Emerging Markets Small Cap Portfolio
Share Class :
 
MSESX CUSIP: 61760X182
Emerging Markets Small Cap Portfolio
MSESX CUSIP: 61760X182
Share Class :

Emerging Markets Small Cap Portfolio

SHARE CLASS :
MSESX CUSIP: 61760X182
 
 
 
 
Investment Approach

We focus on high-quality small cap investments across emerging and frontier markets, and seek what we believe are the most compelling opportunities by building an actively managed, focused portfolio of companies potentially positioned to benefit from these growth themes. To help achieve our objective, we combine top-down country allocation with bottom-up stock selection. 

 
-0.8
Alpha (3 yr) (%)
33
Turnover (%)
6.2
Tracking error (3 yr) (%)
Dec '15
Share Class Launch Date
 
 
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 06/30/2019

As of 07/12/2019

As of 06/30/2019

As of 07/12/2019


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

    
Past performance is not indicative of future results. Information above does not take into account any applicable sales charges.
 
 
Average Annual Total Returns As of 06/30/2019 As of 06/30/2019
 
  SALES CHARGE:
 
  •  
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSESX -1.84 4.70 -- -- 5.66
MSCI Emerging Markets Small Cap Net Index (%) -5.12 5.46 -- -- 6.35
Lipper Category Average (%) 1.28 9.13 -- -- --
Morningstar Category Average (%) 1.16 8.92 -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSESX (%) -0.86 4.70 -- -- 5.66
MSCI Emerging Markets Small Cap Net Index (%) -5.12 5.46 -- -- 6.35
Lipper Category Average (%) 1.28 9.13 -- -- --
Morningstar Category Average (%) 1.16 8.92 -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSESX -1.84 4.70 -- -- 5.66
MSCI Emerging Markets Small Cap Net Index (%) -5.12 5.46 -- -- 6.35
Lipper Category Average (%) 1.28 9.13 -- -- --
Morningstar Category Average (%) 1.16 8.92 -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSESX (%) -0.86 4.70 -- -- 5.66
MSCI Emerging Markets Small Cap Net Index (%) -5.12 5.46 -- -- 6.35
Lipper Category Average (%) 1.28 9.13 -- -- --
Morningstar Category Average (%) 1.16 8.92 -- -- --
2012 2013 2014 2015 2016 2017 2018
MSESX -- -- -- -- -4.28 32.70 -16.66
MSCI Emerging Markets Small Cap Net Index (%) -- -- -- -- 2.28 33.84 -18.59
Lipper Category Average (%) -- -- -- -- 8.77 34.57 -16.27
Morningstar Category Average (%) -- -- -- -- 8.47 34.17 -16.10
Average Annual Total Returns
  SALES CHARGE:
As of 06/30/2019
TIMEFRAME MSESX MSCI Emerging Markets Small Cap Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -1.84 -5.12 1.28 1.16
3 Yrs 4.70 5.46 9.13 8.92
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception 5.66 6.35 -- --
TIMEFRAME MSESX MSCI Emerging Markets Small Cap Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -0.86 -5.12 1.28 1.16
3 Yrs 4.70 5.46 9.13 8.92
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception 5.66 6.35 -- --
As of 06/30/2019
TIMEFRAME MSESX MSCI Emerging Markets Small Cap Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -1.84 -5.12 1.28 1.16
3 Yrs 4.70 5.46 9.13 8.92
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception 5.66 6.35 -- --
TIMEFRAME MSESX MSCI Emerging Markets Small Cap Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -0.86 -5.12 1.28 1.16
3 Yrs 4.70 5.46 9.13 8.92
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception 5.66 6.35 -- --
TIMEFRAME MSESX MSCI Emerging Markets Small Cap Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2012 -- -- -- --
2013 -- -- -- --
2014 -- -- -- --
2015 -- -- -- --
2016 -4.28 2.28 8.77 8.47
2017 32.70 33.84 34.57 34.17
2018 -16.66 -18.59 -16.27 -16.10
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

TIMEFRAME:
    MSESX Index
Alpha (%) -0.03 --
Beta (vs. benchmark) 0.82 1.00
Excess return (%) -0.76 --
Information ratio -0.12 --
R squared 0.77 1.00
Sharpe ratio 0.28 0.32
Standard deviation (%) 11.96 12.74
Tracking error (%) 6.21 --
Up-capture ratio (%) 92.37 100.00
Down-capture ratio (%) 95.75 100.00
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)
07/05/2018 07/06/2018 07/06/2018 0.000000 0.169100 0.000000 0.169100
12/15/2017 12/18/2017 12/18/2017 0.000000 0.445300 0.000000 0.445300
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)
07/05/2018 07/06/2018 07/06/2018 0.000000 0.169100 0.000000 0.169100
12/15/2017 12/18/2017 12/18/2017 0.000000 0.445300 0.000000 0.445300
 
