Emerging Markets Leaders Portfolio

Share Class :
MELIX CUSIP: 61760X612
Emerging Markets Leaders Portfolio
MELIX CUSIP: 61760X612
Share Class :

Emerging Markets Leaders Portfolio

MELIX CUSIP: 61760X612

Investment Objective

Seeks long-term capital appreciation.

Investment Approach
We seek structural compounders that benefit from growth in emerging markets, and focus on large, continental-sized markets such as Greater China, India, Latin America and Southeast Asia. This high-conviction and benchmark agnostic portfolio focuses on risk diversification. We aim to deliver strong risk-adjusted returns with select country and thematic exposures. ESG focus and integration is at the core of the investment 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 08/31/2023

As of 10/02/2023

As of 08/31/2023

As of 10/02/2023

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

Past performance is not indicative of future results.
Average Annual Total Returns As of 08/31/2023 As of 06/30/2023
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MELIX -3.66 -4.62 5.31 4.34 4.07
MSCI Emerging Markets Net Index (%) 1.25 -1.39 0.98 2.99 1.18
Lipper Category Average (%) 5.01 -1.76 1.07 2.53 --
Morningstar Category Average (%) 4.91 0.00 1.75 3.01 --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MELIX 2.88 2.39 5.89 4.23 4.28
MSCI Emerging Markets Net Index (%) 1.75 2.32 0.93 2.95 1.22
Lipper Category Average (%) 5.69 1.92 0.79 2.40 --
Morningstar Category Average (%) 5.39 3.40 1.48 2.89 --
2022 2021 2020 2019 2018 2017 2016
MELIX -33.49 1.84 59.36 26.63 -14.12 26.01 3.08
MSCI Emerging Markets Net Index (%) -20.09 -2.54 18.31 18.42 -14.57 37.28 11.19
Lipper Category Average (%) -23.02 -0.58 19.50 20.54 -16.27 34.57 8.77
Morningstar Category Average (%) -20.86 0.38 17.90 19.25 -16.07 34.17 8.47
Average Annual Total Returns
As of 08/31/2023
TIMEFRAME MELIX MSCI Emerging Markets Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr -3.66 1.25 5.01 4.91
3 Yrs -4.62 -1.39 -1.76 0.00
5 Yrs 5.31 0.98 1.07 1.75
10 Yrs 4.34 2.99 2.53 3.01
Since Inception 4.07 1.18 } -- --
As of 06/30/2023
TIMEFRAME MELIX MSCI Emerging Markets Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 2.88 1.75 5.69 5.39
3 Yrs 2.39 2.32 1.92 3.40
5 Yrs 5.89 0.93 0.79 1.48
10 Yrs 4.23 2.95 2.40 2.89
Since Inception 4.28 1.22 } -- --
TIMEFRAME MELIX MSCI Emerging Markets Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2022 -33.49 -20.09 -23.02 -20.86
2021 1.84 -2.54 -0.58 0.38
2020 59.36 18.31 19.50 17.90
2019 26.63 18.42 20.54 19.25
2018 -14.12 -14.57 -16.27 -16.07
2017 26.01 37.28 34.57 34.17
2016 3.08 11.19 8.77 8.47
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

    MELIX Index
Alpha (%) -3.69 --
Beta (vs. benchmark) 0.85 1.00
Excess return (%) -3.24 --
Information ratio -0.28 --
R squared 0.65 1.00
Sharpe ratio -0.33 -0.17
Standard deviation (%) 18.88 17.86
Tracking error (%) 11.50 --
Up-capture ratio (%) 90.90 100.00
Down-capture ratio (%) 105.53 100.00
    MELIX Index
Alpha (%) 4.28 --
Beta (vs. benchmark) 0.94 1.00
Excess return (%) 4.33 --
Information ratio 0.37 --
R squared 0.70 1.00
Sharpe ratio 0.17 -0.04
Standard deviation (%) 21.47 19.20
Tracking error (%) 11.83 --
Up-capture ratio (%) 112.91 100.00
Down-capture ratio (%) 95.38 100.00
Past performance is not indicative of future results.
 Tax Center   
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 0.000000 0.006100 0.010200 0.016300
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 0.000000 0.006100 0.010200 0.016300
Composition As of 06/30/2023
  Fund Index
Consumer Discretionary 30.26 13.20
Financials 28.33 21.93
Industrials 14.85 6.33
Information Technology 12.50 21.17
Consumer Staples 6.99 6.36
Materials 4.54 8.09
Communication Services 1.56 9.78
Health Care 0.48 3.76
Cash 1.35 --
May not sum to 100% due to the exclusion of other assets and liabilities.

