheaper than its peers from a cost perspective.
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.
Bottom Line
Overall, Matthews Asia Growth Fund Investor ( MPACX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Matthews Asia Growth Fund Investor ( MPACX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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