Posted inHead To Head

HEAD-TO-HEAD: Morgan Stanley vs Threadneedle

FSA compares two highly-rated global equity products: the Morgan Stanley Global Opportunity Fund and the Threadneedle Global Focus Fund.
by Rupert Walker

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Source: FE Analytics (fund NAVs in US dollars)

Performance

The Morgan Stanley fund has earned a higher three-year cumulative return than the Threadneedle fund, and it outperformed significantly in 2017 and 2015.

“However, the strong alpha-generated returns in those bull market years, are at the expense of greater volatility which means the fund can suffer during bear markets,” said Meatyard.

Indeed, last year it significantly underperformed Threadneedle “as investors backed away from technology stocks in the second half of the year. Until then, its overweight position in the sector had benefited the fund”, she said.

In contrast, “Threadneedle’s performance had been steady throughout the year, without major fluctuations,” she added.

Discrete annual performance

 

Fund / Sector / Index

2018

2017

2016

2015

2014
Morgan Stanley

-7.36

48.44

-0.56

18.62

7.40
Threadneedle

-2.03

30.50

-1.15

1.39

6.24
Sector

-11.83

22.20

3.96

-2.73

2.78
MSCI AC World Index

-9.42

23.97

7.86

-2.36

4.16
 Source: FE Analytics

 

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