Geography As of 06/30/2023
  Fund Index
India 37.12 14.63
China 24.15 29.55
Brazil 10.23 5.54
Taiwan 9.53 15.60
United States 7.22 --
Argentina 5.44 --
South Korea 4.92 12.30
Singapore 0.90 --
Cash 1.35 --
May not sum to 100% due to the exclusion of other assets and liabilities.

Holdings As of 08/31/2023
Fund Index
MercadoLibre Inc 7.17 --
Shenzhou International Group 6.86 0.13
Globant S.A. 6.33 --
Bajaj Finance Ltd 6.15 0.36
NU Holdings Ltd 5.53 --
AU Small Finance Bank Ltd 5.52 0.02
SK Hynix Inc 5.28 0.76
BYD Co. Ltd 4.77 0.52
Li Ning 4.71 0.17
Kei Industries Ltd 4.30 --
Total 56.62 --

Full Holdings Report available at least 15 calendar days after quarter-end.

If you would like to request more recent information on the fund, please email empr@morganstanley.com

Portfolio Characteristics
Fund Index
Active share (%) 93.81 --
Number of holdings 33 1,423
Price/earnings (LTM) 31.11 11.64
5 year EPS growth (%) 24.85 15.93
Price/book 4.62 1.57
Return on equity (%) 17.00 15.48
Turnover (%) 62 --
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
Prospectus & Reports

Pursuant to an agreement and plan of reorganization, between the fund, on behalf of the Emerging Markets Leaders Portfolio (the “Portfolio”), and Morgan Stanley Emerging Markets Leaders Fund (Cayman) LP (the “Private Fund”), a private fund managed by Morgan Stanley Investment Management Inc., the Portfolio’s adviser, on January 6, 2015, the Portfolio acquired substantially all of the assets and liabilities of the Private Fund in exchange for shares of the Portfolio (the “Reorganization”). The Private Fund commenced operations on June 30, 2011, and had an investment objective, policies , and strategies that were, in all material respects, the same as those of the Portfolio, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Portfolio. However, the Private Fund was not registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”), and therefore was not subject to certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, as amended, which, if applicable, may have adversely affected its performance . The Portfolio adopted the performance history of the Private Fund. As a result, the historical performance information shown reflects, for the periods prior to the Reorganization, the historical performance of the Private Fund. The performance of the Private Fund has been restated to reflect any applicable sales charge but is otherwise not adjusted to reflect differences in expenses between the Private Fund and each Class. If adjusted to reflect such difference in expenses, returns would be different. Fund and performance information is as of September 30, 2015, unless otherwise noted. Performance information for periods prior to the Reorganization reflects the information of the Private Fund.

The Reorganization occurred on January 6, 2015. The inception date reflects the inception date of the Private Fund.

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

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.

Please keep in mind that double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions. 

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.

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 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.

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. Earnings per share (EPS) growth is the weighted average of earnings per share growth for all securities in the portfolio projected for the past three fiscal years. Earnings per share for a company is defined as total earnings divided by shares outstanding. 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. 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. 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. 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. 

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

 (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. Excess Return or value added (positive or negative) is the portfolio’s return relative to the return of the benchmark. Information ratio is 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. Upside/downside market capture measures annualized performance in up/down markets relative to the market benchmark. 

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. 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. 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 publicly 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. 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. ESG Strategies that incorporate impact investing and/or Environmental, Social and Governance (ESG) factors could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. As a result, there is no assurance ESG strategies could result in more favorable investment performance.

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.

© 2023 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.

(2) The MSCI Emerging Markets Net Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of emerging markets. The term “free float” represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The MSCI Emerging Markets Index currently consists of 24 emerging-market country indices. The performance of the index is listed in U.S. dollars and assumes reinvestment of net dividends. The index does not include any expenses, fees or sales charges, which would lower performance.

The index is unmanaged and does not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor.

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.

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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