# Investment Objectives and Policies
The purpose of the Company is to provide investors with an opportunity for investment in a professionally managed fund range which seeks to spread investment risks in order to achieve an optimum return from the capital invested.
For this purpose the Company offers a range of Funds which allow investors to make their own strategic allocation by combining holdings in the various Funds in proportions of their own choosing.
In accordance with the UCITS regime, the information below includes a description of the profile of the typical investor for whom each Fund has been designed. Please note however that this information does not constitute investment advice and potential investors should consult their own professional advisers concerning the acquisition, holding or disposal of any Shares in any of the Funds. Neither the Company nor the Management Company makes any representation in relation to the suitability, appropriateness or otherwise of an investment in Shares in any of the Funds.
Sub-distributors or other intermediaries who require the manufacturer’s target market assessment for the purposes of MiFID II should contact the Management Company at: cslux@morganstanley.com. Funds will not be offered for sale to the public in a given jurisdiction until all proper authorisations in the relevant jurisdiction are obtained.
Each of the Funds is managed in accordance with the investment and borrowing restrictions specified in Appendix A.
The Funds are authorised to use derivatives either for hedging or efficient portfolio management purposes or
as part of their investment strategies as described in the Funds’ investment objectives. Unless stated otherwise in the investment objectives of a Fund, a Fund which uses derivatives will do so for hedging and/or efficient portfolio management purposes only. Funds using derivatives will do so within the limits specified in Section 3 of Appendix
A. Investors should refer to Section 1.5 “Risk Factors” for special risk considerations applicable to derivatives. The Funds may gain exposure to eligible financial indices or reference assets which are in line with their investment objectives through one or several total return swaps (“TRS”) or similar financial derivative instruments, as further described under Appendix A.
The Funds listed below may engage in the trading of futures, options on futures or on commodities and/or certain swaps. Although Morgan Stanley Investment Management Inc., a Sub-Adviser, is registered with the
U.S. Commodity Futures Trading Commission (“CFTC”) as a commodity trading advisor (“CTA”) and is a member of the U.S. National Futures Association in such capacity, in respect of the Funds below for which it acts as sub-adviser, Morgan Stanley Investment Management Inc. relies on an exemption from registration as a CTA under CFTC Rule 4.14(a)(8) and, accordingly, will provide commodity interest trading advice to the Funds as if it were exempt from registration as a CTA. Morgan Stanley Investment Management Limited and the remaining Sub-Advisers are exempt from registration with the CFTC as a CTA under Rule 3.10(c)(3) in respect of the Funds below for which each entity acts as Investment Adviser or Sub- Adviser, as applicable.
American Resilience Fund	Global High Yield Bond Fund
Asia Opportunity Fund	Global Infrastructure Fund
Calvert Sustainable Climate Aligned Fund	Global Insight Fund
Calvert Sustainable Climate Transition Fund	Global Macro Fund
Calvert Sustainable Developed Europe Equity Select Fund	Global Multi-Asset Opportunities Fund Calvert Sustainable Developed Markets Equity Select Fund	Global Opportunity Fund
Calvert Sustainable Diversity, Equity and Inclusion Fund	Global Permanence Fund Calvert Sustainable Emerging Markets Equity Select Fund	Global Property Fund Calvert Sustainable Global Equity Engagement Fund	Latin American Equity Fund
Calvert Sustainable Global Green Bond Fund	NextGen Emerging Markets Fund
Calvert Sustainable US Equity Select Fund	Parametric Emerging Markets Fund
Counterpoint Global Fund	Parametric Global Defensive Equity Fund
Developing Opportunity Fund	Short Duration US Government Income Fund
Emerging Markets Corporate Debt Fund	Short Maturity Euro Corporate Bond Fund
Emerging Markets Debt Fund	Sustainable Emerging Markets Equity Fund
Emerging Markets Debt Opportunities Fund	Sustainable European High Yield Bond Fund
Emerging Markets Domestic Debt Fund	Sustainable Global Fixed Income Opportunities Fund Emerging Markets Fixed Income Opportunities Fund	Sustainable Global High Yield Bond Fund
Emerging Markets Local Income Fund	Sustainable US High Yield Bond Fund
Europe Opportunity Fund	US Advantage Fund
European Fixed Income Opportunities Fund	US Core Equity Fund
Floating Rate ABS Fund	US Dollar Corporate Bond Fund
Global Asset Backed Securities Fund	US Dollar High Yield Bond Fund
Global Balanced Sustainable Fund	US Dollar Short Duration Bond Fund
Global Bond Fund	US Dollar Short Duration High Yield Bond Fund
Global Convertible Bond Fund	US Focus Property Fund
Global Core Equity Fund	US Growth Fund
Global Credit Fund	US Insight Fund
Global Credit Opportunities Fund	US Permanence Fund
Global Endurance Fund	US Value Fund
Global Fixed Income Opportunities Fund	Vitality Fund Global Focus Property Fund
The Funds are authorised to employ efficient portfolio management techniques within the limits specified in Section 3 of Appendix A. The attention of investors is drawn to the fact that all Funds may from time to time use efficient portfolio management techniques such as securities lending and repurchase and reverse repurchase transactions. Investors should refer to Section 1.5 “Risk Factors” for special risk considerations applicable to efficient portfolio management techniques and derivatives.
An investment in any of the Company’s Funds is not a deposit in a bank or other insured depository institution. Investment may not be appropriate for all investors. Each Fund is not intended to be a complete investment programme and investors should consider their investment goals and financial needs when making an investment decision about a particular Fund. An investment in the Company’s Funds is intended to be a medium or long term investment. Funds should not be used as trading vehicle.
GENERAL INFORMATION RELATING TO THE FUNDS
The term “limited extent” will refer to a level equal to that of 10% or less of the actually invested assets (net assets after deducting Cash Equivalents) of each Fund. Individual Funds may impose different levels and these will be outlined in the objectives for that Fund. The investment objectives and strategies of the Funds may not exhaustively disclose all ancillary eligible investments under the 2010 Law that the Funds may hold, provided such eligible investments do not exceed 5% of the net assets of the Funds.
Unless otherwise specified in their investment objectives and strategies or their SFDR-related disclosures, each Fund may hold ancillary liquid assets (i.e. bank deposits at sight, such as cash held in current accounts with a bank accessible at any time) up to 20% of their net assets in order to cover current or exceptional payments, or for the time necessary to reinvest in eligible assets provided under article 41(1) of the 2010 Law or for a period of time strictly necessary in case of unfavourable market conditions. Such restriction may, under exceptionally unfavourable market conditions (for instance in highly serious circumstances such as the September 11 attacks or the bankruptcy of Lehman Brothers in 2008), temporarily be exceeded for a period of time strictly necessary up to 100% of their net assets, in order to take measures to mitigate risks relative to such exceptional unfavourable market conditions, in the best interest of the Shareholders.
Unless otherwise specified in their investment objectives and strategies, or their SFDR-related disclosures, all Funds may hold Cash Equivalents up to 100% of their net assets in order to (i) achieve their investment goals, and/or for (ii) treasury purposes, and/or (iii) in case of unfavourable market conditions. Money market instruments include without limitation commercial papers, certificates of deposit and short term government bonds. All Funds may also invest in short-term money market funds and money market funds as defined by CESR’s Guidelines on a common definition of European money market funds dated 19 May 2010 (CESR/10-049) (Short-Term Money Market Funds and Money Market Funds). This may include investment in any sub-funds of the Morgan Stanley Liquidity Funds or any other Short-Term Money Market Funds and Money Market Funds managed by the Investment Advisers or any of the Sub-Advisers.
2
The Russian Trading Stock Exchange and the Moscow Interbank Currency Exchange are the only exchanges in the Russian Federation that qualify as Recognised Exchanges within the meaning of Article 41 (1) of the 2010 Law.
Any investment in SPACs will be limited to 10% of the net assets of the Funds.
The Funds may invest in China A-Shares via Stock Connect to the extent authorised under their investment objective. Investors of the relevant Funds should refer to Section 1.5 “Risk Factors” for special risk considerations applicable to investment in China A-Shares via Stock Connect.
If a currency is mentioned in brackets in the name of a Fund, such currency is the reference currency of such Fund and is used for performance measurement and accounting purposes. It may differ from the investment currency of the Fund.
There can be no guarantee that the investment objectives of the Funds will be met.
Investors should consult the key investor information document of the relevant Class of Share, for information relating to historic performance.
GENERAL INFORMATION RELATING TO SUSTAINABILITY RISKS INTEGRATION
In keeping with Morgan Stanley Investment Management’s commitment to sustainable investing, the Company has adopted a Sustainable Investing Policy which can be found on www.morganstanley.com/im/sustainable-investing and on www.morganstanleyinvestmentfunds.com. The Company’s Sustainable Investing Policy outlines how the Company’s governance structure, ESG integration, ESG Funds and stewardship, engagement and voting activities support the Company to fulfil its fiduciary duty and respond to investor preferences and needs.
2  
The Morgan Stanley Liquidity Funds (including all of its sub-funds) are not approved for distribution to non-qualified investors in Switzerland).
Stewardship activities in particular, are integral to our role as active long-term investors as they enable us to encourage companies and issuers to improve their performance on a range of sustainability issues, risks and opportunities. Approaches to engagement and stewardship vary across our investment teams based on the specific security/company, asset class, investment strategy and materiality of sustainability issues, risks and opportunities. Further details can be found in our Sustainable Investing Policy which can be found on www.morganstanley.com/im/sustainable-investing and on www.morganstanleyinvestmentfunds.com.
Pursuant to EU Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “
SFDR
”), the Funds are required to disclose the manner in which Sustainability Risks (as defined in section 1.5.1. General Risk Factors hereafter) are integrated into the investment decision and the results of the assessment of the likely impacts of Sustainability Risks on the returns of the Funds.
The Company recognizes that various Sustainability Risks can threaten the investments at individual asset level and portfolio level. These Sustainability Risks may include climate change transition and physical risks, natural resources depletion, waste intensity, labor retention, turnover and unrest, supply chain disruption, corruption and fraud and reputational concerns associated with human rights violations.
The Company recognizes that the universe of relevant Sustainability Risks will grow and evolve over time. The materiality of such risks and financial impacts on an individual asset and on a portfolio as a whole depends on industry, country, asset class, and investment style. The Investment Advisers, the Sub-Advisers, or the Management Company, as the case may be, are ultimately responsible for the incorporation of materially relevant Sustainability Risks into due diligence and research, valuation, asset selection, portfolio construction, and ongoing investment monitoring alongside with other material risk factors.
The assessment of the likely impact of the relevant Sustainability Risks must therefore be conducted at each Fund level. The Funds, having a diversified portfolio, may be exposed to different Sustainability Risks varying from issuers, markets, sectors, financial instruments, geographical regions, etc. Unless specific information is given in relation to a Fund under Section 1.2 “Investment Objectives and Policies”, it is not anticipated that any single Sustainability Risk will drive a material negative financial impact on the value of a Fund. Additional information about SFDR as applicable to the Company, as the case may be, can be found on www.morganstanley.com/im.
The Funds do not promote environmental or social characteristics, have a sustainable investment as their objective, nor consider principal adverse impacts on sustainability factors, and are
considered as falling within the scope of Article 6 of the SFDR except the Funds listed below:
- American Resilience Fund (Article 8 of the SFDR);
- Asia Opportunity Fund (Article 8 of the SFDR);
- Asian Property Fund (Article 8 of the SFDR);
- Calvert Sustainable Climate Aligned Fund (Article 9 of the SFDR);
- Calvert Sustainable Climate Transition Fund (Article 9 of the SFDR);
- Calvert Sustainable Developed Europe Equity Select Fund (Article 9 of the SFDR);
- Calvert Sustainable Developed Markets Equity Select Fund (Article 9 of the SFDR);
- Calvert Sustainable Diversity, Equity and Inclusion Fund (Article 9 of the SFDR);
- Calvert Sustainable Emerging Markets Equity Select Fund (Article 9 of the SFDR);
- Calvert Sustainable Global Equity Engagement Fund (Article 9 of the SFDR);
- Calvert Sustainable Global Green Bond Fund (Article 9 of the SFDR);
- Calvert Sustainable US Equity Select Fund (Article 9 of the SFDR);
- Counterpoint Global Fund (Article 8 of the SFDR);
- Developing Opportunity Fund (Article 8 of the SFDR);
- Emerging Leaders Equity Fund (Article 8 of the SFDR);
- Emerging Markets Corporate Debt Fund (Article 8 of the SFDR);
- Emerging Markets Debt Fund (Article 8 of the SFDR);
- Emerging Markets Debt Opportunities Fund (Article 8 of the SFDR);
- Emerging Markets Domestic Debt Fund (Article 8 of the SFDR);
- Emerging Markets Fixed Income Opportunities Fund (Article 8 of the SFDR);
- Emerging Markets Local Income Fund (Article 8 of the SFDR);
- Euro Bond Fund (Article 8 of the SFDR);
- Euro Corporate Bond Fund (Article 8 of the SFDR);
- Euro Corporate Bond – Duration Hedged Fund (Article 8 of the SFDR);
- Euro Strategic Bond Fund (Article 8 of the SFDR);
- Europe Opportunity Fund (Article 8 of the SFDR);
- European Fixed Income Opportunities Fund (Article 8 of the SFDR);
- European High Yield Bond Fund (Article 8 of the SFDR);
- European Property Fund (Article 8 of the SFDR);
- Floating Rate ABS Fund (Article 8 of the SFDR);
- Global Asset Backed Securities Fund (Article 8 of the SFDR);
- Global Balanced Fund (Article 8 of the SFDR);
- Global Balanced Sustainable Fund (Article 8 of the SFDR);
- Global Bond Fund (Article 8 of the SFDR);
- Global Brands Equity Income Fund (Article 8 of the SFDR);
- Global Brands Fund (Article 8 of the SFDR);
- Global Convertible Bond Fund (Article 8 of the SFDR);
- Global Credit Fund (Article 8 of the SFDR);
- Global Credit Opportunities Fund (Article 8 of the SFDR);
- Global Endurance Fund (Article 8 of the SFDR);
- Global Fixed Income Opportunities Fund (Article 8 of the SFDR);
- Global Focus Property Fund (Article 8 of the SFDR
- Global High Yield Bond Fund (Article 8 of the SFDR);
- Global Infrastructure Fund (Article 8 of the SFDR);
- Global Insight Fund (Article 8 of the SFDR);
- Global Opportunity Fund (Article 8 of the SFDR);
- Global Permanence Fund (Article 8 of the SFDR);
- Global Property Fund (Article 8 of the SFDR);
- Global Quality Fund (Article 8 of the SFDR);
- Global Sustain Fund (Article 8 of the SFDR);
- Japanese Equity Fund (Article 8 of the SFDR);
- NextGen Emerging Markets Fund (Article 8 of the SFDR);
- Short Maturity Euro Bond Fund (Article 8 of the SFDR);
- Short Maturity Euro Corporate Bond Fund (Article 8 of the SFDR);
- Sustainable Asia Equity Fund (Article 8 of the SFDR);
- Sustainable Emerging Markets Equity Fund (Article 8 of the SFDR);
- Sustainable Euro Corporate Bond Fund (Article 8 of the SFDR);
- Sustainable Euro Strategic Bond Fund (Article 8 of the SFDR);
- Sustainable European High Yield Bond Fund (Article 8 of the SFDR);
- Sustainable Global Fixed Income Opportunities Fund (Article 8 of the SFDR);
- Sustainable Global High Yield Bond Fund (Article 8 of the SFDR);
- Sustainable US High Yield Bond Fund (Article 8 of the SFDR);
- US Advantage Fund (Article 8 of the SFDR);
- US Dollar Corporate Bond Fund (Article 8 of the SFDR);
- US Dollar High Yield Bond Fund (Article 8 of the SFDR);
- US Dollar Short Duration Bond Fund (Article 8 of the SFDR);
- US Dollar Short Duration High Yield Bond Fund (Article 8 of the SFDR);
- US Focus Property Fund (Article 8 of the SFDR);
- US Growth Fund (Article 8 of the SFDR);
- US Insight Fund (Article 8 of the SFDR);
- US Permanence Fund (Article 8 of the SFDR);
- US Property Fund (Article 8 of the SFDR); and
- Vitality Fund (Article 8 of the SFDR).

