Powering Past
our Peers

A Leader in Active Management

These actively managed equity funds are highly
rated by Morningstar through October 31, 2017.

 

Global Franchise

Active driver: A focus on high quality compounders, globally.

Resulting portfolio: A concentrated portfolio of world class franchises
supported by intangible assets, such as strong brands.

MORNINGSTAR
OVERALL RATING

Out of 704 World Large Stock Funds

1ST

PERCENTILE
2/329 Funds

7,117BPS

CUMULATIVE
OUTPERFORMANCE

Strong Outperformance Over 10 Years (Class I Shares)

Past performance does not guarantee future results. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Please click here for standardized performance and Mornngstar rankings, and ratings. Please click here for most current growth of $10,000 information.

 

Global Discovery

Active driver: A total return mindset.

Resulting portfolio: A flexible, benchmark agnostic, all-cap approach investing in a variety of companiesranging from unique assets trading at a deep discount to early stage growth companies.

MORNINGSTAR
OVERALL RATING

Out of 121 World Small/Mid Stock Funds

2 ND

PERCENTILE
3/104 Funds

8,728 BPS

CUMULATIVE
OUTPERFORMANCE

Strong Outperformance Over 5 Years (Class I Shares)

Past performance does not guarantee future results. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Please click here for standardized performance and Mornngstar rankings, and ratings. Please click here for most current growth of $10,000 information.

 

Global Opportunity

Active driver: Warren Buffett principles applied to growing companies.

Resulting portfolio: Undervalued, high-quality growing companies globally.

MORNINGSTAR
OVERALL RATING

Out of 704 World Large Stock Funds

1ST

PERCENTILE
1/583 Funds

10,236 BPS

CUMULATIVE
OUTPERFORMANCE

Strong Outperformance Over 5 Years (Class I Shares)

Past performance does not guarantee future results. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Please click here for standardized performance and Mornngstar rankings, and ratings. Please click here for most current growth of $10,000 information.

 

International Opportunity

Active driver: Warren Buffett principles applied to growing companies outside the US.

Resulting portfolio: Undervalued, high-quality growing companies internationally;holds established as well as emerging businesses, with emphasis onthe consumer discretionary and technology sectors.

MORNINGSTAR
OVERALL RATING

Out of 325 Foreign Large Growth Funds

1ST

PERCENTILE
1/280 Funds

7,903 BPS

CUMULATIVE
OUTPERFORMANCE

Strong Outperformance Over 5 Years (Class I Shares)

Past performance does not guarantee future results. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Please click here for standardized performance and Mornngstar rankings, and ratings. Please click here for most current growth of $10,000 information.

 

Growth

Active driver: A focus on sustainable competitive advantages.

Resulting portfolio: Established and emerging companies withstrong free cash flow yields and favorable ROIC trends.

MORNINGSTAR
OVERALL RATING

Out of 1,233 Foreign Large Growth Funds

8TH

PERCENTILE
39/782 Funds

2,265 BPS

CUMULATIVE
OUTPERFORMANCE

Strong Outperformance Over 10 Years (Class I Shares)

Past performance does not guarantee future results. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Please click here for standardized performance and Mornngstar rankings, and ratings. Please click here for most current growth of $10,000 information.

 

International Advantage

Active driver: Warren Buffett principles applied to growing companies outside the US.

Resulting portfolio: Undervalued, high-quality growing companies internationally; holds primarily established businesses,with emphasis on the consumer staples sector.

MORNINGSTAR
OVERALL RATING

Out of 325 Foreign Large Growth Funds

2ND

PERCENTILE
5/280 Funds

5,465 BPS

CUMULATIVE
OUTPERFORMANCE

Strong Outperformance Over 5 Years (Class I Shares)

Past performance does not guarantee future results. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Please click here for standardized performance and Mornngstar rankings, and ratings. Please click here for most current growth of $10,000 information.

Source: Morgan Stanley Investment Management. Outperformance based on longest standardized time period for each respective fund. Investment illustration is based on an initial investment of $10,000. Results are hypothetical. Data as of September 30, 2017, and ratings are based on risk-adjusted returns and rankings on average total returns. Past performance does not guarantee future results.

Annualized Investment Performance – Class I (% Net of Fees)
 

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit morganstanley.com/im or call 1-800-548-7786. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. Performance for other share classes will vary.

The Class I shares gross and net expense ratios are as follows for Global Opportunity Portfolio: 1.07%/0.81%, Global Franchise Portfolio: 0.98%/0.98%, Global Discovery Portfolio: 2.38%/1.35%, Growth Portfolio: 0.63%/0.63%, International Advantage: 2.26%/1.00%, and International Opportunity Portfolio: 1.34%/1.00%.

Where the net expense ratio is lower than the gross expense ratio, certain fees have been waived and/or expenses reimbursed. These waivers and/ or reimbursements will continue for at least one year from the date of the applicable fund’s current prospectus (unless otherwise noted in the applicable prospectus) or until such time as the fund’s Board of Directors/Trustees acts to discontinue all or a portion of such waivers and/or reimbursements. Absent such waivers and/or reimbursements, returns would have been lower. Expenses are based on the fund’s current prospectus. The minimum initial investment is $5,000,000 for Class I shares

OTHER CONSIDERATIONS:

The MSCI All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends.

The MSCI World Index is a free float adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. The MSCI All Country World Ex-U.S. Index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets, excluding the U.S. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends.

The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index is an index of approximately 1,000 of the largest U.S. companies based on a combination of market capitalization and current index membership. The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index.

Compounders are defined as companies with high quality, franchise businesses, ideally with recurring revenues, built on dominant and durable intangible assets, which possess pricing power and low capital intensity.

This material is a general communication, which is not impartial and all information provided has been prepared solely for informational and educational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

Please keep in mind that double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions.

Performance figures are presented NET of investment management fees and are quoted in USD terms and include the reinvestment of dividends and income.

SOURCE: Morningstar as of October 31, 2017. Morningstar counts each share class as a separate fund for purposes of its calculations. Morningstar compares mutual funds within a universe of funds with similar investment objectives, including dividend reinvestment. Rankings: The percentile rankings are based on the average annual total returns for the periods stated and do not include any sales charges, but do include reinvestment of dividends and capital gains and Rule 12b-1 fees. If they had been, total returns would be lower.

Ratings: 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.

© 2017 Morningstar, Inc. 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.

Morningstar Ratings/Rankings as of October 31, 2017: Global Opportunity: Overall Morningstar Rating™ for Class I out of 704 World Large Stock Funds. Fund ratings out of 5 Stars: 3Yrs. 5 Stars; 704 Funds in category; 5Yrs. 5 Stars; 583 Funds in category. Percentile Rank/Absolute Rank/Total in Category 1 Yr 1/3/846, 3 Yr 1/3/704, 5 Yr 1/1/583 Global Discovery: Overall Morningstar Rating™ for Class I out of 121 World Small/Mid Stock Funds. Fund ratings out of 5 Stars: 3Yrs. 5 Stars; 121 Funds in category; 5Yrs. 5 Stars; 104 Funds in category. Percentile Rank/Absolute Rank/Total in Category 1 Yr 7/16/160, 3 Yr 4/7/121, 5 Yr 2/3/104 Global Franchise: Overall Morningstar Rating™ for Class I out of 704 World Large Stock Funds. Fund ratings out of 5 Stars: 3Yrs. 4 Stars; 704 Funds in category; 5Yrs. 3 Stars; 583 Funds in category; 10Yrs. 5 Stars; 329 Funds in category. Percentile Rank/Absolute Rank/Total in Category 1 Yr 66/573/846, 3 Yr 8/57/704, 5 Yr 45/247/583,10 Yr 1/2/329 Growth: Overall Morningstar Rating™ for Class I out of 1,259 Large Growth Funds. Fund ratings out of 5 Stars: 3Yrs. 4 Stars; 1,233 Funds in category; 5Yrs. 5 Stars; 1,133 Funds in category; 10Yrs. 4 Stars; 782 Funds in category. Percentile Rank/Absolute Rank/Total in Category 1 Yr 5/55/1,375, 3 Yr 3/15/1,233, 5 Yr 1/3/1,107,10 Yr 8/39/782 International Opportunity: Overall Morningstar Rating™ for Class I out of 325 Foreign Large Growth Funds. Fund ratings out of 5 Stars: 3Yrs. 5 Stars; 325 Funds in category; 5Yrs. 5 Stars; 280 Funds in category. Percentile Rank/Absolute Rank/Total in Category 1 Yr 1/2/398, 3 Yr 1/2/325, 5 Yr 1/1/280 International Advantage: Overall Morningstar Rating™ for Class I out of 325 Foreign Large Growth Funds. Fund ratings out of 5 Stars: 3Yrs. 5 Stars; 325 Funds in category; 5Yrs. 5 Stars; 280 Funds in category. Percentile Rank/Absolute Rank/Total in Category 1 Yr 4/18/398, 3 Yr 1/3/325, 5 Yr 3/5/280

RISK CONSIDERATIONS: There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the Portfolio will decline and that the value of Portfolio shares may therefore be less than what you paid for them. Please be aware that these Portfolios may be subject to certain additional risks. In general, equity securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed markets. Privately placed and restricted securities may be subject to resale restrictions as well as a lack of publicly available information, which will increase their illiquidity and could adversely affect the ability to value and sell them (liquidity risk). Stocks of small- and medium-capitalization companies entail special risks, such as limited product lines, markets and financial resources, and greater market volatility than securities of larger, more established companies. Non-diversified portfolios often invest in a more limited number of issuers so changes in the financial condition or market value of a single issuer may cause greater volatility. Derivative instruments may disproportionately increase losses and have a significant impact on performance. They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Changes in the worldwide economy, consumer spending, competition, demographics and consumer preferences, government regulation and economic conditions may adversely affect global franchise companies and may negatively impact the strategy to a greater extent than if the strategy’s assets were invested in a wider variety of companies. Illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk).

Please consider the investment objective, risks, charges and expenses of the fund carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, download one at morganstanley.com/im or call 1-800-548-7786. Please read the prospectus carefully before investing.

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