Global Sustain Portfolio

Share Class :
MGQIX CUSIP: 61760X653
Overall Morningstar Rating
Global Sustain Portfolio
MGQIX CUSIP: 61760X653
Share Class :

Global Sustain Portfolio

MGQIX CUSIP: 61760X653
Overall Morningstar Rating
Ratings are historical and do not guarantee future results. For standardized ratings information refer to the Pricing & Performance section. Please click here for additional disclosures.
Investment Objective

Seeks long-term capital appreciation.

Investment Approach
The investment team believes that the best way to compound wealth is by owning very high-quality companies with sustainable high returns over the long term. Social and environmental risks that are material to the sustainability of returns are more important than ever given political and social change. Leading the way on such issues can be a positive force for corporate success if it drives consumer and/or employee engagement. The higher the quality of a company, the more important the governance. The Fund typically invests in intrinsically carbon-light companies and has a significantly lower carbon footprint than the broader market, with a robust carbon-related exclusions policy and filtering process. In addition to its carbon exclusions, the Portfolio has a number of business activity1 exclusions, including alcohol, gambling, tobacco and weapons. The investment team views long-term portfolio manager-led engagement as a critical underpinning to an active 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 11/30/2021

As of 12/06/2021

As of 11/30/2021

As of 12/06/2021

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

Past performance is not indicative of future results.
Average Annual Total Returns As of 11/30/2021 As of 09/30/2021
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MGQIX 14.90 16.17 16.23 -- 12.42
MSCI World Net Index (%) 21.78 16.89 14.61 -- 11.47
Lipper Category Average (%) -- -- -- -- --
Morningstar Category Average (%) -- -- -- -- --
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MGQIX 15.78 14.07 14.77 -- 12.39
MSCI World Net Index (%) 28.82 13.14 13.74 -- 11.26
Lipper Category Average (%) 23.88 17.08 16.60 -- --
Morningstar Category Average (%) 25.83 11.02 11.62 -- --
2020 2019 2018 2017 2016 2015 2014
MGQIX 15.96 30.03 0.60 22.86 4.20 5.27 2.66
MSCI World Net Index (%) 15.90 27.67 -8.71 22.40 7.51 -0.87 4.94
Lipper Category Average (%) 27.59 30.32 -6.23 27.89 1.84 2.90 2.79
Morningstar Category Average (%) 17.67 25.68 -9.64 23.61 5.54 -1.69 2.79
Average Annual Total Returns
As of 11/30/2021
TIMEFRAME MGQIX MSCI World Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 14.90 21.78 -- --
3 Yrs 16.17 16.89 -- --
5 Yrs 16.23 14.61 -- --
10 Yrs -- -- -- --
Since Inception 12.42 11.47 } -- --
As of 09/30/2021
TIMEFRAME MGQIX MSCI World Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
1 Yr 15.78 28.82 23.88 25.83
3 Yrs 14.07 13.14 17.08 11.02
5 Yrs 14.77 13.74 16.60 11.62
10 Yrs -- -- -- --
Since Inception 12.39 11.26 } -- --
TIMEFRAME MGQIX MSCI World Net Index (%) Lipper Category Average (%) Morningstar Category Average (%)
2020 15.96 15.90 27.59 17.67
2019 30.03 27.67 30.32 25.68
2018 0.60 -8.71 -6.23 -9.64
2017 22.86 22.40 27.89 23.61
2016 4.20 7.51 1.84 5.54
2015 5.27 -0.87 2.90 -1.69
2014 2.66 4.94 2.79 2.79
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

    MGQIX Index
Alpha (%) 2.91 --
Beta (vs. benchmark) 0.77 1.00
Excess return (%) -0.72 --
Information ratio -0.11 --
R squared 0.89 1.00
Tracking error (%) 6.43 --
Standard deviation (%) 14.77 18.05
Sharpe ratio 1.03 0.88
Up-capture ratio (%) 83.70 100.00
Down-capture ratio (%) 78.45 100.00
    MGQIX Index
Alpha (%) 4.46 --
Beta (vs. benchmark) 0.79 1.00
Excess return (%) 1.62 --
Information ratio 0.28 --
R squared 0.85 1.00
Tracking error (%) 5.87 --
Standard deviation (%) 12.80 14.96
Sharpe ratio 1.18 0.90
Up-capture ratio (%) 91.16 100.00
Down-capture ratio (%) 75.25 100.00
Past performance is not indicative of future results.
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)
12/15/2020 12/16/2020 12/16/2020 0.060465 0.356500 0.004700 0.361200
12/13/2019 12/16/2019 12/16/2019 0.082180 0.229500 0.084500 0.314000
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)
12/15/2020 12/16/2020 12/16/2020 0.060465 0.356500 0.004700 0.361200
12/13/2019 12/16/2019 12/16/2019 0.082180 0.229500 0.084500 0.314000
Composition As of 09/30/2021
  Fund Index
Information Technology 37.07 22.53
Health Care 26.73 12.61
Consumer Staples 15.37 6.89
Financials 8.03 13.69
Industrials 6.25 10.31
Communication Services 3.43 9.13
Consumer Discretionary 1.00 12.13
Cash 2.67 --
May not sum to 100% due to the exclusion of other assets and liabilities.

