Morgan StanleyFind Ratings Reports
- Last Ratings Update:08/31/2017
- Price as of 08/31/2017 :$17.27
- Net Assets:$214.76 Million
- Peer Rank:233 of 360
- Investment Rating:C-
We rate Morgan Stanley Asia Pacific Fund at C-. Positive factors that influence this rating include a low price volatility and low expense structure. The fund invests approximately 94% of its assets in stocks and may be considered for investors seeking a Non-US Equity strategy.
POSITIVES AND RISKS
Total return ranks below peers over the last three years. The Morgan Stanley Asia Pacific Fund has returned an annual rate of 3.62% since inception. More recently, the fund has generated a total return of 7.72% in the last five years, 3.21% in the last three years, and 17.86% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 56% of them. It has also outpaced 41% of its competitors on a three year basis and 76% of them over the last year for the period ending 8/31/2017. On a year to date basis, APF has returned 28.67%.
Downside risk has been below average. APF has a draw down risk of -29.08%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 16.0%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 8/31/2017, the fund was trading at a price of $17.27, which is 4.2% below its 52-week high of $18.02 and 4.0% above its 52-week low of $16.61.
High expense ratio hinders performance. On total assets of $214.76 million, APF maintains a high expense ratio compared to its Non-US Equity peers of 1.23% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As APF is a closed end fund, it has no front end or back end load.
Manager lacks tenure but performance is a net positive. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Morgan Stanley Asia Pacific Fund has been managed by Munib M. Madni for only 5 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 54% of other fund managers.