Emerging Markets Domestic Debt Fund

Share Class :
ISIN: LU0283960077
Marketing Communication
Emerging Markets Domestic Debt Fund
Marketing Communication
ISIN: LU0283960077
Share Class :

Emerging Markets Domestic Debt Fund

ISIN: LU0283960077

Marketing Communication

Important Information

  • The Fund invests primarily in a portfolio of emerging market bonds and other emerging market debt securities, denominated in the local currency of issue.
  • Investment involves risks. Key risks for this fund include Emerging Market Risk, Emerging Market Currency Risk, Exchange Rate Risk, Interest Rate Risk, Credit Risk, Derivatives Risk, Downgrading Risk, Unrated Securities Risk, Risk of Exposure to the Euro and Eurozone and Risk of Discretionary Distributing Share Class.
  • The Fund may pay distributions out of capital. Payment of dividends out of capital amounts to a return or withdrawal of part of a Shareholder’s original investment or from any capital gains attributable to that original investment. Any distribution involving payment of dividends out of capital may result in an immediate decrease of the NAV per share.
  • There is a risk that you may potentially lose your entire investment in this Fund.
  • The investment decision is yours but you should not invest unless the intermediary who sells it to you has advised you that it is suitable for you and has explained why, including how buying it would be consistent with your investment objectives. You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund details including risk factors.
  • The Fund may use derivatives for investment or efficient portfolio management (including hedging) purposes which may expose to higher counterparty, liquidity and valuation risks. The Fund may suffer losses from its derivatives usage. 
Investment Objective
To seek to maximise total return.
Investment Approach
Seeks to maximise total return primarily through investment in a portfolio of emerging market bonds and other emerging market debt securities, denominated in the local currency of issue. The Fund intends to invest its assets in emerging market debt securities that provide a high level of current income, while at the same time holding the potential for capital appreciation.

The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.

Pricing & Performance

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. All performance data is calculated NAV to NAV, net of fees, and does not take account of commissions and costs incurred on the issue and redemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management. Please click here for additional performance disclosures and important information, which should be reviewed carefully.

As of 30-Apr-2023

As of 30-May-2023

As of 30-Apr-2023

As of 30-May-2023

Performance of 100 USD invested
Performance of 100 USD invested

Average Annual Total Returns As of 30-Apr-2023 As of 31-Mar-2023
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class A USD (%) 7.20 -0.23 -2.42 -3.38 0.77
JPM GBI - EM Global Diversified Index (%) 6.56 -0.13 -1.62 -1.77 2.78
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class A USD (%) 0.00 0.58 -3.34 -3.19 0.68
JPM GBI - EM Global Diversified Index (%) -0.72 0.87 -2.37 -1.52 2.73
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Share Class A USD (%) -12.34 -9.92 2.08 12.37 -8.26 13.94 7.37 -17.16 -7.18 -13.25
JPM GBI - EM Global Diversified Index (%) -11.69 -8.75 2.69 13.47 -6.21 15.21 9.94 -14.92 -5.72 -8.98
Average Annual Total Returns
As of 30-Apr-2023
TIMEFRAME Share Class A USD (%) JPM GBI - EM Global Diversified Index (%)
1 Yr 7.20 6.56
3 Yrs -0.23 -0.13
5 Yrs -2.42 -1.62
10 Yrs -3.38 -1.77
Since Inception 0.77 2.78
As of 31-Mar-2023
TIMEFRAME Share Class A USD (%) JPM GBI - EM Global Diversified Index (%)
1 Yr 0.00 -0.72
3 Yrs 0.58 0.87
5 Yrs -3.34 -2.37
10 Yrs -3.19 -1.52
Since Inception 0.68 2.73
TIMEFRAME Share Class A USD (%) JPM GBI - EM Global Diversified Index (%)
2022 -12.34 -11.69
2021 -9.92 -8.75
2020 2.08 2.69
2019 12.37 13.47
2018 -8.26 -6.21
2017 13.94 15.21
2016 7.37 9.94
2015 -17.16 -14.92
2014 -7.18 -5.72
2013 -13.25 -8.98

Risk/Return Statistics

    Share Class A Index
Excess Return (%) -0.11 --
Alpha (%) -0.13 --
Beta 0.98 1.00
Information ratio -0.03 --
R squared 0.92 1.00
Sharpe ratio -0.11 -0.11
Tracking error (%) 3.19 --
Volatility (Standard deviation) (%) 11.25 10.95
Composition 4 As of 30-Apr-2023
Sovereign 95.83
Corporates 0.14
Cash 4.03
AAA 0.14
AA 3.15
A 20.93
BBB 37.15
BB 33.66
CCC 0.61
Not Rated 0.34
Cash 4.03
May not sum to 100% due to rounding.

