U.S. Real Estate Portfolio
Share Class :
 
MSUSX CUSIP: 61744J671
U.S. Real Estate Portfolio
MSUSX CUSIP: 61744J671
Share Class :

U.S. Real Estate Portfolio

SHARE CLASS :
MSUSX CUSIP: 61744J671
 
 
 
 
Investment Approach

We seek attractive long-term, risk-adjusted returns by investing in publicly traded U.S. real estate securities. We combine a value-oriented, bottom-up-driven investment strategy and a 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 06/30/2018

As of 07/16/2018

As of 06/30/2018

As of 07/16/2018


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

    
Past performance is not indicative of future results.
 
 
Average Annual Total Returns As of 06/30/2018 As of 06/30/2018
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSUSX (%) 4.26 6.13 7.57 7.28 11.67
FTSE Nareit Equity REITs Index (%) 3.50 8.06 8.31 7.94 10.59
Lipper Category Average (%) 3.18 6.92 7.49 7.25 --
Morningstar Category Average (%) 3.39 7.22 7.70 7.27 --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSUSX (%) 4.26 6.13 7.57 7.28 11.67
FTSE Nareit Equity REITs Index (%) 3.50 8.06 8.31 7.94 10.59
Lipper Category Average (%) 3.18 6.92 7.49 7.25 --
Morningstar Category Average (%) 3.39 7.22 7.70 7.27 --
2013 2014 2015 2016 2017
MSUSX (%) 2.45 30.74 2.27 6.79 3.31
FTSE Nareit Equity REITs Index (%) 2.47 30.14 3.20 8.52 5.23
Lipper Category Average (%) 1.75 27.64 2.17 7.03 6.02
Morningstar Category Average (%) 1.55 28.03 2.41 6.89 6.22
 
Average Annual Total Returns
As of 06/30/2018
TIMEFRAME MSUSX USD (%) FTSE Nareit Equity REITs Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 4.26 3.50 3.18 3.39
3 Yrs 6.13 8.06 6.92 7.22
5 Yrs 7.57 8.31 7.49 7.70
10 Yrs 7.28 7.94 7.25 7.27
Since Inception 11.67 10.59 -- --
As of 06/30/2018
TIMEFRAME MSUSX USD (%) FTSE Nareit Equity REITs Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 4.26 3.50 3.18 3.39
3 Yrs 6.13 8.06 6.92 7.22
5 Yrs 7.57 8.31 7.49 7.70
10 Yrs 7.28 7.94 7.25 7.27
Since Inception 11.67 10.59 -- --
TIMEFRAME MSUSX USD (%) FTSE Nareit Equity REITs Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2013 2.45 2.47 1.75 1.55
2014 30.74 30.14 27.64 28.03
2015 2.27 3.20 2.17 2.41
2016 6.79 8.52 7.03 6.89
2017 3.31 5.23 6.02 6.22
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 Statistics

TIMEFRAME:
    MSUSX
Alpha (%) -1.85
Beta (vs. benchmark) 0.99
Information ratio -0.69
R squared 0.96
Sharpe ratio 0.41
Standard deviation (%) 13.54
Tracking error (%) 2.80
Up-capture ratio (%) 91.83
Down-capture ratio (%) 101.10
    MSUSX
Alpha (%) -0.34
Beta (vs. benchmark) 0.95
Information ratio -0.29
R squared 0.97
Sharpe ratio 0.54
Standard deviation (%) 13.35
Tracking error (%) 2.55
Up-capture ratio (%) 93.47
Down-capture ratio (%) 95.87
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)
07/02/2018 07/03/2018 07/03/2018 0.092500 0.853500 0.067000 0.920500
04/02/2018 04/03/2018 04/03/2018 0.065000 0.000000 0.000000 0.000000
12/08/2017 12/11/2017 12/11/2017 0.065000 2.031400 0.022200 2.053600
10/02/2017 10/03/2017 10/03/2017 0.065000 0.000000 0.000000 0.000000
07/03/2017 07/05/2017 07/05/2017 0.065000 0.183000 0.000000 0.183000
04/03/2017 04/04/2017 04/04/2017 0.065000 0.000000 0.000000 0.000000
12/15/2016 12/16/2016 12/16/2016 0.370078 0.868300 0.000000 0.868300
10/03/2016 10/04/2016 10/04/2016 0.065000 0.000000 0.000000 0.000000
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)
07/02/2018 07/03/2018 07/03/2018 0.092500 0.853500 0.067000 0.920500
04/02/2018 04/03/2018 04/03/2018 0.065000 0.000000 0.000000 0.000000
12/08/2017 12/11/2017 12/11/2017 0.065000 2.031400 0.022200 2.053600
10/02/2017 10/03/2017 10/03/2017 0.065000 0.000000 0.000000 0.000000
07/03/2017 07/05/2017 07/05/2017 0.065000 0.183000 0.000000 0.183000
04/03/2017 04/04/2017 04/04/2017 0.065000 0.000000 0.000000 0.000000
12/15/2016 12/16/2016 12/16/2016 0.370078 0.868300 0.000000 0.868300
10/03/2016 10/04/2016 10/04/2016 0.065000 0.000000 0.000000 0.000000
 
 
Composition As of 03/31/2018
  Fund
Office 23.44
Regional Malls 18.85
Apartments 12.52
Diversified 8.23
Health Care 7.32
Industrial 6.06
Self Storage 5.68
Shopping Centers 5.00
Lodging/Resorts 4.84
Data Centers 2.64
Cash 0.31


Holdings As of 06/30/2018
Fund
Simon Property Group 11.10
Boston Properties Inc 6.87
SL Green Realty Corp 6.77
Vornado Realty Trust 4.96
GGP Inc 3.76
Regency Centers Corp 3.51
AvalonBay Communities Inc 3.40
Equity Residential Properties 3.01
Public Storage Inc 2.93
Paramount Group Inc 2.66
Total 48.97


Portfolio Characteristics
Fund
Number of holdings 60
Weighted average market capitalization ($B) 16.48
Weighted median market capitalization ($B) 10.91
Turnover (%) 43
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
16 years industry experience
 
 
 
Resources
Product Literature
 
 
Prospectus & Reports
SAI
 
 
 
 
 

^ Morningstar Analyst Ratings: A high rating should not be construed as a guarantee for relatively strong performance. The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s Manager Research Group (“MRG”). The MRG evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The MRG uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the MRG’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the MRG’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause Analyst expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

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.

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 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.

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.

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
(Jensen's) is a risk-adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market return. 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 annualized 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 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. 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. 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.

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.

© 2018 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 Nareit (National Association of Real Estate Investment Trusts) Equity REITs Index is a free float-adjusted market-capitalization-weighted index of tax qualified REITs listed on the New York Stock Exchange, NYSE Amex and the NASDAQ National Market Systems. 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 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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