 
Composition As of 06/30/2019
  Fund Index
$3.5-7B 3.19 1.97
$1-3.5B 56.74 51.73
< $1B 40.07 45.84
Total 100.00 --
  Fund Index
Consumer Discretionary 25.25 14.03
Financials 17.71 10.87
Industrials 16.29 14.39
Information Technology 10.58 14.57
Consumer Staples 7.86 6.51
Communication Services 7.32 4.18
Health Care 4.57 7.80
Utilities 4.23 4.95
Materials 3.69 11.84
Cash & equivalents 2.51 --
Total 100.00 --


Geography As of 06/30/2019
  Fund Index
India 18.16 15.10
China 13.92 11.40
South Korea 12.77 15.80
Taiwan 12.76 18.88
Brazil 6.03 7.95
Indonesia 5.55 2.40
Philippines 3.93 0.99
Argentina 3.36 0.81
South Africa 3.05 5.61
Egypt 2.77 0.58
Other 15.17 --
Cash & equivalents 2.51 --
Total 100.00 --


Holdings As of 06/30/2019
Fund Index
Bermaz Auto Bhd 1.78 0.08
Bank Tabungan Pensiunan Nasion 1.71 0.07
Gujarat Gas Ltd 1.68 0.06
Indraprastha Gas Ltd 1.57 0.14
Banco ABC Brasil S.A. 1.54 0.06
Muangthai Capital Pcl 1.54 --
DuzonBizon Co. Ltd 1.51 0.15
Sunny Friend Environmental Technology Co. 1.51 0.08
TCI Express Ltd 1.48 --
CreditAccess Grameen Ltd 1.48 --
Total 15.80 --


Portfolio Characteristics
Fund Index
Active share (%) 95.52 --
Number of holdings 87 1,644
Price/earnings (NTM) 16.11 10.87
5 year EPS growth (%) 16.91 7.97
Turnover (%) 70 --
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
 
 
Portfolio Managers
Tim Drinkall
Managing Director
24 years industry experience
Omair Ansari
Vice President
13 years industry experience
 
 
 
Resources
Product Literature
 
 
Prospectus & Reports
SAI
 
 
 
 
 

Turnover is sourced from the fund's current prospectus.

 

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 Directors 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.

Returns for less than one year are cumulative (not annualized).

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.

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 or 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.

This material is a general communication, which is not impartial and all information provided has been prepared solely for informational and educational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

PORTFOLIO CHARACTERISTICS DEFINITIONS

The Net Asset Value (NAV) per share is determined by dividing the value of the fund's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding. The common share market price is the price the market is willing to pay for shares of the fund at a given time. 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. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Price/earnings (P/E) is the price of a stock divided by its earnings per share. 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.

Turnover is sourced from the fund's current prospectus.

The index data displayed under allocations are calculated using MSIM and other third-party methodologies and may differ from data published by the vendor.

Forecasts and estimates are subject to change and may not necessarily come to pass due to changing market and/or economic conditions. 

RISK/RETURN DEFINITIONS

Active Share is the fraction of the portfolio or fund that is invested differently than its benchmark as of the last day of the reporting period. A portfolio with a high degree of Active Share does not assure a fund’s relative outperformance. Active Share calculation may consolidate holdings with the same economic exposure. Excess Return or value added (positive or negative) is the portfolio’s return relative to the return of the benchmark. Alpha (Jensen's) is a risk-adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market return. Prior to 6/30/2018 Alpha was calculated as the excess return of the fund versus 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 ratiois 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. Tracking error is the amount by which the performance of the portfolio differs from that of the benchmark.

RISK CONSIDERATIONS

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. Accordingly, you can lose money investing. Please be aware that this portfolio may be subject to certain additional risks. In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries. Stocks of small- and medium-capitalization companies entail special risks, such as limited product lines, markets, and financial resources, and greater market volatility than securities of larger, more-established companies. Derivative instruments can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on the Portfolio’s performance. Illiquid securities may be more difficult to sell and value than public traded securities (liquidity risk). 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.

© 2019 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 MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. With 1,857 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country. The small cap segment tends to capture more local economic and sector characteristics relative to larger Emerging Markets capitalization segments.

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.

Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley.

NTM = Next 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.

 
 
 

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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