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Is Morgan Stanley Inst Intl Opports A (MIOPX) a Strong Mutual Fund Pick Right Now?

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Having trouble finding a Global - Equity fund? Morgan Stanley Inst Intl Opports A (MIOPX - Free Report) is a potential starting point. MIOPX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that MIOPX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets-think the U.S., Europe, and Japan-they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.

History of Fund/Manager

MorgStanley is based in New York, NY, and is the manager of MIOPX. Morgan Stanley Inst Intl Opports A debuted in March of 2010. Since then, MIOPX has accumulated assets of about $178.69 million, according to the most recently available information. The fund is currently managed by Kristian Heugh who has been in charge of the fund since March of 2010.

Performance

Of course, investors look for strong performance in funds. MIOPX has a 5-year annualized total return of 0.33%, 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 17.11%, 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. Over the past three years, MIOPX's standard deviation comes in at 20.54%, compared to the category average of 14.74%. Over the past 5 years, the standard deviation of the fund is 22.22% compared to the category average of 14.18%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.1, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -12.61, which shows 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, MIOPX is a load fund. It has an expense ratio of 1.33% compared to the category average of 0.95%. Looking at the fund from a cost perspective, MIOPX is actually more expensive than its peers.

Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment has no minimum amount.

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

Bottom Line

Overall, even with its comparatively weak performance, worse downside risk, and higher fees, Morgan Stanley Inst Intl Opports A ( MIOPX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.

Want even more information about MIOPX? 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.


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