Emerging Markets Debt Fund
MSD CUSIP: 61744H105
Emerging Markets Debt Fund
MSD CUSIP: 61744H105

Emerging Markets Debt Fund

MSD CUSIP: 61744H105
 
 
 
 
Investment Approach
We seek as a primary investment objective to produce high current income and as a secondary objective to seek capital appreciation by investing in a range of sovereign, quasi-sovereign and corporate debt securities in emerging markets, which may include U.S. dollar-denominated, local currency, and corporate debt securities. We believe that emerging markets experiencing positive fundamental change may present attractive investment opportunities for investors. To help achieve its objective, we combine top-down country allocation with bottom-up security selection.
 
 
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 04/30/2020

As of 06/03/2020

As of 04/30/2020

As of 06/03/2020


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

    
Past performance is not indicative of future results.
 
 
Average Annual Total Returns (NAV) As of 04/30/2020 As of 03/31/2020
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSD (%) -6.65 -0.52 2.12 4.29 9.59
JP Morgan Emerging Markets Bond Index Global Diversified Index (%) -4.97 0.67 2.94 5.08 --
Blended Index (%) -5.05 0.02 2.52 4.78 8.67
JP Morgan Emerging Markets Bond Index Global (EMBI Global) (%) -3.31 0.63 2.89 4.97 8.75
1 YR 3 YRS 5 YRS 10 YRS Since Inception
MSD (%) -8.38 -0.53 2.35 4.18 9.55
JP Morgan Emerging Markets Bond Index Global Diversified Index (%) -6.84 0.42 2.82 4.94 --
Blended Index (%) -7.02 -0.18 2.47 4.62 8.61
JP Morgan Emerging Markets Bond Index Global (EMBI Global) (%) -5.28 0.44 2.85 4.82 8.69
2019 2018 2017 2016 2015
MSD (%) 14.55 -6.07 10.48 11.77 0.50
JP Morgan Emerging Markets Bond Index Global Diversified Index (%) 15.04 -4.26 10.26 10.15 1.18
Blended Index (%) 14.42 -4.61 9.32 10.19 1.23
JP Morgan Emerging Markets Bond Index Global (EMBI Global) (%) 14.42 -4.61 9.32 10.19 1.23
 
Average Annual Total Returns
As of 04/30/2020
TIMEFRAME MSD USD (%) JP Morgan Emerging Markets Bond Index Global Diversified Index (%) Blended Index (%) JP Morgan Emerging Markets Bond Index Global (EMBI Global) (%)
1 Yr -6.65 -4.97 -5.05 -3.31
3 Yrs -0.52 0.67 0.02 0.63
5 Yrs 2.12 2.94 2.52 2.89
10 Yrs 4.29 5.08 4.78 4.97
Since Inception 9.59 -- 8.67 8.75
As of 03/31/2020
TIMEFRAME MSD USD (%) JP Morgan Emerging Markets Bond Index Global Diversified Index (%) Blended Index (%) JP Morgan Emerging Markets Bond Index Global (EMBI Global) (%)
1 Yr -8.38 -6.84 -7.02 -5.28
3 Yrs -0.53 0.42 -0.18 0.44
5 Yrs 2.35 2.82 2.47 2.85
10 Yrs 4.18 4.94 4.62 4.82
Since Inception 9.55 -- 8.61 8.69
TIMEFRAME MSD USD (%) JP Morgan Emerging Markets Bond Index Global Diversified Index (%) Blended Index (%) JP Morgan Emerging Markets Bond Index Global (EMBI Global) (%)
2019 14.55 15.04 14.42 14.42
2018 -6.07 -4.26 -4.61 -4.61
2017 10.48 10.26 9.32 9.32
2016 11.77 10.15 10.19 10.19
2015 0.50 1.18 1.23 1.23
Past performance is not indicative of future results.
 
 
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)
03/31/2020 03/30/2020 04/15/2020 0.120000 0.000000 0.000000 0.000000
12/20/2019 12/19/2019 01/15/2020 0.130000 0.000000 0.000000 0.000000
09/30/2019 09/27/2019 10/15/2019 0.130000 0.000000 0.000000 0.000000
06/28/2019 06/27/2019 07/15/2019 0.130000 0.000000 0.000000 0.000000
03/29/2019 03/28/2019 04/15/2019 0.130000 0.000000 0.000000 0.000000
12/21/2018 12/20/2018 01/15/2019 0.130000 0.000000 0.000000 0.000000
06/29/2018 06/28/2018 07/13/2018 0.140000 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)
03/31/2020 03/30/2020 04/15/2020 0.120000 0.000000 0.000000 0.000000
12/20/2019 12/19/2019 01/15/2020 0.130000 0.000000 0.000000 0.000000
09/30/2019 09/27/2019 10/15/2019 0.130000 0.000000 0.000000 0.000000
06/28/2019 06/27/2019 07/15/2019 0.130000 0.000000 0.000000 0.000000
03/29/2019 03/28/2019 04/15/2019 0.130000 0.000000 0.000000 0.000000
12/21/2018 12/20/2018 01/15/2019 0.130000 0.000000 0.000000 0.000000
06/29/2018 06/28/2018 07/13/2018 0.140000 0.000000 0.000000 0.000000
Historical Yields (Subsidized)

