NextGen Emerging Markets Fund

Share Class :
 
ISIN: LU0118140184
Marketing Communication
NextGen Emerging Markets Fund
Marketing Communication
ISIN: LU0118140184
Share Class :

NextGen Emerging Markets Fund

SHARE CLASS :
ISIN: LU0118140184
 

Marketing Communication

 
 
Investment Objective
Long term growth of your investment.
Investment Approach
We look for the next generation investment ideas in emerging and frontier markets. We focus on overlooked consumer markets in the early stages of the digital revolution, which offers significant business opportunities for innovative companies, and a path towards more sustainable development. Based on a rigorous and repeatable investment process, we run a concentrated portfolio of dynamic companies with the capacity to generate attractive and sustainable returns to investors over the long-term.
 
3.54
Alpha (%)
42
Turnover (%)
12.61
Tracking error (3 yr) (%)
Oct '00
Share Class Launch Date

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.

The Blended Index performance shown is calculated using the MSCI EM Europe, Middle East Gross Index from inception through 31 December 2000, the MSCI EM Europe Middle East Net Index through 16 April 2008, the MSCI Emerging Europe, Middle East and Africa Net Index through 15 May 2022 and the MSCI Frontier Emerging Markets Net Index thereafter.

As of 31-Jul-2022

As of 18-Aug-2022

As of 31-Jul-2022

As of 18-Aug-2022


Performance of 100 EUR invested
Performance of 100 EUR invested

     
 
 
Average Annual Total Returns As of 31-Jul-2022 As of 30-Jun-2022
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class I EUR (%) -23.74 0.29 0.95 3.81 6.01
Blended Benchmark (%) -13.06 -3.20 0.31 0.18 3.21
MSCI Frontier Emerging Markets Net Index (%) 4.39 -2.87 0.78 -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class I EUR (%) -26.30 -1.26 0.07 3.76 5.76
Blended Benchmark (%) -16.44 -3.97 -0.01 0.33 3.03
MSCI Frontier Emerging Markets Net Index (%) -3.53 -3.32 -0.23 -- --
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Share Class I EUR (%) 34.33 -5.56 24.26 -14.85 15.66 11.35 6.34 -7.09 11.11 20.01
Blended Benchmark (%) 26.97 -14.60 17.64 -11.81 9.40 23.53 -10.93 -3.41 -9.26 19.99
MSCI Frontier Emerging Markets Net Index (%) 12.21 -10.70 16.19 -10.29 11.37 8.14 -- -- -- --
Average Annual Total Returns
As of 31-Jul-2022
TIMEFRAME Share Class I EUR (%) Blended Benchmark (%) MSCI Frontier Emerging Markets Net Index (%)
1 Yr -23.74 -13.06 4.39
3 Yrs 0.29 -3.20 -2.87
5 Yrs 0.95 0.31 0.78
10 Yrs 3.81 0.18 --
Since Inception 6.01 3.21 --
As of 30-Jun-2022
TIMEFRAME Share Class I EUR (%) Blended Benchmark (%) MSCI Frontier Emerging Markets Net Index (%)
1 Yr -26.30 -16.44 -3.53
3 Yrs -1.26 -3.97 -3.32
5 Yrs 0.07 -0.01 -0.23
10 Yrs 3.76 0.33 --
Since Inception 5.76 3.03 --
TIMEFRAME Share Class I EUR (%) Blended Benchmark (%) MSCI Frontier Emerging Markets Net Index (%)
2021 34.33 26.97 12.21
2020 -5.56 -14.60 -10.70
2019 24.26 17.64 16.19
2018 -14.85 -11.81 -10.29
2017 15.66 9.40 11.37
2016 11.35 23.53 8.14
2015 6.34 -10.93 --
2014 -7.09 -3.41 --
2013 11.11 -9.26 --
2012 20.01 19.99 --

 
 
Risk/Return Statistics

TIMEFRAME:
    Share Class I Index
Alpha (%) 3.54 --
Beta 1.01 1.00
Excess Return (%) 3.50 --
Information ratio 0.28 --
R squared 0.75 1.00
Sharpe ratio 0.03 -0.13
Volatility (Standard deviation) (%) 25.25 21.56
Tracking error (%) 12.61 --
Up-capture ratio (%) 101.45 100.00
Down-capture ratio (%) 90.17 100.00
Risk/Return statistics shown are calculated versus the Blended Benchmark when an Index is used in the calculation.
 
 
 
Risk and Reward Profile As of 16-May-2022
 
 
Lower Risk
High Risk
Potentially
Lower Rewards
Potentially
Higher Rewards
 
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk free investment.
  • The fund is in this category because it invests in shares of companies from emerging markets and the fund's simulated and/or realised return has experienced high rises and falls historically.
  • The Fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The Fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • Sustainability factors can pose risks to investments, for example: impact asset values, increased operational costs.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Investment in China A-Shares via Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs may also entail additional risks, such as risks linked to the ownership of shares.
  • There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets. Due to the nature of the markets in which the fund invests, there might be circumstances where the safekeeping and custody arrangements of the fund are not as secure as those of more developed markets.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • 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.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk free investment.
  • The fund is in this category because it invests in shares of companies from emerging markets and the fund's simulated and/or realised return has experienced high rises and falls historically.
  • The Fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The Fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • Sustainability factors can pose risks to investments, for example: impact asset values, increased operational costs.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Investment in China A-Shares via Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs may also entail additional risks, such as risks linked to the ownership of shares.
  • There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets. Due to the nature of the markets in which the fund invests, there might be circumstances where the safekeeping and custody arrangements of the fund are not as secure as those of more developed markets.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • 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.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
 