EQUITY FUNDS
The various Equity Funds have the following objectives:
AMERICAN RESILIENCE FUND
The American Resilience Fund’s investment objective is to seek long-term capital appreciation, measured in US Dollars by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)) of companies located in the U.S. An issuer is considered to be within the US if it meets the following test: (i) its securities are traded on a recognised stock exchange in the U.S.; (ii) alone or on a consolidated basis it derives 50% or more of its annual revenues or profits from either goods produced, sales made or services performed in the U.S.; (iii) it is organised or has a principal office in the U.S.; (iv) it has at least 50% of its assets, core business operations and/or employees in the U.S., or (v) any other factor which the Investment Adviser, acting reasonably, considers denote an economic exposure to the U.S.
The Investment Adviser seeks to invest in high quality companies that can generate sustainable and high returns on operating capital by identifying companies with dominant market positions typically underpinned by powerful, hard-to-replicate intangible assets (including brands, networks, licenses and patents) and pricing power, resulting in high gross margins. The Investment Adviser
also seeks to identify capable management teams able to allocate capital effectively to grow the franchise, maintain the intangible assets and sustain and/or improve returns on operating capital.
The Fund may also invest, on an ancillary basis in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, warrants and other equity linked instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
Investment restrictions:
- The Fund will apply climate-related restrictions to exclude investments in any company that the Investment Adviser determines:
	- has any tie to fossil fuels (such as oil, gas and coal); or
	- whose core business activity involves energy, construction materials, utilities (excluding renewable electricity and water utilities), metals and mining.

- In addition, the Fund shall not knowingly include any company:
	- whose core business activity involves weapons or civilian firearms; or
	- that is defined by the MSCI ESG Business Involvement Screening Research (“MSCI ESG BISR”) database to have any tie to controversial weapons.


The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted under either the first or second bullet point above after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
As an essential and integrated part of the investment process, the Investment Adviser assesses relevant factors material to long-term sustainably high returns on operating capital including ESG factors
and seeks to engage with company management teams as part of this (Subject to the Fund’s investment objective the Fund retains discretion over which investments are selected. Whilst ESG considerations are an integrated and fundamental part of the investment process, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Fund’s portfolio, but instead the Investment Adviser considers material risks or opportunities in any of the ESG areas which could threaten or enhance high returns on operating capital of a company.
The Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening that the Investment Adviser sources from third party providers, including UN Global Compact violations, as well as its own engagement with company management and research. The Investment Adviser reviews securities of issuers where it believes a significant breach of the above standards and principles has occurred and typically excludes such issuers where, after conducting our research and/or engagement, the Investment Adviser believes the breach is material to the sustainability of returns on operating capital, poses significant financial and reputational risk and the issuer has not committed to appropriate remedial action. Such exclusions are determined by the Investment Adviser in its discretion rather than by reliance on third party analysis. The analysis may be supported by third party ESG controversies analysis and business involvement metrics.
The Fund relies on its research capabilities, analytical resources, and judgement to identify and monitor high quality businesses meeting their investment criteria. The Investment Adviser believes that the number of issuers with high quality businesses meeting their criteria may be limited, and accordingly, the Fund may concentrate its holdings in a relatively small number of companies.
The Investment Adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies the investment criteria or that replacing the holding with another investment should improve the Fund’s valuation and/or quality.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the American Resilience Fund’s investment objective, it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

ASIA OPPORTUNITY FUND
The Asia Opportunity Fund’s investment objective is to seek long- term appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs)), of issuers Located in Asia, excluding Japan, and China A-Shares via Stock Connect.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, warrants and other equity linked instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser emphasises a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser seeks high quality established and emerging companies that the Investment Adviser believes are undervalued at the time of purchase. The Investment Adviser typically favours companies it believes have sustainable competitive advantages that can be monetised through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG). The Investment Adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies its investment criteria.
The Investment Adviser employs a holistic approach to ESG within its company quality assessment by analyzing potential impacts to humanity’s health, environment, liberty and productivity and corporate governance practices to ensure agency, culture and trust. The Investment Adviser views incorporating ESG-related potential risks and opportunities within the investment process as important to ensure long-term stewardship of capital. Over extended time horizons, the Investment Adviser believes that ESG risks are more likely to materialize and externalities not borne by the investee company are more likely to be priced into the value of securities. Since ESG risks could potentially impact the risk and reward profile of investment opportunities, the Investment Adviser typically engages company management in constructive discussions on a range of ESG issues the Investment Adviser deems materially important.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Asia Opportunity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

ASIAN PROPERTY FUND
The Asian Property Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, by investing primarily in equity securities of companies in the real estate industry Located throughout Asia and Oceania. Companies in the real estate industry or closely related to the real estate industry may include companies principally engaged in the development and/or ownership of income- producing property; companies that operate, construct, finance or sell real estate; companies with substantial real estate related holdings and/or services or products related to the real estate industry, including, but not limited to, real estate management, brokers, building products and property technology; and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of eligible closed-end Real Estate Investment Trusts (REITS) and undertakings for collective investment.
The Fund may also invest, on an ancillary basis in preference shares, debt securities convertible into common shares, China A-Shares via Stock Connect, warrants and other equity linked instruments. The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect.
The investment process utilizes internal proprietary research to invest in public real estate companies that may offer the best relative value relative to their underlying assets and earnings. The Investment Adviser utilizes a bottom-up approach, valuing each security within the investment universe to arrive at an estimate of net asset value and forward cash flows. Real estate specific factors, broader equity factors, and ESG factors are assessed in the fundamental analysis to calculate appropriate valuation metrics.
The Investment Adviser also incorporates a top-down approach in the portfolio construction process by integrating several factors which may include forecasted fundamental inflections, macroeconomic considerations, and geopolitical and country risk assessments, to achieve diversified exposure across regions, countries and/or sectors.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third-party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and
opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. Key ESG topics may include, but are not limited to: energy usage and renewables, water usage, emissions, diversity and gender equality, labour and human rights, employee and tenant health, wellness and safety and company ESG governance and disclosure. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their real estate operations. While ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning or operating real estate used for prisons;
- owning or operating real estate used to manufacture cannabis;
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of coal mining;
- owning, manufacturing or production of controversial weapons and civilian firearms; and
- owning, manufacturing or production of arctic oil and gas.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Asian Property Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE CLIMATE ALIGNED FUND
The Calvert Sustainable Climate Aligned Fund’s investment objective is to provide long-term capital appreciation, measured in US Dollars, primarily investing in equity securities (as listed below) of companies Located in developed markets that are involved in economic activities that address climate transition and/or are aligned to the long term de-carbonisation objectives of the Paris Agreement.
The Fund will maintain a carbon profile that follows the net zero objectives of the Paris Agreement, it will maintain a substantially lower carbon footprint, of at least 50% less than that of the underlying market benchmark (MSCI World Index), and taking into account the long-term carbon reduction objectives of the Paris Agreement which may warrant a revision of the targeted range of reduction over time. Carbon footprint shall be measured as weighted average carbon intensity, defined as tonnes of CO2 per
$1million enterprise value including cash.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (such as American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depository Receipts (EDRs).
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.
morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues that it deems to have a positive impact on society or the environment.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser utilizes an ESG research process that seeks to differentiate companies based on the contribution of their products and services in addressing the climate transition and/or identifies companies that demonstrate commitment to the goal of net zero greenhouse gas emissions by 2050 or sooner. The Investment Adviser evaluates carbon reduction commitments, carbon emission trends and progress toward meeting net zero commitments in its assessment. Once a universe of climate transition and/or aligned companies is established, the Investment Adviser then constructs the portfolio through an optimization process that tilts the portfolio towards companies with lower carbon risk, while minimizing factor risks relative to the MSCI World Index.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the MSCI World Index.
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

The Investment Adviser utilizes a quantitative and qualitative ESG research process that seeks to differentiate companies based on the contribution of their products and services in addressing climate transition and/or alignment.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The positive screening process, methodology and the Calvert Principles for Responsible Investment  is  available  on  the  following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI World Index for the purposes of comparing the Fund’s carbon footprint.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction
process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Climate Aligned Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE CLIMATE TRANSITION FUND
The Calvert Sustainable Climate Transition Fund’s investment objective is to seek to provide an attractive level of total return, measured in US Dollars, by investing primarily in a concentrated portfolio of equity securities, including preference shares and depositary receipts (including American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), and Global Depositary Receipts (GDRs)), of companies located throughout the world that are engaged in business models that help to mitigate or adapt to climate change and that qualify as sustainable investments.
The Fund may also invest on an ancillary basis in equity securities not meeting the criteria of the Fund’s primary investments, in Fixed Income Securities, debt securities convertible into common shares, warrants and other equity linked instruments issued by any corporations engaged in climate change businesses, as well as in China A-Shares via Stock Connect provided such investments qualify as sustainable investments. The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect.
Companies engaged in climate change-focused businesses may be involved directly or indirectly in, among other areas, renewable power, water management, waste management, electrification, battery storage, mobility, hydrogen, biofuels, and agriculture, as well as other operations that help to facilitate a lower carbon environment.
The Fund aims to achieve its climate change mitigation and adaptation objective by investing in companies in the aforementioned areas, and whose business models either have a current, direct impact on lowering carbon emissions or which are investing significant capital in Property, Plan, and Equipment (PP&E), technology, and processes that will help facilitate lower carbon emissions in the future and which qualify as sustainable investments. Companies are further delineated between those that are providers of an end-product or service (“
Providers
”) or part of the supply chain/process enabling an end-product or service (“
Enablers
”). Broad definitions of each category are articulated below.
- Providers and Enablers: 
- Companies whose products and services directly help to provide climate change mitigation support or those that enable mitigation through the supply chain of Providers;
- Transitioning Companies: 
- Companies that are not currently Providers or Enablers, but are in the process of introducing new business lines and/or changing old ones such that they will become Providers or Enablers in the future;
- Adapters: 
- Companies which currently provide or in the future will provide products and services that help other companies or human stakeholders to adapt to the risks posed by climate change.

