European Equity Alpha Fund
Share Class :
ISIN: LU0073234501
European Equity Alpha Fund
ISIN: LU0073234501
Share Class :

European Equity Alpha Fund

ISIN: LU0073234501
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 listed on European stock exchanges. 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.
Number of holdings
Tracking error (3 yr) (%)
Information ratio
Share Class Assets
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.

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 5,437,850 and EUR2,455,464 respectively, enhancing the overall 2010 fund’s performance by 297bps.

As of 31-Aug-2019

As of 20-Sep-2019

As of 31-Aug-2019

As of 20-Sep-2019

Performance of 100 EUR invested
Performance of 100 EUR invested

Past performance is not a reliable indicator of future results.
Total Returns Average Annual Total Returns As of 31-Aug-2019 As of 30-Jun-2019
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class A EUR (%) 0.80 3.83 2.18 6.54 4.57
MSCI Europe (Net) Index (%) 2.45 6.32 4.74 7.62 5.75
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class A EUR (%) 0.80 11.95 11.37 88.47 173.94
MSCI Europe (Net) Index (%) 2.45 20.19 26.03 108.38 253.07
Morningstar Category Average (%) -0.89 -- -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class A EUR (%) 2.88 5.45 2.56 7.92 4.66
MSCI Europe (Net) Index (%) 4.46 8.21 5.07 9.24 5.85
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class A EUR (%) 2.88 17.27 13.48 114.29 177.62
MSCI Europe (Net) Index (%) 4.46 26.72 28.05 142.03 257.16
Morningstar Category Average (%) 1.19 -- -- -- --
2018 2017 2016 2015 2014 2013 2012
Share Class A EUR (%) -14.73 8.24 -0.84 4.64 2.87 22.37 14.88
MSCI Europe (Net) Index (%) -10.57 10.24 2.58 8.22 6.84 19.82 17.29
2015 2016 2017 2018 2019
Share Class A EUR (%) 7.35 -7.33 7.64 3.18 0.80
MSCI Europe (Net) Index (%) 7.61 -2.55 11.88 4.86 2.45
Total Returns
As of 31-Aug-2019
TIMEFRAME Share Class A EUR (%) MSCI Europe (Net) Index (%)
1 Yr 0.80 2.45
3 Yrs 3.83 6.32
5 Yrs 2.18 4.74
10 Yrs 6.54 7.62
Since Inception 4.57 5.75
TIMEFRAME Share Class A EUR (%) MSCI Europe (Net) Index (%) Morningstar Category Average (%)
1 Yr 0.80 2.45 -0.89
3 Yrs 11.95 20.19 --
5 Yrs 11.37 26.03 --
10 Yrs 88.47 108.38 --
Since Inception 173.94 253.07 --
As of 30-Jun-2019
TIMEFRAME Share Class A EUR (%) MSCI Europe (Net) Index (%)
1 Yr 2.88 4.46
3 Yrs 5.45 8.21
5 Yrs 2.56 5.07
10 Yrs 7.92 9.24
Since Inception 4.66 5.85
TIMEFRAME Share Class A EUR (%) MSCI Europe (Net) Index (%) Morningstar Category Average (%)
1 Yr 2.88 4.46 1.19
3 Yrs 17.27 26.72 --
5 Yrs 13.48 28.05 --
10 Yrs 114.29 142.03 --
Since Inception 177.62 257.16 --
TIMEFRAME Share Class A EUR (%) MSCI Europe (Net) Index (%)
2018 -14.73 -10.57
2017 8.24 10.24
2016 -0.84 2.58
2015 4.64 8.22
2014 2.87 6.84
2013 22.37 19.82
2012 14.88 17.29
TIMEFRAME Share Class A EUR (%) MSCI Europe (Net) Index (%)
2015 7.35 7.61
2016 -7.33 -2.55
2017 7.64 11.88
2018 3.18 4.86
2019 0.80 2.45
Past performance is not a reliable indicator of future results.
Risk/Return Statistics

    Share Class A Index
Excess Return (%) -2.49 --
Alpha (%) -3.01 --
Beta 1.08 1.00
Information ratio -1.05 --
R squared 0.96 1.00
Sharpe ratio 0.36 0.64
Tracking error (%) 2.37 --
Volatility (Standard deviation) (%) 11.49 10.45
Down-capture ratio (%) 122.72 100.00
Up-capture ratio (%) 102.72 100.00
Past performance is not a reliable indicator of future results.
Composition 4 As of 31-Aug-2019
  Fund Index
EURO 47.26 50.27
Swiss Franc 22.66 15.36
British Pound 22.23 25.82
Swedish Krona 4.90 4.03
Danish Krone 2.69 --
US Dollar -0.01 0.58
Cash & equivalents 0.25 --
  Fund Index
Consumer Staples 18.23 15.59
Financials 15.85 16.91
Industrials 14.44 13.54
Health Care 12.71 13.84
Materials 10.75 7.15
Information Technology 9.26 5.81
Consumer Discretionary 7.81 9.48
Energy 6.60 7.05
Real Estate 1.30 1.37
Other 1.19 --
Cash & equivalents 1.87 --
Total 100.00 --
May not sum to 100% due to rounding. Cash & equivalents may include other assets and liabilities of the portfolio.

Geography4 As of 31-Aug-2019
  Fund Index
United Kingdom 24.03 25.78
Switzerland 22.66 15.36
Germany 19.79 13.75
Netherlands 10.14 5.92
France 8.05 18.20
Sweden 4.90 4.03
Spain 3.63 4.56
Denmark 2.69 2.90
Ireland 2.24 0.86
Cash & equivalents 1.87 --
Total 100.00 --
May not sum to 100% due to rounding. Cash & equivalents may include other assets and liabilities of the portfolio.

Holdings As of 31-Aug-2019
Fund Index
Nestle S.A. 6.54 4.09
Novartis AG 3.99 2.30
Sap Se 3.83 1.40
Airbus Se 3.74 0.96
Royal Dutch Shell plc 3.31 2.66
BP plc 3.30 1.47
Unilever NV 3.29 1.08
Asml Holding NV 3.23 1.13
Compass Group plc 2.80 0.48
British American Tobacco plc 2.80 0.96
Total 36.83 --

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
Active share (%) 71.94 --
Number of holdings 43 442
Price/cash flow 10.57 7.93
Price/book 1.85 1.71
Price/earnings 15.87 15.64
5 year EPS growth (%) 3.14 6.04
Dividend Yield (%) 3.57 3.61
Portfolio Managers
Matthew Leeman
Head of European Equity Team
26 years industry experience
Riccardo Bindi
Executive Director
26 years industry experience
Jonathan Day
Executive Director
23 years industry experience
Jaymeen Patel
Executive Director
17 years industry experience
Team members may be subject to change at any time without notice.

** Calendar Year Return (%) is available by selecting the fund name in the pricing table.

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 facts statement (KFS) contains this and other information about the fund. Please read the prospectus and KFS 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.

© 2019 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. As of September 2002, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

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 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.

This communication was issued by Morgan Stanley Asia Limited for use in Hong Kong, and its contents have not been reviewed by the Securities & Futures Commission of Hong Kong.

Only A and C share classes of the Fund are authorized by the Securities & Futures Commission of Hong Kong to be offered to the public in Hong Kong. 


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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