fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Morgan Stanley US Advantage I GBP

Large-cap US equity fund focusing on companies that exhibit sustainable growth.

  • 2093.82p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.70%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.85%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 May 2020, fund data last updated 25 November 2019

The fund’s investment objective is to achieve capital growth principally through investment in the securities of companies listed in the United States. The manager aims to outperform the S&P 500 Index over rolling three to five-year periods. The fund is large-cap in nature and will typically invest in established companies which can grow sustainably and have enduring competitive advantages. It is managed by Dennis Lynch at New York-based Counterpoint Global, an autonomous investment boutique within Morgan Stanley Investment Management.

Fund summary

Sector North America
Structure OEIC
Launched September, 2016
Size £308m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.70%
Ongoing charges figure 0.85%

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Investment process

The investable universe is established companies within the market cap range of the S&P 500. The investment process is entirely bottom-up and driven by proprietary fundamental research. The team believe that market inefficiencies exist and that they are localised in certain areas of the market due to certain systematic biases, such as short-term bias or stocks with a relative lack of sell-side coverage. Ideas are generated from a range of sources but aside from looking at ROIC and free cash flow yield the process is largely qualitative, with the team preferring to focus on characteristics that can’t easily be quantified. The analysis stage looks to identify unique companies that can sustain growth over the long term. Valuation is important and when producing price targets they take a five and ten year view, consequently the fund can trade on high current P/E multiples.

Counterpoint Global, the fund manager, is a growth-focused US equity boutique sat within Morgan Stanley Investment Management. US Advantage is the least “growthy” of the large-cap strategies that the team manage. The portfoliio is focused on steady growth businesses with sustainable competitive advantages, such as strong brands, scale, network effects, or advanced technology or IP. The fund stands out due to the stability and strength of the team, the investment culture within Counterpoint Global and a process that has some differentiating features. This has led to a track record that is impressive versus the S&P 500 and the growth peer group over more than a decade

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.54%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Dennis Lynch

Dennis Lynch is Head of Counterpoint Global at Morgan Stanley Investment Management. He joined Morgan Stanley in 1998 and has 25 years of investment experience. Prior to joining the firm, he worked as a sell-side analyst for J.P. Morgan Securities. Dennis received a B.A. in political science from Hamilton College and an M.B.A. with honors in finance from Columbia University.

Track record

The track record of Dennis Lynch in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -9.00% (January 2020 - March 2020)
Relative -7.00% (July 2004 - December 2019)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Portfolio

30-40 stocks

Constraints

Max position size 10%

Key Investor Information

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