Is FMI International Fund (FMIJX) a Strong Mutual Fund Pick Right Now?
If you’ve been stuck searching for Non US – Equity funds, consider FMI International Fund (FMIJX) as a possibility. FMIJX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Zacks categorizes FMIJX 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
Fiduciary is responsible for FMIJX, and the company is based out of Milwaukee, WI. FMI International Fund debuted in December of 2010. Since then, FMIJX has accumulated assets of about $2.33 billion, according to the most recently available information. A team of investment professionals is the fund’s current manager.
Investors naturally seek funds with strong performance. FMIJX has a 5-year annualized total return of 3.21% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 1.97%, which places it in the bottom 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 FMIJX over the past three years is 9.64% compared to the category average of 11.1%. The standard deviation of the fund over the past 5 years is 8.89% compared to the category average of 11.56%. This makes the fund less volatile than its peers over the past half-decade.
It’s always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Nevertheless, with a 5-year beta of 0.62, the fund is likely to be less volatile than the market average. 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 negative alpha over the past 5 years of -2.77, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FMIJX is a no load fund. It has an expense ratio of 0.90% compared to the category average of 1.23%. FMIJX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $50.
Overall, FMI International Fund ( FMIJX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
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