Eurozone Equity Alpha Fund
Share Class :
 
ISIN: LU0360482128
 
 
Overall Morningstar Rating
Eurozone Equity Alpha Fund
ISIN: LU0360482128
Share Class :

Eurozone Equity Alpha Fund

SHARE CLASS :
ISIN: LU0360482128
 
Overall Morningstar Rating
 
 
 
Investment Objective
Long term growth of your investment.
Investment Approach
Seeks long-term capital growth, measured in euro, through investment primarily in a concentrated portfolio of equity securities of companies domiciled or exercising the predominant part of their economic activity in the Eurozone. Investments will be sought in equity securities that the Company believes to have the highest potential for long term capital appreciation based primarily on fundamental market factors and stock-specific research.
 
30
Number of holdings
3.29
Tracking error (3 yr) (%)
-0.36
Information ratio
 
 
Pricing & Performance

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. All performance data is calculated NAV to NAV, net of fees, and does not take account of commissions and costs incurred on the issue and redemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management. Please click here for additional performance disclosures and important information, which should be reviewed carefully.

The Blended Index performance shown is calculated using the MSCI Europe (Net) Index from inception through 31 October 2006, the MSCI Europe (Net) Hedged Index to 31 May 2007 and the MSCI EMU (Net) Index thereafter.

This fund received a windfall compensation payment in connection with Prudential Equity Group's settlement with the US SEC relating to market timing charges. Consequently, the net cash injection received in March 2010 and the related withholding tax, accrued in September 2010 and received in August 2011, have increased the fund’s AUM by EUR 2,106,232 and EUR 947,197, respectively, enhancing the overall 2010 fund’s performance by 458bps.

As of 30-Sep-2018

As of 19-Oct-2018

As of 30-Sep-2018

As of 19-Oct-2018


Performance of 100 EUR invested
Performance of 100 EUR invested

     
Past performance is not a reliable indicator of future results.
 
 
Average Annual Total Returns As of 30-Sep-2018 As of 30-Sep-2018
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class Z EUR (%) -1.74 6.56 7.06 7.49 6.08
MSCI EMU (Net) Index (%) -0.53 7.73 7.69 5.65 4.26
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class Z EUR (%) -1.74 6.56 7.06 7.49 6.08
MSCI EMU (Net) Index (%) -0.53 7.73 7.69 5.65 4.26
2011 2012 2013 2014 2015 2016 2017
Share Class Z EUR (%) -14.90 22.88 29.57 1.76 10.83 3.66 10.67
MSCI EMU (Net) Index (%) -14.89 19.31 23.36 4.32 9.81 4.37 12.49
2014 2015 2016 2017 2018
Share Class Z EUR (%) 12.70 3.13 2.69 19.90 -1.74
MSCI EMU (Net) Index (%) 12.55 2.94 2.86 22.19 -0.53
 
Average Annual Total Returns
As of 30-Sep-2018
TIMEFRAME Share Class Z EUR (%) MSCI EMU (Net) Index (%)
1 Yr -1.74 -0.53
3 Yrs 6.56 7.73
5 Yrs 7.06 7.69
10 Yrs 7.49 5.65
Since Inception 6.08 4.26
As of 30-Sep-2018
TIMEFRAME Share Class Z EUR (%) MSCI EMU (Net) Index (%)
1 Yr -1.74 -0.53
3 Yrs 6.56 7.73
5 Yrs 7.06 7.69
10 Yrs 7.49 5.65
Since Inception 6.08 4.26
TIMEFRAME Share Class Z EUR (%) MSCI EMU (Net) Index (%)
2011 -14.90 -14.89
2012 22.88 19.31
2013 29.57 23.36
2014 1.76 4.32
2015 10.83 9.81
2016 3.66 4.37
2017 10.67 12.49
TIMEFRAME Share Class Z EUR (%) MSCI EMU (Net) Index (%)
2014 12.70 12.55
2015 3.13 2.94
2016 2.69 2.86
2017 19.90 22.19
2018 -1.74 -0.53
Past performance is not a reliable indicator of future results.
 
 
Risk/Return Statistics

TIMEFRAME:
    Share Class Z Index
Excess Return (%) -1.17 --
Alpha (%) -1.09 --
Beta 0.99 1.00
Information ratio -0.36 --
R squared 0.93 1.00
Tracking error (%) 3.28 --
Volatility (Standard deviation) (%) 12.76 12.45
Past performance is not a reliable indicator of future results.
 
