Is This Pacific Rim Equity Fund a Hidden Gem for Dividend Hunters?
Investors Searching for Pacific Rim – Equity Funds May Want to Consider Matthews Asia Dividend Fund Investor
The Pacific Rim – Equity segment of mutual funds has seen significant investment opportunities in export-focused markets like Hong Kong, Singapore, Taiwan, and Korea. These funds invest less than 10% of their assets in Japanese firms, as Japan mutual funds are extremely popular. For investors searching for a Pacific Rim – Equity fund, Matthews Asia Dividend Fund Investor (MAPIX) is worth considering.
History of Fund/Manager
Matthews Asia is based in San Francisco, CA, and has been the manager of MAPIX since its debut in October 2006. The fund has garnered more than $252.81 million in assets over the years and is currently managed by a team of investment professionals. Matthews Asia’s experience and expertise in managing Pacific Rim – Equity funds make them a reputable choice for investors.
Performance
Investors are looking for strong performance relative to their peers when it comes to these funds. MAPIX has a 5-year annualized total return of 3.2%, placing it in the bottom third among its category peers. Its 3-year annualized total return is 0.73%, also ranking in the bottom third during this time-frame. It’s essential to note that product returns may not reflect all expenses, and any fees not reflected would lower the returns. Total returns do not include sales charges; if they were included, total returns would have been even lower.
Volatility
When analyzing a fund’s performance, it’s also crucial to examine the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. MAPIX’s standard deviation over the past three years is 15.95% compared to the category average of 15.36%. Looking at the past 5 years, the fund’s standard deviation is 15.66% compared to the category average of 15.2%. 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 0.59, making it likely to be less volatile than the market at large. The alpha metric represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case. MAPIX’s 5-year performance has produced a negative alpha of -6, meaning managers in this portfolio find it challenging to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, particularly as competition heats up in this market. 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, MAPIX is a no-load fund with an expense ratio of 1.20% compared to the category average of 0.90%. This makes MAPIX more expensive than its peers from a cost perspective.
Minimum Initial Investment
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 consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, average downside risk, and higher fees, Matthews Asia Dividend Fund Investor (MAPIX) has a neutral Zacks Mutual Fund rank. This makes it a somewhat average choice for investors right now.
Conclusion
Investors searching for Pacific Rim – Equity funds may want to consider Matthews Asia Dividend Fund Investor (MAPIX). With its experienced management team and over $252 million in assets, MAPIX is a reputable choice. However, investors should be aware of its comparatively weak performance, average downside risk, and higher fees compared to its peers. As always, thorough research and analysis are essential when selecting mutual funds for your investment portfolio.
