Is AMG TimesSquare International Small Cap N (TCMPX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Non US - Equity fund? Starting with AMG TimesSquare International Small Cap N (TCMPX) should not be a possibility at this time. TCMPX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify TCMPX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.
History of Fund/Manager
AMG Funds is based in Greenwich, CT, and is the manager of TCMPX. The AMG TimesSquare International Small Cap N made its debut in January of 2013 and TCMPX has managed to accumulate roughly $45.39 million in assets, as of the most recently available information. Magnus Larsson is the fund's current manager and has held that role since January of 2013.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 8.43%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 2.19%, which places it in the middle 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. TCMPX's standard deviation over the past three years is 22.6% compared to the category average of 16.84%. Looking at the past 5 years, the fund's standard deviation is 18.89% compared to the category average of 14.01%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.05, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -6.91. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital 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 1.18%. TCMPX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $2,000 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, AMG TimesSquare International Small Cap N ( TCMPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, AMG TimesSquare International Small Cap N ( TCMPX ) looks like a poor potential choice for investors right now.
This could just be the start of your research on TCMPXin the Non US - Equity 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. 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.