Geography4 As of 30-Apr-2023
South Africa 11.78
Indonesia 10.65
Mexico 10.39
Brazil 9.57
Thailand 6.99
Dominican Republic 6.33
Malaysia 6.09
China 5.31
Romania 4.14
Other 24.73
Cash 4.03
May not sum to 100% due to rounding.

Holdings As of 30-Apr-2023
Brazil (Federative Republic of), 10.000000%, 2025-01-01 4.94
Brazil (Federative Republic of), 10.000000%, 2027-01-01 4.65
South Africa (Republic of), 8.750000%, 2044-01-31 4.20
China (Peoples Republic of), 2.680000%, 2030-05-21 3.97
South Africa (Republic of), 8.000000%, 2030-01-31 3.80
Malaysia (Federation of), 3.757000%, 2040-05-22 3.80
South Africa (Republic of), 9.000000%, 2040-01-31 3.80
Mexico (United Mexican States), 8.500000%, 2029-05-31 3.24
Czech, 2.000000%, 2033-10-13 3.15
Indonesia (Republic of), 7.500000%, 2035-06-15 2.64
Total 38.19

These securities and percentage allocations are only for illustrative purposes and do not constitute, and should not be construed as, investment advice or recommendations with respect to the securities or investments mentioned.

Portfolio Characteristics
Fund Index
Interest Rate Duration (years) 6.10 4.98
Average yield to maturity (%) 8.31 7.10
Number of holdings 82 324
Portfolio Managers
Sahil Tandon
Managing Director
19 years industry experience
Brian Shaw
Executive Director
16 years industry experience
Patrick Campbell
Executive Director
15 years industry experience

Team members may be subject to change at any time without notice.

Effective 19 July 2022, Brian Shaw and Patrick Campbell have been added as Portfolio Managers on the Fund. Warren Mar is no longer serving as Portfolio Manager on the Fund. 


** Calendar Year Return (%) is available by selecting the fund name in the pricing table.

Please visit our Glossary page for fund related terms and definitions.

Performance data quoted is based on average annualized returns and net of fees.

The source for all performance and index data is Morgan Stanley Investment Management Limited.

Past performance is not indicative of future results. The value of the investments and the income from them can go down as well as up and an investor may not get back the amount invested. Returns may increase or decrease as a result of currency fluctuations. Performance data for funds with less than one year's track record is not shown. Performance is calculated net of fees. YTD performance data is not annualised. Performance of other share classes, when offered, may differ. Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and key facts statement (KFS) contains this and other information about the fund. Please read the prospectus and KFS carefully before you invest.

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.

The Europe/Asia and South Africa category (EAA) includes funds domiciled in European markets, major cross-border Asian markets where material numbers of European UCITS funds are available (principally Hong Kong, Singapore and Taiwan), South Africa, and selected other Asian and African markets where Morningstar believes it is of benefit to investors for the funds to be included in the EAA classification system.

© 2023 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.

2 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.

3 Entry Charge is a maximum possible figure. In some cases you might pay less, you can find this out from your financial adviser. Ongoing Charges reflect the payments and expenses incurred during the fund's operation and are deducted from the assets of the fund over the period. It includes fees paid for investment management (Management Fee), trustee/custodian, and administration charges. The Minimum Initial Investment/Minimum Subsequent Investment amounts may be in US Dollars (or the Euro Yen or Sterling equivalent of the US Dollar amount). For more information please see the Charges and Expenses section of the prospectus.

4 May not sum to 100% due to rounding. 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. Cash & Equivalents are defined as the value of assets that can be converted into cash immediately. These include commercial paper, open FX transactions, Treasury bills and other short-term instruments.  Such instruments are considered cash equivalents because they are deemed liquid and not subject to significant risk of changes in values.

This communication was issued by Morgan Stanley Asia Limited for use in Hong Kong, and its contents have not been reviewed by the Securities & Futures Commission of Hong Kong.

Only A and C share classes of the Fund are authorized by the Securities & Futures Commission of Hong Kong to be offered to the public in Hong Kong. 

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.


This Fund is classified as an Article 8 product under the Sustainable Finance Disclosure Regulation. Article 8 products are those which promote environmental or social characteristics and which integrate sustainability into the investment process in a binding manner.

This is a Marketing Communication.

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