High Yield Portfolio
Share Class :
MSYIX CUSIP: 617440235
Overall Morningstar Rating
High Yield Portfolio
MSYIX CUSIP: 617440235
Share Class :

High Yield Portfolio

MSYIX CUSIP: 617440235
Overall Morningstar Rating
Ratings are historical and do not guarantee future results. For standardized ratings information refer to the Pricing & Performance section. Please click here for additional disclosures.
Investment Approach

We focus on middle market credits, or credits with less than $1 billion of total debt outstanding, using a value-oriented fixed income approach. In our experience, middle market issues relative to larger peers can provide superior yields, higher coupons, shorter maturities and lower volatility, with default rates that are generally in line with the broader market.

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 03/31/2018

As of 04/24/2018

As of 03/31/2018

As of 04/24/2018

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

Past performance is not indicative of future results.
Average Annual Total Returns As of 03/31/2018 As of 03/31/2018
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSYIX (%) 5.78 5.95 5.94 -- 8.29
Bloomberg Barclays U.S. Corporate High Yield Index (%) 3.78 5.17 4.99 -- 6.40
Lipper Category Average (%) 3.25 3.91 3.86 -- --
Morningstar Category Average (%) 3.20 3.88 3.82 -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSYIX (%) 5.78 5.95 5.94 -- 8.29
Bloomberg Barclays U.S. Corporate High Yield Index (%) 3.78 5.17 4.99 -- 6.40
Lipper Category Average (%) 3.25 3.91 3.86 -- --
Morningstar Category Average (%) 3.20 3.88 3.82 -- --
2013 2014 2015 2016 2017
MSYIX (%) 13.22 1.11 -1.71 15.49 8.02
Bloomberg Barclays U.S. Corporate High Yield Index (%) 7.44 2.45 -4.47 17.13 7.50
Lipper Category Average (%) 6.79 1.00 -4.09 13.27 6.58
Morningstar Category Average (%) 6.90 1.11 -4.01 13.30 6.47
Average Annual Total Returns
As of 03/31/2018
TIMEFRAME MSYIX USD (%) Bloomberg Barclays U.S. Corporate High Yield Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 5.78 3.78 3.25 3.20
3 Yrs 5.95 5.17 3.91 3.88
5 Yrs 5.94 4.99 3.86 3.82
10 Yrs -- -- -- --
Since Inception 8.29 6.40 -- --
As of 03/31/2018
TIMEFRAME MSYIX USD (%) Bloomberg Barclays U.S. Corporate High Yield Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 5.78 3.78 3.25 3.20
3 Yrs 5.95 5.17 3.91 3.88
5 Yrs 5.94 4.99 3.86 3.82
10 Yrs -- -- -- --
Since Inception 8.29 6.40 -- --
TIMEFRAME MSYIX USD (%) Bloomberg Barclays U.S. Corporate High Yield Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2013 13.22 7.44 6.79 6.90
2014 1.11 2.45 1.00 1.11
2015 -1.71 -4.47 -4.09 -4.01
2016 15.49 17.13 13.27 13.30
2017 8.02 7.50 6.58 6.47
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

Alpha (%) 0.78
Beta (vs. benchmark) 0.87
Information ratio 0.46
R squared 0.91
Sharpe ratio 1.07
Standard deviation (%) 5.09
Tracking error (%) 1.69
Alpha (%) 0.94
Beta (vs. benchmark) 0.89
Information ratio 0.55
R squared 0.89
Sharpe ratio 1.13
Standard deviation (%) 4.97
Tracking error (%) 1.72
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)  
04/02/2018 04/03/2018 04/03/2018 0.052500 0.000000 0.000000 0.000000
03/01/2018 03/02/2018 03/02/2018 0.052500 0.000000 0.000000 0.000000
02/01/2018 02/02/2018 02/02/2018 0.052500 0.000000 0.000000 0.000000
12/08/2017 12/11/2017 12/11/2017 0.100120 0.000000 0.000000 0.000000
12/01/2017 12/04/2017 12/04/2017 0.052500 0.000000 0.000000 0.000000
11/01/2017 11/02/2017 11/02/2017 0.052500 0.000000 0.000000 0.000000
10/02/2017 10/03/2017 10/03/2017 0.052500 0.000000 0.000000 0.000000
09/01/2017 09/05/2017 09/05/2017 0.052500 0.000000 0.000000 0.000000
08/01/2017 08/02/2017 08/02/2017 0.052500 0.000000 0.000000 0.000000
07/03/2017 07/05/2017 07/05/2017 0.052500 0.000000 0.000000 0.000000
06/01/2017 06/02/2017 06/02/2017 0.052500 0.000000 0.000000 0.000000
05/01/2017 05/02/2017 05/02/2017 0.052500 0.000000 0.000000 0.000000
04/03/2017 04/04/2017 04/04/2017 0.052500 0.000000 0.000000 0.000000
03/01/2017 03/02/2017 03/02/2017 0.052500 0.000000 0.000000 0.000000
02/01/2017 02/02/2017 02/02/2017 0.052500 0.000000 0.000000 0.000000
12/15/2016 12/16/2016 12/16/2016 0.092858 0.000000 0.000000 0.000000
12/01/2016 12/02/2016 12/02/2016 0.052500 0.000000 0.000000 0.000000
11/01/2016 11/02/2016 11/02/2016 0.052500 0.000000 0.000000 0.000000
10/03/2016 10/04/2016 10/04/2016 0.052500 0.000000 0.000000 0.000000
09/01/2016 09/02/2016 09/02/2016 0.052500 0.000000 0.000000 0.000000
08/01/2016 08/02/2016 08/02/2016 0.052500 0.000000 0.000000 0.000000
07/01/2016 07/05/2016 07/05/2016 0.052500 0.000000 0.000000 0.000000
06/01/2016 06/02/2016 06/02/2016 0.052500 0.000000 0.000000 0.000000
05/02/2016 05/03/2016 05/03/2016 0.052500 0.000000 0.000000 0.000000
Ex-Date /<br />Payable Date Net Investment Income ($ per share) Total Capital Gains ($ per share)
04/03/2018 /
0.052500 0.000000
03/02/2018 /
0.052500 0.000000
02/02/2018 /
0.052500 0.000000
12/11/2017 /
0.100120 0.000000
12/04/2017 /
0.052500 0.000000
11/02/2017 /
0.052500 0.000000
10/03/2017 /
0.052500 0.000000
09/05/2017 /
0.052500 0.000000
08/02/2017 /
0.052500 0.000000
07/05/2017 /
0.052500 0.000000
06/02/2017 /
0.052500 0.000000
05/02/2017 /
0.052500 0.000000
04/04/2017 /
0.052500 0.000000
03/02/2017 /
0.052500 0.000000
02/02/2017 /
0.052500 0.000000
12/16/2016 /
0.092858 0.000000
12/02/2016 /
0.052500 0.000000
11/02/2016 /
0.052500 0.000000
10/04/2016 /
0.052500 0.000000
09/02/2016 /
0.052500 0.000000
08/02/2016 /
0.052500 0.000000
07/05/2016 /
0.052500 0.000000
06/02/2016 /
0.052500 0.000000
05/03/2016 /
0.052500 0.000000
Historical Yields (Subsidized)

