Global Discovery Portfolio
Share Class :
MLDIX CUSIP: 61756E552
Overall Morningstar Rating
Global Discovery Portfolio
MLDIX CUSIP: 61756E552
Share Class :

Global Discovery Portfolio

MLDIX CUSIP: 61756E552
Overall Morningstar Rating
Investment Approach

We seek high-quality established and emerging companies located throughout the world with strong free-cash-flow yields and favorable returns on invested capital trends. We focus on long-term growth rather than short-term events, with our stock selection informed by rigorous fundamental analysis.

Pricing & Performance

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 select the "month" timeframe 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. For additional important information, please click here

As of 02/28/2018

As of 03/23/2018

Performance of $10,000 invested
Performance of $10,000 invested

Past performance is not indicative of future results.
Average Annual Total Returns As of 02/28/2018 As of 12/31/2017
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MLDIX (%) 21.91 17.71 16.75 -- 15.33
MSCI All Country World Index (%) 18.79 8.34 10.07 -- 8.79
Lipper Category Average (%) 21.65 9.97 11.34 -- --
Morningstar Category Average (%) 19.80 9.28 10.64 -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MLDIX (%) 25.39 17.90 17.72 -- 15.46
MSCI All Country World Index (%) 23.97 9.30 10.80 -- 8.82
Lipper Category Average (%) 26.26 11.04 12.48 -- --
Morningstar Category Average (%) 25.44 10.62 11.90 -- --
2013 2014 2015 2016 2017
MLDIX (%) 40.72 -1.96 -4.27 36.51 25.39
MSCI All Country World Index (%) 22.80 4.16 -2.36 7.86 23.97
Lipper Category Average (%) 29.80 -1.06 -1.87 11.61 26.26
Morningstar Category Average (%) 25.19 2.79 -1.69 5.54 25.44
Average Annual Total Returns
TIMEFRAME MLDIX USD (%) MSCI All Country World Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 21.91 18.79 21.65 19.80
3 Yrs 17.71 8.34 9.97 9.28
5 Yrs 16.75 10.07 11.34 10.64
10 Yrs -- -- -- --
Since Inception 15.33 8.79 -- --
TIMEFRAME MLDIX USD (%) MSCI All Country World Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 25.39 23.97 26.26 25.44
3 Yrs 17.90 9.30 11.04 10.62
5 Yrs 17.72 10.80 12.48 11.90
10 Yrs -- -- -- --
Since Inception 15.46 8.82 -- --
TIMEFRAME MLDIX USD (%) MSCI All Country World Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2013 40.72 22.80 29.80 25.19
2014 -1.96 4.16 -1.06 2.79
2015 -4.27 -2.36 -1.87 -1.69
2016 36.51 7.86 11.61 5.54
2017 25.39 23.97 26.26 25.44
Past performance is not indicative of future results. The Portfolio's calendar year returns do not include the deduction of any applicable sales charges.
Risk/Return StatisticsAs of 02/28/2018

    MLDIX Index
Active share (%) 99.15 --
Alpha (%) 9.37 --
Beta (vs. benchmark) 0.91 1.00
Information ratio 1.31 --
R squared 0.66 1.00
Sharpe ratio 1.43 0.73
Standard deviation (%) 12.09 10.83
Tracking error (%) 7.15 --
    MLDIX Index
Active share (%) 99.15 --
Alpha (%) 6.68 --
Beta (vs. benchmark) 0.98 1.00
Information ratio 0.93 --
R squared 0.66 1.00
Sharpe ratio 1.34 0.95
Standard deviation (%) 12.33 10.27
Tracking error (%) 7.19 --
Past performance is not indicative of future results.
Record Date Ex-Date Payable Date Net Investment Income ($ per share) Long-Term Capital Gains ($ per share) Short-Term Capital Gains ($ per share) Total Capital Gains ($ per share)  
12/15/2017 12/18/2017 12/18/2017 0.061204 0.344100 0.410800 0.754900
07/06/2017 07/07/2017 07/07/2017 0.015548 0.043700 0.047600 0.091300
12/15/2016 12/16/2016 12/16/2016 0.023913 0.087700 0.153200 0.240900
Ex-Date /<br />Payable Date Net Investment Income ($ per share) Total Capital Gains ($ per share)
12/18/2017 /
0.061204 0.754900
07/07/2017 /
0.015548 0.091300
12/16/2016 /
0.023913 0.240900
Composition As of 12/31/2017
  Fund Index
Consumer Discretionary 50.83 12.01
Industrials 13.09 10.90
Materials 11.59 5.50
Financials 6.84 18.74
Health Care 6.79 10.68
Information Technology 1.91 18.05
Energy 1.36 6.38
Real Estate 0.41 3.07
Cash 6.46 --

