Is PHYZX a Strong Bond Fund Right Now?

Mutual Fund Bond fund seekers should consider taking a look at PGIM High Yield Z (PHYZX). PHYZX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

PGIM is based in Providence, RI, and is the manager of PHYZX. PGIM High Yield Z made its debut in March of 1996, and since then, PHYZX has accumulated about $12.41 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.26%, and it sits in the top 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 0.21%, which places it in the middle 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. Compared to the category average of 15.62%, the standard deviation of PHYZX over the past three years is 11.44%. The standard deviation of the fund over the past 5 years is 9.28% compared to the category average of 13.63%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.32, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PHYZX has a positive alpha of 2.94, which measures performance on a risk-adjusted basis.

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, PHYZX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.98%. From a cost perspective, PHYZX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, PGIM High Yield Z ( PHYZX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, PGIM High Yield Z ( PHYZX ) looks like a good potential choice for investors right now.

Don't stop here for your research on Mutual Fund Bond 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 PHYZX 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.

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