Emerging Markets Fixed Income Opportunities Portfolio
Share Class :
 
MEAIX CUSIP: 61760X208
Emerging Markets Fixed Income Opportunities Portfolio
MEAIX CUSIP: 61760X208
Share Class :

Emerging Markets Fixed Income Opportunities Portfolio

SHARE CLASS :
MEAIX CUSIP: 61760X208
 
 
 
 
Investment Approach

We seek high total return from income and price appreciation by investing in a range of sovereign, quasi-sovereign and corporate debt securities in emerging markets, which may include U.S. dollar-denominated, local currency, and corporate debt securities. We believe that emerging markets experiencing positive fundamental change may present attractive investment opportunities for investors. To help achieve its objective, we combine top-down country allocation with bottom-up security selection.

 
 
 
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
MEAIX (%) 12.94 7.74 3.35 -- 5.56
Blended Index (%) 10.82 7.00 3.85 -- 5.87
JP Morgan Emerging Markets Bond Index Global (%) 9.32 6.84 3.75 -- 5.78
Lipper Category Average (%) 10.68 5.83 2.39 -- --
Morningstar Category Average (%) 10.25 5.96 2.82 -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MEAIX (%) 12.94 7.74 3.35 -- 5.56
Blended Index (%) 10.82 7.00 3.85 -- 5.87
JP Morgan Emerging Markets Bond Index Global (%) 9.32 6.84 3.75 -- 5.78
Lipper Category Average (%) 10.68 5.83 2.39 -- --
Morningstar Category Average (%) 10.25 5.96 2.82 -- --
2013 2014 2015 2016 2017
MEAIX (%) -8.79 3.38 -1.83 12.80 12.94
Blended Index (%) -6.58 5.53 0.46 10.05 10.82
JP Morgan Emerging Markets Bond Index Global (%) -6.58 5.53 1.23 10.19 9.32
Lipper Category Average (%) -5.83 1.36 -2.98 10.81 10.68
Morningstar Category Average (%) -7.27 -0.80 -5.99 10.51 10.25
 
Average Annual Total Returns
TIMEFRAME MEAIX USD (%) Blended Index (%) JP Morgan Emerging Markets Bond Index Global (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 12.94 10.82 9.32 10.68 10.25
3 Yrs 7.74 7.00 6.84 5.83 5.96
5 Yrs 3.35 3.85 3.75 2.39 2.82
10 Yrs -- -- -- -- --
Since Inception 5.56 5.87 5.78 -- --
TIMEFRAME MEAIX USD (%) Blended Index (%) JP Morgan Emerging Markets Bond Index Global (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 12.94 10.82 9.32 10.68 10.25
3 Yrs 7.74 7.00 6.84 5.83 5.96
5 Yrs 3.35 3.85 3.75 2.39 2.82
10 Yrs -- -- -- -- --
Since Inception 5.56 5.87 5.78 -- --
TIMEFRAME MEAIX USD (%) Blended Index (%) JP Morgan Emerging Markets Bond Index Global (%) Lipper Category Average (%) Morningstar Category Average (%)
2013 -8.79 -6.58 -6.58 -5.83 -7.27
2014 3.38 5.53 5.53 1.36 -0.80
2015 -1.83 0.46 1.23 -2.98 -5.99
2016 12.80 10.05 10.19 10.81 10.51
2017 12.94 10.82 9.32 10.68 10.25
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:
    MEAIX
Alpha (%) 0.90
Beta (vs. benchmark) 1.20
Information ratio 0.31
R squared 0.86
Sharpe ratio 1.04
Standard deviation (%) 7.07
    MEAIX
Alpha (%) -0.40
Beta (vs. benchmark) 1.10
Information ratio -0.17
R squared 0.91
Sharpe ratio 0.41
Standard deviation (%) 7.61
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 0.257788 0.000000 0.000000 0.000000
10/02/2017 10/03/2017 10/03/2017 0.100000 0.000000 0.000000 0.000000
07/06/2017 07/07/2017 07/07/2017 0.100000 0.000000 0.000000 0.000000
04/03/2017 04/04/2017 04/04/2017 0.100000 0.000000 0.000000 0.000000
12/15/2016 12/16/2016 12/16/2016 0.246052 0.000000 0.000000 0.000000
10/03/2016 10/04/2016 10/04/2016 0.100000 0.000000 0.000000 0.000000
07/01/2016 07/05/2016 07/05/2016 0.100000 0.000000 0.000000 0.000000
04/01/2016 04/04/2016 04/04/2016 0.100000 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
0.257788 0.000000
10/03/2017 /
10/03/2017
0.100000 0.000000
07/07/2017 /
07/07/2017
0.100000 0.000000
04/04/2017 /
04/04/2017
0.100000 0.000000
12/16/2016 /
12/16/2016
0.246052 0.000000
10/04/2016 /
10/04/2016
0.100000 0.000000
07/05/2016 /
07/05/2016
0.100000 0.000000
04/04/2016 /
04/04/2016
0.100000 0.000000
Historical Yields (Subsidized)

As of 12/31/2017

 
Past performance is not indicative of future results.
 
