There are plenty of choices in the Global - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is MSIF Global Opportunity Portfolio I (MGGIX). MGGIX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that MGGIX 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
MGGIX is a part of the MorgStanley family of funds, a company based out of New York, NY. Since MSIF Global Opportunity Portfolio I made its debut in May of 2010, MGGIX has garnered more than $1.50 billion 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. MGGIX has a 5-year annualized total return of 15.42% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 18.22%, 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. Looking at the past 5 years, the fund's standard deviation is 14.4% compared to the category average of 1.16%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of.
Even still, the fund has a 5-year beta of 0.98, so investors should note that it is hypothetically as volatile as 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. With a positive alpha of 4.73, 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, MGGIX is a no load fund and it has an expense ratio of 0.91%.
Investors should also note that the minimum initial investment for the product is $5 million and that each subsequent investment has no minimum amount.
Bottom Line
As a mutual fund with a 'sell' rank, MGGIX is in the bottom 40% of all funds we cover and it may be one to avoid putting on your short list of possible picks in Global - Equity. This fund from MorgStanley needs to turn around some of its key fundamental metrics such as the Zacks Ranks of its holdings, alpha, and performance in order for investors to consider MSIF Global Opportunity Portfolio I in the future.
For additional information on this product, or to compare it to other mutual funds in the Global - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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