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

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If you’ve been stuck searching for Global – Equity funds, consider MSIF International Opportunities I (MIOIX) as a possibility. MIOIX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Load Error

Objective

MIOIX is classified in the Global – Equity segment by Zacks, an area full of possibilities. Even though Global – Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren’t limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.

History of Fund/Manager

MorgStanley is based in New York, NY, and is the manager of MIOIX. MSIF International Opportunities I made its debut in March of 2010, and since then, MIOIX has accumulated about $3.15 billion in assets, per the most up-to-date date available. The fund’s current manager, Kristian Heugh, has been in charge of the fund since May of 2010.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 23.13%, 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 22.03%, 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. MIOIX’s standard deviation over the past three years is 19.92% compared to the category average of 15.68%. Over the past 5 years, the standard deviation of the fund is 16.99% compared to the category average of 13.01%. 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 0.81, so it is likely going to be less 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. MIOIX has generated a positive alpha over the past five years of 8.11, demonstrating that 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, MIOIX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 1.13%. MIOIX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $5 million, while there is no minimum for each subsequent investment.

Bottom Line

Overall, MSIF International Opportunities I ( MIOIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, MSIF International Opportunities I ( MIOIX ) 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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.

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