Note: All funds are subject to fees and expenses to cover the costs of managing the funds. Investors looking for diversification often turn to the fund world. Exchange-traded funds (ETFs), index mutual funds and actively managed mutual funds can provide broad and diversified exposure to a specific asset class, region or market niche without the need to purchase individual securities. Active managers build a portfolio that reflects their strategy and outlook. For example, managers active in difficult markets can play the defense by selling more speculative or risky assets and adding more conservative investments. Actively managed funds tend to be more expensive than ETFs or index funds, largely to compensate for management. Current reports from selected fund managers can be viewed and downloaded. Detailed and up-to-date information on the prices of our mutual funds We may derive some or all of the ongoing costs from the fund`s capital rather than the fund`s income. This increases the amount of returns, but reduces the potential for growth and may result in a decrease in the value of the fund. Mutual funds are usually purchased directly by investment companies and not by other stock market investors. Unlike ETFs, they do not have trading commissions, but they do have a ratio of fees and possibly other selling expenses (or “expenses”).
Most of the fund holds investments from a specific market sector, that of companies in the infrastructure sector. Funds like this can be more volatile than funds that invest in many sectors of the market. Indeed, especially in the short term, the value of the fund can increase and decrease more frequently and larger amounts than more diversified funds. Existing clients can change the funds they are invested in in MyAccount. On June 20, 2017, the Morgan Stanley Investment Fund Diversified Alpha Plus Low Volatility Fund was renamed Morgan Stanley Investment Fund Global Multi-Asset Opportunities Fund (the “Fund”). In addition, the fund has changed its investment objective to achieve an absolute return, measured in euros, while actively managing the overall risk of the portfolio. The Investment Advisor seeks to manage downside risk and targets targets below market volatility. ETFs trade like stocks and are primarily passive investments that attempt to replicate the performance of a particular index (although actively managed ETFs are also available). Investments in an actively managed mutual fund are selected and managed by a portfolio manager (or managers), often assisted by a team of research analysts.
The higher the category (1-7), the higher the potential return, but also the risk of losing the investment. Category 1 does not mean a risk-free investment. Information on risk ratings and warnings tailored to share classes is available in the Fund`s Key Investor Information Document (KIID) under Resources. The fund is actively managed and the management of the fund is not limited by the composition of the benchmark. The Europe/Asia and South Africa (EAA) category includes funds domiciled in European markets, major Asian cross-border markets where a significant number of European UCITS funds are available (mainly Hong Kong, Singapore and Taiwan), South Africa and certain other Asian and African markets where Morningstar believes it would be beneficial for investors to include the funds in the EAA rating system. The challenge, however, is narrowing down your options. Do you choose an ETF that tracks an index, like the S&P 500® Index – or a low-cost index mutual fund that does the same? Or perhaps a fundamentally weighted index ETF that can improve a portfolio`s overall risk-adjusted performance? Or maybe a mutual fund with excellent management? 1 Morningstar fund rating or “star™ rating” is calculated for products under management (including mutual funds, variable annuity sub-accounts and variable life insurance, exchange-traded funds, closed-end funds and segregated accounts) with a history of at least three years. Exchange-traded funds and open-ended investment funds are considered as a single population for comparison purposes. It is calculated based on a Morningstar risk-adjusted performance measure that reflects changes in the monthly excess return of a managed product, with a greater focus on downward fluctuations and rewarding consistent return.
The top 10% of products in each product category get 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10% 1 star. Morningstar`s overall score for a managed product is derived from a weighted average of the key performance indicators associated with its Morningstar rating metrics over three, five and 10 years (if applicable). The weightings are as follows: 100% three-year quote for a total return of 36 to 59 months, 60% five-year quote/40% three-year quote for a total return of 60 to 119 months and 50% quote over 10 years/30% quote over five years/20% quote over three years for a total return of 120 months or more. While the 10-year total star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact, as it is included in all three rating periods.