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On the lookout for an Investment Grade Bond - Short fund? Starting with FPA New Income Fund (FPNIX - Free Report) is one possibility. FPNIX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FPNIX is part of the Investment Grade Bond - Short category, a segment that boasts an array of other possible selections. Investment Grade Bond - Short funds target the short end of the curve by focusing on bonds that mature in less than two years. Fixed income instruments with this maturity level typically have low duration risk and pay out small yields, at least in comparison to their longer-dated peers. Also, these funds tend to be safer because of their focus on investment grade, but yields will be lower than could be found in the junk bond category.
History of Fund/Manager
FPA is responsible for FPNIX, and the company is based out of Los Angeles, CA. The FPA New Income Fund made its debut in March of 1969 and FPNIX has managed to accumulate roughly $8.43 billion in assets, as of the most recently available information. The fund's current manager, Abhijeet Patwardhan, has been in charge of the fund since November of 2015.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FPNIX has a 5-year annualized total return of 2.03% 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 1.78%, 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. FPNIX's standard deviation over the past three years is 2.43% compared to the category average of 2.75%. Looking at the past 5 years, the fund's standard deviation is 2.33% compared to the category average of 3.18%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.34, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FPNIX has a positive alpha of 0.54, which measures performance on a risk-adjusted basis.
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, FPNIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.57%. FPNIX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,500, 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, FPA New Income Fund ( FPNIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, FPA New Income Fund ( FPNIX ) looks like a good potential choice for investors right now.
This could just be the start of your research on FPNIXin the Investment Grade Bond - Short category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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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Is FPNIX a Strong Bond Fund Right Now?
On the lookout for an Investment Grade Bond - Short fund? Starting with FPA New Income Fund (FPNIX - Free Report) is one possibility. FPNIX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FPNIX is part of the Investment Grade Bond - Short category, a segment that boasts an array of other possible selections. Investment Grade Bond - Short funds target the short end of the curve by focusing on bonds that mature in less than two years. Fixed income instruments with this maturity level typically have low duration risk and pay out small yields, at least in comparison to their longer-dated peers. Also, these funds tend to be safer because of their focus on investment grade, but yields will be lower than could be found in the junk bond category.
History of Fund/Manager
FPA is responsible for FPNIX, and the company is based out of Los Angeles, CA. The FPA New Income Fund made its debut in March of 1969 and FPNIX has managed to accumulate roughly $8.43 billion in assets, as of the most recently available information. The fund's current manager, Abhijeet Patwardhan, has been in charge of the fund since November of 2015.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FPNIX has a 5-year annualized total return of 2.03% 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 1.78%, 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. FPNIX's standard deviation over the past three years is 2.43% compared to the category average of 2.75%. Looking at the past 5 years, the fund's standard deviation is 2.33% compared to the category average of 3.18%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.34, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FPNIX has a positive alpha of 0.54, which measures performance on a risk-adjusted basis.
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, FPNIX is a no load fund. It has an expense ratio of 0.45% compared to the category average of 0.57%. FPNIX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,500, 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, FPA New Income Fund ( FPNIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, FPA New Income Fund ( FPNIX ) looks like a good potential choice for investors right now.
This could just be the start of your research on FPNIXin the Investment Grade Bond - Short category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well 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.