Mutual Fund Analysis

Mutual Fund Analysis

Foreign Large Growth

Chris Helgerson

BUSA 432 A

11/9/12

Mutual Fund Analysis

Mutual funds are a relatively new investment phenomenon to investors. A mutual fund is a group of securities that is held by many investors, and is managed by a group of professionals trying to earn returns on different groups of stocks or bonds (Mutual Funds). One significant advantage of mutual funds is that they tend to be more stable than individual stocks because of diversification, which makes them less risky investments. Many categories of mutual funds exist, including various balanced funds, domestic stock funds, and international stock funds. The category that this extensive analysis will look into falls under the international stock fund category, more specifically, the three mutual funds to be analyzed are from the Foreign Large Growth category.

Foreign large growth portfolios tend to focus on high-priced growth stocks, located mainly outside of the United States. Most of these mutual funds divide their assets among a number of developed markets, including Germany, Japan, and Britain. Growth in these foreign large growth portfolios is defined based on fast growth (high growth rates for sales, earnings, and cash flow) and high valuations (high price ratios and low dividend yields). Furthermore, these portfolios will typically have less than 20% of assets invested in U.S. stocks (Foreign Large Growth).

The three mutual funds that have been selected within this foreign large growth category are T. Rowe Price International Stock Adv, Calamos International Growth B, and Thornburg International Growth A. An overview of each fund, an analysis of each fund’s performance and rating, as well as a recommendation for which of the three is the best investment will be discussed.

T. Rowe Price International Stock Adv

T. Rowe Price International Stock Adv (PAITX) was issued by T. Rowe Price in March of 2000, and is has been managed by Robert W....