Geography As of 12/31/2017
  Fund Index
United States 52.20 52.20
France 12.12 3.50
United Kingdom 8.58 5.84
Canada 6.49 3.13
Brazil 4.93 0.81
Denmark 4.08 0.60
Germany 2.86 3.22
Italy 1.60 0.77
New Zealand 0.25 0.06
India 0.14 1.04

Holdings As of 02/28/2018
Fund Index
Time Warner Inc 9.57 0.16
Harley-Davidson Inc 8.66 0.02
Carmax Inc 7.34 0.02
Christian Dior S.A. 6.76 --
Nutrien Ltd 5.75 0.07
Welbilt Inc 5.10 --
Whitbread Plc 5.09 0.02
Porto Seguro S.A. 4.41 --
Autoliv Inc 4.28 0.03
Novo Nordisk AS 3.68 0.21
Total 60.64 --

Full Holdings Report available at least 45 calendar days after quarter-end.

Please note, prior to February 13, 2018, holdings and related composition data, shown as of December 31, 2017, were reflecting data as of January 2, 2018.  Holdings data for these periods are available upon request by emailing client service at

Portfolio Characteristics As of 12/31/2017
Fund Index
Number of holdings 37 2,499
Return on capital (%) 8.33 9.62
5 year EPS growth (%) 2.35 4.65
Sales growth (%) 5.45 6.95
Weighted median market capitalization ($B) 9.93 47.91
D/E weighted median (%) 84.55 72.32
Turnover (%) 64 --
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
Managing Director
18 years industry experience
Insights by Growth Team
Investment Insight
The EDGE: Autonomous Vehicles
Aug 31, 2017
The Growth Team researches autonomous vehicles, which are rapidly progressing from the realm of science fiction to reality and could change our conception of personal transportation.
Investment Insight
The EDGE: Machine Learning
Apr 28, 2017
The Growth Team examines machine learning, a form of artificial intelligence that trains computers to generate insights from data. It has the potential to create efficiencies and new industries.
Product Literature
Prospectus & Reports

Lipper Fund Awards: The Thomson Reuters Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. For more information, see Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Source: Lipper Inc. Other share classes may have different performance and expense characteristics. Lipper awards are not intended to predict future results and the accuracy of their information is not guaranteed.

Class A shares include maximum front-end sales charge of 5.50% (Alternatives), 5.25% (Equity) and 4.25% (Fixed Income).  Class B shares include deferred sales charge of 5.00% which declines to zero after sixth year.  Class C shares include deferred sales charge of 1.00% which declines to zero after first year. Class L shares, Class I, and Class IS shares are not subject to a sales charge.

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. 

The Fund has suspended offering Class L shares of the Portfolio for sale to all investors. 

Growth of Investment illustration is based on an initial investment of $10,000 made since fund inception, assumes reinvestment of dividends and capital gains, but does not include sales charges and fees. Performance would have been lower if sales charges and fees had been included. Results are hypothetical.

Subject to change daily. Fund information, Portfolio Composition and Characteristics are provided for informational purposes only, and should not be deemed as a recommendation to buy or sell any security or securities in the sectors and/or countries presented. 

Returns are net of fees and assume all dividends and income. Returns for less than one year are cumulative (not annualized). Performance of other share classes will vary.

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. 

The Net Asset Value (NAV) per share is determined by dividing the value of the fund's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding. The common share market price is the price the market is willing to pay for shares of the fund at a given time. Return on capital is a measure of a company’s efficiency at allocating the capital under its control to profitable investments, calculated by dividing net income minus dividends by total capital. Earnings per share (EPS) growth is the weighted average of earnings per share growth for all securities in the portfolio projected for the past five fiscal years. Earnings per share for a company is defined as total earnings divided by shares outstanding. Weighted median market capitalization is the point at which half of the market value of a portfolio is invested in stocks with a greater market cap, and consequently the other half is invested in stocks with a lower market cap. Debt/equity (D/E) is a measure of a company’s financial leverage calculated by dividing its total liabilities by stockholders’ equity. Sales growth is the increase in sales over a specific period of time, often but not necessarily annually.

is sourced from the fund's current prospectus.