The Investment Adviser actively manages the Fund utilizing internal proprietary research to implement a fundamentally driven investment process that combines bottom-up and top-down research. The Fund will be comprised of those securities which the Investment Adviser considers offer higher forecasted total return potential relative to other opportunities in the investment universe based upon absolute valuation within the described universe.
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe, and which then seeks to differentiate companies based on the extent to which their business models help to mitigate or adapt to climate change, while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser will strive to engage company management around ESG issues where it is determined it is possible to generate positive impact on the sustainable investment objective, on a company’s environmental or social performance factors or its corporate governance practices.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure
that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as a selection of companies across various industry groups that fit into GICS (Global Industry Classification Standard) categories including but not restricted to Industrials, Utilities, Materials, Energy, Financials, Information Technology, Consumer Discretionary and Consumer Staples and which are engaged in the climate-focused business areas described above. This selection is based on the quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment as mentioned in the paragraph above.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
In addition to the above ESG objectives, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
The Fund references third party ESG data during the security research process, but does not rely on third party ESG data for the purposes of constructing the portfolio. The Investment Adviser relies on its own proprietary analysis for security selection and portfolio construction rather than third party analysis. However, in some cases data on specific issuers or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using reasonable estimates or third-party data.
In relation to this Fund, the use of “Calvert” in the name refers to Calvert Research and Management (“Calvert”), whose role in relation to this Fund is limited to the provision of non-discretionary investment advice to the Investment Adviser to assist the Investment Adviser in its management of the Fund. Calvert has no discretion to make discretionary investment decisions on behalf of the Fund, such investment discretion being vested solely in the Investment Adviser.
The Fund is actively managed, and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Climate Transition Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE DEVELOPED EUROPE EQUITY SELECT FUND
The Calvert Sustainable Developed Europe Equity Select Fund’s investment objective is to provide long-term capital appreciation, measured in Euro, primarily investing in equity securities (as listed below) of companies Located in Europe’s developed markets, based on classification in the MSCI Europe Index, that are involved in economic activities that address global environmental or societal challenges such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations, or are leaders in managing financially material environmental or social risks and opportunities, such as carbon emission management and diversity, equity and inclusion. This strategy further takes into account the long-term carbon reduction objectives of the Paris Agreement.
The Fund will maintain a carbon profile that follows the net zero objectives of the Paris Agreement, it will maintain a substantially lower carbon footprint, in the range of 50% than that of the underlying market benchmark (MSCI Europe Index) and taking into account the long-term carbon reduction objectives of the Paris Agreement which may warrant a revision of the targeted range of reduction over time. Carbon footprint shall be measured as weighted average carbon intensity, defined as tonnes of CO2 per
$1million revenue.
Independent from the carbon net zero profile pursued by the Fund, the Fund will seek to maintain higher levels of diversity at a
portfolio level than the MSCI Europe Index as measured by weighted average number of women at the board level. The Investment Adviser obtains board gender diversity data from third party vendors, which provide data on the number of women on boards at the issuer level. The Investment Adviser collects this data for all names in its investment universe for which data is available and calculates the weighted average for the Fund and the MSCI Europe Index.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (such as American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depository Receipts (EDRs).
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues that it deems to have a positive impact on society or the environment.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser seeks to identify companies it considers leaders in areas of environmental, social, and governance performance that are material to the long-term performance of the company. The Investment Adviser’s investment strategy has three main elements: 1) company identification, 2) portfolio optimization, and 3) corporate engagement.
The Investment Adviser utilizes a quantitative and qualitative ESG research process that seeks to differentiate companies based on the contribution of their products and services in addressing global environmental or societal challenges, or their management of material environmental and social Sustainability Risk exposures and opportunities. Through the quantitative process, the Investment Adviser seeks to identify companies that are performing in the top 20-40% of their peer group on environmental or social factors determined to be financially material to the company, while not falling in the bottom 20-40% in any other material environmental, social, or governance issue based on the Investment Adviser’s proprietary research. The ESG scores are determined by the Investment Adviser, using a combination of third party and customized ESG data as a base, having regard to ESG themes such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations. Companies identified also undergo a qualitative review.
Once a universe of ESG leaders is established, the Investment Adviser then constructs the portfolio through an optimization process that tilts the portfolio towards ESG-leading companies that have more gender diversity and lower carbon risk, while minimizing factor risks relative to the MSCI Europe Index.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the MSCI Europe Index.
Investment restrictions
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The positive screening process, methodology and the Calvert Principles for Responsible Investment is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. The Fund references the MSCI Europe Index for the purpose of defining a geographical allocation of countries the Fund will invest into. In the context of the Fund’s ESG integration, the Investment Adviser also uses the MSCI Europe Index for the purposes of comparing the Fund’s carbon footprint and gender diversity at the level of the boards of the portfolio components.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Developed Europe Equity Select Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE DEVELOPED MARKETS EQUITY SELECT FUND
The Calvert Sustainable Developed Markets Equity Select Fund’s investment objective is to provide long-term capital appreciation, measured in US Dollars, primarily investing in equity securities (as listed below) of companies Located in developed markets that are involved in economic activities that address global environmental or societal challenges, such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations, or are leaders in managing financially material environmental or social risks and opportunities, such as carbon emission management and diversity, equity and inclusion. This strategy further takes into account the long-term carbon reduction objectives of the Paris Agreement.
The Fund will maintain a carbon profile that follows the net zero objectives of the Paris Agreement, it will maintain a substantially lower carbon footprint, in the range of 50% than that of the underlying market benchmark (MSCI World Index) and taking into account the long-term carbon reduction objectives of the Paris Agreement which may warrant a revision of the targeted range of reduction over time. Carbon footprint shall be measured as weighted average carbon intensity, defined as tonnes of CO2 per
$1million revenue.
Independent from the carbon net zero profile pursued by the Fund, the Fund will seek to maintain higher levels of diversity at a portfolio level than the MSCI World Index as measured by weighted average number of women at the board level. The Investment Adviser obtains board gender diversity data from third party vendors, which provide data on the number of women on boards at the issuer level. The Investment Adviser collects this data for all names in its investment universe for which data is available and calculates the weighted average for the Fund and the MSCI World Index.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (such as
American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depository Receipts (EDRs).
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues that it deems to have a positive impact on society or the environment.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser seeks to identify companies it considers leaders in areas of environmental, social, and governance performance that are material to the long-term performance of the company. The Investment Adviser’s investment strategy has three
main elements: 1) company identification, 2) portfolio optimization, and 3) corporate engagement.
The Investment Adviser utilizes a quantitative and qualitative ESG research process that seeks to differentiate companies based on the contribution of their products and services in addressing global environmental or societal challenges, or their management of material environmental and social Sustainability Risk exposures and opportunities. Through the quantitative process, the Investment Adviser seeks to identify companies that are performing in the top 20-40% of their peer group on environmental or social factors determined to be financially material to the company, while not falling in the bottom 20-40% in any other material environmental, social, or governance issue based on the Investment Adviser’s proprietary research. The ESG scores are determined by the Investment Adviser, using a combination of third party and customized ESG data as a base, having regard to ESG themes such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations. Companies identified also undergo a qualitative review.
Once a universe of ESG leaders is established, the Investment Adviser then constructs the portfolio through an optimization process that tilts the portfolio towards ESG-leading companies that have more gender diversity and lower carbon risk, while minimizing factor risks relative to the MSCI World Index.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the MSCI World Index.
Investment restrictions
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases
that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The positive screening process, methodology and the Calvert Principles for Responsible Investment is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI World Index for the purposes of comparing the Fund’s carbon footprint and gender diversity at the level of the boards of the portfolio components.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Developed Markets Equity Select Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE DIVERSITY, EQUITY AND INCLUSION FUND
The Calvert Sustainable Diversity, Equity and Inclusion Fund’s investment objective is to provide long-term capital appreciation and advance diversity, equity and inclusion, measured in US Dollars, primarily investing in equity securities (as listed below) of companies Located globally, that demonstrate leadership or meaningful improvement in having a diverse workforce and an equal and inclusive work culture. The Investment Adviser will use an optimisation process to pick the positions that the Fund takes, based on a proprietary strategy.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (such as American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depository Receipts (EDRs)).
The Fund will seek to maintain higher levels of workforce diversity at a portfolio level than the underlying market benchmark (MSCI World Index) as measured by data available in relation to the average number of women at the board level and average percentage of board members representing underrepresented ethnicities. The Investment Adviser obtains board of board members representing underrepresented ethnicities. The Investment Adviser obtains board gender and ethnic diversity data from third party vendors, which provide data on the number of woman and members representing underrepresented ethnicities on boards at the issuer level. The Investment Adviser collects this data for all names in its investment universe for which data is available and calculates the average of women and members representing underrepresented ethnicities on the board for the Fund and the MSCI World Index.
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues that it deems to have a positive impact on society or the environment.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a
security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser utilizes an ESG research process that seeks to identify companies that exhibit leadership in having a gender balanced workforce across different levels and/or demonstrates leadership in ethnic diversity members relative to the country’s demographic in certain applicable countries. In addition, a company’s leadership in other dimensions of diversity among board members, specifically age, cultural background, and skill sets, are also considered. To identify companies that reflect an equal and inclusive work culture, the Investment Adviser seeks to invest in companies that have policies and procedures that adequately support equal opportunity in the hiring process, equal pay and fair promotion among all diversity groups.
The Investment Adviser also includes companies that are demonstrating meaningful improvement in their diversity practices, as evidenced by: 1) Increased diversity in workforce, specifically more gender balanced or more ethnically diverse; or 2) demonstrated progress after a severe controversy related to diversity and inclusion issues; or 3) resolved shareholder proposals (only companies based in US and Canada) on diversity and inclusion issues; or 4) identified as an engagement target by the Investment Adviser on diversity and inclusion issues.
Companies are excluded from the portfolio if the Investment Adviser determines they do not show improvement in diversity practices and they meet one of the following criteria: 1) lack diversity among their board members, specifically not gender
balanced or not ethnically diverse; or 2) show significant risks associated with human capital practices; or 3) have severe controversies related to diversity and inclusion issues.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the MSCI World Index.
The Investment Adviser may engage company management around financially material ESG issues, including diversity and inclusion, that it deems will have a positive impact on society and the environment.
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The positive screening process, methodology and the Calvert Principles for Responsible Investment is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI World Index for the purposes of comparing the Fund’s
gender and ethnic diversity at the level of the boards of the portfolio components.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Diversity, Equity and Inclusion Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE EMERGING MARKETS EQUITY SELECT FUND
The Calvert Sustainable Emerging Markets Equity Select Fund’s investment objective is to provide long-term capital appreciation, measured in US Dollars, primarily investing in equity securities (as listed below) of companies Located in the world’s emerging markets, that are involved in economic activities that address global environmental or societal challenges, such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations, or are leaders in managing financially material environmental or social risks and opportunities, such as carbon emission management and diversity, equity and inclusion. This strategy further takes into account the long-term carbon reduction objectives of the Paris Agreement.
The Fund will maintain a carbon profile that follows the net zero objectives of the Paris Agreement, it will maintain a substantially lower carbon footprint, in the range of 50% than that of the underlying market benchmark (MSCI Emerging Markets Index)
and taking into account the long-term carbon reduction objectives of the Paris Agreement which may warrant a revision of the targeted range of reduction over time. Carbon footprint shall be measured as weighted average carbon intensity, defined as tonnes of CO2 per $1million revenue.
Independent from the carbon net zero profile pursued by the Fund, the Fund will seek to maintain higher levels of diversity at a portfolio level than the MSCI Emerging Markets Index as measured by weighted average number of women at the board level. The Investment Adviser obtains board gender diversity data from third party vendors, which provide data on the number of women on boards at the issuer level. The Investment Adviser collects this data for all names in its investment universe for which data is available and calculates the weighted average for the Fund and the MSCI Emerging Markets Index.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (such as American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depository Receipts (EDRs).
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues that it deems to have a positive impact on society or the environment.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser seeks to identify companies it considers leaders in areas of environmental, social, and governance performance that are material to the long-term performance of the company. The Investment Adviser’s investment strategy has three main elements: 1) company identification, 2) portfolio optimization, and 3) corporate engagement.
The Investment Adviser utilizes a quantitative and qualitative ESG research process that seeks to differentiate companies based on the contribution of their products and services in addressing global environmental or societal challenges, or their management of material environmental and social Sustainability Risk exposures and opportunities. Through the quantitative process, the Investment Adviser seeks to identify companies that are performing in the top 20-40% of their peer group on environmental or social factors determined to be financially material to the company, while not falling in the bottom 20-40% in any other material environmental, social, or governance issue based on the Investment Adviser’s proprietary research. The ESG scores are determined by the Investment Adviser, using a combination of third party and customized ESG data as a base, having regard to ESG themes such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations. Companies identified also undergo a qualitative review.
Once a universe of ESG leaders is established, the Investment Adviser then constructs the portfolio through an optimization process that tilts the portfolio towards ESG-leading companies that have more gender diversity and lower carbon risk, while minimizing factor risks relative to the MSCI Emerging Markets Index.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the MSCI Emerging Markets Index.
Investment restrictions
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The positive screening process, methodology and the Calvert Principles for Responsible Investment is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI Emerging Markets Index for the purposes of comparing the Fund’s carbon footprint and gender diversity at the level of the boards of the portfolio components.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Emerging Markets Equity Select Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE GLOBAL EQUITY ENGAGEMENT FUND
The Calvert Sustainable Global Equity Engagement Fund’s investment objective is to provide high total return, consistent with reasonable risk, measured in US Dollars, by primarily investing in sustainable business models that can deliver value over time. The Fund seeks companies that are involved in economic activities that address global environmental or societal challenges, such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations, or are leaders in managing financially material environmental or social risks and opportunities, such as carbon emission management and diversity, equity and inclusion. This strategy further takes into account the long-term carbon reduction objectives of the Paris Agreement.
The Fund will maintain a carbon profile that follows the net zero objectives of the Paris Agreement, it will maintain a substantially lower carbon footprint, in the range of 50% than that of the underlying market benchmark (MSCI All Country World Index) and taking into account the long-term carbon reduction objectives of the Paris Agreement which may warrant a revision of the targeted range of reduction over time. Carbon footprint shall be measured as weighted average carbon intensity, defined as tonnes of CO2 per $1million revenue.
Independent from the carbon net zero profile pursued by the Fund, the Fund will seek to maintain higher levels of diversity at a portfolio level than the MSCI All Country World Index as measured by weighted average number of women at the board level. The Investment Adviser obtains board gender diversity data from third party vendors, which provide data on the number of women on boards at the issuer level. The Investment Adviser collects this data for all names in its investment universe for which data is available and calculates the weighted average for the Fund and the MSCI All Country World Index.
The Fund will seek to achieve its investment objective by investing primarily in equity securities of companies located in the world’s developed markets, including depositary receipts (including American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), and Global Depositary Receipts (GDRs)).
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that the relevant companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments including those located in emerging markets, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Investment Adviser believes that an investment approach focused on sustainability, ESG integration and structured engagement is best positioned to minimize risk and capitalize on financial success, which it believes compounds over time. The Investment Adviser believes the real value in a stock lies in its ability to compound cash flow over time. For this reason, the Investment Adviser focuses on the long-term ownership of companies with sustainable businesses.
The Investment Adviser seeks to identify high or improving quality companies with secular growth characteristics, high or improving returns on invested capital, sustainable competitive advantages, durable balance sheets, and a strong capital allocation record that are trading at a discount to the Investment Adviser’s estimate of the security’s intrinsic value. Strong attention is also paid to the
positive impact that each company is making on the environment and society.
The broad spectrum of ESG work completed by the Investment Adviser is integrated throughout the investment process employed by the Fund. The Investment Adviser takes a multifaceted approach to integrating ESG into its process and firmly believes that strong ESG characteristics are critical to the sustainability of a company’s business model over time. When assessing the sustainability of a business model, the Investment Adviser places ESG related issues on the same level as inputs such as returns on invested capital or free-cash-flow generation. Each issuer is evaluated relative to an appropriate peer group based on financially material ESG factors as determined by the Investment Adviser. The evaluation of a particular security’s responsible investing characteristics generally involves both quantitative and qualitative analysis. In assessing investments, the Investment Adviser generally focuses on the ESG factors most relevant to the issuer’s operations, and an issuer may be acceptable for investment based primarily on such assessment.
The Investment Adviser also seeks to engage company management on financially material ESG issues identified through its fundamental and ESG research processes. Engagement seeks to drive positive change, to improve the sustainability of each company, and to enhance long-term value creation. The engagement approach may include active proxy voting, dialogue with corporate management teams and boards, working in coalitions with other organizations, filing shareholder resolutions, and other initiatives.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the MSCI All Country World Index.
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, assessing data on ESG controversies and utilizing information sourced from third party providers. The Investment Adviser will consider controversies that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global
Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im, together with the Calvert Principle for Responsible Investment.
In relation to this Fund, the use of “Calvert” in the name refers to Calvert Research and Management (“Calvert”), whose role in relation to this Fund is limited to the provision of non-discretionary investment advice to the Investment Adviser to assist the Investment Adviser in its management of the Fund. Calvert has no discretion to make discretionary investment decisions on behalf of the Fund, such investment discretion being vested solely in the Investment Adviser.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange trades and over-the-counter options, futures and other derivatives for efficient portfolio management (including hedging) purposes.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is compared against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI All Country World Index for the purposes of comparing the Fund’s carbon footprint and gender diversity at the level of the boards of the portfolio components.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Global Equity Engagement Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CALVERT SUSTAINABLE US EQUITY SELECT FUND
The Calvert Sustainable US Equity Select Fund’s investment objective is to provide long-term capital appreciation, measured in US Dollars, primarily investing in equity securities (as listed below) of large-capitalisation US companies that are involved in economic activities that address global environmental or societal challenges that relate to areas such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations, or are leaders in managing financially material environmental or social risks and opportunities, such as carbon emission management and diversity, equity and inclusion. This strategy further takes into account the long-term carbon reduction objectives of the Paris Agreement.
The Fund will maintain a carbon profile that follows the net zero objectives of the Paris Agreement, it will maintain a substantially lower carbon footprint, in the range of 50% than that of the underlying market benchmark (Russell 1000 Index) and taking into account the long-term carbon reduction objectives of the Paris Agreement which may warrant a revision of the targeted range of reduction over time. Carbon footprint shall be measured as weighted average carbon intensity, defined as tonnes of CO2 per
$1million revenue.
Independent from the carbon net zero profile pursued by the Fund, the Fund will seek to maintain higher levels of diversity at a portfolio level than the Russell 1000 Index as measured by weighted average number of women at the board level. The Investment Adviser obtains board gender diversity data from third party vendors, which provide data on the number of women on boards at the issuer level. The Investment Adviser collects this data for all names in its investment universe for which data is available and calculates the weighted average for the Fund and the Russell 1000 Index.
The Fund will seek to achieve its investment objective by investing primarily in equity securities including depositary receipts (such as
American Depository Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depository Receipts (EDRs).
The Fund utilizes a quantitative and qualitative ESG research process that applies the Calvert Principles for Responsible Investment to define the investment universe while making sure that such companies do not significantly harm any environmental or social objective. The Calvert Principles for Responsible Investment can be found on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The Investment Adviser may engage company management around financially material ESG issues that it deems to have a positive impact on society or the environment.
The Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/engagement with company management (e.g., an engagement with a company on its material ESG risks or opportunities such as climate change, diversity, labor and human rights and ESG disclosure, either solely or as part of a shareholder coalition, see “General information relating to Sustainability Risks integration” for further information), or make adjustments to allocations.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities, provided such securities meet the Investment Adviser’s ESG criteria.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser seeks to identify companies it considers leaders in areas of environmental, social, and governance performance that are material to the long-term performance of the company. The Investment Adviser’s investment strategy has three main elements: 1) company identification, 2) portfolio optimization, and 3) corporate engagement.
The Investment Adviser utilizes a quantitative and qualitative ESG research process that seeks to differentiate companies based on the contribution of their products and services in addressing global environmental or societal challenges, or their management of material environmental and social Sustainability Risk exposures and opportunities. Through the quantitative process, the Investment Adviser seeks to identify companies that are performing in the top 20-40% of their peer group on environmental or social factors determined to be financially material to the company, while not falling in the bottom 20-40% in any other material environmental, social, or governance issue based on the Investment Adviser’s proprietary research. The ESG scores are determined by the Investment Adviser, using a combination of third party and customized ESG data as a base, having regard to ESG themes such as environmental sustainability and resource efficiency, diversity, equity and inclusion, respect for human rights, product responsibility, human capital management and accountable governance and transparent operations. Companies identified also undergo a qualitative review.
Once a universe of ESG leaders is established, the Investment Adviser then constructs the portfolio through an optimization process that tilts the portfolio towards ESG-leading companies that have more gender diversity and lower carbon risk, while minimizing factor risks relative to the Russel 1000 Index.
The aforementioned ESG criteria will result in a 20% or more reduction of the investment universe in a significantly engaging manner, and the aim of the Investment Adviser will be to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations. The investment universe for these purposes is defined as the constituents of the Russel 1000 Index.
Investment restrictions
The Investment Adviser shall not knowingly include the following companies in the investment universe companies:
- involved with severe ESG controversies without material remediation and improvement;
- manufacturing or production of controversial weapons and civilian firearms;
- manufacturing or production of tobacco; and
- gambling.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The positive screening process, methodology and the Calvert Principles for Responsible Investment is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the Russel 1000 Index for the purposes of comparing the Fund’s carbon footprint and gender diversity at the level of the boards of the portfolio components.
The Fund references third party ESG data and its own proprietary research data during the security research process. The Investment Adviser may also utilize third party data in its portfolio construction process. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about sustainable investments is available in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable US Equity Select Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

