Senior Loan Portfolio
Share Class :
 
MSLGX CUSIP: 617455431
Senior Loan Portfolio
MSLGX CUSIP: 617455431
Share Class :

Senior Loan Portfolio

SHARE CLASS :
MSLGX CUSIP: 617455431
 
 
 
 
Investment Objective
Seeks a high level of current income.
Investment Approach
The Senior Loan Portfolio aims to provide a high level of current income by investing in senior secured floating rate loans and other fixed income securities. To help achieve its objective, the investment team starts with a topdown macroeconomic assessment combined with rigorous bottom-up credit analysis.
 
 
Pricing & Performance

As of 04/30/2020

As of 05/29/2020

As of 04/30/2020

As of 05/29/2020


    
Past performance is not indicative of future results. Information above does not take into account any applicable sales charges.
 
 
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)
05/01/2020 05/04/2020 05/04/2020 0.027102 0.000000 0.000000 0.000000
04/01/2020 04/02/2020 04/02/2020 0.024457 0.000000 0.000000 0.000000
03/02/2020 03/03/2020 03/03/2020 0.009371 0.000000 0.000000 0.000000
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)
05/01/2020 05/04/2020 05/04/2020 0.027102 0.000000 0.000000 0.000000
04/01/2020 04/02/2020 04/02/2020 0.024457 0.000000 0.000000 0.000000
03/02/2020 03/03/2020 03/03/2020 0.009371 0.000000 0.000000 0.000000
Historical Yields (Subsidized)

As of 04/30/2020

 
Past performance is not indicative of future results.
 
 
 
Holdings As of 04/30/2020
Fund
Diamond Sports Group Llc 1.75
Jaguar Holding Company Ii 1.62
Innophos Holdings 1.58
Lions Gate Capital Holdings Llc 1.54
Hearthside Group Holdings Llc 1.53
Surgery Center Holdings Inc 1.48
Abg Intermediate Holdings 2 Llc 1.46
Pisces Midco Inc 1.43
Allsup's Convenience Stores Inc 1.39
Playa Resorts Holding Bv 1.35
Total 15.13


 
 
Resources
Prospectus & Reports
SAI
 
 
 
 
 

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

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 click on the monthly radio button within the Performance tab 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.

Class A shares include maximum front-end sales charge of 5.50% (Alternatives), 5.25% (Equity) and 3.25% (Fixed Income), with the exception of Class A shares of the MSIFT Ultra-Short Income Portfolio, which does not have any front-end sales charge, the Class A shares of the MSIFT Short Duration Income Portfolio which has a 1.00% front-end sales charge, and the Class A shares of the MSIFT Ultra-Short Municipal Income Portfolio which has a maximum entry sales charge of 0.50% for single accounts under $250,000. 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 shares and Class IS shares as well as the Class IR shares and Institutional Class shares of the MSIFT Ultra-Short Income Portfolio 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 /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.

Short-term returns may not be indicative of the fund’s long-term performance potential. A fund’s performance, especially for very short time periods, should not be the sole factor in making your investment decision.

Inception Returns reflect the inception date of the fund.

Growth of Investment illustration is based on an initial investment of $10,000 made since fund inception, assumes reinvestment of dividends and capital gains and application of fees, but does not include sales charges. Performance would have been lower if sales charges 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.

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.

DEFINITIONS

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.

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. 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. A bond's Average price is calculated by adding its face value to the price paid for it and dividing the sum by two. The average price is sometimes used in determining a bond's yield to maturity where the average price replaces the purchase price in the yield to maturity calculation. Weighted Average Life (WAL) is a measure of sensitivity to liquidity and/or credit risk. Weighted average life takes into account all call options exercised by the issuer as well as permissible maturity shortening devices such as demand features.

Turnover is sourced from the fund's current prospectus.

Quality distribution refers 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.

RISK/RETURN DEFINITIONS

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. Information ratio is the portfolio’s alpha or excess return per unit of risk, as measured by tracking error, versus the portfolio’s benchmark. 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.

RISK CONSIDERATOINS

Senior Loans generally are floating rate loans, which are subject to interest rate risk, as the interest paid on the floating rate loans adjusts periodically based on changes in widely accepted reference rates. Furthermore, they are often issued in connection with highly leveraged transactions. These obligations are subject to greater credit risks than other investments including a greater possibility that the borrower may default or enter bankruptcy. Affiliates of the Portfolio may participate in the primary and secondary market for loan obligations. Such activities may restrict the Portfolio’s ability to acquire some loan obligations or affect the timing or price of such acquisitions. The Adviser may not have access to material non-public information regarding the borrower to which other lenders have access and thus may be at a material disadvantage in assessing the risk of loss. The value of the collateral, if any, securing a Senior Loan may decline, be insufficient to meet the obligations of the borrower or be difficult to liquidate. The Portfolio’s access to collateral, if any, may be limited by bankruptcy, other insolvency laws or by the type of Senior Loan purchased. A court could subordinate a Senior Loan, which typically holds a senior position in the capital structure of a borrower, to presently existing or future indebtedness or take other action detrimental to the holders of Senior Loans. 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 a rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions. In a declining interest-rate environment, the portfolio may generate less income. Longer-term securities may be more sensitive to interest rate changes. Liquidity Risk: The Fund may make investments that are illiquid or restricted or that may become less liquid in response to overall economic conditions or adverse investor perceptions, and which may entail greater risk than investments in other types of securities. Prepayment risk includes the possibility that the Portfolio may invest the proceeds at generally lower interest rates. The Fund may experience relatively greater difficulty or delays in enforcing its rights on its holdings of certain covenant lite loans and debt securities than its holdings of loans or securities with more traditional financial covenants, which may result in losses to the Fund. High yield securities (“junk bonds”) are lower rated securities that may have a higher degree of credit and liquidity risk. Repurchase Agreements are subject to credit and default risks. Borrowing and Leverage. The Fund can borrow from banks, a technique referred to as “leverage,” in amounts up to one third of the Fund’s total assets (including the amount borrowed) less all liabilities and indebtedness other than borrowings. The Fund can use those borrowings for investment-related purposes such as purchasing Senior Loans or other securities believed to be desirable by the Adviser when available. Leverage, including borrowing, may cause the Fund to be more volatile than if the Fund had not been leveraged. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities. Reverse repurchase agreements may be viewed as a speculative form of borrowing called leveraging. The Portfolio is more susceptible to any economic, business, political, regulatory or other developments that adversely affect issuers in the financial services industry than a fund that does not concentrate its investments in the financial services industry. Derivatives 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. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. 

OTHER CONSIDERATIONS

The S&P/LSTA Leveraged Loan Index is an index that covers more than 1,100 loan facilities and reflects the market-value-weighted performance of U.S. dollar denominated institutional leveraged loans.

The index is unmanaged and does not include any expenses, fees or sales charges.

Please consider the investment objectives, risks, charges and expenses of the fund(s) carefully before investing. The prospectus contains this and other information about the fund(s). To obtain a prospectus, contact your financial advisor or click here. Please read the prospectus carefully before investing.

Morgan Stanley Investment Management 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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