As of 03/31/2018

Past performance is not indicative of future results.
Composition As of 03/31/2018
High Yield Corporates 90.91
Industrial 82.80
Basic Industry 5.14
Capital Goods 15.52
Communications 7.26
Consumer Cyclical 15.12
Consumer Non-Cyclical 11.62
Energy 16.90
Technology 3.46
Transportation 4.00
Industrial Other 3.77
Utility 1.13
Financial Institutions 6.98
Banking --
Brokerage/Asset Managers/Exchanges 0.92
Finance Companies 2.27
Insurance 1.50
REITs 1.22
Financial Other 1.08
Bank Loans 8.31
Investment Grade Corporates --
Equity 0.32
Cash -0.80
BBB 1.52
BB 28.90
B 52.03
CCC 16.46
NR 1.89
Cash -0.80

Holdings As of 03/31/2018
Ceva Group Plc 0.99
Ctp Transportation Products LLC 0.75
Jpw Industries Holding Corp 0.75
Bjs Wholesale Club Inc 0.68
Gavilan Resources, LLC 0.68
Sesac Holdco Ii LLC 0.68
Office Depot, Inc. 0.67
Cpg Merger Sub LLC 0.67
Kemet Corp 0.66
Momentive Specialty Chemicals Inc 0.66
Total 7.19

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 msimcs@morganstanley.com.

Portfolio Characteristics
Number of holdings 280
Effective Duration 3.43
Average maturity 4.66
Average Price 100.07
Turnover (%) 73
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
Portfolio Managers
Managing Director
36 years industry experience
Managing Director
31 years industry experience
Executive Director
13 years industry experience
Insights by Global Fixed Income Team
Global Fixed Income Bulletin
What Can Derail the Carry Trade?
Dec 13, 2017
The Global Fixed Income team discusses how even though markets have run a long way, and future returns are likely to be more modest, the current environment is likely to continue in 2018.
Global Fixed Income Bulletin
Goldilocks Meets the Three Bears
Apr 13, 2018
The Global Fixed Income team discusses how January felt like Golidlock’s conditions for markets, but March brought the three bears of risk—trade war, rising short-term rates and FANG stocks.
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 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.

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 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.

 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. Quality distributionrefers to the rating given by a Nationally Recognized Statistical Rating Organization (“NRSRO”) and is the rating firms’ subjective opinion concerning the ability and willingness of an issuer to meet its financial obligations in full and on time. Ratings apply only to portfolio holdings and do not remove the Fund’s market risk. Quality distribution data for securities is sourced from Fitch, Moody’s and S&P. Where the credit ratings for individual securities differ between the three ratings agencies, the ‘highest’ rating is applied. The rating of credit default swaps is based on the ‘highest’ rating of the underlying reference bond. ‘Cash’ includes investments in short term instruments, including investments in Morgan Stanley liquidity funds.

Turnover is sourced from the fund's current prospectus.

 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 deviationmeasures 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. 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. High yield securities ("junk bonds") are lower rated securities that may have a higher degree of credit and liquidity risk. 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. Public bank loans are subject to liquidity risk and the credit risks of lower rated securities. 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. Distressed and defaulted securities are speculative and involve substantial risks in addition to the risks of investing in junk bonds. The Portfolio will generally not receive interest payments on the distressed securities and the principal may also be at risk. These securities may present a substantial risk of default or may be in default at the time of investment, requiring the portfolio to incur additional costs. Preferred securities are subject to interest rate risk and generally decreases in value if interest rates rise and increase in value if interest rates fall.Mezzanine investments are subordinated debt securities, thus they carry the risk that the issuer will not be able to meet its obligations and they may lose value. Foreign securities are subject to currency, political, economic and market risks. The risks of investing in emerging marketcountries are greater than risks associated with investments in foreign developed countries.

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 Bloomberg Barclays U.S. Corporate High-Yield Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The Index excludes emerging market debt. 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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