If you are looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Fidelity Overseas Fund.FOSFX – free report). FOSFX has a Zacks Mutual Fund Rank of 4 (Sell) based on nine predictive factors such as size, expense and past performance.
FOSFX is part of the Fidelity Fund of Funds, based out of Boston, MA. Fidelity Overseas Fund Since its debut in December 1984, FOSFX has amassed over $6.91 billion in assets. The fund is currently managed by Vincent Montemaggiore, who has led the fund since January 2012.
Investors naturally look for strong performing funds. This fund generates a 5-year annualized total return of 3.51%, and ranks in the middle third of its category peers. If you’re looking for shorter time frames, don’t dismiss the fund’s 3-year annualized total return of 3.54%, which puts it in the middle third of that time frame.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the lower the volatility of the fund’s experiences. Over the past three years, FOSFX’s standard deviation stands at 22.17 percent, compared to the category average of 18.6 percent. Looking at the past 5 years, the fund’s standard deviation is 18.87 percent, compared to the category average of 16.28 percent. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure mutual fund risk relative to the overall market. FOSFX has a 5-year beta of 0.95, meaning it may be less volatile than the market average. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to its benchmark, which in this case is the S&P 500, one should pay attention to this metric as well. FOSFX has generated a negative alpha of -6.12 over the past five years, indicating that managers in this portfolio have difficulty selecting securities that generate better returns than the benchmark.
As expenses become increasingly important for mutual fund investments, it is key for investors to keep a close eye on expense-related metrics. Competition is heating up in this space, and a low-cost product can outperform its equivalent, all things being equal. In terms of fees, FOSFX is a no-load fund. It has an expense ratio of 0.97% compared to the category average of 1.15%. Therefore, FOSFX is cheaper than its peers in terms of price.
This fund requires a minimum initial investment of $0, but no minimum for each subsequent investment.
Overall, Fidelity Overseas Fund (FOSFX) has a low Zacks Mutual Fund Rank, and in comparison with its similar performance, combined with low average risk and low fees, Fidelity Overseas Fund (FOSFX) seems to be a slightly poor choice for investors at the moment.
This could be the start of your research on FOSFX in the Mutual Fund Equity Report category. For more information on this fund, consider going to www.zacks.com/funds/mutual-funds and all others we rate for additional information. If you want to check out our stock reports, be sure to head over to Zacks.com to see all the great tools we have to offer, including the time-tested Zacks Rank.