Geography As of 09/30/2021
  Fund Index
United States 70.38 67.66
Germany 10.03 2.65
United Kingdom 8.61 4.18
Canada 3.54 3.24
Taiwan 2.44 --
Hong Kong 1.59 0.86
France 1.29 3.26
Cash 2.67 --
Country weightings arise from our bottom-up fundamental analysis. The team seeks superior companies that are attractively valued regardless of country of domicile.
May not sum to 100% due to the exclusion of other assets and liabilities.

Holdings As of 10/31/2021
Fund Index
Microsoft Corp 7.84 3.88
SAP SE 5.15 0.25
Accenture Plc 4.97 0.37
Reckitt Benckiser Plc 4.84 0.09
Visa Inc 4.76 0.59
Thermo Fisher Scientific Inc 4.06 0.41
Abbott Laboratories 3.95 0.37
Danaher Corp 3.92 0.33
Baxter International Inc 3.91 0.06
Becton Dickinson and Co. 3.88 0.11
Total 47.28 --

Complete holdings for Global Sustain Portfolio will be publicly available on a quarterly basis 15 calendar days after the quarter-end by calling (800) 548-7786 or emailing client service at

Portfolio Characteristics
Fund Index
Active share (%) 87.39 --
Number of holdings 37 1,561
Price/earnings (NTM) 23.96 18.61
Price/free cash flow (NTM) 25.24 22.11
Turnover (%) 20 --
Portfolio turnover is sourced from the fund's current prospectus. View current prospectus for the as of date.
Investment Team
William Lock
Head of International Equity Team
29 years industry experience
Bruno Paulson
Managing Director
27 years industry experience
Nic Sochovsky
Managing Director
23 years industry experience
Marcus Watson
Executive Director
13 years industry experience
Alex Gabriele
Executive Director
12 years industry experience
Nathan Wong
Executive Director
21 years industry experience
Richard Perrott
Executive Director
15 years industry experience
Vladimir Demine
Head of ESG Research
19 years industry experience
Isabelle Mast
Executive Director
16 years industry experience

Team members may be subject to change at any time without notice. The investment team currently has 13 members; information on additional team members can be found on

Effective March 31, 2021, Dirk Hoffmann-Becking has retired and is no longer serving as a portfolio manager for the Portfolio.


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.

The Fund has suspended offering Class L shares of the Portfolio for sale to all investors.

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.

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 for less than one year are cumulative (not annualized). Performance of other share classes will vary. Returns are net of fees and assume the reinvestment of all dividends and income.

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. 

Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass.

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. 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 (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.  Price to Free Cash Flow (P/FCF) is a ratio used to compare a company’s market value to its free cash flow. It is calculated by dividing the company’s per-share stock price by its per-share free cash flow. Free Cash flow is calculated by subtracting a company’s Capital Expenditures from its Operating Cash flow.

Turnover is sourced from the fund's current prospectus.

Subject to change daily.  Portfolio information, 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 presented.  Monthly holdings are updated 15 calendar days after month-end.

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

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. 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 deviationmeasures 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 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, 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 risks 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. 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. Derivative 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. Illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk). Privately placed and restricted securities may be subject to resale restrictions as well as a lack of publicly available information, which will increase their illiquidity and could adversely affect the ability to value and sell them (liquidity risk). 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.

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.

© 2021 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.

The MSCI World Net Index is a free float adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed 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 performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. The index is unmanaged and does not include any expenses, fees or sales charges. 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.

**A core business activity is one that accounts for more than 10% of the relevant company’s revenue.

NTM = Next 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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