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There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is PIA High Yield Institutional (PHYSX - Free Report) . PHYSX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Pacific Income is based in El Segundo, CA, and is the manager of PHYSX. PIA High Yield Institutional made its debut in December of 2010, and since then, PHYSX has accumulated about $59 million in assets, per the most up-to-date date available. The fund's current manager, Lloyd McAdams, has been in charge of the fund since November of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 4.88%, 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 3.32%, which places it in the top 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. Compared to the category average of 7.39%, the standard deviation of PHYSX over the past three years is 6.92%. Over the past 5 years, the standard deviation of the fund is 9.74% compared to the category average of 8.97%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of -0.07, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PHYSX has a positive alpha of 4.06, which measures performance on a risk-adjusted basis.
Expenses
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, PHYSX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 0.90%. So, PHYSX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, PIA High Yield Institutional ( PHYSX ) 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.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PHYSX too 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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Is PHYSX a Strong Bond Fund Right Now?
There are plenty of choices in the Mutual Fund Bond category, but where should you start your research? Well, one fund that might be worth investigating is PIA High Yield Institutional (PHYSX - Free Report) . PHYSX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Pacific Income is based in El Segundo, CA, and is the manager of PHYSX. PIA High Yield Institutional made its debut in December of 2010, and since then, PHYSX has accumulated about $59 million in assets, per the most up-to-date date available. The fund's current manager, Lloyd McAdams, has been in charge of the fund since November of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 4.88%, 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 3.32%, which places it in the top 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. Compared to the category average of 7.39%, the standard deviation of PHYSX over the past three years is 6.92%. Over the past 5 years, the standard deviation of the fund is 9.74% compared to the category average of 8.97%. This makes the fund more volatile than its peers over the past half-decade.
With a beta of -0.07, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, PHYSX has a positive alpha of 4.06, which measures performance on a risk-adjusted basis.
Expenses
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, PHYSX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 0.90%. So, PHYSX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, PIA High Yield Institutional ( PHYSX ) 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.
For additional information on the Mutual Fund Bond area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PHYSX too 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.