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Diversified Bonds fund seekers should not consider taking a look at T. Rowe Price Spectrum Income (RPSIX - Free Report) at this time. RPSIX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify RPSIX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of RPSIX. T. Rowe Price Spectrum Income made its debut in June of 1990, and since then, RPSIX has accumulated about $1.87 billion in assets, per the most up-to-date date available. Charles Shriver is the fund's current manager and has held that role since May of 2011.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.2%, 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 0.03%, 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 RPSIX over the past three years is 7.41% compared to the category average of 10.21%. The fund's standard deviation over the past 5 years is 7.7% compared to the category average of 11.4%. This makes the fund less volatile than its peers over the past half-decade.
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, RPSIX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.93%. RPSIX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to 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, even with its comparatively similar performance, average downside risk, and lower fees, T. Rowe Price Spectrum Income ( RPSIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on the Diversified Bonds 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 RPSIX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is RPSIX a Strong Bond Fund Right Now?
Diversified Bonds fund seekers should not consider taking a look at T. Rowe Price Spectrum Income (RPSIX - Free Report) at this time. RPSIX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify RPSIX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of RPSIX. T. Rowe Price Spectrum Income made its debut in June of 1990, and since then, RPSIX has accumulated about $1.87 billion in assets, per the most up-to-date date available. Charles Shriver is the fund's current manager and has held that role since May of 2011.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 2.2%, 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 0.03%, 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 RPSIX over the past three years is 7.41% compared to the category average of 10.21%. The fund's standard deviation over the past 5 years is 7.7% compared to the category average of 11.4%. This makes the fund less volatile than its peers over the past half-decade.
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, RPSIX is a no load fund. It has an expense ratio of 0.62% compared to the category average of 0.93%. RPSIX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to 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, even with its comparatively similar performance, average downside risk, and lower fees, T. Rowe Price Spectrum Income ( RPSIX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.
For additional information on the Diversified Bonds 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 RPSIX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.