Global Real Estate Portfolio
Share Class :
 
MRLAX CUSIP: 61744J143
Global Real Estate Portfolio
MRLAX CUSIP: 61744J143
Share Class :

Global Real Estate Portfolio

SHARE CLASS :
MRLAX CUSIP: 61744J143
 
 
 
 
Investment Approach

We seek attractive long-term, risk-adjusted returns by investing in publicly traded real estate securities, primarily in developed countries worldwide. We combine a value-oriented, bottom-up-driven investment strategy and a global top-down allocation that seeks diversified exposure to all major asset classes with an overweighting to property markets that we believe offer the best relative valuation.

 
 
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 12/31/2017

As of 01/19/2018


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

    
Past performance is not indicative of future results.
 
 
Average Annual Total Returns As of 12/31/2017 As of 12/31/2017
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MRLAX (%) 9.73 3.98 5.84 3.83 4.07
FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors (%) 11.08 5.11 6.96 3.79 4.09
Lipper Category Average (%) 11.51 4.68 6.36 3.71 --
Morningstar Category Average (%) 15.12 5.22 6.13 3.04 --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MRLAX (%) 9.73 3.98 5.84 3.83 4.07
FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors (%) 11.08 5.11 6.96 3.79 4.09
Lipper Category Average (%) 11.51 4.68 6.36 3.71 --
Morningstar Category Average (%) 15.12 5.22 6.13 3.04 --
2013 2014 2015 2016 2017
MRLAX (%) 3.55 14.08 -0.94 3.42 9.73
FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors (%) 4.21 15.68 -0.11 4.67 11.08
Lipper Category Average (%) 3.24 14.63 -0.46 2.78 11.51
Morningstar Category Average (%) 2.92 11.67 -0.92 1.97 15.12
 
Average Annual Total Returns
TIMEFRAME MRLAX USD (%) FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 9.73 11.08 11.51 15.12
3 Yrs 3.98 5.11 4.68 5.22
5 Yrs 5.84 6.96 6.36 6.13
10 Yrs 3.83 3.79 3.71 3.04
Since Inception 4.07 4.09 -- --
TIMEFRAME MRLAX USD (%) FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 9.73 11.08 11.51 15.12
3 Yrs 3.98 5.11 4.68 5.22
5 Yrs 5.84 6.96 6.36 6.13
10 Yrs 3.83 3.79 3.71 3.04
Since Inception 4.07 4.09 -- --
TIMEFRAME MRLAX USD (%) FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors (%) Lipper Category Average (%) Morningstar Category Average (%)
2013 3.55 4.21 3.24 2.92
2014 14.08 15.68 14.63 11.67
2015 -0.94 -0.11 -0.46 -0.92
2016 3.42 4.67 2.78 1.97
2017 9.73 11.08 11.51 15.12
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 12/31/2017

TIMEFRAME:
    MRLAX
Alpha (%) -1.13
Beta (vs. benchmark) 0.99
Information ratio -0.67
R squared 0.98
Sharpe ratio 0.33
Standard deviation (%) 11.02
Tracking error (%) 1.69
Up-capture ratio (%) 89.95
Down-capture ratio (%) 98.16
    MRLAX
Alpha (%) -1.12
Beta (vs. benchmark) 0.97
Information ratio -0.66
R squared 0.98
Sharpe ratio 0.49
Standard deviation (%) 11.52
Tracking error (%) 1.69
Up-capture ratio (%) 88.71
Down-capture ratio (%) 97.75
Past performance is not indicative of future results.
 
 
Distributions
 
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 0.151366 0.510100 0.018400 0.528500
12/15/2016 12/16/2016 12/16/2016 0.404313 0.000000 0.000000 0.000000
Ex-Date /<br />Payable Date Net Investment Income ($ per share) Total Capital Gains ($ per share)
12/18/2017 /
12/18/2017
0.151366 0.528500
12/16/2016 /
12/16/2016
0.404313 0.000000
 
 
Composition As of 12/31/2017
  Fund
Diversified 30.22
Retail 23.87
Office 15.58
Residential 10.22
Industrial 4.55
Self Storage 3.69
Healthcare 3.40
Lodging/Resorts 3.08
Industrial/Office Mixed 0.29
Cash 5.08


Geography As of 12/31/2017
  Fund
United States 50.25
Hong Kong 11.51
Japan 8.69
United Kingdom 5.89
Australia 4.90
France 3.98
Germany 1.95
Canada 1.51
Singapore 1.12
Spain 0.92


Holdings As of 12/31/2017
Fund
Simon Property Group 6.93
Vornado Realty Trust 3.69
Boston Properties Inc 3.41
SL Green Realty Corp 2.55
Sun Hung Kai Properties Ltd 2.47
Public Storage Inc 2.27
GGP Inc 2.12
Mitsui Fudosan Co. Ltd 1.82
Equity Residential Properties 1.77
Mitsubishi Estate Co. Ltd 1.75
Total 28.78


Portfolio Characteristics As of 12/31/2017
Fund
Number of holdings 163
Weighted average market capitalization ($B) 17.07
Weighted median market capitalization ($B) 13.84
Turnover (%) 26
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
 
 
Portfolio Managers
Head of Global Listed Real Assets Investing
31 years industry experience
Managing Director
21 years industry experience
Managing Director
21 years industry experience
Managing Director
26 years industry experience
Managing Director
16 years industry experience
Managing Director
14 years industry experience
 
 
Resources
Product Literature
 
 
Prospectus & Reports
SAI
 
 
 
 
 

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 to all investors.

Class IS shares, are  being offered only to eligible investors who must meet a minimum initial investment of $10,000,000 or be a defined contribution, defined benefit or other employer sponsored employee benefit plan, whether or not qualified under the Internal Revenue Code of 1986, as amended (the "Code"), in each case subject to the discretion of the Portfolio's investment advisor.

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 the reinvestment of 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.

PORTFOLIO CHARACTERISTICS DEFINITIONS
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. Weighted average market capitalization is a stock market index weighted by the market capitalization of each stock in the index. In such a weighting scheme, larger companies account for a greater portion of the index. Most indexes are constructed in this manner, with the best example being the S&P 500. 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.

Turnover is sourced from the fund's current prospectus.

RISK/RETURN DEFINITIONS
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. Upside/downside market capture measures performance in up/ down markets relative to the market benchmark.

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. Accordingly, you can lose money investing in this strategy. Please be aware that this strategy 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, and market risks. The risks of investing in emerging market countries are greater than the risks generally associated with foreign investments. Real estate investments, including real estate investment trusts, are subject to risks similar to those associated with the direct ownership of real estate and they are sensitive to such factors as management skills and changes in tax laws. Illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk).

Morningstar
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. 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.

OTHER CONSIDERATIONS
The FTSE EPRA/NAREIT Developed Real Estate Index - Net Total Return to US Investors is a market capitalization weighted index designed to reflect the stock performance of companies engaged in the North American, European and Asian real estate markets. The performance of the Index is listed in U.S. dollars and assumes reinvestment of dividends. "Net Total Return to US investors" reflects a reduction in total returns after taking into account the withholding tax on dividends by certain foreign countries represented in the Index. 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 morganstanley.com/im 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.

 
 

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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