CHINA A-SHARES FUND
The China A-shares Fund’s investment objective is to provide capital appreciation over the long term measured in U.S. Dollars.
The Fund will seek to achieve its investment objective by investing primarily in China A-Shares of companies listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange via Stock Connect. The Fund may also invest in issuers of other countries including, but not limited to, those that are listed on the Hong Kong Exchange (including China H shares and red chips) and depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)) of issuers located in any country and referring to China companies.
For the purposes of the investment policy of the China A-shares Fund, the term “China A-Shares” means shares of companies listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange that are quoted in Chinese Renminbi, which may include: (i) stocks, (ii) participatory notes, (iii) preferred shares, and
(iv) equity warrants.
The Fund may invest, on an ancillary basis, in equity securities that do not meet the definition of China A-Shares, which may include:
(i) preference shares, (ii) debt securities convertible into common shares or preferences shares, and (iii) other equity linked securities. The Fund may also invest, to a limited extent, in ETFs, warrants on securities and other instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the China A-shares Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

Dealing Days for the China A-shares Fund
The China A-shares Fund invests primarily through Stock Connect. Dealing Days for the China A-shares Fund therefore take into account dates on which Stock Connect is closed for trading and settlement. In this Prospectus references to Dealing Day in relation to the China A-shares Fund mean any day except: (a) any other day on which commercial banks in Luxembourg, China or Hong Kong are authorized by law or executive order to close (including Saturday and Sunday), and (b) any day on which Stock Connect is closed for trading.
CHINA EQUITY FUND
The China Equity Fund’s investment objective is to seek to provide an attractive risk-adjusted annualized return, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities of companies located in China, for the avoidance of doubt, including China A-shares of companies listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange via Stock Connect, and in issuers of other countries including, but not limited to, those that are listed on the Hong Kong Exchange (including China H shares and red chips) and depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), where the underlying companies are located in China. The Fund may also invest, as part of its primary investment universe, in equity securities of companies domiciled in or exercising the predominant part of their economic activity in China and which are listed on any exchanges or over the counter markets (subject to Appendix A – Investment Powers and Restrictions).
For the purposes of the investment policy of the China Equity Fund, the term “China A-Shares” means shares of companies listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange that are quoted in Chinese Renminbi, which may include: (i) stocks, (ii) participatory notes, (iii) preferred shares, and (iv) equity warrants.
The Fund may invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, which may include: (i) preference shares, (ii) debt securities convertible into common shares or preferences shares, and (iii) other equity linked securities. The Fund may also invest, to a limited extent, warrants on securities and other instruments including open-ended ETFs which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The investment process takes into account information about ESG issues when making investment decisions. The Sub-Adviser focus
on engaging company management around corporate governance practices as well as what we deem to be materially important environmental and/or social issues facing a company.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the China Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

Dealing Days for the China Equity Fund
The China Equity Fund invests through Stock Connect. Dealing Days for the China Equity Fund therefore take into account dates on which Stock Connect is closed for trading and settlement. In this Prospectus references to Dealing Day in relation to the China Equity Fund mean any day except: (a) any other day on which commercial banks in Luxembourg, China or Hong Kong are authorized by law or executive order to close (including Saturday and Sunday), and (b) any day on which Stock Connect is closed for trading.
COUNTERPOINT GLOBAL FUND
The Counterpoint Global Fund’s investment objective is to seek long-term appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in the equity securities, including depositary receipts (including ADRs and GDRs), of established and emerging companies Located throughout the world, with capitalisations within the range of companies include in the MSCI All Country World Index.
Investment process
The investment team has a long track record in the management of different investment strategies. The portfolio managers within the team will collaborate on an ongoing basis and will allocate and rebalance the Fund’s assets across each manager’s underlying and independently managed investment strategies on an opportunistic
basis given current market conditions. The Fund may invest outside of these underlying and independently managed investment strategies to the extent such investments fit within the permissible investment universe of the Fund.
The investment team emphasises a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in companies it believes have strong name recognition and sustainable competitive advantages with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/reward.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis, in debt securities convertible into common shares, preference shares, China A-Shares via Stock Connect, warrants on securities, Cash Equivalents and other equity linked securities. The Fund will not invest more than 15% of its net asset value in China A-Shares via Stock Connect. The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of the MSCI All Country World Index. The Fund references the MSCI All Country World Index for the purpose of setting the capitalization range of issuers the Fund will invest in.
The Fund’s performance is measured against the MSCI All Country World Index as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Counterpoint Global Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

DEVELOPING OPPORTUNITY FUND
The Developing Opportunity Fund’s investment objective is to seek long-term appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities of issuers Located in developing markets including depositary receipts (including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs)) and China A-Shares via Stock Connect.
Under normal market conditions, the Fund’s assets will be invested primarily in equity securities of issuers Located in developing, emerging or frontier emerging market countries. A country may be considered a developing, emerging or frontier emerging market based on classification in the MSCI Emerging Markets Net Index or similar classification as a developing economy by an organization such as the International Monetary Fund, the United Nations, or the World Bank. For the purpose of this Fund, “developing markets,” “developing market countries,” “emerging markets”, “emerging market countries”, “frontier emerging markets” and “frontier emerging market countries” and similar terms are used interchangeably but refer to the same underlying markets and countries.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, warrants and other equity linked instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser emphasises a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser seeks high quality companies that the Investment Adviser believes are undervalued at the time of purchase. The Investment Adviser typically favours companies it believes have sustainable competitive advantages that can be monetised through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG). The Investment Adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies its investment criteria.
The Investment Adviser employs a holistic approach to ESG within its company quality assessment by analyzing potential impacts to humanity’s health, environment, liberty and productivity and corporate governance practices to ensure agency, culture and trust. The Investment Adviser views incorporating ESG-related potential risks and opportunities within the investment process as important to ensure long-term stewardship of capital. Over extended time horizons, the Investment Adviser believes that ESG risks are more likely to materialize and externalities not borne by the investee
company are more likely to be priced into the value of securities. Since ESG risks could potentially impact the risk and reward profile of investment opportunities, the Investment Adviser typically engages company management in constructive discussions on a range of ESG issues the Investment Adviser deems materially important.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of the MSCI Emerging Markets Net Index. The Fund references the MSCI Emerging Markets Net Index for the purpose of defining a geographical allocation of countries the Fund will invest into. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Developing Opportunity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EMERGING LEADERS EQUITY FUND
The Emerging Leaders Equity Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, through investment primarily in a concentrated portfolio of equity securities, including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and China A-Shares via Stock Connect, in emerging and frontier countries. In targeting its investment objective, the Investment Adviser will invest in companies with strong performance relative to their peers on one or more ESG metrics (as detailed below).
A country may be considered emerging or frontier based on classification in the MSCI Emerging Markets Net Index or similar classification by an organisation such as the International Monetary Fund, the United Nations or the World Bank, provided that the markets of these countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law.
On an ancillary basis the Fund may invest in Cash Equivalents, debt securities convertible into common shares, preference shares, warrants and other equity linked instruments and, for the purpose of efficient portfolio management (including hedging), exchange traded and over-the-counter options, futures and other derivatives.
The Fund may invest in the equity securities (including ADRs and GDRs) of companies organised and located in countries other than an emerging or frontier market where the value of the company’s securities will reflect principally conditions in an emerging or frontier country, or where the principal securities trading market for the company is in an emerging or frontier country, or where 35% of the company’s revenue, sales, assets, EBITDA or profit before tax is derived from either goods produced, sales made or services performed in emerging or frontier countries. The Fund may invest in participatory notes that may be used to gain exposure to securities and markets which may not be efficiently accessed through direct investment. Exposure to participatory notes will not exceed 45% of the actually invested assets (gross assets after deducting Cash Equivalents). The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser integrates Sustainability Risks into its investment decision-making process, including in the conduct of due diligence and research, valuation, asset selection, portfolio construction, and ongoing investment monitoring and portfolio management. In doing so, the Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security.
Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/ engagement with company management, or make adjustments to the top-down allocations to geographies, sectors, or asset classes. In implementing its integration of Sustainability Risks, the Investment Adviser may utilize a combination of information sources, including company-disclosed information, non-company disclosed information, and third-party research and data.
The Investment Adviser integrates the consideration of ESG issues in its investment decision-making. The Fund seeks to achieve a lower carbon footprint than the MSCI Emerging Markets Net Index.
The Investment Adviser believes companies with forward-looking management teams that establish proactive strategies on these sustainability and ESG issues will be better positioned from a business and financial perspective over the long term than companies that do not consider them.
In addition to investing in companies that follow good governance practices and that exhibit strong management of sustainability factors relative to peers, the Fund may invest in companies in Emerging Markets that offer scalable and profitable solutions to address pressing sustainability issues including climate change and environmental/resource management. The Fund will seek to exclude certain companies that are highly exposed to Sustainability Risks, applying a best effort approach to its investment selection in this regard. The aim of the Investment Adviser will be to ensure that at least 90% of the Fund’s portfolio is subject to the sustainability analysis described above.
ESG criteria are considered by the Investment Adviser during both the investment and research process to limit exposure to Sustainability Risks. These criteria may include, but are not limited to carbon emissions, water scarcity, waste management, biodiversity, labour management, gender diversity, health & safety, product safety, data privacy & security, executive remuneration, board independence and shareholder rights. The Investment Adviser focuses on engaging company management on what it deems to be materially important governance, environmental and/or social issues facing a company. The application of the above ESG criteria should result in a 20% or more reduction of the investible universe, as defined in the first four paragraphs above.
Investments shall not knowingly include any company involved in the manufacturing or production of:
- tobacco
- 3
- ;
- adult entertainment;3 The Fund does not invest in securities of issuers that generate 5% or more of revenue from the manufacture of tobacco products or from the supply of key products necessary for the production of tobacco products, such as filters.
- civilian firearms;
- controversial weapons;
- coal
- 4
- ;
- oil sands
- 5
- ;
- Arctic oil
- 6
- ; and
- gambling
- 7
- .

Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The exclusions are determined by the Investment Adviser’s own proprietary analysis rather than the reliance on third party analysis. However, the analysis may be supported by third party ESG controversies analysis and business involvement research. The exclusion criteria are applied to all equity investments within the Fund. The exclusion criteria will not be applied to investments in which the Investment Adviser does not have direct control of the underlying holdings, for example collective investment schemes or open-ended ETFs. The exclusion criteria are subject to periodic review and any changes will be reflected in the exclusion policy document. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund references third party ESG data during the security research process, but does not rely on third party ESG data for the purposes of constructing the portfolio. The Investment Adviser relies on its own proprietary analysis for security selection and portfolio construction rather than third party analysis. However, in some cases data on specific issuers or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using reasonable estimates or third-party data.
The Fund will limit the use of derivatives to efficient portfolio management and for hedging purposes only.
The Fund is actively managed and uses the MSCI Emerging Markets Net Index as a comparator benchmark, which is representative of the Emerging Markets equities universe. The
4 
The Fund does not invest in securities of issuers that generate 10% or more of their revenue from the mining and extraction of thermal coal, or from coal-fired power.
5 
The Fund does not invest in securities that derive 5% or more of their revenues from the extraction or production of oil sands.
6 
The Fund does not invest in securities of issuers that generate 5% or more of their revenue from oil extraction or production in the Arctic region, including in the Arctic National Wildlife Refuge (ANWR).
7 
The Fund does not invest in securities of issuers that generate 5% or more of revenue from gambling activities.
benchmark is used for performance comparison purposes only and does not integrate environmental or social characteristics.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Leaders Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EUROPE OPPORTUNITY FUND
The Europe Opportunity Fund’s investment objective is to seek long-term capital appreciation, measured in Euro.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depository receipts (American Depository Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depository Receipts (EDRs)), of companies Located in Europe.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, warrants and other equity linked instruments. The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open- ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser emphasises a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser seeks high quality established and emerging companies that the Investment Adviser believes are undervalued at the time of purchase. The Investment Adviser typically favours companies it believes have sustainable competitive advantages that can be monetised through
growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG). The Investment Adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies its investment criteria.
The Investment Adviser employs a holistic approach to ESG within its company quality assessment by analyzing potential impacts to humanity’s health, environment, liberty and productivity and corporate governance practices to ensure agency, culture and trust. The Investment Adviser views incorporating ESG-related potential risks and opportunities within the investment process as important to ensure long-term stewardship of capital. Over extended time horizons, the Investment Adviser believes that ESG risks are more likely to materialize and externalities not borne by the company are more likely to be priced into the value of securities. Since ESG risks could potentially impact the risk and reward profile of investment opportunities, the Investment Adviser typically engages company management in constructive discussions on a range of ESG issues the Investment Adviser deems materially important.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Europe Opportunity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EUROPEAN PROPERTY FUND
The European Property Fund’s investment objective is to seek long term capital appreciation, measured in Euro, by investing primarily in equity securities of companies in the real estate industry Located throughout Europe. Companies in the real estate industry or closely related to the real estate industry may include companies principally engaged in the development and/or ownership of income-producing property; companies that operate, construct, finance or sell real estate; companies with substantial real estate related holdings and/or services or products related to the real estate industry, including, but not limited to, real estate management, brokers, building products and property technology; and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of eligible closed-end Real Estate Investment Trusts (REITS) and undertakings for collective investment.
The Fund may also invest on an ancillary basis in preference shares, debt securities convertible into common shares, warrants and other equity linked instruments.
The investment process utilizes internal proprietary research to invest in public real estate companies that may offer the best relative value relative to their underlying assets and earnings. The Investment Adviser utilizes a bottom-up approach, valuing each security within the investment universe to arrive at an estimate of net asset value and forward cash flows. Real estate specific factors, broader equity factors, and ESG factors are assessed in the fundamental analysis to calculate appropriate valuation metrics.
The Investment Adviser also incorporates a top-down approach in the portfolio construction process by integrating several factors which may include forecasted fundamental inflections, macroeconomic considerations, and geopolitical and country risk assessments, to achieve diversified exposure across regions, countries and/or sectors.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third-party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. Key ESG topics may include, but are not limited to: energy usage and renewables, water usage, emissions, diversity and gender equality, labour and human rights, employee and tenant health, wellness and safety and company ESG governance and disclosure. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their real estate operations. While ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning or operating real estate used for prisons;
- owning or operating real estate used to manufacture cannabis;
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of coal mining;
- owning, manufacturing or production of controversial weapons and civilian firearms; and
- owning, manufacturing or production of arctic oil and gas.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using
ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of the benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the European Property Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BRANDS EQUITY INCOME FUND
The Global Brands Equity Income Fund’s investment objective is to provide a regular income stream and long-term capital growth.
The Fund seeks to achieve its investment objective by investing primarily in high quality steady dividend yield distributing equity securities of issuers located in the world’s developed markets.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in equity securities of issuers Located in emerging markets, including China A-Shares via Stock Connect, and in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities to gain exposure to issuers Located in developed and emerging markets. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund will invest in a concentrated portfolio of companies whose success the Investment Adviser believes depends on intangible assets (for example, but not limited to, brand names, copyrights, or methods of distribution) underpinning a strong business franchise.
The Fund will enter into financial derivative instruments with Morgan Stanley International Plc to enhance the level of income earned. This strategy is expected to include taking exposure via one or more swaps (the “Swaps”) to options on equity indices. This is expected to increase the amount of income earned, through receipt of the premiums received for writing the underlying options. However, in a rising market, the risk of capital losses on the Swaps resulting from the exercise of the options may be mitigated by the growth in the value of the underlying assets.
Investment restrictions:
- The Fund will apply climate-related restrictions to exclude investments in any company that the Investment Adviser determines:
	- have any tie to fossil fuels (such as oil, gas and coal); or
	- whose core business activity involves energy, construction materials, utilities (excluding renewable electricity and water utilities), metals and mining.

