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Is Morgan Stanley Inst Global Opp A (MGGPX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Global - Equity funds, it would not be wise to start your search with Morgan Stanley Inst Global Opp A (MGGPX - Free Report) . MGGPX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that MGGPX 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 responsible for MGGPX, and the company is based out of New York, NY. Morgan Stanley Inst Global Opp A made its debut in May of 2010, and since then, MGGPX has accumulated about $926.27 million in assets, per the most up-to-date date available. Kristian Heugh is the fund's current manager and has held that role since May of 2010.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 4.26%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 17.94%, which places it in the middle 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. Compared to the category average of 11.36%, the standard deviation of MGGPX over the past three years is 17.98%. The fund's standard deviation over the past 5 years is 22.25% compared to the category average of 13.34%. 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 1.25, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. MGGPX's 5-year performance has produced a negative alpha of -8.52, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MGGPX is a load fund. It has an expense ratio of 1.22% compared to the category average of 0.94%. From a cost perspective, MGGPX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Morgan Stanley Inst Global Opp A ( MGGPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Global - Equity area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into MGGPX too 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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Is Morgan Stanley Inst Global Opp A (MGGPX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Global - Equity funds, it would not be wise to start your search with Morgan Stanley Inst Global Opp A (MGGPX - Free Report) . MGGPX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that MGGPX 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 responsible for MGGPX, and the company is based out of New York, NY. Morgan Stanley Inst Global Opp A made its debut in May of 2010, and since then, MGGPX has accumulated about $926.27 million in assets, per the most up-to-date date available. Kristian Heugh is the fund's current manager and has held that role since May of 2010.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 4.26%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 17.94%, which places it in the middle 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. Compared to the category average of 11.36%, the standard deviation of MGGPX over the past three years is 17.98%. The fund's standard deviation over the past 5 years is 22.25% compared to the category average of 13.34%. 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 1.25, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. MGGPX's 5-year performance has produced a negative alpha of -8.52, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MGGPX is a load fund. It has an expense ratio of 1.22% compared to the category average of 0.94%. From a cost perspective, MGGPX is actually more expensive than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Morgan Stanley Inst Global Opp A ( MGGPX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Global - Equity area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into MGGPX too 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.