China Equity Portfolio
Share Class :
 
MAKCX CUSIP: 61768B703
China Equity Portfolio
MAKCX CUSIP: 61768B703
Share Class :

China Equity Portfolio

SHARE CLASS :
MAKCX CUSIP: 61768B703
 
 
 
 
Investment Objective
Seeks long-term capital appreciation.
Investment Approach
We seek long-term capital appreciation by investing in focused growth opportunities in Chinese equity securities listed on various exchanges, using a fundamental bottom-up stock selection process informed by macro thematic research on China. We employ this consistent and targeted approach seeking companies with strong sustainable earnings growth and fundamentals. We invest in high quality, growth businesses at attractive valuations with relatively long-term investment horizons. Structural growth and competitive advantage with financial strength are among the most important criteria for our active stock selection process.
 
 
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 06/30/2020

As of 08/04/2020

As of 06/30/2020

As of 08/04/2020


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 06/30/2020 As of 06/30/2020
 
 TIMEFRAME:
 
 
  SALES CHARGE:
 
  •  
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MAKCX -- -- -- -- 15.30
MSCI China (Net) Index (%) -- -- -- -- 14.14
Lipper Category Average (%) -- -- -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MAKCX (%) -- -- -- -- 16.30
MSCI China (Net) Index (%) -- -- -- -- 14.14
Lipper Category Average (%) -- -- -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MAKCX -- -- -- -- 15.30
MSCI China (Net) Index (%) -- -- -- -- 14.14
Lipper Category Average (%) -- -- -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MAKCX (%) -- -- -- -- 16.30
MSCI China (Net) Index (%) -- -- -- -- 14.14
Lipper Category Average (%) -- -- -- -- --
Average Annual Total Returns
  SALES CHARGE:
As of 06/30/2020
TIMEFRAME MAKCX MSCI China (Net) Index (%) Lipper Category Average (%)
1 Yr -- -- --
3 Yrs -- -- --
5 Yrs -- -- --
10 Yrs -- -- --
Since Inception 15.30 14.14 } --
TIMEFRAME MAKCX MSCI China (Net) Index (%) Lipper Category Average (%)
1 Yr -- -- --
3 Yrs -- -- --
5 Yrs -- -- --
10 Yrs -- -- --
Since Inception 16.30 14.14 } --
As of 06/30/2020
TIMEFRAME MAKCX MSCI China (Net) Index (%) Lipper Category Average (%)
1 Yr -- -- --
3 Yrs -- -- --
5 Yrs -- -- --
10 Yrs -- -- --
Since Inception 15.30 14.14 } --
TIMEFRAME MAKCX MSCI China (Net) Index (%) Lipper Category Average (%)
1 Yr -- -- --
3 Yrs -- -- --
5 Yrs -- -- --
10 Yrs -- -- --
Since Inception 16.30 14.14 } --
Past performance is not indicative of future results. The Portfolio's calendar year returns do not include the deduction of any applicable sales charges.
 
 
 
 
Composition As of 06/30/2020
  Fund
Consumer Discretionary 25.51
Communication Services 21.92
Consumer Staples 18.89
Financials 11.79
Health Care 10.65
Information Technology 4.16
Materials 2.43
Real Estate 2.18
Cash 3.13
  Fund
Interactive Media & Services 20.34
Internet & Direct Marketing Retail 16.22
Beverages 12.89
Pharmaceuticals 8.82
Banks 6.80
Diversified Consumer Services 6.41
Food Products 6.00
Textiles, Apparel & Luxury Goods 2.88
Semiconductors & Semiconductor Equipment 2.81
Insurance 2.59
Other 11.76
Cash 3.13
 
May not sum to 100% due to the exclusion of other assets and liabilities.


Holdings As of 06/30/2020
Fund
Tencent Holdings Ltd 20.34
Alibaba Group Holding Ltd 16.22
Kweichow Moutai Co. Ltd 8.50
China Mengniu Dairy Co. Ltd 4.42
China Resources Beer Holdings 4.38
New Oriental Education 3.67
China Construction Bank Corp 3.49
Sino Biopharmaceutical 3.26
Shenzhou International Group 2.88
Hua Hong Semiconductor Limited. 2.81
Total 69.97


Portfolio Characteristics
Fund
Active share (%) 50.77
Price/earnings (LTM) 20.45
Price/cash flow 18.54
Price/book 3.24
Return on equity (%) 19.22
Weighted average market capitalization ($B) 267.66
Weighted median market capitalization ($B) 138.17
Number of holdings 29
D/E weighted median (%) 36.19
 
 
Resources
Product Literature
 
 
Prospectus & Reports
SAI
 
 
 
 
 

Class C shares include deferred sales charge of 1.00% which declines to zero after first year.

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.

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.

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 region presented. 

Shares of the portfolio redeemed within 30 days of purchase will be subject to a 2% redemption fee, payable to the portfolio. The redemption fee is designed to protect the portfolio and its remaining shareholders from the effects of short-term trading.

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

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. Price/book 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/cashflow 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. Sometimes called the multiple, P/E gives investors an idea of how much they are paying for a company’s earning power. Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Weighted average market capitalization is an average of the market capitalization of stocks held by a portfolio or comprising an index, adjusted by each stock’s corresponding weight in the portfolio or index. Weighted median Debt to Equity ratiois the point at which half of the market value of a portfolio or index is invested in stocks with a greater Debt to Equity ratio, while the other half of the market value is invested in stocks with a lower Debt to Equity ratio. Debt/equity (D/E) is a measure of a company’s financial leverage calculated by dividing its total liabilities by stockholders’ equity. Weighted median market capitalization is the point at which half of the market value of a portfolio or index is invested in stocks with a greater market capitalization, and consequently the other half of the market value is invested in stocks with a lower market capitalization.

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 and that the value of Portfolio shares may therefore be less than what you paid for them. 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. Accordingly, you can lose money investing in this Portfolio. Please be aware that this portfolio may be subject to certain additional risks. In general, equity securities' values also fluctuate in response to activities specific to a company. Investments in securities of Chinese issuers, including A-shares, H-shares, B-shares and red chip shares, involve risks and special considerations not typically associated with investments in the U.S. securities markets or foreign developed markets, such as heightened market, political and liquidity risk. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries. By investing in investment company securities, the portfolio is subject to the underlying risks of that investment company's portfolio securities. In addition to the Portfolio's fees and expenses, the Portfolio generally would bear its share of the investment company's fees and expenses. Illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk). Derivative instruments can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on the portfolio’s performance. Non-diversified 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.

OTHER CONSIDERATIONS
The MSCI China (Net) Index captures large and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips and P-chips. It reflects the Mainland China and Hong Kong opportunity set from an international investor’s perspective.

The index is unmanaged and should not be considered an investment. It is not possible to invest directly in an index.

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.

 
 

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.

 

Check the background of our firm and registered representatives on FINRA's BrokerCheck

It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products.

The services described on this website may not be available in all jurisdictions or to all persons. For further details, please see our Terms of Use.

Not FDIC Insured—Offer No Bank Guarantee—May Lose Value
Not Insured By Any Federal Government Agency—Not A Deposit

Subscriptions    •    Privacy & Cookies    •    Terms of Use

©  Morgan Stanley. All rights reserved.

Morgan Stanley Distribution, Inc. Member FINRA/SIPC.