Parametric Global Defensive Equity Fund

Share Class :
 
ISIN: LU2660285045
Marketing Communication
Parametric Global Defensive Equity Fund
Marketing Communication
ISIN: LU2660285045
Share Class :

Parametric Global Defensive Equity Fund

SHARE CLASS :
ISIN: LU2660285045
 

Marketing Communication

 
 
Investment Objective
To provide a defensive equity exposure that is expected to provide favourable risk adjusted performance relative to the MSCI All Country World Index (the "Benchmark") over the long term.
Investment Approach
The Fund intends to provide a defensive equity exposure that is expected to demonstrate favourable risk-adjusted performance relative to the MSCI All Country World Index over the long term. The Fund aims to generate returns through the systematic sale of equity index options on top of a core portfolio of passively-managed global equities and risk-free cash equivalents. With the systematic sale of equity index options the fund seeks to harvest the volatility risk premium --a distinct, persistent and diversifying risk premium --without the use of leverage or market forecasts.

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.

 
 
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. 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.

 

As of 31-Oct-2024

As of 03-Dec-2024

As of 31-Oct-2024

As of 03-Dec-2024


Performance of 100 EUR invested
Performance of 100 EUR invested

     
 
 
Average Annual Total Returns As of 31-Oct-2024 As of 30-Sep-2024
 
 TIMEFRAME:
 
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Class ZH4 (EUR) Gross (%) 14.30 5.56 6.14 -- 5.20
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Class ZH4 (EUR) Gross (%) 12.53 6.38 6.09 -- 5.17
 
Average Annual Total Returns
As of 31-Oct-2024
TIMEFRAME Class ZH4 (EUR) Gross (%)
1 Yr 14.30
3 Yr 5.56
5 Yr 6.14
10 Yr --
Since Inception 5.20
As of 30-Sep-2024
TIMEFRAME Class ZH4 (EUR) Gross (%)
1 Yr 12.53
3 Yr 6.38
5 Yr 6.09
10 Yr --
Since Inception 5.17

Gross figure shown assumes reinvestment of all distributions and deduction of fund level costs, but does not reflect the deduction of any sales charge applicable at investor level.

Net figure shown assumes reinvestment of all distributions and deduction of fund level costs, which include the deduction of the Management, trustee/custodian and administration charges and the maximum sales charge applicable at investor level that may be taken out of your money before it is invested. Please see the Fund’s current prospectus and the share class Key Investor Information Document for complete details on fees and sales charges.

Example: An investor wishes to purchase shares of USD 100. At the maximum sales charge of 5.75% the investor has to expend USD 106.10. The sales charge is only incurred upon subscription.

 
 
Risk/Return Statistics

TIMEFRAME:
    Share Class ZH4 (EUR)
Volatility (Standard deviation) (%) 6.89
Sharpe ratio 0.48
 
 
 
Risk and Reward Profile As of 02-Oct-2024
 
 
  • The fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
  • 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.
  • There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets.
  • 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 fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
  • 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.
  • There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets.
  • 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 31-Oct-2024
  Fund
U.S. Treasuries & Cash Equivalents 51.33
U.S. Common Stocks 31.75
Foreign Common Stocks 17.31
Other -0.39
 
May not sum to 100% due to the exclusion of other assets and liabilities.


Geography4 As of 31-Oct-2024
  Fund
United States 82.84
Europe 7.55
Asia/Pacific 6.29
Japan 2.14
Middle East 0.38
Latin America 0.30
Africa 0.17
Northern America except U.S. 0.17
United Kingdom 0.09
Eastern Europe 0.06
 
May not sum to 100% due to the exclusion of other assets and liabilities.


Portfolio Characteristics
Fund
Median market cap ($B) 3.63
Price/Earnings Ratio 22.91
Number of Holdings 73
Price/Book Ratio 2.75
Countries Represented 49
VIX Level 23.16
Number of S&P 500 option contracts 24
Number of MSCI EAFE option Contracts 8
Number of MSCI EM option Contracts 8
 
 
Portfolio Managers
Thomas Lee
Co-President and Chief Investment Officer, Parametric
30 years industry experience
Alex Zweber
Managing Director
18 years industry experience
Team members may be subject to change at any time without notice.
 
 
 
 

Applications for shares in the Fund should not be made without first consulting the current Prospectus and the Key Information Document (KID) or Key Investor Information Document (“KIID”), which are available in English and in the official language of your local jurisdiction at morganstanleyinvestmentfunds.com or free of charge from the Registered Office of Morgan Stanley Investment Funds, European Bank and Business Centre, 6B route de Trèves, L-2633 Senningerberg, R.C.S. Luxemburg B 29 192.

Information in relation to sustainability aspects of the Fund and the summary of investor rights is available at the aforementioned website.

If the management company of the relevant Fund decides to terminate its arrangement for marketing that Fund in any EEA country where it is registered for sale, it will do so in accordance with the relevant UCITS rules.

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.

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 Fund is actively managed, and the management of the fund is not constrained by the composition of the Benchmark.

The use of leverage increases risks, such that a relatively small movement in the value of an investment may result in a disproportionately large movement, unfavourable as well as favourable, in the value of that investment and, in turn, the value of the Fund.

Certain documentation available on this site may pertain to multiple sub-funds of the Morgan Stanley Investment Funds range. Please note that not all sub-funds are available in all jurisdictions and sub-funds are not available to persons resident in jurisdictions where such distribution or availability would be contrary to local laws or regulations.

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.

© 2024 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 Blended Index performance shown represents 50% ICE BofA US 0-3 Month Treasury Bill Index and 50% MSCI All Country World Index (Net).

The MSCI All Country World Net Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. 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 index is unmanaged and does not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor.

ICE® BofA® 0-3 Month Treasury Bill Index tracks the performance of U.S. dollar-denominated Treasury bills publicly issued in the U.S. domestic market with a remaining term to final maturity of less than 3 months. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor.

3 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. Quality distribution data for securities is sourced from Fitch, Moody's and S&P. Where the credit ratings for individual securities differ between the three ratings agencies, the 'highest' rating is applied. The rating of credit default swaps is based on the 'highest' rating of the underlying reference bond. 'Cash' includes investments in short term instruments, including investments in Morgan Stanley liquidity funds. 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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