Any investors who are searching for Mutual Fund Bond funds should take a look at PGIM Global Total Return A (GTRAX). While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
PGIM is based in Providence, RI, and is the manager of GTRAX. PGIM Global Total Return A made its debut in July of 1986, and since then, GTRAX has accumulated about $185.41 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -1.63%, and is in the middle 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 -5.98%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 GTRAX over the past three years is 10.3% compared to the category average of 15.78%. The standard deviation of the fund over the past 5 years is 9.61% compared to the category average of 13.84%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 1.25, this fund is more volatile than a broad market index of fixed income securities. Taking this into account, GTRAX has a negative alpha of -1.84, which measures performance on a risk-adjusted basis.
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, GTRAX has 26.67% in high quality bonds rated at least 'AA' or higher, while 48.95% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 21.93%, giving GTRAX an average quality of A. This means that it focuses on high quality securities.
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, GTRAX is a load fund. It has an expense ratio of 0.88% compared to the category average of 0.83%. So, GTRAX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare GTRAX to its peers 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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