 
 
Composition As of 12/31/2017
Index Active Wt Fund
Sovereign 56.71 3.28 59.99
Quasi-Sovereign 9.96 -5.80 4.16
Corporates 33.33 1.04 34.37
Industrial 1.71 -0.49 1.22
Financials 10.25 -3.41 6.84
Oil & Gas 5.08 1.62 6.70
Consumer 2.63 -0.80 --
Cash -- 1.48 1.48
Index Active Wt Fund
Top 5 191.21 4.48 195.70
Argentina 16.52 30.48 47.00
Mexico 66.85 -23.11 43.73
Indonesia 47.35 -8.67 38.68
Brazil 32.30 1.80 34.10
Colombia 28.20 3.98 32.18
Bottom 5 36.20 -43.13 --
  Fund
US Dollar 53.15
Mexican New Peso 6.03
Indonesian Rupiah 4.65
Brazilian Cruzieros Reals 4.51
Russian Rouble New 3.58
Polish Zloty New 3.48
South Africa Rand 3.24
Hungarian Forint 2.72
Argentine Peso 2.17
Egyptian Pound 2.11
Cash & Equivalents. 1.16


Geography As of 12/31/2017
  Fund
Mexico 10.00
Argentina 8.62
Brazil 8.14
Indonesia 5.80
Colombia 5.08
Nigeria 4.91
Russia 4.52
South Africa 4.26
Poland 3.48
Ukraine 2.95


Holdings As of 12/31/2017
Fund
Mexico (United Mexican States) 6.03
Indonesia (Republic of) 4.65
Brazil (Federative Republic of) 4.51
Russian Federation 3.58
Poland (Republic of) 3.48
South Africa (Republic of) 3.24
Egypt (the Arab Republic of) 2.95
Ukraine (Government of) 2.90
Hungary (Repub of) 2.72
Petroleos Mexicanos 2.15
Total 36.21


Portfolio Characteristics As of 12/31/2017
Fund
Number of holdings 110
Effective Duration 5.00
Average maturity 7.35
Turnover (%) 116
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
 
 
Portfolio Managers
Managing Director
24 years industry experience
Managing Director
23 years industry experience
Executive Director
14 years industry experience
 
Insights by Global Fixed Income Team
Global Fixed Income Insights
2018 Emerging Markets Debt Outlook
Dec 18, 2017
The Emerging Markets Debt Team discusses their outlook for the 2018 and why there is a case for medium-term optimism.
Global Fixed Income Bulletin
2018 - A Focus on Alpha
Jan 09, 2018
The Global Fixed Income team provides their outlook for global fixed income in 2018 and how a focus on alpha is likely to be a large driving force of performance.
 
 
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 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. 

On September 28, 2015, Morgan Stanley Institutional Fund, Inc. ("MSIF")Emerging Markets Domestic Debt Portfolio merged into MSIF Emerging Markets External Debt Portfolio. In conjunction with the merger, MSIF Emerging Markets External Debt Portfolio (the Portfolio) was renamed MSIF Emerging Markets Fixed Income Opportunities Portfolio and changed its principal investment policy such that under normal circumstances, it seeks to achieve its investment objective of high total return by investing at least 80% of its assets in debt securities of issuers located in emerging market countries, which may include U.S. dollar-denominated, local currency, and corporate debt securities. In addition, the Portfolio changed its benchmark from the JP Morgan Emerging Markets Bond Global Index.       


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 regions 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
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. Average maturity is the weighted average of the time until all maturities on mortgages in a mortgage-backed security (MBS). The higher the weighted average to maturity, the longer the mortgages in the security have until maturity. SEC yield is a measure of the income generated by the portfolio's underlying asset over the trailing 30 days,relative to the asset base of the portfolio itself. The SEC 30-Day yield - Subsidized(Sub.) reflects current fee waivers in effect. Absent such fee waivers, the yield would have been lower. The SEC 30-Day yield- Unsubsidized(Unsub.) does not reflect the fee waivers currently in effect. 

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.


RISK CONSIDERATIONS 
There is no assurance that a mutual fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that the market values of securities owned by the fund will decline and that the value of fund shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this fund. Please be aware that this fund may be subject to certain additional risks. Fixed-income securities are subject to the ability of an issuer to make timely principal and interest payments (credit risk), changes in interest rates (interest-rate risk), the creditworthiness of the issuer and general market liquidity (market risk). In the current rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions. Longer-term securities may be more sensitive to interest rate changes. In a declining interest-rate environment, the portfolio may generate less income. Mortgage- and asset-backed securities are sensitive to early prepayment risk and a higher risk of default and may be hard to value and difficult to sell (liquidity risk). They are also subject to credit, market and interest rate risks. Certain U.S. government securities purchased by the Strategy, such as those issued by Fannie Mae and Freddie Mac, are not backed by the full faith and credit of the U.S. It is possible that these issuers will not have the funds to meet their payment obligations in the future. High yield securities ("junk bonds") are lower rated securities that may have a higher degree of credit and liquidity risk. Public bank loans are subject to liquidity risk and the credit risks of lower rated securities. Foreign securities are subject to currency, political, economic and market risks. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed countries. Sovereign debt securities are subject to default risk. 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. 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.

© 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 Blended Index is comprised of 1/3 JP Morgan Emerging Markets Bond Global Index (tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the EMBI+. As with the EMBI+, the EMBI Global includes US dollar-denominated Brady bonds, loans, and Eurobonds with an outstanding face value of at least $500 million), 1/3 JP Morgan GBI-EM Global Diversified Index (a comprehensive global local emerging markets index that consists of regularly traded, liquid fixed-rate, domestic currency government bonds and includes only the countries which give access to their capital market to foreign investors (excludes China, India). The index is market capitalization weighted, with a cap of 10% to any one country) and 1/3 JP Morgan CEMBI Broad Diversified Index (a global, liquid corporate emerging-markets benchmark that tracks U.S.-denominated corporate bonds issued by emerging-markets entities). These indices are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index.  The JP Morgan Emerging Markets Bond Global (EMBG) Index tracks total returns for U.S. dollar-denominated debt instruments issued by emerging markets sovereign and quasi-sovereign entities: Brady Bonds, loans, Eurobonds and local market instruments for over 30 emerging market countries.

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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