Is MSIF Global Opportunity Portfolio I (MGGIX) a Strong Mutual Fund Pick Right Now?

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If you have been looking for Global – Equity funds, a place to start could be MSIF Global Opportunity Portfolio I (MGGIX). MGGIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), 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

MorgStanley is responsible for MGGIX, and the company is based out of New York, NY. The MSIF Global Opportunity Portfolio I made its debut in May of 2010 and MGGIX has managed to accumulate roughly $4.50 billion in assets, as of the most recently available information. The fund is currently managed by Kristian Heugh who 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 carries a 5-year annualized total return of 24.48%, 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 22.78%, 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. The standard deviation of MGGIX over the past three years is 19.66% compared to the category average of 15.73%. Over the past 5 years, the standard deviation of the fund is 16.58% compared to the category average of 12.94%. 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 0.89, which means it is hypothetically 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. MGGIX has generated a positive alpha over the past five years of 8.16, demonstrating that managers in this portfolio are skilled in picking 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, MGGIX is a no load fund. It has an expense ratio of 0.92% compared to the category average of 1.13%. Looking at the fund from a cost perspective, MGGIX is actually cheaper than its peers.

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

Bottom Line

Overall, MSIF Global Opportunity Portfolio I ( MGGIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Don’t stop here for your research on Global – Equity funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare MGGIX to its peers as well 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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