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Diversified Bonds fund seekers should consider taking a look at T. Rowe Price Global Multi-Sector Bond Investor (PRSNX - Free Report) . PRSNX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Diversified Bonds funds is an area filled with options, such as PRSNX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
T. Rowe Price is responsible for PRSNX, and the company is based out of Baltimore, MD. Since T. Rowe Price Global Multi-Sector Bond Investor made its debut in December of 2008, PRSNX has garnered more than $669.22 million in assets. The fund's current manager, Kenneth Orchard, has been in charge of the fund since January of 2018.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.49%, 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 -1.95%, which places it in the middle 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 PRSNX over the past three years is 6.54% compared to the category average of 11.53%. Looking at the past 5 years, the fund's standard deviation is 7.48% compared to the category average of 12.07%. This makes the fund less volatile than its peers over the past half-decade.
PRSNX carries a beta of 0.58, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 1.44, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PRSNX has 42% in high quality bonds rated at least 'AA' or higher, while 33.96% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 22.33%, giving PRSNX an average quality of A. This means that it focuses on high quality securities.
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, PRSNX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.83%. PRSNX 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.
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 Multi-Sector Bond Investor ( PRSNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Global Multi-Sector Bond Investor ( PRSNX ) looks like a good potential choice for investors right now.
Want even more information about PRSNX? 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is PRSNX a Strong Bond Fund Right Now?
Diversified Bonds fund seekers should consider taking a look at T. Rowe Price Global Multi-Sector Bond Investor (PRSNX - Free Report) . PRSNX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Diversified Bonds funds is an area filled with options, such as PRSNX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.
History of Fund/Manager
T. Rowe Price is responsible for PRSNX, and the company is based out of Baltimore, MD. Since T. Rowe Price Global Multi-Sector Bond Investor made its debut in December of 2008, PRSNX has garnered more than $669.22 million in assets. The fund's current manager, Kenneth Orchard, has been in charge of the fund since January of 2018.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.49%, 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 -1.95%, which places it in the middle 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 PRSNX over the past three years is 6.54% compared to the category average of 11.53%. Looking at the past 5 years, the fund's standard deviation is 7.48% compared to the category average of 12.07%. This makes the fund less volatile than its peers over the past half-decade.
PRSNX carries a beta of 0.58, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 1.44, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PRSNX has 42% in high quality bonds rated at least 'AA' or higher, while 33.96% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 22.33%, giving PRSNX an average quality of A. This means that it focuses on high quality securities.
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, PRSNX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 0.83%. PRSNX 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.
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 Multi-Sector Bond Investor ( PRSNX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Global Multi-Sector Bond Investor ( PRSNX ) looks like a good potential choice for investors right now.
Want even more information about PRSNX? 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.