As of 04/30/2020

 
Past performance is not indicative of future results.
 
 
 
Composition As of 04/30/2020
  Fund
Sovereign Non-Brady 72.21
Quasi-Sovereign 16.24
Corporate Bonds 6.28
FX 0.01
Cash 5.26
  Fund
D 0.23
AA 5.21
A 13.86
BBB 34.59
BB 18.15
B 18.49
CCC 3.34
CC 0.46
Not Rated 0.39
Other 0.00
Cash 5.27
 
May not sum to 100% due to rounding.


Geography As of 04/30/2020
  Fund
Mexico 7.32
Indonesia 6.16
China 6.16
Brazil 4.73
Russia 4.21
Turkey 2.63
Philippines 2.36
Hungary 1.36
Argentina 1.23
Venezuela 0.36
 
May not sum to 100% due to rounding.


Holdings As of 04/30/2020
Fund
Indonesia (Republic of) 4.64
Ukraine (Government of) 3.93
Qatar (State of) 3.53
Egypt (the Arab Republic of) 3.26
Petroleos Mexicanos 3.16
Russian Foreign Bond - Eurobond 2.61
Turkey (Rep of) 2.60
Panama (Rep of) 2.54
Brazil (Federative Republic of) 2.51
Mexico (United Mexican States) 2.49
Total 31.27


Portfolio Characteristics
Fund
Duration (years) 7.33
 
 
Portfolio Managers
Eric Baurmeister
Managing Director
26 years industry experience
Sahil Tandon
Executive Director
16 years industry experience
Warren Mar
Managing Director
25 years industry experience
 
 
 

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 annual report.

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. Results are hypothetical.

Please keep in mind that high 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. 

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. Total return assumes an investment at the beginning of the period, reinvestment of all distributions for the period in accordance with the fund's dividend reinvestment plan, and sale of all shares at the end of the period. 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.

Subject to change daily. Fund information and Portfolio Composition 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 and countries presented. Monthly Holdings are updated 15 calendar days after month-end.

The repurchase information only represents shares repurchased as part of a share repurchase program and does not account for any shares repurchased through a tender offer.

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. Share prices also tend to be volatile and there is significant possibility of loss. Concentration in a single region may make the portfolio more volatile than one that invests globally. 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 the current rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions. Longer-term securities may be more sensitive to interest rate changes. In a declining interest-rate environment, the portfolio may generate less income. Investments in securities rated below investment grade (commonly known as "junk bonds") present greater risk of loss to principal and interest than investment in higher-quality securities. 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. 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). 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.

Effective close of business on December 31, 2019, the Fund’s primary benchmark index has changed to the JP Morgan Emerging Markets Bond Index Global Diversified (EMBIGD) Index.

The Blended Index performance shown is calculated using the JP Morgan Emerging Markets Bond Index from inception through 12/31/2019 and the JP Morgan Emerging Markets Bond Index Global Diversified (EMBIGD) Index thereafter.

The JP Morgan Emerging Markets Bond Index Global Diversified Index (EMBIGD) tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the EMBI+. As with the EMBI+, the EMBI Global Diversified  includes US dollar-denominated Brady bonds, loans, and Eurobonds with an outstanding face value of at least $500 million. The diversified variant of this index has a distinct distribution scheme which allows a more even distribution of weights among the countries in the index, including limiting country weights to a maximum of 10%.

The JP Morgan Emerging Markets Bond Index Global (EMBI Global) – tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the EMBI+. As with the EMBI+, the EMBI Global includes US dollar-denominated Brady bonds, loans, and Eurobonds with an outstanding face value of at least $500 million. The indices do not include any expenses, fees or sales charges, which would have lower performance. The indices are unmanaged and should not be considered an investment. It is not possible to invest directly in an index.

Closed end funds, unlike open end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed end funds are sold in the open market through a stock exchange. NAV per share is determined by dividing the value of the trust's portfolio securities, cash and other assets, less all liabilities and preferred shares, 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 trust at a given time.

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.

 

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