Is Fidelity Pacific Basin (FPBFX) a Strong Mutual Fund Pick Right Now?

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If you’ve been stuck searching for Pacific Rim – Equity funds, consider Fidelity Pacific Basin (FPBFX) as a possibility. FPBFX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

Load Error

Objective

The world of Pacific Rim – Equity funds is an area filled with options, such as FPBFX. Pacific Rim – Equity mutual funds usually invest in companies with a big presence in the export-focused markets of Hong Kong, Singapore, Taiwan, and Korea. These funds also invest less than 10% of their assets in Japanese companies since Japan mutual funds are incredibly popular.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FPBFX. Fidelity Pacific Basin debuted in October of 1986. Since then, FPBFX has accumulated assets of about $1.26 billion, according to the most recently available information. The fund’s current manager is a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 13.72%, 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 16.57%, which places it in the top third during this time-frame.

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 FPBFX over the past three years is 16.65% compared to the category average of 17.85%. Looking at the past 5 years, the fund’s standard deviation is 14.33% compared to the category average of 15.02%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 0.71, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a positive alpha over the past 5 years of 1.64, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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, FPBFX is a no load fund. It has an expense ratio of 1.03% compared to the category average of 1.40%. So, FPBFX is actually cheaper than its peers from a cost perspective.

While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Pacific Basin ( FPBFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Pacific Basin ( FPBFX ) looks like a good potential choice for investors right now.

This could just be the start of your research on FPBFXin the Pacific Rim – Equity 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. Zacks provides a full suite of tools to help you analyze your portfolio – both funds and stocks – in the most efficient way possible.

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