 
 
Risk and Reward Profile As of 12-Feb-2018
 
 
Lower Risk
High Risk
Potentially
Lower Rewards
Potentially
Higher Rewards
 
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk free investment.
  • The fund is in this category because it invests in company shares and the fund's simulated and/or realised return has experienced high rises and falls historically.
  • The fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk free investment.
  • The fund is in this category because it invests in company shares and the fund's simulated and/or realised return has experienced high rises and falls historically.
  • The fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
 
 
 
 
Composition 4 As of 30-Sep-2018
  Fund Index
Financials 19.81 18.16
Industrials 15.20 14.55
Information Technology 13.37 9.40
Health Care 13.00 8.33
Consumer Staples 10.66 9.93
Materials 9.91 9.06
Energy 8.70 6.16
Consumer Discretionary 5.12 13.86
Real Estate 2.54 1.94
Cash & equivalents 1.68 --
Total 100.00 --


Geography4 As of 30-Sep-2018
  Fund Index
Germany 31.97 29.23
France 24.22 34.82
Netherlands 15.09 10.37
Spain 10.88 9.17
United Kingdom 5.41 --
Italy 5.38 7.12
Ireland 3.17 1.62
Sweden 2.20 --
Cash & equivalents 1.68 --
Total 100.00 --


Holdings As of 30-Sep-2018
Fund Index
Sap Se 5.52 2.60
Allianz Se 4.94 2.11
Unilever NV 4.53 1.85
Airbus Se 4.36 1.57
Asml Holding NV 4.05 1.65
Bayer AG 4.02 1.78
Bnp Paribas 3.97 1.48
AXA 3.82 1.12
Amadeus It Group S.A. 3.80 0.88
Eni S.P.A. 3.70 1.03
Total 42.71 --

These securities and percentage allocations are only for illustrative purposes and do not constitute, and should not be construed as, investment advice or recommendations with respect to the securities or investments mentioned.



Portfolio Characteristics
Fund Index
Price/cash flow 12.01 9.76
Price/book 1.89 1.66
Price/earnings 14.34 14.26
Dividend Yield (%) 2.93 2.97
Number of holdings 30 247
 
 
Portfolio Managers
Head of European Equity Team
25 years industry experience
Executive Director
25 years industry experience
Executive Director
26 years industry experience
Executive Director
24 years industry experience
Team members may be subject to change at any time without notice.
 
 
Insights by European Equity Team
Market Outlook
The Markets - A Review
Dec 31, 2017
Morgan Stanley’s European Equity Team discusses whether it is time to become more bearish in 2018.
Market Outlook
The Markets - A Review
Nov 30, 2017
Morgan Stanley’s European Equity Team discusses fiscal policy and inflation trends within the European market landscape.
 
 
 

Please visit our Glossary page for fund related terms and definitions.

Performance data quoted is based on average annualized returns and net of fees.

The source for all performance and index data is Morgan Stanley Investment Management Limited.

Past performance is not indicative of future results. The value of the investments and the income from them can go down as well as up and an investor may not get back the amount invested. Returns may increase or decrease as a result of currency fluctuations. Performance data for funds with less than one year's track record is not shown. Performance is calculated net of fees. YTD performance data is not annualised. Performance of other share classes, when offered, may differ. Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and key investor information document (KIID) contains this and other information about the fund. Please read the prospectus and KIID carefully before you invest.

1 The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall 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 because it is included in all three rating periods. Ratings do not take into account sales loads.

The Europe/Asia and South Africa category (EAA) includes funds domiciled in European markets, major cross-border Asian markets where material numbers of European UCITS funds are available (principally Hong Kong, Singapore and Taiwan), South Africa, and selected other Asian and African markets where Morningstar believes it is of benefit to investors for the funds to be included in the EAA classification system.

© 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2 The MSCI Europe (Net) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends

The MSCI EMU (European Economic and Monetary Union) Net Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of countries within EMU.

Entry Charge is a maximum possible figure. In some cases you might pay less, you can find this out from your financial adviser. Ongoing Charges reflect the payments and expenses incurred during the fund's operation and are deducted from the assets of the fund over the period. It includes fees paid for investment management (Management Fee), trustee/custodian, and administration charges. The Minimum Initial Investment/Minimum Subsequent Investment amounts may be in US Dollars (or the Euro Yen or Sterling equivalent of the US Dollar amount). For more information please see the Charges and Expenses section of the prospectus.

4 May not sum to 100% due to rounding. For additional information regarding sector classification/definitions please visit www.msci.com/gics and the glossary page. Cash & Equivalents are defined as the value of assets that can be converted into cash immediately. These include commercial paper, open FX transactions, Treasury bills and other short-term instruments.  Such instruments are considered cash equivalents because they are deemed liquid and not subject to significant risk of changes in values.

 
 

WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.

 

WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.

 

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