 
 
 
Composition 4 As of 31-Jul-2022
  Fund Index
Information Technology 25.51 0.22
Consumer Discretionary 13.91 6.85
Financials 12.21 48.32
Communication Services 11.72 10.26
Consumer Staples 9.15 3.71
Materials 8.22 14.96
Energy 4.64 5.96
Health Care 2.09 1.70
Cash 12.18 --
  Fund Index
> $20B 19.89 32.06
$7-20B 23.74 26.41
$3.5-7B 21.09 21.18
$1-3.5B 15.71 19.97
< $1B 19.58 0.39
 
May not sum to 100% due to the exclusion of other assets and liabilities.


Geography4 As of 31-Jul-2022
  Fund Index
United States 17.92 --
Vietnam 14.76 --
Poland 13.69 4.83
Indonesia 12.20 --
South Africa 7.51 27.45
Kenya 4.42 --
Singapore 3.99 --
Bangladesh 2.54 --
Kazakhstan 2.49 --
Other 7.93 67.72
Cash 12.18 --
 
May not sum to 100% due to the exclusion of other assets and liabilities.
If you would like to request more recent information on the fund, including regional allocations, please email emeacrmteam@morganstanley.com.


Holdings As of 31-Jul-2022
Fund Index
PT Bank Mandiri Tbk 5.26 --
FTP Corp 5.25 --
Mobile World Investment Corp 5.21 --
Mercadolibre Inc 4.97 --
Industri Jamu dan Farmasi Sido Muncul Tbk PT 4.86 --
EPAM Systems Inc 4.77 --
Safaricom Plc 4.42 --
Capitec Bank Holdings Ltd 4.41 1.24
Vietnam Dairy Products JSC 4.29 --
Grid Dynamics Holdings Inc 4.20 --
Total 47.64 --

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
Active share (%) 95.57 --
Number of holdings 24 146
Price/earnings (NTM) 13.89 10.53
5 year EPS growth (%) 12.32 5.87
Turnover (%) 42 --

Portfolio turnover is sourced from the Fund’s latest Annual/Semi-annual report. View the latest report for a description of methodology.

 
 
Portfolio Managers
Steven Quattry
Executive Director
18 years industry experience
Jorge Chirino
Executive Director
16 years industry experience

Effective May 16, 2022, Eric Carlson and Paul Psaila no longer serve as a Portfolio Managers on the Portfolio. Effective May 16 2022, Steven Quattry was added as Co-Lead Portfolio Manager on the Portfolio.

 
 
 
 

Applications for shares in the Fund should not be made without first consulting the current Prospectus and the Key Investor Information Document (“KIID”), which are available in English and in the official language of your local jurisdiction at morganstanleyinvestmentfunds.com or free of charge from the Registered Office of Morgan Stanley Investment Funds, European Bank and Business Centre, 6B route de Trèves, L-2633 Senningerberg, R.C.S. Luxemburg B 29 192.  

Information in relation to sustainability aspects of the Fund and the summary of investor rights is available at the aforementioned website.

If the management company of the relevant Fund decides to terminate its arrangement for marketing that Fund in any EEA country where it is registered for sale, it will do so in accordance with the relevant UCITS rules.

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.

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 Fund is actively managed, and the management of the fund is not constrained by the composition of the Benchmark.

The use of leverage increases risks, such that a relatively small movement in the value of an investment may result in a disproportionately large movement, unfavourable as well as favourable, in the value of that investment and, in turn, the value of the Fund.

The Blended Index performance shown is calculated using the MSCI EM Europe, Middle East Gross Index from inception through 31 December 2000, the MSCI EM Europe Middle East Net Index through 16 April 2008, the MSCI Emerging Europe, Middle East and Africa Net Index through 15 May 2022 and the MSCI Frontier Emerging Markets Net Index thereafter.

The MSCI EM Europe, Middle East Index captures large and mid-cap representation across 8 Emerging Markets (EM) countries in Europe and Middle East.

The MSCI Emerging Markets Europe, Middle East and Africa Net Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the emerging market countries of Europe, the Middle East & Africa.

The MSCI Frontier Emerging Markets Net Index is a free float adjusted market capitalization index designed to serve as a benchmark covering all countries from the MSCI Frontier Markets Index and the lower size spectrum of the MSCI Emerging Markets Index.

The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index.

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. For additional information regarding sector classification/definitions please visit www.msci.com/gics and the glossary page. 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.

Effective 16 May, 2022, the Morgan Stanley Investment Funds Emerging Europe Middle East and Africa Fund was renamed to Morgan Stanley Investment Funds NextGen Emerging Markets Fund, with an expanded investment universe to include equity securities of companies operating in emerging market countries, which include frontier emerging market countries, and an updated investment approach to reflect top-down allocations are made at the macro and thematic levels. Please see the prospectus for more details.

NTM = Next Twelve Months

 

Turnover based over the last 12 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.

 
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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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