Is AMG TimesSquare International Small Cap N (TCMPX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Index fund category, make sure to pass over AMG TimesSquare International Small Cap N (TCMPX). TCMPX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
TCMPX is a part of the AMG Funds family of funds, a company based out of Norwalk, CT. The AMG TimesSquare International Small Cap N made its debut in January of 2013 and TCMPX has managed to accumulate roughly $88.91 million in assets, as of the most recently available information. The fund is currently managed by Robert Madsen who has been in charge of the fund since January of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 5.46%, and is in the top 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 5.36%, 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 9.98%, the standard deviation of TCMPX over the past three years is 14.51%. The standard deviation of the fund over the past 5 years is 13.28% compared to the category average of 10.49%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of.
Investors should note that the fund has a 5-year beta of 0.85, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -3.17, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, TCMPX is a no load fund. It has an expense ratio of 1.23% compared to the category average of 1.20%. From a cost perspective, TCMPX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, AMG TimesSquare International Small Cap N ( TCMPX ) has a low Zacks Mutual Fund rank, strong performance, average downside risk, and higher fees compared to its peers.
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (TCMPX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
