Annualized net yields which assumes dividends are not reinvested in the fund
The 30-day current yield are annualized net yields that describes 1-year earnings assuming dividends are reinvested at the average rate of the last 30 days.
The 5 year Earnings Per Share (EPS) growth rate is the weighted average of earnings per share growth for all securities in the portfolio projected for the past five fiscal years. Earnings per share for a company is defined as total earnings divided by shares outstanding.
The 7-day current yield subsidized is an annualized net yield which assumes dividends are not reinvested in the fund.
A1+/P1 - short-term credit ratings provided by Moody’s and S&P.
A1/P1 – short-term credit ratings provided by Moody’s and S&P.
Active share is a measure of the percentage of stock holdings in a managers portfolio that differ from the benchmark index (based on holdings and weight of holdings). Active share scores range from 0%-100%. A score of 100% means you are completely different from the benchmark.
Alpha is the excess return or value added (positive or negative) of the fund’s return relative to the return of the index.
Asset backed commercial paper – Short-term debt that has a fixed maturity of up to 270 days and is backed by some financial asset, such as trade receivables, consumer debt receivables, or auto and equipment loans or leases.
Average maturity – weighted average of the maturities of the underlying securities in the portfolio.
Average quality – average credit quality gives a snapshot of the portfolio's overall credit quality. It is an average of each security’s credit rating, adjusted for its relative weighting in the portfolio.
Average yield to maturity measures the annual return on interest-bearing securities. In this it is assumed that they will be held to maturity. This metric includes both the coupon payments received during the term of the security and the repayment of the capital on maturity.
Beta is a measure of the relative volatility of a fund 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.
Bloomberg stands for 'Bloomberg Global Identifier (BBGID)'. This is a unique 12 digit alphanumerical code designed to enable the identification of securities, such as the Morgan Stanley Investment Funds sub-funds at share class level, on a Bloomberg Terminal. The Bloomberg Terminal, a system provided by Bloomberg L.P., enables analysts to access and analyse real-time financial market data. Each Bloomberg code starts with the same BBG prefix, followed by nine further characters that we list here in this guide for each share class of each fund.
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.
Cash deposits – cash held on balance sheet at a bank or financial institution.
Certificate of Deposit - A document issued by a bank or other financial institution that is evidence of a deposit, with the issuer’s promise to return the deposit plus earnings at a specified interest rate within a specified time period.
Commercial Paper - Unsecured short-term corporate debt that is characterized by a single payment at maturity.
Commercial Paper - Interest Bearing - Unsecured short-term corporate debt that is characterized by a single payment at maturity that earns interest.
Conversion Premium is the amount by which the price of a convertible security exceeds the current market value of the common stock into which it may be converted.
Corporate and sovereign variable and fixed rate bonds – Variable bonds are bonds with floating coupon payments that are adjusted at specific intervals. Fixed rate bonds are long term debt paper that carry a predetermined interest rate.
Corporate Bond - A corporate bond is a debt security issued by a corporation backed by the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds. Corporate bonds are considered higher risk than government bonds and hence interest rates are generally higher.
A debt security issued by a corporation backed by the payment ability of the company, which is typically money to be earned from future operations.
Currency risk - The currency market is highly volatile. Prices in these markets are influenced by, among other things, changing supply and demand for a particular currency; trade; fiscal, money and domestic or foreign exchange control programs and policies; and changes in domestic and foreign interest rates.
Current Yield is a measure that looks at the current price of a bond instead of its face value and represents the return an investor would expect if he or she purchased the bond and held it for a year. Calculated by dividing the Annual Cash Inflows / Market Price.
CUSIP stands for 'Committee on Uniform Securities Identification Procedures'. It is a unique six-digit alphanumerical code, issued in North America, to enable the identification of securities.
Debt/equity (D/E) is a measure of a company’s financial leverage calculated by dividing its total liabilities by stockholders’ equity.
Dealing Deadline - the cut-off time for the applications for subscription, exchange or redemption of Shares in a Fund, as specified in “Fund Particulars.”
Delta is the ratio of the change in price of an option to the change in price of the underlying asset.
Distributed Yield is an aggregate of the previous four quarter-end dividend rates per share expressed as a percentage of the average of the quarter-ends' NAVs per share.
Dividend income is distributed to shareholders of the Fund on a quarterly basis. The latest dividend income is the amount stated in USD distributed per share to shareholders of the Fund on stated paid date.
Dividend yield is the ratio between how much a company pays out in dividends each year relative to its share price.
Down Capture Ratio is a statistical measure of an investment manager’s overall performance in down-markets. Downside capture indicates how correlated a fund is to a market, when the market declines.
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.
Effective equity exposure is the sum of two components: equity exposure from the fund’s actual equity holdings plus synthetic equity exposure created by the selling of put options on major equity indices.
Floating Rate Note - A debt instrument with a variable rate of interest that resets at specified intervals at a predetermined spread to an index or formula.
