Is JHancock Regional Bank A (FRBAX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Finance funds, consider JHancock Regional Bank A (FRBAX) as a possibility. FRBAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FRBAX is part of the Sector - Finance section, which boasts an array of other possible selections. Sector - Finance funds offer a stable, diversified approach to investing that focuses on the financial industry, an infamously large, complex, and heavily-regulated space. Funds here can include insurance companies and exchanges, as well as banks and investment giants. Investors should note that interest rates may also impact players in this market.
History of Fund/Manager
John Hancock is based in Boston, MA, and is the manager of FRBAX. JHancock Regional Bank A made its debut in January of 1992, and since then, FRBAX has accumulated about $538.90 million in assets, per the most up-to-date date available. The fund is currently managed by Susan Curry who has been in charge of the fund since May of 2006.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 13.3%, and it sits in the bottom 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 2.95%, 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.
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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 FRBAX over the past three years is 29.81% compared to the category average of 16.16%. The fund's standard deviation over the past 5 years is 27.41% compared to the category average of 15.74%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.85, 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 positive alpha over the past 5 years of 2.29, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.