Back to top

Image: Bigstock

Is Invesco International Small-Mid Company A (OSMAX) a Strong Mutual Fund Pick Right Now?

Read MoreHide Full Article

There are plenty of choices in the Non US - Equity category, but where should you start your research? Well, one fund that might be worth investigating is Invesco International Small-Mid Company A (OSMAX - Free Report) . OSMAX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes OSMAX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.

History of Fund/Manager

OSMAX finds itself in the Invesco family, based out of Kansas City, MO. Invesco International Small-Mid Company A debuted in November of 1997. Since then, OSMAX has accumulated assets of about $720.58 million, according to the most recently available information. The fund is currently managed by David Nadel who has been in charge of the fund since November of 2019.

Performance

Of course, investors look for strong performance in funds. OSMAX has a 5-year annualized total return of 1.64% and it sits in the middle 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 -6.68%, 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. Over the past three years, OSMAX's standard deviation comes in at 22.85%, compared to the category average of 15.47%. The standard deviation of the fund over the past 5 years is 21.72% compared to the category average of 16.42%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.06, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -10.36. This means 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, OSMAX is a load fund. It has an expense ratio of 1.35% compared to the category average of 1.01%. From a cost perspective, OSMAX is actually more expensive than its peers.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.

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

Bottom Line

Overall, even with its comparatively similar performance, worse downside risk, and higher fees, Invesco International Small-Mid Company A ( OSMAX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Non US - Equity, 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


INVESCO INTL SMALL/MID CO (OSMAX) - free report >>

Published in