- In addition, the Fund shall not knowingly include any company:
	- whose core business activity involves weapons or civilian firearms; or
	- that is defined by the MSCI ESG Business Involvement Screening Research (“MSCI ESG BISR”) database to have any tie to controversial weapons.


The above restrictions are applied by the Investment Adviser to 100% of the equity securities in the Fund but are not able to be applied to the Swaps. The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted under either the first or second bullet point above after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
Investment process:
The Fund’s investment process focuses on high quality companies with sustainably high returns on operating capital. As an essential and integrated part of the investment process, the Investment Adviser assesses relevant factors material to long-term sustainably high returns on operating capital including ESG factors and seeks to engage with company management teams as part of this. Subject to the Fund’s investment objective the Investment Adviser retains discretion over which investments are selected. Whilst ESG considerations are an integrated and fundamental part of the investment process, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Fund’s portfolio, but instead the Investment Adviser considers material risks or opportunities in any of the ESG areas which could threaten or enhance the high returns on operating capital of a company.
The Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening that the Investment Adviser sources from third party providers, including UN Global Compact violations, as well as its own engagement with company management and research. The Investment Adviser reviews securities of issuers where it believes a significant breach of the above standards and principles has occurred and typically excludes such issuers where, after conducting our research and/or engagement, the Investment Adviser believes the breach is material to the sustainability of returns on operating capital, poses significant financial and reputational risk and the issuer has not committed to appropriate remedial action. Such exclusions are determined by the Investment Adviser in its discretion rather than by reliance on third party analysis. The analysis may be supported by third party ESG controversies analysis and business involvement metrics.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is compared against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Brands Equity Income Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BRANDS FUND
The Global Brands Fund’s investment objective is to seek an attractive long-term rate of return, measured in US Dollars, through investment primarily in equity securities of companies in the world’s developed countries. The Fund will invest in a concentrated portfolio of companies whose success the Company believes depends on intangible assets (for example, but not limited to, brand names, copyrights or methods of distribution) underpinning a strong business franchise.
The Fund may also invest, on an ancillary basis in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities to gain exposure to companies in developed and emerging markets, as well as equity securities of emerging market companies and China A-Shares via Stock Connect. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund will limit the use of derivatives to hedging purposes only. Investment restrictions:
- The Fund will apply climate-related restrictions to excludeinvestments in any company that the Investment Adviser determines:
- have any tie to fossil fuels (such as oil, gas and coal); or
- whose core business activity involves energy, construction materials, utilities (excluding renewable electricity and water utilities), metals and mining.
- In addition, the Fund shall not knowingly include any company:
- whose core business activity involves weapons or civilian firearms; or
- that is defined by the MSCI ESG Business Involvement Screening Research (“MSCI ESG BISR”) database to have any tie to controversial weapons.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted under either the first or second bullet point
above after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
Investment process:
The Fund’s investment process focuses on high quality companies with sustainably high returns on operating capital. As an essential and integrated part of the investment process, the Investment Adviser assesses relevant factors material to long-term sustainably high returns on operating capital including ESG factors and seeks to engage with company management teams as part of this. Subject to the Fund’s investment objective the Investment Adviser retains discretion over which investments are selected. Whilst ESG considerations are an integrated and fundamental part of the investment process, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Fund’s portfolio, but instead the Investment Adviser considers material risks or opportunities in any of the ESG areas which could threaten or enhance the high returns on operating capital of a company.
The Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening that the Investment Adviser sources from third party providers, including UN Global Compact violations, as well as its own engagement with company management and research. The Investment Adviser reviews securities of issuers where it believes a significant breach of the above standards and principles has occurred and typically excludes such issuers where, after conducting our research and/or engagement, the Investment Adviser believes the breach is material to the sustainability of returns on operating capital, poses significant financial and reputational risk and the issuer has not committed to appropriate remedial action. Such exclusions are determined by the Investment Adviser in its discretion rather than by reliance on third party analysis. The analysis may be supported by third party ESG controversies analysis and business involvement metrics.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is compared against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Brands Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL CORE EQUITY FUND
The Global Core Equity Fund’s investment objective is to seek long-term capital appreciation, measured in USD. The Fund invests primarily in equity securities issued by mid to large capitalisation companies, including depositary receipts (such as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)) and closed-end Real Estate Investment Trusts (REITS), issued by companies worldwide.
The investment process uses a combination of quantitative models, to assess market drivers, and fundamental research of individual stocks to identify companies with attractive valuations, above- average appreciation potential and competitive dividend yields.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the above requirements, debt securities convertible into common shares, preference shares, Cash Equivalents, warrants and other equity linked instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of any benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Global Core Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL ENDURANCE FUND
The Global Endurance Fund’s investment objective is to seek long- term capital appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of established and emerging companies located throughout the world, with capitalizations within the range of companies included in the MSCI All Country World Index.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, China A-Shares via Stock Connect, warrants and other equity linked instruments. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The investment process will emphasize a bottom up stock selection process seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser seeks to invest in companies with sustainable competitive advantages. The Investment Adviser typically favours companies with rising returns on invested capital, above-average business visibility, strong free cash flow generation and an attractive risk/reward.
The Fund will make long-term investments in companies globally that the Investment Adviser believes have the most durable long- term competitive advantages.
The Fund may also invest in more moderate growth companies, companies with lower earnings volatility and/or ones with some cyclicality in their end markets.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how
environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of the MSCI All Country World Index. The Fund references the MSCI All Country World Index for the purpose of setting the capitalization range of issuers the Fund will invest in. The Fund’s performance is measured against the MSCI All Country World Index as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Endurance Fund’s investment objective, it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL FOCUS PROPERTY FUND
The Global Focus Property Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, by investing primarily in a focused, concentrated portfolio of equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of companies in the real estate industry or closely related to the real estate industry Located throughout the world that the Investment Adviser considers offer higher forecasted total return potential relative to other opportunities within the above mentioned asset classes.
Companies in the real estate industry or closely related to the real estate industry may include companies principally engaged in the development and/or ownership of income-producing property; companies that operate, construct, finance or sell real estate; companies with substantial real estate related holdings and/or services or products related to the real estate industry, including, but not limited to, real estate management, brokers, building products and property technology; and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of eligible closed-end Real Estate Investment Trusts (REITS) and undertakings for collective investment.
The Fund will invest primarily in companies located in the developed countries of North America, Europe and Asia, but may also invest in companies located in emerging markets.
The Fund may also invest on an ancillary basis in equity securities not meeting the criteria of the Fund’s primary investments including but not limited to: preference shares and convertible preferred securities, debt securities convertible into common shares, rights and warrants to purchase equity securities, shares of investment companies, limited partnership interests, and other equity linked instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law. In accordance with Appendix A “Investment Powers and Restrictions” non-US Dollar currency exposure may be partially or fully hedged back to US Dollars. With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded
and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Investment Adviser actively manages the Fund using a high- conviction, disciplined, bottom-up, fundamentally driven investment methodology. The Fund will be comprised of those securities which the Investment Adviser considers offer higher forecasted total return potential based upon valuation relative to other opportunities in the investment universe. The Investment Adviser will assess real estate specific factors, broader equity factors, as well as ESG factors in their fundamental analysis in order to calculate appropriate valuation metrics. Top-down considerations are incorporated into the portfolio construction process and seek to achieve exposure across regions, countries and/or sectors and integrate forecasted fundamental inflections, macroeconomic considerations, geopolitical and country risk assessments, among other factors. The Investment Adviser actively selects positions in a limited number of equity securities.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third-party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. Key ESG topics may include, but are not limited to: energy usage and renewables, water usage, emissions, diversity and gender equality, labour and human rights, employee and tenant health, wellness and safety and company ESG governance and disclosure. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their real estate operations. While ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning or operating real estate used for prisons;
- owning or operating real estate used to manufacture cannabis;
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of coal mining;
- owning, manufacturing or production of controversial weapons and civilian firearms; and
- owning, manufacturing or production of arctic oil and gas.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Focus Property Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL INFRASTRUCTURE FUND
The Global Infrastructure Fund’s investment objective is to seek to provide long term capital appreciation, measured in US Dollars, by investing primarily in equity securities issued by companies, for the avoidance of doubt including closed-end Real Estate Investment Trusts (REITS), Located throughout the world that are engaged in the infrastructure business. Companies in the infrastructure business may be involved in, among other areas, the transmission and distribution of electric energy; the storage, transportation and distribution of natural resources, such as natural gas, used to produce energy; the building, operation and maintenance of highways, toll roads, tunnels, bridges and parking lots; the building, operation and maintenance of airports and ports, railroads and mass transit systems; telecommunications; water treatment and distribution; waste operations; renewable power generation; and other emerging infrastructure sectors.
The Fund may also invest on an ancillary basis in preference shares, debt securities convertible into common shares, warrants and other equity linked instruments issued by any corporations engaged in infrastructure related business.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third- party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their infrastructure operations. While ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of controversial weapons and civilian firearms;
- owning or operating gambling activity; and
- owning or operating adult entertainment.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Infrastructure Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL INSIGHT FUND
The Global Insight Fund’s investment objective is to seek long- term capital appreciation, measured in US Dollars, by investing primarily in securities issued by companies on a global basis. Under normal market conditions, the Fund’s investment objective will be pursued by investing primarily in equity securities of established and emerging companies. The investment process will emphasize a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in unique companies it believes have and sustainable competitive advantages
with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/ reward.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also be invested, on an ancillary basis, in equities of companies not meeting the above requirements, debt securities convertible into common shares, China A-Shares via Stock Connect, depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), preference shares, warrants on securities, Cash Equivalents and other equity linked securities. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.
com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Insight Fund’s investment objective, it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL OPPORTUNITY FUND
The Global Opportunity Fund’s investment objective is to seek long-term appreciation, measured in US Dollars. The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of issuers Located in any country.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis, in debt securities convertible into common shares, preference shares, China A-Shares via Stock Connect, warrants on securities, Cash Equivalents and other equity linked securities. The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser emphasises a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser seeks high quality established and emerging companies that the Investment Adviser believes are undervalued at the time of purchase. The Investment Adviser typically favours companies it believes have sustainable competitive advantages that can be monetised through growth. The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG). The Investment Adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies its investment criteria.
The Investment Adviser employs a holistic approach to ESG within its company quality assessment by analyzing potential impacts to humanity’s health, environment, liberty and productivity and corporate governance practices to ensure agency, culture and trust. The Investment Adviser views incorporating ESG-related potential risks and opportunities within the investment process as important to ensure long-term stewardship of capital. Over extended time horizons, the Investment Adviser believes that ESG risks are more likely to materialize and externalities not borne by the investee company are more likely to be priced into the value of securities. Since ESG risks could potentially impact the risk and reward profile of investment opportunities, the Investment Adviser typically engages company management in constructive discussions on a range of ESG issues the Investment Adviser deems materially important.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Opportunity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL PERMANENCE FUND
The Global Permanence Fund’s investment objective is to seek long-term capital appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of established companies located throughout the world, with capitalizations within the range of companies included in the MSCI All Country World Index.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, China A-Shares via Stock Connect, warrants and other equity linked instruments. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The investment process will emphasize a bottom up stock selection process seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in companies it believes have strong name recognition and sustainable competitive advantages with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/reward.
The Fund will make long-term investments in companies globally that the Investment Adviser believes have the most durable long- term competitive advantages. The Fund may also invest in more moderate growth companies, companies with lower earnings volatility and/or ones with some cyclicality in their end markets.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of the MSCI All Country World Index. The Fund references the MSCI All Country World Index for the purpose of setting the capitalization range of issuers the Fund will invest in. The Fund’s performance is measured against the MSCI All Country World Index as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Permanence Funds’ investment objective, it may be appropriate for investors who;
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL PROPERTY FUND
The Global Property Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, primarily through investment in the equity securities of companies in the real estate industry Located throughout the world. Companies in the real estate industry or closely related to the real estate industry may include companies principally engaged in the development and/or ownership of income-producing property; companies that operate, construct, finance or sell real estate; companies with substantial real estate related holdings and/or services or products related to the real estate industry, including, but not limited to, real estate management, brokers, building products and property technology; and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of eligible closed- end Real Estate Investment Trusts (REITS) and undertakings for collective investment. The Fund may also invest on an ancillary basis in preference shares, debt securities convertible into common shares, warrants and other equity linked instruments.
The investment process utilizes internal proprietary research to invest in public real estate companies that may offer the best relative value relative to their underlying assets and earnings. The Investment Adviser utilizes a bottom-up approach, valuing each security within the investment universe to arrive at an estimate of net asset value and forward cash flows. Real estate specific factors, broader equity factors, and ESG factors are assessed in the fundamental analysis to calculate appropriate valuation metrics.
The Investment Adviser also incorporates a top-down approach in the portfolio construction process by integrating several factors which may include forecasted fundamental inflections, macroeconomic considerations, and geopolitical and country risk assessments, to achieve diversified exposure across regions, countries and/or sectors.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third-party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. Key ESG topics may include, but are not limited to: energy usage and renewables, water usage, emissions, diversity and gender equality, labour and human rights, employee and tenant health, wellness and safety and company ESG governance and disclosure. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their real estate operations. While ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning or operating real estate used for prisons;
- owning or operating real estate used to manufacture cannabis;
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of coal mining;
- owning, manufacturing or production of controversial weapons and civilian firearms; and
- owning, manufacturing or production of arctic oil and gas.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Property Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL QUALITY FUND
The Global Quality Fund’s investment objective is to seek an attractive long-term rate of return, measured in US Dollars, through investment principally in equity securities of companies in the world’s developed countries. The strategy will invest in a concentrated portfolio of high quality businesses with strong managements that can sustain high cross-cycle returns on capital. The Investment Adviser believes that long term returns can best be achieved through compounding and downside protection and that high quality companies can generate superior returns for their owners over the long term. The search for high quality companies will focus on identifying companies with dominant market positions, typically underpinned by hard to replicate intangible assets. Characteristics include resilient revenue streams, pricing power, typically low capital intensity and the opportunity for organic growth. The Investment Adviser aims to buy these stocks at attractive valuations relative to their cash-flow based fundamental values.
The Fund may also invest, on an ancillary basis, in equity securities of companies Located in emerging markets, including China A-Shares via Stock Connect, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities. The Fund will limit the use of derivatives to hedging purposes only. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
Investment restrictions:
- The Fund will apply climate-related restrictions to exclude investments in any company that the Investment Adviser determines:
	- have any tie to fossil fuels (such as oil, gas and coal); or
	- whose core business activity involves energy, construction materials, utilities (excluding renewable electricity and water utilities), metals and mining.