Free cash flow yield (Next 12 months) is a financial ratio that measures a company's operating free cash flow minus its capital expenditures per share and dividing by its price per share. Free cash flow yield ratio is calculated by using the underlying securities of the fund.
Debt obligations issued by government-sponsored enterprises (GSEs) - independent organizations sponsored by the federal government.
Government Bonds - Bonds issued by the U.S. Government, typically regarded as the highest-grade securities issues with the least amount of default risk.
Direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America.
Information ratio is the portfolio’s alpha or excess return per unit of risk, as measured by tracking error, versus the portfolio’s benchmark.
Interest Rate 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.
ISIN is the international securities identification number (ISIN), a 12 digit code consisting of numbers and letters that distinctly identifies securities.
Entry Charge is a maximum possible figure. In some cases you might pay less, you can find this out from your financial adviser.
Maximum investment maturity – represents the maximum days to maturity permitted for investments in the portfolio.
A highly liquid short-term debt instrument with a high credit rating. Examples include certificates of deposit, commercial paper, banker's acceptances and Treasury bills.
NAV is the Net Asset Value per share of the Fund (NAV), which represents the value of the assets of a fund less its liabilities.
Net cash to equity is the ratio of a company’s cash on hand against the total net worth of the company.
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.
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.
Other Tri-Party Repo – A repurchase agreement in which a third party agent, such as a clearing bank, acts as an intermediary to facilitate the exchange of cash and collateral between the two counterparties.
Price/book (P/BV) compares a stock's market value to the book value per share of total assets less total liabilities. This number is used to judge whether a stock is undervalued or overvalued.
Price/cash flow (P/CF) is a ratio used to compare a company's market value to its cash flow. It is calculated by dividing the company's per-share stock price by the per-share operating cash flow.
Price/earnings (P/E) is the price of a stock divided by its earnings per share for the past 12 months. 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.
R squared measures how well an investment’s returns correlate to an index. An R squared of 1.00 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.
Repurchase agreements - A form of collateralized loan involving the sale of a security with a simultaneous agreement by the seller to buy the same security back from the purchaser at an agreed-on price and future date. The party who sells the security at the inception of the repurchase agreement and buys it back at maturity is borrowing money from the other party, and the security sold and subsequently repurchased represents the collateral.
Return on capital is a measure of a company’s efficiency at allocating the capital under its control to profitable investments, calculated by dividing net income minus dividends by total capital.
Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
Sales growth is the increase in sales over a specific period of time, often but not necessarily annually.
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.
Target income is reviewed annually and is announced at the beginning of each calendar year. We expect the underlying portfolio, driven by our asset allocation methodology, to generate a natural income of around 2.5% p.a. This may come from dividends on equities or coupons on fixed income instruments. We estimate that by selling put options on major equity indices, the Fund can generate additional income of approximately 3.5% p.a., resulting in a total annual income of 6%. Where this income is paid from the capital, the result will be a reduction of the capital that the Fund has available for investment.
Time Deposit - A deposit in an interest¬-paying account that requires the money to remain in the account for a specific length of time, often overnight.
Total expenses (TER) charged to the share class for the current reporting month, calculated net of any waivers and expressed as an annualised percentage of average net assets for the month.
Tracking error is the standard deviation of the difference between the returns of an investment and its benchmark.
Treasury Bill - An obligation of the U.S. government with a maturity of one year or less. T-bills bear no interest but are sold at a discount.
Treasury Note - government-debt security with a coupon and original maturity of one to 10 years.
Tri-Party Repo - Repurchase agreement in which a third party is responsible for the management of the collateral during the life of the transaction.
Turnover is a measure of how frequently assets within a fund are bought and sold by the managers. Turnover is calculated by taking either the total amount of new securities purchased or the amount of securities sold - whichever is less - over a particular period, divided by the total net asset value of the fund.
Up-capture ratio is a statistical measure of an investment manager’s overall performance in up-markets. Upside capture indicates how correlated a fund is to a market, when the market rises.
Volatility (Standard deviation) measures how widely individual performance returns, within a performance series, are dispersed from the average or mean value.
Weighted average life (WAL) – measures the weighted average of the maturities of the portfolio’s individual holdings.
Weighted average market capitalization is a stock market index weighted by the market capitalization of each stock in the index. In such a weighting scheme, larger companies account for a greater portion of the index. Most indexes are constructed in this manner, with the best example being the S&P 500.
Weighted average maturity (WAM) – measures the weighted average of the maturities of the portfolio's individual holdings, taking into account reset dates for floating rate securities.
Weighted median market capitalization is the point at which half of the market value of a portfolio is invested in stocks with a greater market cap, and consequently the other half is invested in stocks with a lower market cap.
Yields are subject to change with economic conditions. Yield is only one factor that should be considered when making an investment decision.
Yield to Worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting. The yield to worst is calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer.