Overview

Historical Returns (%) as of Sep 30, 2024

10/31/202409/30/2024
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than or equal to one year is cumulative. Max Sales Charge: 5.25%.
 

Fund Facts as of Oct 31, 2024

Class A Inception 10/28/1992
Investment Objective Long-term capital appreciation
Total Net Assets $36.4M
Minimum Investment $1000
Expense Ratio (Gross)2 1.68%
Expense Ratio (Net)2,3 1.50%
CUSIP 277902201

Top 10 Holdings (%)4,5 as of Sep 30, 2024

Tencent Holdings Ltd 22.36
China Construction Bank Corp 10.91
PINDUODUO INC-ADR 7.32
Meituan 5.97
China Merchants Bank Co Ltd 5.08
Trip.com Group Ltd 5.02
NetEase Inc 4.72
Kweichow Moutai Co Ltd 3.23
KE Holdings Inc 2.21
BYD Co Ltd 2.21
Total 69.02
 

Portfolio Management

Amay Hattangadi, CFA Managed Fund since 2021
Leon Sun, CFA Managed Fund since 2021

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

RISK CONSIDERATIONS 

The value of investments held by the Fund may increase or decrease in response to economic, and financial events (whether real, expected or perceived) in the U.S. and global markets. The value of equity securities is sensitive to stock market volatility. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, currency exchange rates or other conditions. In emerging countries, these risks may be more significant. China region economies are export-driven and can be affected by developments in the economies of their major trading partners. Governmental actions in China can have a significant affect on economic conditions in that region. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified fund. The Fund is exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices. The impact of the coronavirus on global markets could last for an extended period and could adversely affect the Fund’s performance. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

See the Fund's prospectus for information related to a primary benchmark index selected (if applicable) to comply with a regulation that requires the Fund's primary benchmark to represent the overall applicable market.


1. The MSCI China 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.
2. Source: Fund prospectus.
3. Net expense ratio reflects a contractual expense reimbursement that continues through 12/31/24. Without the reimbursement, if applicable, performance would have been lower.
4. Top 10 Holdings excludes cash and equivalents.
5. Percent of total net assets.

Performance

Historical Returns (%) as of Sep 30, 2024

10/31/202409/30/2024
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than or equal to one year is cumulative. Max Sales Charge: 5.25%.
 

Calendar Year Returns (%)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fund at NAV -0.80 -5.01 1.73 49.38 -9.97 23.24 25.13 -9.64 -22.70 -17.32
MSCI China Index1 7.96 -7.82 0.90 54.07 -18.88 23.46 29.49 -21.72 -21.93 -11.20
 

Fund Facts

Class A Inception 10/28/1992
Expense Ratio (Gross)2 1.68%
Expense Ratio (Net)2,3 1.50%
Distribution Frequency Annually

Risk Measures (3 Year)7 as of Oct 31, 2024

Alpha (%) -4.34
Beta 0.98
R-Squared (%) 94.64
Standard Deviation (%) 33.00
Sharpe Ratio -0.48
 

Morningstar Rating™ as of Oct 31, 2024

Time Period Rating Funds in
China Region
Category
Overall 90
3 Years 90
5 Years 65
10 Years 47
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) 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. Star ratings do not reflect the effect of any applicable sales load. Hollow stars denote Morningstar Extended Performance Ratings and are considered estimates based on the performance of the fund's oldest share class, adjusted for fees and expenses.

©2024 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.
 

NAV History

Date NAV NAV Change
Nov 20, 2024 $14.33 $0.05
Nov 19, 2024 $14.28 -$0.03
Nov 18, 2024 $14.31 $0.19
Nov 15, 2024 $14.12 -$0.01
Nov 14, 2024 $14.13 -$0.05
Nov 13, 2024 $14.18 -$0.11
Nov 12, 2024 $14.29 -$0.37
Nov 11, 2024 $14.66 -$0.04
Nov 08, 2024 $14.70 -$0.67
Nov 07, 2024 $15.37 $0.47
 

Distribution History8

Ex-Date Distribution Reinvest NAV
Dec 07, 2023 $0.02650 $13.31
No records in this table indicates that there has not been a distribution greater than .0001 within the past 3 years.
Fund prospectus
 

Capital Gain History8

Ex-Date Short-Term Long-Term Reinvest NAV
Dec 07, 2023 $1.11220 $13.31
Dec 08, 2022 $1.07560
Dec 09, 2021 $0.01300 $1.30110 $25.23
No records in this table indicates that there has not been a capital gain greater than .0001 within the past 3 years.
Fund prospectus

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

RISK CONSIDERATIONS 

The value of investments held by the Fund may increase or decrease in response to economic, and financial events (whether real, expected or perceived) in the U.S. and global markets. The value of equity securities is sensitive to stock market volatility. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, currency exchange rates or other conditions. In emerging countries, these risks may be more significant. China region economies are export-driven and can be affected by developments in the economies of their major trading partners. Governmental actions in China can have a significant affect on economic conditions in that region. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified fund. The Fund is exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices. The impact of the coronavirus on global markets could last for an extended period and could adversely affect the Fund’s performance. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

See the Fund's prospectus for information related to a primary benchmark index selected (if applicable) to comply with a regulation that requires the Fund's primary benchmark to represent the overall applicable market.


1. The MSCI China 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.
2. Source: Fund prospectus.
3. Net expense ratio reflects a contractual expense reimbursement that continues through 12/31/24. Without the reimbursement, if applicable, performance would have been lower.
6. The Morningstar China Region Category includes funds that invest primarily in China, Taiwan, and Hong Kong equities with at least 75% of stock assets in these countries.
7. Alpha measures risk-adjusted performance, showing excess return delivered at the same risk level as the benchmark. Beta measures the volatility of a fund relative to the overall market. R-Squared represents the percentage of the portfolio's movement that can be explained by the general movement of the market. Standard deviation measures the historic volatility of a fund. Sharpe Ratio uses standard deviation and excess return to determine reward per unit of risk.
8. A portion of the Fund's returns may be comprised of return of capital or short term capital gains. The Fund will determine the tax characteristics of all Fund distributions after the end of the calendar year and will provide shareholders such information at that time. Please consult your tax advisor for further information.

Portfolio

Asset Mix (%)5,9 as of Sep 30, 2024

Portfolio Statistics as of Sep 30, 2024

Number of Holdings 34
Active Share10 77.90%
 

GICS Sector Breakdown (%)5 as of Sep 30, 2024

Assets by Country (%)5 as of Sep 30, 2024

China 99.60
Cash & Other Assets 0.40
Total 100.00
 

Geographic Mix (%)5 as of Sep 30, 2024

Asia/Pacific 99.60
Cash & Other Assets 0.40
Total 100.00
 

Fund Holdings (%)5,11 as of Sep 30, 2024

Holding % of Net Assets
Tencent Holdings Ltd 22.38%
China Construction Bank Corp 10.92%
PINDUODUO INC-ADR 7.32%
Meituan 5.97%
China Merchants Bank Co Ltd 5.08%
Trip.com Group Ltd 5.03%
NetEase Inc 4.72%
Kweichow Moutai Co Ltd 3.24%
KE Holdings Inc 2.21%
BYD Co Ltd 2.21%
View All

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

RISK CONSIDERATIONS 

The value of investments held by the Fund may increase or decrease in response to economic, and financial events (whether real, expected or perceived) in the U.S. and global markets. The value of equity securities is sensitive to stock market volatility. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, currency exchange rates or other conditions. In emerging countries, these risks may be more significant. China region economies are export-driven and can be affected by developments in the economies of their major trading partners. Governmental actions in China can have a significant affect on economic conditions in that region. Because the Fund may invest significantly in a particular geographic region or country, value of Fund shares may fluctuate more than a fund with less exposure to such areas. A nondiversified fund may be subject to greater risk by investing in a smaller number of investments than a diversified fund. The Fund is exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments or to sell them at advantageous market prices. The impact of the coronavirus on global markets could last for an extended period and could adversely affect the Fund’s performance. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

See the Fund's prospectus for information related to a primary benchmark index selected (if applicable) to comply with a regulation that requires the Fund's primary benchmark to represent the overall applicable market.


1. The MSCI China 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.
5. Percent of total net assets.
9. A delay in transaction settlement may result in a negative cash position.
10. Active Share is a measure of the differentiation of the holdings of a portfolio from the holdings of its appropriate benchmark index. It is calculated as one half of the sum of the absolute value of the differences found between the portfolio weights and the benchmark weights.
11. The following list reflects unaudited securities holdings (excluding derivatives positions). Holdings information may differ if presented as of trade date. Due to rounding, holdings of less than 0.005% may show as 0.00%. Portfolio information subject to change due to active management.

Management

Amay Hattangadi, CFA

Managing Director of MSIM Company
Joined Morgan Stanley in 1997

Biography

Amay Hattangadi is an investor on the Global Emerging Markets team, and a portfolio manager for the Emerging Markets Core strategies. He is also a portfolio manager for the Asia Equity and India Equity strategies.

He joined Morgan Stanley in 1997 and has 24 years of investment experience.

Amay received a Bachelor of Commerce degree from the University of Mumbai. He is an Associate Member of the Institute of Chartered Accountants of India. He holds the Charted Financial Analyst designation.

Education
  • Bachelor of Commerce, University of Mumbai

Experience
  • Managed Fund since 2021

 

Leon Sun, CFA

Managing Director of Morgan Stanley Asia Limited
Joined Morgan Stanley in 2021

Biography

Leon Sun is an investor on the Emerging Markets Equity team, and the lead portfolio manager for the China strategies. Leon is also a co-portfolio manager for the Asia Equity strategies.

He joined Morgan Stanley in 2021 and has 23 years of investment experience. Prior to joining the firm, he worked as a senior portfolio manager and head of investment for China and Hong Kong at Nomura Asset Management. He was also an investment analyst at Martin Currie and a credit officer at Bank of China.

Leon received a B.A. in English from Shanghai International Studies University and a M.Sc. in finance and investment from The University of Edinburgh. He holds the Chartered Financial Analyst designation.

Education
  • Bachelor of Arts in English, Shanghai International Studies University
  • MS in Finance and Investment, University of Edinburgh

Experience
  • Managed Fund since 2021

 

Literature

Literature

Fact Sheet

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Annual Financial Statements and Add'l Information

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Semi-Annual Financial Statements and Add'l Information

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Annual Report

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Full Prospectus

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Q1 Holdings

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Q3 Holdings

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Holdings - Form N-PORT

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SAI

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Semi-Annual Report

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Summary Prospectus

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