- In addition, the Fund shall not knowingly include any company:
	- whose core business activity involves weapons or civilian firearms; or
	- that is defined by the MSCI ESG Business Involvement Screening Research (“MSCI ESG BISR”) database to have any tie to controversial weapons.


The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted under either the first or second bullet point above after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
Investment process:
The Fund’s investment process focuses on high quality companies with sustainably high returns on operating capital. As an essential and integrated part of the investment process, the Investment Adviser assesses relevant factors material to long-term sustainably high returns on operating capital including ESG factors and seeks to engage with company management teams as part of this. Subject to the Fund’s investment objective the Investment Adviser retains discretion over which investments are selected. Whilst ESG considerations are an integrated and fundamental part of the investment process, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Fund’s portfolio, but instead the Investment Adviser considers material risks or opportunities in any of
the ESG areas which could threaten or enhance the high returns on operating capital of a company.
The Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening that the Investment Adviser sources from third party providers, including UN Global Compact violations, as well as its own engagement with company management and research. The Investment Adviser reviews securities of issuers where it believes a significant breach of the above standards and principles has occurred and typically excludes such issuers where, after conducting our research and/or engagement, the Investment Adviser believes the breach is material to the sustainability of returns on operating capital, poses significant financial and reputational risk and the issuer has not committed to appropriate remedial action. Such exclusions are determined by the Investment Adviser in its discretion rather than by reliance on third party analysis. The analysis may be supported by third party ESG controversies analysis and business involvement metrics.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is compared against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Quality Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL SUSTAIN FUND
The Global Sustain Fund’s investment objective is to seek an attractive long-term rate of return, measured in US Dollars. The Investment Adviser will also apply ESG criteria that seek to achieve a greenhouse gas (“GHG”) emissions intensity for the Fund that is significantly lower than that of the reference universe (which is defined, only for the purposes of comparing GHG emissions intensity, as the MSCI AC World Index). For the purpose of this Fund, the term GHG shall be as defined by the GHG protocol and include carbon dioxide (CO2),
methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) in metric tonnes and in tonnes of CO2 equivalent.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts, of issuers Located in any jurisdiction. The Fund may, on an ancillary basis, invest in equity securities of companies Located in emerging markets, including China A-Shares via Stock Connect, as well as in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
In order to meet the low GHG emissions intensity criteria:
- the Fund will firstly exclude investments in any company that the Investment Adviser determines:
	- have any tie to fossil fuels (such as oil, gas and coal),
	- any company whose core business activity involves energy, construction materials, utilities (excluding renewable electricity and water utilities), metals and mining, or
	- for which GHG emissions intensity estimates are not available and/or cannot be estimated (in the Investment Adviser’s discretion); and

- the remaining issuers will then be ranked according to their GHG emissions intensity estimates, and those with the highest intensity will be excluded from the reference universe.

The GHG emissions based investment criteria should collectively result in a reduction of the reference universe by at least 20% in a significantly engaging manner and the Investment Adviser will ensure that at least 90% of the issuers in the portfolio are assessed against these criteria.
Investment restrictions
- In addition to the above GHG-related exclusions, investments shall not knowingly include any company whose core business activity involves the following.
- tobacco;
- alcohol;
- adult entertainment;
- gambling;
- civilian Firearms; or
- weapons.
- The Fund will not invest in any company that is defined by the MSCI ESG Business Involvement Screening Research (“MSCI ESG BISR”) database to have any tie to controversial weapons.
- The Fund may invest no more than 10% of its net assets in China A-Shares via Stock Connect.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted under either the first or second bullet point above after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
Investment process
The Investment Adviser seeks to invest in a concentrated portfolio of high quality, dominant franchises characterised by sustainable and high returns on operating capital, powerful intangible assets including brands, networks, licences and patents, and pricing power. The Investment Adviser seeks to identify capable management teams able to allocate capital effectively to grow the franchise and sustain and/or improve the return on operating capital.
The Fund’s investment process focuses on high quality companies with sustainably high returns on operating capital. As an essential and integrated part of the investment process, the Investment Adviser assesses relevant factors material to long-term sustainably high returns on operating capital including ESG factors and seeks to engage with company management teams as part of this. Subject to the Fund’s investment objective and the investment restrictions outlined above, the Investment Adviser retains discretion over which investments are selected. In exercising this discretion, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Fund’s portfolio, but instead the Investment Adviser considers material risks or opportunities in any of the ESG areas which could threaten or enhance the high returns on operating capital of a company.
The Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening that the Investment Adviser sources from third party providers, including UN Global Compact violations, as well as its own engagement with company management and research. The
Investment Adviser reviews securities of issuers where it believes a significant breach of the above standards and principles has occurred and typically excludes such issuers where, after conducting our research and/or engagement, the Investment Adviser believes the breach is material to the sustainability of returns on operating capital, poses significant financial and reputational risk and the issuer has not committed to appropriate remedial action. Such exclusions are determined by the Investment Adviser in its discretion rather than by reliance on third party analysis. The analysis may be supported by third party ESG controversies analysis and business involvement metrics.
As noted above, the Fund aims to achieve a GHG emissions intensity that is significantly lower than that of its reference universe by excluding issuers on the basis of their relative GHG emissions intensity estimates. The Investment Adviser uses third- party data providers to ascertain the GHG emissions intensity of specific issuers and in some cases data on specific issuers may not be available or may be estimated by an alternative third-party data provider or the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may vary and if the preferred data provider changes its methodology, the GHG emissions intensity estimates for one or more issuers may also change significantly. The Investment Adviser will also use its best efforts to exclude any company that the Investment Adviser determines have a tie to fossil fuels (e.g. reserve ownership, related revenues and power generation) but in some cases the data may not be available or fully representative of the activities of the issuer.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is compared against the MSCI World Index as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Sustain Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

INDIAN EQUITY FUND
The Indian Equity Fund’s investment objective is to seek long-term capital appreciation, measured in US Dollars, by investment, directly or indirectly, primarily in the equity securities of companies domiciled or exercising the predominant part of their economic activity in India. The Fund, either directly or indirectly, may also invest, on an ancillary basis, in companies listed on Indian stock exchanges which may not be domiciled or exercising the predominant part of their economic activity in India, in depositary receipts (including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs)), debt securities convertible into common shares, preference shares, debentures, warrants on securities and other equity linked securities, including participatory notes. The Fund, either directly or indirectly, will invest in a concentrated portfolio of companies.
The investment process takes into account information about ESG issues when making investment decisions. The Investment Adviser focuses on engaging company management around corporate governance practices as well as what it deems to be materially important environmental and/or social issues facing a company.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Indian Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

Dealing Days for the Indian Equity Fund
Dealing days for the Indian Equity Fund take into account dates on which the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) are closed for trading and settlement. In this Prospectus references to Dealing Day in relation to the Indian Equity Fund mean any day except: (a) any other day on which
commercial banks in Luxembourg or India are authorized by law or executive order to close (including Saturday and Sunday), and (b) any day on which the BSE and NSE are closed for trading.
INTERNATIONAL EQUITY (EX US) FUND
The International Equity (ex US) Fund’s investment objective is to seek an attractive long-term rate of return, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing principally in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), of companies located in the world’s developed countries excluding the United States of America. The Fund will invest in a diversified portfolio of companies using in-depth bottom-up fundamental company research. The investment process relies on a disciplined, value-oriented approach to identify companies with capable management, dominant market positions, have the potential to generate stable, consistent returns. The Investment Adviser aims to buy these companies at attractive valuations relative to their cash-flow based fundamental values.
As an essential and integrated part of the investment process, the Investment Adviser assesses relevant factors material to long-term returns on operating capital including ESG factors and seeks to engage with company management teams as part of this. Subject to the Fund’s investment objective, the Investment Adviser retains discretion over which investments are selected. Whilst ESG considerations are an integrated and fundamental part of the investment process, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Fund’s portfolio, but instead the Investment Adviser considers material risks or opportunities in any of the ESG areas which could threaten or enhance the long-term sustainability or direction of a company’s returns.
The Fund may also invest, on an ancillary basis, in equity securities of companies located in emerging markets, including in China A-Shares via Stock Connect; or, as a result of a corporate action, located in the United States of America, in preference shares, debt securities convertible into common shares or preference shares, warrants on securities and other equity linked securities. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund will limit the use of derivatives to currency forwards for hedging purposes only.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is compared against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the International Equity (ex US) Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

JAPANESE EQUITY FUND
The Japanese Equity Fund’s investment objective is to seek long term capital appreciation, measured in Yen, through investment primarily in the equity securities of companies that meet the Investment Adviser’s ESG criteria while integrating ESG characteristics by maintaining higher sustainability scores than the MSCI Japan Index. The Fund will primarily invest in companies domiciled in or exercising the predominant part of their economic activity in Japan and which are listed on any exchanges or over the counter markets (subject to Appendix A – Investment Powers and Restrictions). The Fund may also invest, on an ancillary basis, in debt securities convertible into common shares, warrants and other equity linked instruments.
The Investment Adviser integrates the consideration of ESG issues in its investment decision-making.
The Investment Adviser applies proprietary assessment and scoring methodologies on the equity securities the Fund may invest in. Additionally as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with companies, the Investment Adviser incorporates an assessment of sustainability- related risks into the assessment process to determine impacts on the value of a security or portfolio. These criteria may include, but are not limited to ESG themes such as climate change, human rights and diversity, health and safety, governance, and disclosure, which the Investment Adviser considers as “material ESG issues”. The Investment Adviser focuses on engaging company management on health and safety, human resources, misconduct and other factors, subject to specific engagement from each company, based on material ESG issues. Companies are scored based on the expectation for improvement and how the company’s ESG activities may improve corporate value.
The Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will
exclude controversy cases that it views as being very severe based on ratings by relevant ESG data providers.
The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers in order to measure and evaluate the contribution of the securities to the ESG themes described above. The indicators will be measured and evaluated at on a quarterly basis.
Investments shall not knowingly include any company involved in the manufacturing or production of:
- tobacco
- 8
- ;
- gambling
- 9
- ;
- adult entertainment
- 10
- ;
- civilian firearms
- 11
- ;
- controversial weapons
- 12
- ; and
- thermal coal
- 13
- .

Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The exclusions are determined by the Investment Adviser’s own proprietary analysis rather than the reliance on third party analysis. However, the analysis may be supported by third party ESG controversies analysis and business involvement research. The exclusion criteria are applied to all equity investments within the Fund. The exclusion criteria are subject to periodic review and any changes will be reflected in the exclusion policy document. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund references third party ESG data during the security research process, but does not rely on third party ESG data for the purposes of constructing the portfolio. The Investment Adviser relies on its own proprietary analysis for security selection and portfolio construction rather than third party analysis. However, in some cases
8 
The Fund does not invest in securities of issuers that generate 5% or more of their revenues from tobacco related products or supplies such as filters.
9 
The Fund does not invest in securities of issuers that generate 5% or more of their revenue from gambling activities.
10 
The Fund does not invest in securities of issuers that generate 5% or more of their revenue from adult entertainment.
11 
The Fund does not invest in securities of issuers that generate 5% or more of their revenues from producing civilian firearms.
12 
The Fund does not invest in securities of issuers that manufacture whole controversial weapons systems including intended use components.
13 
The Fund does not invest in securities of issuers that generate 10% or more of their revenue from thermal coal mining, and/or 10% or more of their revenue from thermal coal power generation.
data on specific issuers or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using reasonable estimates or third-party data.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Japanese Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

Dealing Days for the Japanese Equity Fund
Dealing Days for the Japanese Equity Fund take into account dates
(i) on which Japan Exchange Group markets are closed for trading and settlement or (ii) the Directors, in consultation with the Investment Adviser, have determined in their absolute discretion. In this Prospectus references to Dealing Day in relation to the Japanese Equity Fund mean any day except: (a) any other day the Directors, in consultation with the Investment Adviser, have determined in their absolute discretion, and (b) any day on which Japan Exchange Group markets and commercial banks in Luxembourg or Japan are authorized by law or executive order to close (including Saturday and Sunday) are closed for trading. The list of expected “non-Dealing Days” will be available on the Company’s website (www.morganstanleyinvestmentfunds.com) and will be updated in advance, at least semi-annually. However, the list may be further updated from time to time in the presence of exceptional circumstances where the Directors believe that it is in the best interests of the Shareholders of the Fund.
JAPANESE SMALL CAP EQUITY FUND
The Japanese Small Cap Equity Fund’s investment objective is to seek long-term capital appreciation, measured in Yen, through investment primarily in equity securities of small-cap companies Located in Japan and which are listed on any exchanges or over the counter markets (subject to Appendix A – Investment Powers and Restrictions). The Fund may also invest, on an ancillary basis, in
securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, warrants, and other equity linked instruments.
For the purpose of this Fund, small-cap companies are companies with capitalizations within the range of companies included in the MSCI Japan Small Cap Index. The MSCI Japan Small Cap Index is designed to measure the performance of the small cap segment of the Japanese market. With over 900 constituents the index represents approximately 14% of the free float adjusted market capitalization of the Japanese equity universe. The average market cap of a company in the MSCI Japan Small Cap Index is approximately JPY 100 billion with a median of approximately JPY 60-70 billion (these numbers can fluctuate). Please refer to www.msci.com for the latest information on this index.
The Investment Adviser employs a bottom-up investment approach. The Investment Adviser seeks to exploit market inefficiencies applicable to small cap securities which often have limited sell-side coverage while managing the associated volatility. The Fund will include those securities which the Investment Adviser considers offer higher forecasted total growth potential based upon valuation relative to other opportunities.
The Fund is actively managed and is not designed to track a benchmark, and therefore not constrained by the composition of the MSCI Japan Small Cap Index. The Fund references the MSCI Japan Small Cap Index for the purpose of setting the capitalization range of issuers the Fund will invest in. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Japanese Small Cap Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

