HEAD-TO-HEAD: Morgan Stanley vs Threadneedle
By Rupert Walker, 1 Feb 19
FSA compares two highly-rated global equity products: the Morgan Stanley Global Opportunity Fund and the Threadneedle Global Focus Fund.
Sophie Meatyard, FE Analytics
International equity funds suffered a torrid time in 2018. A strong first half of the year brought some confidence to fund managers that their regional, sector and stock selections for a wide pool of global assets were on track.
But a confluence of factors – most importantly the US Federal Reserve’s hawkish interest rate stance and slowing China economic growth – reversed that buoyant mood at the end of the summer.
The global equity fund sector posted an aggregate negative 11.83% return for the year, compared with a -9.42% return by the MSCI AC World Index, according to FE Analytics data.
Investor sentiment has turned more sanguine this year because the Fed has tamed its aggressive position, but the direction of global markets has no clear consensus.
FSA asked Sophie Meatyard, fund analyst at FE Analytics in the UK, to compare two global equity funds with an emphasis on growth, point out how they are different and look at their ability to withstand another year of likely turbulence. They are the Morgan Stanley Global Opportunity Fund and the Threadneedle Global Focus Fund.