Looking for an International Bond - Emerging fund? You may want to consider Goldman Sachs Local Emerging Markets Debt A (GAMDX) as a possible option. GAMDX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

GAMDX is part of the International Bond - Emerging section, a segment that boasts an impressive array of other possible selections. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. With these funds, investors can expect exposure to economies such as China, Brazil, India, South Africa, and Indonesia, just to name a few. While this can be appealing, these funds can also introduce currency risk.

History of Fund/Manager

Goldman Sachs is based in New York, NY, and is the manager of GAMDX. Goldman Sachs Local Emerging Markets Debt A debuted in February of 2008. Since then, GAMDX has accumulated assets of about $3.21 million, according to the most recently available information. The fund is currently managed by Nicholas Saunders who has been in charge of the fund since October of 2023.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 0.67%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 2.12%, which places it in the top 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.

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 GAMDX over the past three years is 9.79% compared to the category average of 13.64%. Looking at the past 5 years, the fund's standard deviation is 11.76% compared to the category average of 14.72%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.29, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, GAMDX has a positive alpha of 1.2, which measures performance on a risk-adjusted basis.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, GAMDX is a load fund. It has an expense ratio of 1.14% compared to the category average of 0.95%. GAMDX is actually more expensive than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively weak performance, average downside risk, and higher fees, Goldman Sachs Local Emerging Markets Debt A ( GAMDX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.

Want even more information about GAMDX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.

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