Morgan Stanley Asia-Pacific Fund, Inc.Find Ratings Reports
- Last Ratings Update:09/30/2016
- Price as of 09/30/2016 :$15.09
- Net Assets:$215.59 Million
- Peer Rank:7 of 325
- Investment Rating:B+
We rate Morgan Stanley Asia Pacific Fund at B+. This overall rating indicates it is among the top 10% of all closed end funds in its peer group. 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
New Fund off to good start in the last year. The Morgan Stanley Asia Pacific Fund has returned an annual rate of 3.09% since inception. More recently, the fund has generated a total return of 5.02% in the last five years, 0.00% in the last three years, and 17.05% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 34% of them. It has also outpaced 0% of its competitors on a three year basis and 68% of them over the last year for the period ending 9/30/2016. On a year to date basis, APF has returned 9.08%.
Downside risk has been below average. APF has a draw down risk of -29.08%, which is the largest price decline experienced since the inception of the fund. This fund has a one year standard deviation of 17.6%. This fund has had moderate volatility in its monthly performance over the last 12 months. As of 9/30/2016, the fund was trading at a price of $15.09, which is 1.6% below its 52-week high of $15.34 and 9.3% above its 52-week low of $13.81.
High expense ratio hinders performance. On total assets of $215.59 million, APF maintains a high expense ratio compared to its Non-US Equity peers of 1.29% 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 and performance record lags managerial peers. 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 4 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 47% of other fund managers.