Yahoo Finance Is MassMutual Premier Global Admiral (MGFLX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over MassMutual Premier Global Admiral (MGFLX). MGFLX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
MassMutual is based in Springfield, MA, and is the manager of MGFLX. The MassMutual Premier Global Admiral made its debut in December of 2004 and MGFLX has managed to accumulate roughly $53.69 million in assets, as of the most recently available information. The fund's current manager, John Delano, has been in charge of the fund since March of 2017.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 5.27%, and is in the bottom 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 9.34%, 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. Compared to the category average of 15.86%, the standard deviation of MGFLX over the past three years is 22.77%. Looking at the past 5 years, the fund's standard deviation is 22.16% compared to the category average of 15.64%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MGFLX has a 5-year beta of 1.12, which means it is likely to be more 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. MGFLX has generated a negative alpha over the past five years of -6.14, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MGFLX is a no load fund. It has an expense ratio of 1.16% compared to the category average of 1.11%. Looking at the fund from a cost perspective, MGFLX is actually more expensive than its peers.
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, MassMutual Premier Global Admiral ( MGFLX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on MGFLXin the Mutual Fund Equity Report 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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