Dealing Days for the Japanese Small Cap Equity Fund
Dealing Days for the Japanese Small Cap Equity Fund take into account dates on which Japan Exchange Group markets are closed for trading and settlement. In this Prospectus references to Dealing Day in relation to the Japanese Small Cap Equity Fund mean any day except any day on which Japan Exchange Group markets and
commercial banks in Luxembourg or Japan are authorized by law or executive order to close (including Saturday and Sunday) are closed for trading. The list of expected “non-Dealing Days” will be available on the Company’s website (www.morganstanleyinvestmentfunds.com) and will be updated in advance, at least semi-annually. However, the Directors may decide that the day before a day on which Japan Exchange Group markets and commercial banks in Luxembourg or Japan are authorized by law or executive order to close and are closed for trading would also be a “non-Dealing Day”, when it is in the best interest of Shareholders.
LATIN AMERICAN EQUITY FUND
The Latin American Equity Fund’s investment objective is to seek to maximise total return, measured in US Dollars, through investment primarily in the equity and equity related securities of companies incorporated or exercising the predominant part of their economic activity in Latin American countries.
Such Latin American countries include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela provided that the markets in these countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law. As markets in other countries develop, the Fund expects to expand and further diversify the Latin American markets in which it invests. From time to time, the Fund’s investments may be concentrated in a limited number of countries. Investments in securities listed on exchanges which are not Recognised Exchanges shall be treated as investments in non-listed securities (see Appendix A – Investment Powers and Restrictions) until such time as such exchanges are deemed to be Recognised Exchanges.
As part of its primary investment universe, the Fund may also invest in preference shares, warrants and other equity linked instruments, including depositary receipts (such as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), and debt securities convertible into common shares of companies incorporated or exercising the predominant part of their economic activity in Latin American countries.
Financial derivative instruments may be used for efficient portfolio management (in accordance with the investment powers and restrictions set out in Appendix A), in order to gain exposure to certain markets at a lower cost or to reduce risk. The Fund does not invest extensively or primarily in financial derivatives instruments for investment purposes.
On an ancillary basis, the Fund may invest in the securities of companies organised and located in countries other than the Latin American countries where the value of the company’s securities will reflect principally conditions in a Latin American country or where
the principal securities trading market is in a Latin American country, or where 50% of the company’s revenue alone or on a consolidated basis is derived from either goods produced, sales made or services performed in Latin American countries.
The investment process takes into account information about ESG issues when making investment decisions. We focus on engaging company management around corporate governance practices as well as what we deem to be materially important environmental and/or social issues facing a company.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Latin American Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

NEXTGEN EMERGING MARKETS FUND
The NextGen Emerging Markets Fund’s investment objective is to seek long term capital appreciation, measured in Euro, by investing primarily in equity securities of “NextGen” issuers, including depositary receipts (including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs)), “NextGen” issuers being defined as 1) issuers Located in emerging market countries, including frontier market countries, which are determined based on classification in the MSCI Emerging Markets Net Index or MSCI Frontier Emerging Markets Index, or 2) issuers Located in upcoming developing markets outside the “mainstream” emerging markets, whose capital markets have traditionally been overlooked by foreign investors or are in early stages of capital market and/or economic development. These are countries that are not part of the MSCI Emerging Markets Net Index or MSCI Frontier Emerging Markets Index, that the International Monetary Fund, the United Nations or the World Bank generally consider to be less economically mature than developed nations. The Fund may invest in the countries under 2) provided that the markets of these
countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law.
The countries that fall within 1) or 2) of the definition of “NextGen” issuers above can include, among others, Albania, Algeria, Argentina, Bahrain, Bangladesh, Bolivia, Botswana, Brazil, Bulgaria, Chile, Colombia, Costa Rica, Cote d’Ivoire, Croatia, Czech Republic, Dominican Republic, Ecuador, Egypt, Estonia, Ethiopia, Georgia, Ghana, Greece, Guatemala, Guinea, Haiti, Honduras, Hungary, Iceland, India, Indonesia, Jamaica, Jordan, Kazakhstan, Kenya, Kuwait, Laos, Latvia, Lebanon, Lithuania, Malaysia, Mauritius, Mexico, Mongolia, Morocco, Mozambique, Namibia, Nigeria, Oman, Pakistan, Panama, Paraguay, Peru, Poland, Philippines, Qatar, Romania, Russia, Rwanda, Saudi Arabia, Serbia, Senegal, Slovenia, Slovakia, South Africa, Sri Lanka, Tanzania, Trinidad & Tobago, Thailand, Turkey, Turkmenistan, Ukraine, United Arab Emirates, Uganda, Uruguay, Uzbekistan, Vietnam, and Zambia. The countries within the investment universe may change from time to time.
The Fund may also invest on an ancillary basis in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, warrants, and other equity linked instruments. The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect. Investments in securities listed on exchanges which are not Recognised Exchanges shall be treated as investments in non- listed securities (subject to Appendix A – Investment Powers and Restrictions) until such time as such exchanges are deemed to be Recognised Exchanges.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs which are eligible investments for UCITS under the 2010 Law.
The Investment Adviser integrates the consideration of ESG criteria in its investment decision-making, including in the conduct of due diligence and research, investment valuation, asset selection, portfolio construction, and ongoing investment monitoring and portfolio management. In doing so, the Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or
portfolio. In order to mitigate these risks, the Investment Adviser may sell or trim a security, commence active dialogue/engagement with company management, or make adjustments to the top-down allocations to geographies, sectors, or asset classes. In implementing its integration of Sustainability Risks, the Investment Adviser may utilize a combination of information sources, including company- disclosed information, non-company disclosed information, and third-party research and data.
ESG criteria are considered by the Investment Adviser during both the investment and research process to select investments which limit exposure to Sustainability Risks. These criteria may include, but are not limited to carbon emissions, resource management, biodiversity, labour management, diversity (for example, board diversity), health & safety, product safety, data privacy & security, executive remuneration, board independence and shareholder rights.
The Investment Adviser believes companies with forward-looking management teams that establish proactive strategies on ESG issues will be better positioned from a business and financial perspective over the long term than companies that do not consider them. The Fund will invest in companies that follow good governance practices and that exhibit strong management of materially important environmental and social factors relative to peers. The Fund will seek to exclude certain companies that are highly exposed to Sustainability Risks, applying a best effort approach to its investment selection in this regard. By applying a best-effort approach, priority is given to the issuers demonstrating an improvement in or good prospects for their ESG practices and performance over time.
The Investment Adviser focuses on engaging company management on what it deems to be materially important governance, environmental and/or social issues facing a company. The application of the above ESG criteria will result in a 20% or more reduction of the investible universe, as defined in the first three paragraphs above. The aim of the Investment Adviser will be to ensure that at least 90% of the Fund’s portfolio is subject to the analysis of ESG criteria described above.
Additionally, the Fund seeks to achieve a lower carbon footprint than the MSCI Frontier Emerging Markets Index (based on available third party data).
Investments shall not knowingly include the following:
- companies whose core business is fossil fuels, thermal coal mining extraction, thermal coal- based power generation, adult entertainment or tobacco;
- companies with more than 5% revenue from Artic oil and gas, oil sands, and gambling; and
- companies with any exposure to civilian firearms or controversial weapons.

For the purposes of the above, a core business activity is one that accounts for more than 10% of the relevant company’s revenue as classified by MSCI.
The Investment Adviser may, in its discretion, elect to apply additional ESG investment restrictions, including companies that do not meet the exclusionary criteria set forth above, over time that it believes are consistent with its investment objective. Such additional restrictions will be disclosed as they are implemented in the exclusion policy document, which will be available on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The exclusions are determined using third party data except on rare occasions where the data is proven to be incorrect. The exclusion criteria are applied to all equity investments within the Fund. The exclusion criteria will not be applied to investments in which the Investment Adviser does not have direct control of the underlying holdings, for example collective investment schemes or open-ended ETFs. The exclusion criteria are subject to periodic review and any changes will be reflected in the exclusion policy document. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund references third party ESG data during the security research process, but does not rely on third party ESG data for the purposes of constructing the portfolio. The Investment Adviser relies on its own proprietary analysis for security selection and portfolio construction rather than third party analysis. However, in some cases data on specific issuers or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using reasonable estimates or third-party data.
The Fund is actively managed and references the MSCI Emerging Markets Net Index or MSCI Frontier Emerging Markets Index for the purpose of partially defining a geographical allocation of the countries the Fund may invest into. The Investment Adviser has full discretion over the composition of the assets of the Fund. While the Fund will mostly hold assets within the countries referenced in the MSCI Emerging Markets Net Index or MSCI Frontier Emerging Markets Index and can invest in securities from such countries in different proportions, it may also hold assets which are not exposed to countries referenced in the MSCI Emerging Markets Net Index or MSCI Frontier Emerging Markets Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the MSCI Emerging Markets Net Index or MSCI Frontier Emerging Markets Index.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the NextGen Emerging Markets Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

PARAMETRIC EMERGING MARKETS FUND
The Parametric Emerging Markets Fund’s investment objective is to seek long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of companies which are Located in emerging market countries. Emerging market countries are generally countries not considered to be developed market countries, and therefore not included in the MSCI World Index. The Fund intends to invest primarily in securities of companies located in countries included in the MSCI Emerging Markets Index or the MSCI Frontier Markets Index.
The Fund’s primary investments will be limited to depositary receipts (including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and Non-Voting Depositary Receipts (NVDRS)), and common and preferred stocks.
The Fund may also invest, on an ancillary basis, in equity securities that do not fall within the Fund’s primary investment universe, Fixed Income Securities, warrants on securities, Cash Equivalents and other equity linked securities.
As part of integrating environmental, social and governance (“
ESG
”) factors and sustainability risk into its investment process as well as responding to European legal developments and investor preferences with regard to investing in companies directly involved in the development, production, maintenance or trade of so-called “controversial weapons,” the Fund has adopted a policy of excluding such investments from its portfolio. In addition, whilst not pursuing any particular environmental, social or governance objectives, the Fund will exclude investments based on criteria consistent with the UN Global Compact and the Norges Bank exclusion list. A public list of companies included on the Norges
Bank exclusion list is available at the following website: https://www.nbim.no/en/responsibility/exclusion-of-companies/. In terms of which companies are excluded, the Fund will give consideration to the severity of company behaviour, pervasiveness within and/or materiality to the business, and management’s responsiveness to the issues.
In order to qualify as an “Equity Fund” within the meaning of sec. 2, para. 6 of the German Investment Tax Act, at least 51% of the Fund’s Net Asset Value will be invested on an ongoing basis in holdings in equity securities that are authorised for official trading on a stock exchange or included in an organised market.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for the UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange trades and over-the-counter options, futures and other derivatives for efficient portfolio management (including hedging) purposes.
The Fund is actively managed and references the MSCI Emerging Markets Index or the MSCI Frontier Markets Index for the purpose defining a geographical allocation of the countries the Fund will invest into. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the MSCI Emerging Markets Index or the MSCI Frontier Markets Index, it can invest in such securities from countries in different proportions, and it can hold assets which are not exposed to countries referenced in the MSCI Emerging Markets Index or the MSCI Frontier Markets Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from that of the MSCI Emerging Markets Index or the MSCI Frontier Markets Index.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Parametric Emerging Markets Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

PARAMETRIC GLOBAL DEFENSIVE EQUITY FUND
The Parametric Global Defensive Equity Fund’s investment objective is to provide a defensive equity exposure that is expected to provide favourable risk adjusted performance relative to the MSCI All Country World Index in USD Net (base). The Fund generates returns through the receipt of option premiums as well as returns on the equity index positions held and Cash Equivalents held. In this regard, the Fund will sell equity index call options in respect of UCITS eligible equity indices which cumulatively will provide an exposure to the markets which are similar to those comprised in the MSCI All Country World Index in USD Net (base)and will sell equity index put options in respect of UCITS eligible equity indices which cumulatively will provide an exposure to the markets which are similar to those comprised in the MSCI All Country World Index in USD Net (base). Thus, the Fund’s investment policy is designed to capitalise on volatility risk premium.
The Fund will invest in a base portfolio that is generally comprised of: (i) equity index positions normally comprised of regulated equity index UCITS ETFs; and (ii) Cash Equivalents, which will consist primarily of Fixed Income Securities with a maximum remaining maturity of one year or less. The Fund will generally have an equal exposure to (i) and (ii) (ie. 50% of the Fund’s Net Asset Value is intended to be invested in each of (i) and (ii)), however, the base portfolio will be rebalanced periodically where the exposure deviates from the above intended exposure by more than 5% (i.e. where exposure to (i) or (ii) falls below 45% of the Fund’s Net Asset Value or above 55% of the Fund’s Net Asset Value).
Each such ETF or money market will not charge annual management fees in excess of 3% of its net asset value and will be domiciled in the EEA, the United Kingdom, the United States, Guernsey, Jersey or the Isle of Man.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, fixed income securities, warrants on securities, Cash Equivalents, as well as in regulated equity index ETFs which are alternative investment funds (“AIFs”) but which are UCITS eligible and exchange traded equity index futures contracts.
In order to qualify as an “Equity Fund” within the meaning of sec. 2, para. 6 of the German Investment Tax Act, at least 25% of the Fund’s Net Asset Value will be invested on an ongoing basis in holdings in equity securities that are authorised for
official trading on a stock exchange or included in an organised market.
With a view to enhancing returns and/or as part of the investment the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Investment Adviser does not integrate sustainability risks into its investment decisions as they are not relevant given the investment strategy of the Fund. Further information in respect of the integration of sustainability risks in relation to the Company is included in the section of the Prospectus headed “General information relating to Sustainability Risks integration”.
The Fund will be actively managed and is not designed to track the MSCI All Country World Index in USD Net (base)except to the extent that the ETFs in which the Fund will invest will be selected so as to provide exposure to the markets similar to those comprised in the MSCI All Country World Index in USD Net (base).
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Parametric Global Defensive Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SAUDI EQUITY FUND
The Saudi Equity Fund’s investment objective is to seek long-term capital appreciation and growth, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities of issuers listed and traded on the main market of the Saudi Stock Exchange, the Tadawul, as well as issuers in the course of an initial public offering (IPO) (including rights issues, and subject to the restrictions stated below). The Fund’s investments in listed shares may include investments in the listed shares of smaller companies (meaning those that have a market value of less than SAR1 billion).
Furthermore, the Fund may invest up to 20% of its net assets in one or more eligible closed-ended Real Estate Investment Trusts (REITs) that are listed on Tadawul, as well as in units of eligible closed-ended REITs being offered in the course of an IPO and which will be listed on Tadawul in due course.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the above requirements, debt securities convertible into common shares, preference shares, Cash Equivalents, warrants and other equity linked instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Saudi Equity Fund’s investment objective it may be appropriate for investors who:
- Seek to invest in equity securities.
- Seek capital appreciation over the long term.
- Accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

