Global Quality Portfolio
Share Class :
MGQIX CUSIP: 61760X653
Overall Morningstar Rating
Global Quality Portfolio
MGQIX CUSIP: 61760X653
Share Class :

Global Quality Portfolio

MGQIX CUSIP: 61760X653
Overall Morningstar Rating
Investment Approach

The investment team believes that high-quality companies can generate superior returns over the long term. Such businesses are typically built on dominant market positions, underpinned by powerful, hard to replicate intangible assets that can generate resilient, high, unlevered cross-cycle returns on capital and strong free cash flows. Other characteristics are recurring revenue streams, pricing power, typically low capital intensity and the opportunity for organic growth.

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 03/19/2018

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

Past performance is not indicative of future results.
Average Annual Total Returns As of 02/28/2018 As of 12/31/2017
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MGQIX (%) 14.30 8.97 -- -- 10.38
MSCI World Net Index (%) 17.36 8.19 -- -- 10.49
Lipper Category Average (%) 23.30 9.09 -- -- --
Morningstar Category Average (%) 18.35 7.81 -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MGQIX (%) 22.86 10.46 -- -- 10.80
MSCI World Net Index (%) 22.40 9.26 -- -- 10.67
Lipper Category Average (%) 27.89 9.87 -- -- --
Morningstar Category Average (%) 23.61 8.89 -- -- --
2013 2014 2015 2016 2017
MGQIX (%) -- 2.66 5.27 4.20 22.86
MSCI World Net Index (%) -- 4.94 -0.87 7.51 22.40
Lipper Category Average (%) -- 2.79 2.90 1.84 27.89
Morningstar Category Average (%) -- 2.79 -1.69 5.54 23.61
Average Annual Total Returns
TIMEFRAME MGQIX USD (%) MSCI World Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 14.30 17.36 23.30 18.35
3 Yrs 8.97 8.19 9.09 7.81
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception 10.38 10.49 -- --
TIMEFRAME MGQIX USD (%) MSCI World Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 22.86 22.40 27.89 23.61
3 Yrs 10.46 9.26 9.87 8.89
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception 10.80 10.67 -- --
TIMEFRAME MGQIX USD (%) MSCI World Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2013 -- -- -- --
2014 2.66 4.94 2.79 2.79
2015 5.27 -0.87 2.90 -1.69
2016 4.20 7.51 1.84 5.54
2017 22.86 22.40 27.89 23.61
Past performance is not indicative of future results. The Portfolio's calendar year returns do not include the deduction of any applicable sales charges.
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 0.125713 0.610500 0.026500 0.637000
07/06/2017 07/07/2017 07/07/2017 0.000000 0.050200 0.000000 0.050200
12/15/2016 12/16/2016 12/16/2016 0.196106 0.527800 0.174300 0.702100
07/01/2016 07/05/2016 07/05/2016 0.006257 0.180600 0.000000 0.180600
Ex-Date /<br />Payable Date Net Investment Income ($ per share) Total Capital Gains ($ per share)
12/18/2017 /
0.125713 0.637000
07/07/2017 /
0.000000 0.050200
12/16/2016 /
0.196106 0.702100
07/05/2016 /
0.006257 0.180600
Composition As of 12/31/2017
  Fund Index
Information Technology 30.83 16.76
Consumer Staples 25.10 9.04
Health Care 17.46 11.76
Consumer Discretionary 13.72 12.26
Industrials 4.62 11.66
Financials 4.57 18.10
Materials 0.29 5.25
Cash 2.74 --

Geography As of 12/31/2017
  Fund Index
United States 57.73 59.21
United Kingdom 20.01 6.63
France 6.65 3.97
Germany 5.49 3.66
Switzerland 3.94 2.99
Hong Kong 1.13 1.33
Netherlands 0.89 1.33
Canada 0.76 3.55
Country weightings arise from our bottom-up fundamental analysis. The team seeks superior companies that are attractively valued regardless of country of domicile.

Holdings As of 02/28/2018
Fund Index
Accenture Plc 6.40 0.24
Microsoft Corp 6.25 1.69
Alphabet Inc 5.92 1.66
British American Tobacco Plc 5.38 0.33
Twenty-First Century Fox Inc 4.46 0.13
Visa Inc 4.39 0.55
Unilever Plc 4.33 0.16
Booking Holdings Inc 4.19 0.25
SAP SE 4.01 0.25
Reckitt Benckiser Plc 3.61 0.13
Total 48.94 --

Complete holdings for Global Quality Portfolio will be available on a quarterly basis 15 calendar days after the quarter-end to current shareholders who email client service at

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 39 1,653
Price/earnings (NTM) 19.92 16.96
Turnover (%) 35 --
Active share (%) 88.42 --
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
Investment Team
Head of International Equity Team
26 years industry experience
Managing Director
24 years industry experience
Executive Director
20 years industry experience
Executive Director
20 years industry experience
Executive Director
16 years industry experience
Executive Director
18 years industry experience
Executive Director
10 years industry experience
Executive Director
8 years industry experience
Vice President
11 years industry experience
Insights by International Equity Team
Global Equity Observer
The Bull-Bear Tug-of-War
Feb 13, 2018
Following February’s market turbulence, the International Equity Team considers the ongoing tug-of-war between bulls citing global growth and bears arguing monetary policy and politics.
Investment View
Q&A with Nic Sochovsky
Dec 29, 2015
Nic Sochovsky, a portfolio manager on the International Equity Team, discusses the team’s significant exposure to what they consider high-quality Consumer Staples.
Product Literature
Prospectus & Reports

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 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 region presented. 

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

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. 

Number of holdings provided are a typical range, not a maximum number. The portfolio may exceed this from time to time due to market conditions and outstanding trades. Price/earnings (P/E) is the price of a stock divided by its earnings per share. Sometimes called the multiple, P/E gives investors an idea of how much they are paying for a company’s earning power. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting. 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.

Subject to change daily.  Portfolio information, 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.  Monthly holdings are updated 15 calendar days after month-end.

NTM = Next Twelve Months.

Turnover 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.

Forecast and estimates are subject to change and may not necessarily come to pass due to changing market and/or economic conditions.

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. 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. Illiquid securities may be more difficult to sell and value than public traded securities (liquidity risk).

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 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 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.

NTM = Next Twelve Months


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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