Posted inHead To Head

HEAD-TO-HEAD: MFS versus Morgan Stanley

FSA compares two US equity products: the MFS Meridian US Concentrated Growth Fund and the Morgan Stanley US Advantage Fund.
by Rupert Walker

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Conclusion

 

Both funds have been “really strong performers, offering access to high conviction portfolios which are taking advantage of strong secular trends through established businesses,” according to McDermott.

The MFS product has a three-star rating from Morningstar, whose criteria is based on historical risk-adjusted return, and also assigns it a bronze analyst rating

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the fund four crowns.

“MFS fund offers a great alternative given its strong valuation discipline,” said McDermott.

The Morgan Stanley product has received strong accolades from the fund research firms. Morningstar awards it a top ranking five stars and a silver analyst rating, while FE Fundinfo gives it five crowns.

“We would view the Morgan Stanley fund as a high-risk growth vehicle, that would underperform in a value rally,” he said

“However, for pure growth, I’d lean towards what I see as the slightly punchier Morgan Stanley vehicle, which has really shown strong performance following the sell-off in late-March,” concluded McDermott.

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