Mutual Fund Case Study

Mutual Fund Analysis

Case Study

Investor Summary

John and Jane Mooney

Working for an investment firm I was recently asked by my boss to help advise two of firm's best clients. The client's names were John and Jane Mooney. Both John and Jane are in their early 40's and have no children. John is a fireman for the local fire department while Jane is a professor at the local community college. The Mooney's annual income is roughly $115,000. The Mooney's own their home and are virtually debt free.

The Mooney's have done well saving for retirement so far. The Mooney's have a combined savings portfolio of roughly $250,000. The allocation of their assets is about 60% domestic stocks, and 40% domestic bonds on the advice of their former investment representative. Over the past five years their portfolio value has really decline due to the instability of U.S. markets as well as low rates on their bond holdings. They have shown some strong interest in adding international stocks to their portfolio, particularly in the Pacific except Japanese sector. They feel that they can perhaps add more growth in their portfolio and maybe hedge against the waning U.S. market. Being very busy and unfamiliar with investing, the Mooney's have asked me to help them pick out a fund in that sector that best fits their investment needs.

Matthews Asian Growth & Income

MACSX

Quick Stats

Category Pacific ex-Japan/Value

Fund Manager G. Paul Matthews

Fund Inception September 1994

Net Assets $1,060,000,000

Current NAV $13.59

5-Year Average Return 18.95%

Annual Holdings Turnover 13%

Total Expense Ratio 1.69%

Max 12b1 Fee 0%

Max Front End Sales Load 0%

Max Back End Sales Load 0%

Alpha 17.96

Beta 0.43

Standard