China Equity Portfolio

Share Class :
MAKIX CUSIP: 61768B505
China Equity Portfolio
MAKIX CUSIP: 61768B505
Share Class :

China Equity Portfolio

MAKIX CUSIP: 61768B505

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 07/31/2022

As of 08/12/2022

As of 07/31/2022

As of 08/12/2022

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

Past performance is not indicative of future results.
Average Annual Total Returns As of 07/31/2022 As of 06/30/2022
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MAKIX -27.15 -- -- -- -6.99
MSCI China (Net) Index (%) -28.35 -- -- -- -3.86
Lipper Category Average (%) -25.75 -- -- -- --
Morningstar Category Average (%) -23.98 -- -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MAKIX -32.97 -- -- -- -3.74
MSCI China (Net) Index (%) -31.79 -- -- -- -0.31
Lipper Category Average (%) -27.49 -- -- -- --
Morningstar Category Average (%) -25.53 -- -- -- --
2021 2020 2019 2018 2017 2016 2015
MAKIX -22.14 28.80 -- -- -- -- --
MSCI China (Net) Index (%) -21.72 29.49 -- -- -- -- --
Lipper Category Average (%) -9.13 39.27 -- -- -- -- --
Morningstar Category Average (%) -7.44 37.10 -- -- -- -- --
Average Annual Total Returns
As of 07/31/2022
TIMEFRAME MAKIX MSCI China (Net) Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -27.15 -28.35 -25.75 -23.98
3 Yrs -- -- -- --
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception -6.99 -3.86 } -- --
As of 06/30/2022
TIMEFRAME MAKIX MSCI China (Net) Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -32.97 -31.79 -27.49 -25.53
3 Yrs -- -- -- --
5 Yrs -- -- -- --
10 Yrs -- -- -- --
Since Inception -3.74 -0.31 } -- --
TIMEFRAME MAKIX MSCI China (Net) Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2021 -22.14 -21.72 -9.13 -7.44
2020 28.80 29.49 39.27 37.10
2019 -- -- -- --
2018 -- -- -- --
2017 -- -- -- --
2016 -- -- -- --
2015 -- -- -- --
Past performance is not indicative of future results. The Portfolio's calendar year returns do not include the deduction of any applicable sales charges.
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)
12/16/2021 12/17/2021 12/17/2021 0.219685 0.146500 0.000000 0.146500
12/15/2020 12/16/2020 12/16/2020 0.180218 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)
12/16/2021 12/17/2021 12/17/2021 0.219685 0.146500 0.000000 0.146500
12/15/2020 12/16/2020 12/16/2020 0.180218 0.000000 0.000000 0.000000
Composition As of 06/30/2022
Internet & Direct Marketing Retail 16.32
Interactive Media & Services 15.00
Beverages 10.90
Textiles, Apparel & Luxury Goods 6.89
Food Products 6.75
Specialty Retail 4.91
Banks 4.38
Life Sciences Tools & Services 3.74
Entertainment 3.19
Machinery 2.75
Other 13.91
Cash 10.91
May not sum to 100% due to the exclusion of other assets and liabilities.

Holdings As of 06/30/2022
Tencent Holdings Ltd 15.00
Meituan 7.92
Kweichow Moutai Co. Ltd 6.17
Alibaba Group Holding Ltd 4.55
China Merchants Bank 4.38
China Resources Beer Holdings Co. Ltd 3.65
Wuxi Biologics Cayman Inc 3.30
Pinduoduo Inc 3.28
China Tourism Group Duty Free Co. Ltd 2.96
Li Ning 2.77
Total 53.98

Portfolio Characteristics
Active share (%) 67.72
Price/earnings (LTM) 24.73
Price/cash flow 24.75
Price/book 4.26
Return on equity (%) 16.45
Weighted average market capitalization ($B) 148.60
Weighted median market capitalization ($B) 63.12
Number of holdings 30
D/E weighted median (%) 19.48
Turnover (%) 73
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
Product Literature
Prospectus & Reports

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 $1,000,000 for Class I shares.

Class R6 shares, are  being offered only to eligible investors who must meet a minimum initial investment of $5,000,000 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.


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 (LTM) 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. 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.

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. China Risk. Investments in securities of Chinese issuers, including A-shares, involve risks associated with investments in foreign markets as well as special considerations not typically associated with investments in the U.S. securities markets. Investments in China involve risk of a total loss due to government action or inaction. Additionally, the Chinese economy is export-driven and highly reliant on trade. Adverse changes to the economic conditions of its primary trading partners, such as the United States, Japan and South Korea, would adversely impact the Chinese economy and the Fund’s investments. Moreover, a slowdown in other significant economies of the world, such as the United States, the European Union and certain Asian countries, may adversely affect economic growth in China. An economic downturn in China would adversely impact the Portfolio’s investments. Risks of Investing through Stock Connect.Any investments in A-shares listed and traded through Stock Connect, or on such other stock exchanges in China which participate in Stock Connect is subject to a number of restrictions that may affect the Portfolio's investments and returns. Moreover, Stock Connect A shares generally may not be sold, purchased or otherwise transferred other than through Stock Connect in accordance with applicable rules. The Stock Connect program may be subject to further interpretation and guidance. There can be no assurance as to the program’s continued existence or whether future developments regarding the program may restrict or adversely affect the Portfolio's investments or returns. 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.

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 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.

LTM = Last Twelve 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.


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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