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Is MSIF International Opportunities I (MIOIX) a Strong Mutual Fund Pick Right Now?

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Mutual Fund Equity Report fund seekers should not consider taking a look at MSIF International Opportunities I (MIOIX - Free Report) at this time. MIOIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

MorgStanley is based in New York, NY, and is the manager of MIOIX. Since MSIF International Opportunities I made its debut in March of 2010, MIOIX has garnered more than $3.23 billion in assets. Kristian Heugh is the fund's current manager and has held that role since May of 2010.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. MIOIX has a 5-year annualized total return of 1.46% and is 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 -2.25%, which places it in the bottom 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. MIOIX's standard deviation over the past three years is 24.46% compared to the category average of 16.23%. Looking at the past 5 years, the fund's standard deviation is 21.52% compared to the category average of 14.41%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.96, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -8.24. 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, MIOIX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.10%. Looking at the fund from a cost perspective, MIOIX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.

Bottom Line

Overall, MSIF International Opportunities I ( MIOIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, MSIF International Opportunities I ( MIOIX ) looks like a somewhat weak choice for investors right now.

Want even more information about MIOIX? 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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