The index data displayed under allocations are calculated using MSIM and other third-party methodologies and may differ from data published by the vendor.

Active share is the fraction of the portfolio or fund that is invested differently than its benchmark as of the last day of the reporting period. A portfolio with a high degree of Active share does not assure a fund’s relative outperformance. Alpha is the excess return or value added (positive or negative) of the portfolio’s return relative to the return of the benchmark. Beta is a measure of the relative volatility of a security or portfolio to the market's upward or downward movements. A beta greater than 1.0 identifies an issue or fund that will move more than the market, while a beta less than 1.0 identifies an issue or fund that will move less than the market. The Beta of the Market is always equal to 1. Information ratio is the portfolio’s alpha or excess return per unit of risk, as measured by tracking error, versus the portfolio’s benchmark. R squared measures how well an investment’s returns correlate to an index. An R squared of 100 means the portfolio performance is 100% correlated to the index’s, whereas a low r-squared means that the portfolio performance is less correlated to the index’s. Sharpe ratio is a risk-adjusted measure calculated as the ratio of excess return to standard deviation. The Sharpe ratio determines reward per unit of risk. The higher the Sharpe ratio, the better the historical risk-adjusted performance. Standard deviation measures how widely individual performance returns, within a performance series, are dispersed from the average or mean value. Tracking error is the amount by which the performance of the portfolio differs from that of the benchmark.

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. Accordingly, you can lose money investing in this Portfolio. Please be aware that this Portfolio may be subject to certain additional risks. In general, equities 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 countries. 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. Nondiversified portfolios often invest in a more limited number of issuers. As such, 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.

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. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1.

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. 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.

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 index is unmanaged and does not include any expenses, fees or sales charges. It is not possible to invest directly in an index.

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 or call 1-800-548-7786. Please read the prospectus carefully before investing.

As of January 1, 2011, the SEC requires fund companies to file a new exhibit with risk/return summary information in interactive data (XBRL) format. Click here for XBRL files.

Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley. 

Active share is the fraction of the portfolio or fund that is invested differently than its benchmark as of the last day of the reporting period. A portfolio with a high degree of Active share does not assure a fund's relative outperformance.


Active share is the fraction of the portfolio or fund that is invested differently than its benchmark as of the last day of the reporting period. A portfolio with a high degree of Active share does not assure a fund's relative outperformance.


WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.


WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.


Tracking error and information ratio are calculated using the Portfolio's Blended Index (added October 2, 2013), as this is a better representation of the Portfolio's global multi-asset strategy. The investment team manages the Portfolio relative to this Blended Index.


Excess return versus Custom Benchmark is calculated using the Portfolio's Blended Index based on the period since it was added as a benchmark on October 2, 2013.


NTM = Next Twelve Months


LTM = Last Twelve Months


Because the Portfolio had not commenced operations as of the most recent fiscal year end, no portfolio turnover rate is available for the Portfolio.


The Reorganization occurred on January 6, 2015. The inception date reflects the inception date of the Private Fund.


Global equities is represented by the MSCI All Country World Index.


Net exposure % calculated as [(MV of long cash security and derivative positions)-(absolute value of MV in short derivative positions)]/(portfolio MV)


Gross exposure % calculated as [(MV of long cash security and derivative positions)+(absolute value of MV in short derivative positions)]/(portfolio MV).


Fixed income net and gross exposure is duration adjusted (U.S. Treasury 10-Year equivalents)


Security ratings disclosed above have been obtained from Standard & Poor's Ratings Group ("S&P"). S&P's credit ratings express its opinion about the ability and willingness of an issuer to meet its financial obligations in full and on time.'AAA' is the highest rating. Any rating below 'BBB-' rating is considered non-investment grade. Ratings are relative and subjective and are not absolute standards of quality. Ratings apply only to the underlying holdings of the portfolio and does not remove market risk. "NR" or "Not Rated" indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular obligation as a matter of policy. Futures are not rated.


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