Matthews China Small Companies Investor (MCSMX) struggles with performance and high fees, making it a less appealing option for investors.
MCSMX is part of the Pacific Rim – Equity segment, which usually has a lot of potential. These funds often invest in markets like Hong Kong, Singapore, Taiwan, and Korea, with only a small portion in Japan.
The fund has been around since May 2011 and is managed by Matthews Asia, based in San Francisco. It has about $48.60 million in assets. But here’s the kicker: its performance isn’t great. Over five years, it has a total return of just 0.52%, which isn’t bad compared to its peers. However, in the last three years, it dropped by -16.46%, putting it in the bottom third of its category.
When you look at returns, remember that fees can eat into those numbers. MCSMX has a standard deviation of 30.41% over three years, which means it’s more volatile than many of its peers.
On the risk side, it has a beta of 0.44, suggesting it’s less volatile than the market. But its negative alpha of -3.87 shows that the managers are struggling to pick winning stocks.
As for costs, MCSMX has an expense ratio of 1.42%, which is higher than the category average of 1.14%. You’ll need at least $2,500 to start investing, and subsequent investments must be at least $100.
In summary, with its low Zacks rank, high fees, and mixed performance, MCSMX doesn’t look like a great choice for investors right now. If you’re interested in mutual funds, there are plenty of tools available to help you find better options.
