The Bear Doesn't Scare This Foreign Fund
Morgan Stanley Institutional International Equity may not be a big winner during rallies, but this conservative foreign-stock fund has more than made up ground in down markets.
Morgan Stanley Institutional International Equity may not be a big winner during rallies, but this conservative foreign-stock fund has more than made up ground in down markets.
Greg Carlson: The Medalist of the Week is Morgan Stanley Institutional International Equity (MSIQX). Now, although it has "institutional" in the name, the fund is available in quite a few retirement plans. It's a relatively conservative foreign-stock fund; it lands in the foreign large-blend category. It's quite focused on large-cap stocks, particularly those that look undervalued relative to their prospects yet have sturdy balance sheets, solid margins, and great cash flow prospects.
The fund doesn't tend to invest much in emerging markets because the managers haven't found much there that fits their criteria. As a result, the fund is less volatile than most of its peers. It tends to underperform in big rallies; however, it has more than made up ground in down markets. Thus, its risk-adjusted returns, in particular, are quite good.
The management team is quite experienced. They've had a couple of folks leave for retirement reasons; however, the leader of the team has been with the team for 20 years and a comanager on the fund since 1999. The fund's record over that span is excellent. There are several comanagers with an average of six years' experience with the team; most of those either worked with the leader of the team in the past or had known him for other reasons.
We lowered the Morningstar Analyst Rating to Bronze recently due to these manager changes; however, we still have a lot of confidence in the fund's long-term prospects.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.