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Is T. Rowe Price Global Stock (PRGSX) a Strong Mutual Fund Pick Right Now?

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There are plenty of choices in the Global - Equity category, but where should you start your research? Well, one fund that you should consider investigating is T. Rowe Price Global Stock (PRGSX - Free Report) . PRGSX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that PRGSX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.

History of Fund/Manager

PRGSX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Global Stock debuted in December of 1995. Since then, PRGSX has accumulated assets of about $2.69 billion, according to the most recently available information. The fund is currently managed by David Eiswert who has been in charge of the fund since October of 2012.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 13.77%, and is 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 0.84%, 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. The standard deviation of PRGSX over the past three years is 18.42% compared to the category average of 15.39%. Looking at the past 5 years, the fund's standard deviation is 19.91% compared to the category average of 16.3%. 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 1.02, so it is likely going to be as volatile as 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. PRGSX has generated a negative alpha over the past five years of -0.78, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

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, PRGSX is a no load fund. It has an expense ratio of 0.81% compared to the category average of 0.97%. From a cost perspective, PRGSX is actually cheaper than its peers.

This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, T. Rowe Price Global Stock ( PRGSX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Global Stock ( PRGSX ) looks like a somewhat average choice for investors right now.

Want even more information about PRGSX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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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