Is MSIF Global Opportunity Portfolio A (MGGPX) a Strong Mutual Fund Pick Right Now?
Global - Equity fund seekers should consider taking a look at MSIF Global Opportunity Portfolio A (MGGPX). MGGPX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes MGGPX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
MGGPX finds itself in the MorgStanley family, based out of New York, NY. Since MSIF Global Opportunity Portfolio A made its debut in May of 2010, MGGPX has garnered more than $998.76 million in assets. The fund is currently managed by Kristian Heugh who has been in charge of the fund since May of 2010.
Performance
Of course, investors look for strong performance in funds. MGGPX has a 5-year annualized total return of 14.8% and it sits in the top 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 18.7%, which places it in the top 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. Compared to the category average of 9.87%, the standard deviation of MGGPX over the past three years is 14.71%. Over the past 5 years, the standard deviation of the fund is 14.24% compared to the category average of 10.08%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MGGPX has a 5-year beta of 0.95, which means it is likely to be less volatile than the market average. 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 positive alpha of 5.13, which means managers in this portfolio are skilled in picking 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 1.23% compared to the category average of 1.12%. From a cost perspective, MGGPX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, MSIF Global Opportunity Portfolio A ( MGGPX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
Your research on the Global - Equity segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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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