Dealing Days and settlements for the Saudi Equity Fund
Dealing Days for the Saudi Equity Fund take into account both the Saudi Arabian trading calendar and Luxembourg trading calendar. In this Prospectus references to Dealing Day in relation to the Saudi Equity Fund means any Monday, Tuesday, Wednesday or Thursday in which both Luxembourg and Saudi Arabian financial markets are open for trading. The Saudi Equity Fund will not be available for dealing on the Dealing Day immediately prior to Saudi extended holidays, for example Eid holidays. In addition, there is no settlement of subscriptions and redemptions for the Saudi Equity Fund on Fridays and settlement of subscriptions and redemptions will take into account US Dollar and Saudi Riyal bank holidays. The list of expected “non-Dealing Days” and settlement holidays will be available on the Company’s website (www.morganstanleyinvestmentfunds.com) and will be updated in advance, at least semi-annually. However, the list may be further updated from time to time in the presence of exceptional
circumstances where the Directors believe that it is in the best interests of the Shareholders of the Fund.
SUSTAINABLE ASIA EQUITY FUND
The Sustainable Asia Equity Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, through investment primarily in the equity securities of companies domiciled in or exercising the predominant part of their economic activity in Asia, excluding Japan, thereby taking advantage of the dynamic economic growth capabilities of the region. In targeting this investment objective, the Investment Adviser will consider ESG criteria (as detailed below) in order to invest in companies which perform better than their peers on ESG risks (as detailed below) or one or more sustainability themes and are positioned to benefit from, or contribute to, the sustainable development of the countries in which they operate based on the Investment Adviser’s ESG criteria. The application of these ESG criteria should result in a 20% or more reduction of the investible universe.
The Fund may also invest on an ancillary basis in debt securities convertible into common shares, preference shares, debentures, participatory notes, warrants, and to a limited extent the Fund may also invest in collective investment schemes including closed-end funds and the Company’s Funds, ETFs and securities not widely traded.
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of sustainable themes and ESG criteria in its investment decision-making. The Fund will invest in companies from the Asia excluding Japan region markets that positively contribute to and/or address one or more sustainability themes including but not limited to Responsible Energy Transition; Sustainable Production and Circular Economy; Improved Access, Affordability and Sustainable Economic Growth; Decent Work and Innovation. The Fund will also strive to align with the objectives of the Paris Agreement on climate change. The Fund seeks to achieve a lower carbon footprint than the MSCI All Country Asia ex-Japan Net Index.
The Investment Adviser believes companies with forward-looking management teams that establish proactive strategies on sustainability and ESG issues will be better positioned from a business and financial perspective over the long term than companies that do not consider them. The Fund seeks to invest in companies whose product revenues, policies, initiatives, industry leadership, and/or established targets proactively address one or more of the above sustainability themes. The Investment Adviser will support this stock selection process with research and analysis, including direct company engagements and third-party data.
In addition to investing in companies that follow good governance practices and that exhibit strong management of sustainability factors relative to peers, the Fund will invest in companies in Asia
excluding Japan that offer scalable and profitable solutions to address pressing sustainability issues including climate change and environmental/resource management. The Fund will be focused on companies that are positively contributing to the sustainable development of countries in Asia excluding Japan, and will seek to exclude certain companies that are highly exposed to Sustainability Risks. Up to 10% of the Fund’s portfolio may consist of assets that are not subject to the sustainability analysis described above.
The Investment Adviser will implement a top-down driven approach to identify investment opportunities across the permissible investment universe, and select companies utilizing the Investment Adviser’s fundamental bottom up security selection process. ESG criteria are considered by the Investment Adviser during both the investment and research process to limit exposure to Sustainability Risks and seek out investment opportunities that are aligned with the sustainability themes identified above. These criteria may include, but are not limited to carbon emissions, water scarcity, waste management, biodiversity, labour management, gender diversity, health & safety, product safety, data privacy & security, executive remuneration, board independence and shareholder rights. The Investment Adviser focuses on engaging company management on what it deems to be materially important environmental and/or social issues facing a company as well as around corporate governance practices.
Investments shall not knowingly include:
- companies whose core business, as defined by 10% of revenues, is thermal coal mining extraction, thermal coal- based power generation, adult entertainment, fossil fuels, tobacco or alcohol;
- companies with more than 5% revenue from Artic oil and gas, oil sands, and gambling; and
- companies with any exposure to civilian firearms or controversial weapons.

The Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. The exclusions are determined using third party data except on rare occasions where the data is proven to be incorrect. The exclusions criteria are applied to all equity investments within the Fund based on available data from third parties. The exclusion criteria will not be applied to investments in which the Investment Adviser does not have direct control of the underlying holdings, for example collective investment schemes or open-ended ETFs. The exclusion criteria are subject to periodic review and any changes will be reflected in the exclusion policy document. Investments that are held by the Fund but become
restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund references third party ESG data during the security research process, but does not rely on third party ESG data for the purposes of constructing the portfolio. The Investment Adviser relies on its own proprietary analysis for security selection and portfolio construction rather than third party analysis. However, in some cases data on specific issuers or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using reasonable estimates or third-party data.
The Investment Adviser integrates Sustainability Risks into its investment decision-making process, including in the conduct of due diligence and research, valuation, asset selection, portfolio construction, and ongoing investment monitoring and portfolio management. In doing so, the Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate these risks, the Investment Adviser may sell or underweight a security, commence active dialogue/ engagement with company management, or make adjustments to the top-down allocations to geographies, sectors, or asset classes. In implementing its integration of Sustainability Risks, the Investment Adviser may utilize a combination of information sources, including company-disclosed information, non-company disclosed information, and third-party research and data.
For the avoidance of doubt, equity securities includes depositary receipts (including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), International Depository Receipts (IDRs) and European Depositary Receipts (EDRs)), and closed-end Real Estate Investment Trusts (REITS). The Fund invests in markets of the Asia, excluding Japan, region, such as China, Hong Kong, India, Malaysia, Singapore, South Korea, Taiwan, Indonesia and Thailand. Additional opportunities are also sought, whenever regulations permit, in any of the emerging markets and frontier markets in Asia including China A-Shares via Stock Connect. The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect.
The Fund uses MSCI All Country Asia ex-Japan Net Index as a comparator benchmark, which is representative of the Asia ex Japan equities universe. The benchmark is used for performance comparison purposes only and does not integrate environmental or social characteristics.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable Asia Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE EMERGING MARKETS EQUITY FUND
The Sustainable Emerging Markets Equity Fund’s investment objective is to seek to maximise total return, measured in US Dollars, through investment primarily in emerging market country equity securities. The Fund will principally invest in those Emerging Market (as defined below) countries in which the Company believes that economies are developing strongly and in which the markets are becoming more sophisticated. “Emerging Market” countries, for the purposes of this Fund, are as defined by the MSCI Emerging Markets Net Index, provided that the markets of these countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law. To achieve its principal investment in Emerging Market countries, the Fund may invest in the securities of companies organized under the laws of, located in or which have a principal office in, Emerging Market countries and may also invest in the securities of companies organized under the laws of, located in or which have a principal office in Developed Market countries (for the purposes of this Fund, as defined by MSCI World Index) where the company’s principal securities trading market is in an Emerging Market country, or where, at the time of purchase, 50% of the company’s revenue alone or on a consolidated basis is derived from goods produced, sales made or services performed in one or more Emerging Market countries, or where the company has at least 50% of its assets, core business operations and/or employees in Emerging Market countries, or in other equity linked instruments located in Developed Markets but providing exposure to Emerging Markets (for example depositary receipts) (“EM Exposed Securities”).
The Fund may invest on an ancillary basis in eligible Frontier Markets equity (meaning those countries that are neither Developed Markets nor Emerging Markets as such terms are defined above for this Fund) or in equity securities not meeting the criteria of the
Fund’s primary investments. The Fund may also invest on an ancillary basis in units/shares of other collective investment schemes, including the Company’s Funds as well as in closed-end funds, China A-Shares via Stock Connect, Fixed Income Securities, debt securities convertible into common shares, preference shares, participatory notes and warrants, in each case to gain exposure to Emerging Markets or Frontier Markets. The Fund may also invest up to 20% of its net assets in China A-Shares via Stock Connect. For temporary defensive purposes, during periods in which the Company believes changes in economic, financial or political conditions make it advisable, the Fund may reduce its holdings in Emerging Market country equity securities to below 50% of the Fund’s assets and invest in equity securities in Developed Market countries (whether EM Exposed Securities or not) or in Fixed Income Securities (whether providing exposure to Emerging Markets or Developed Markets).
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of ESG criteria and sustainable themes in its investment decision-making.
In targeting its investment objective, the Investment Adviser will consider ESG criteria (as detailed below) in order to invest in companies which (i) perform better than their peers on ESG risks (as detailed below) or on one or more sustainability themes (as detailed below); and (ii) are positioned to benefit from, and/or contribute to, the sustainable development of the countries in which they operate based on the Investment Adviser’s ESG criteria. The application of these ESG criteria should result in a 20% or more reduction of the investible universe as defined in the first two paragraphs above. The aim of the Investment Adviser will be to ensure that at least 90% of the Fund’s portfolio is subject to the sustainability analysis described above.
ESG criteria may include, but are not limited to, ESG risks such as carbon emissions, resource management, waste management, biodiversity, labour management, gender diversity, health & safety, product safety, data privacy & security, executive remuneration, board independence and shareholders rights. Sustainability themes may include, but are not limited to, Responsible Energy Transition; Sustainable Production and Circular Economy; Improved Access, Affordability and Sustainable Economic Growth; Decent Work and Innovation. The Fund seeks to achieve a lower carbon footprint than the MSCI Emerging Markets Net Index in aggregate at the portfolio level. With an increased investment focus on companies that positively contribute to and/or address one or more sustainability themes including climate change, the Fund will strive to align with the objectives of the Paris Agreement.
In terms of investing in companies that perform better than their peers on one or more sustainability themes, the Investment Adviser believes companies with forward-looking management teams that establish proactive strategies on the sustainability and ESG issues as described in this investment policy will be better positioned from a
business and financial perspective over the long term than companies that do not consider them. Therefore, the Fund seeks to invest in companies whose product revenues, policies, initiatives, industry leadership, and/or established targets proactively address one or more of the above sustainability themes. The Investment Adviser will support this stock selection process with research and analysis, including direct company engagements and third-party data.
In addition to investing in companies that follow good governance practices and that exhibit strong management of sustainability factors relative to peers, the Fund will invest in companies from Emerging Market countries that offer scalable and profitable solutions to address pressing sustainability issues including climate change and environmental/resource management. In this connection, the Fund will be focused on companies that are positively contributing to the sustainable development of Emerging Market countries, applying a best effort approach to its investment selection in this regard. By applying a best-effort approach, priority is given to the issuers demonstrating an improvement in or good prospects for their ESG practices and performance over time. The Fund will also seek to exclude companies that are highly exposed to Sustainability Risks.
The Investment Adviser will implement a top-down driven approach to identify investment opportunities across the permissible investment universe, and select companies utilizing the Investment Adviser’s fundamental bottom up security selection process. ESG criteria are considered by the Investment Adviser during both the investment and research process to limit exposure to Sustainability Risks and seek out investment opportunities that are aligned with the sustainability themes identified above. The Investment Adviser focuses on engaging company management on what it deems to be materially important environmental and/or social issues facing a company as well as around corporate governance practices.
Investments shall not knowingly include:
- companies whose core business, as defined by 10% of revenues, is thermal coal mining extraction, thermal coal- based power generation, adult entertainment, fossil fuels, tobacco or alcohol;
- companies with more than 5% revenue from Artic oil and gas, oil sands, and gambling; and
- companies with any exposure to civilian firearms or controversial weapons.

The Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented in the exclusion policy document, which is available on www.morganstanleyinvestmentfunds.com and on www.morganstanley.
com/im. The exclusions are determined using third party data except on rare occasions where the data is proven to be incorrect. The exclusions are applied to all equity investments within the Fund based on available data from third parties. The exclusions will not be applied to investments in which the Investment Adviser does not have direct control of the underlying holdings, for example collective investment schemes or open-ended ETFs. The exclusions are subject to periodic review and any changes will be reflected in the exclusion policy document. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund references third party ESG data during the security research process, but does not rely on third party ESG data for the purposes of constructing the portfolio. The Investment Adviser relies on its own proprietary analysis for security selection and portfolio construction rather than third party analysis. However, in some cases data on specific issuers or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using reasonable estimates or third-party data.
The Investment Adviser integrates Sustainability Risks into its investment decision-making process, including in the conduct of due diligence and research, valuation, asset selection, portfolio construction, and ongoing investment monitoring and portfolio management. In doing so, the Investment Adviser gives due consideration to the relevance and potential materiality of Sustainability Risks for a particular investment opportunity or for the portfolio as a whole in the context of the investment objective and intended time horizon for holding a particular security. Sustainability Risks may negatively impact the value of a security or portfolio. In order to mitigate the Sustainability Risks, the Investment Adviser may sell or underweight a security that is subject to such risks, commence active dialogue/ engagement with company management, or make adjustments to the top-down allocations to geographies, sectors, or asset classes. In implementing its integration of Sustainability Risks, the Investment Adviser may utilize a combination of information sources, including company- disclosed information, non-company disclosed information, and third-party research and data.
The Fund is actively managed and references the MSCI Emerging Markets Net Index for the purpose of defining a geographical allocation of the countries the Fund will invest into. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the MSCI Emerging Markets Net Index, it can invest in such securities from countries in different proportions to their allocations under the MSCI Emerging Markets Net Index, and it can hold assets which are not exposed to countries referenced in the MSCI Emerging Markets Net Index. Hence, there are no
restrictions on the extent to which the Fund’s performance may deviate from the MSCI Emerging Markets Net Index. The MSCI Emerging Markets Net Index is used for performance comparison purposes only and does not integrate environmental or social characteristics.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable Emerging Markets Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US ADVANTAGE FUND
The US Advantage Fund’s investment objective is to seek long-term capital appreciation, measured in US Dollars, by investing primarily in securities issued by US companies and on an ancillary basis in securities issued by companies that are not from the US. An issuer may be considered to be from a particular country (including the US) or geographic region if (i) its principal securities trading market is in that country or geographic region; (ii) alone or on a consolidated basis it derives 50% or more of its annual revenue from goods produced, sales made or services performed in that country or geographic region; or (iii) it is organized under the laws of, or has a principal office in, that country or geographic region. By applying these tests, it is possible that a particular issuer could be deemed to be from more than one country or geographic region. Under normal market conditions, the Fund’s investment objective will be pursued by investing primarily in equity securities of established large-capitalization companies. The investment process will emphasize a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in companies it believes have strong name recognition and sustainable competitive advantages with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/reward.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also be invested, on an ancillary basis, in equities of companies not meeting the above requirements, debt securities convertible into common shares, depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), preference shares, warrants on securities, China A-Shares via Stock Connect, Cash Equivalents and other equity linked securities. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Advantage Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US CORE EQUITY FUND
The US Core Equity Fund’s investment objective is to seek long-term capital appreciation, measured in US Dollars. The Fund invests primarily in equity securities issued by mid to large capitalization companies, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)) and closed- end Real Estate Investment Trusts (REITS), issued by companies Located in the United States of America.
The investment process uses a combination of quantitative models, to assess market drivers, and fundamental research of individual stocks to identify companies with attractive valuations, above- average appreciation potential and competitive dividend yields.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the above requirements, debt securities convertible into common shares, preference shares, Cash Equivalents, warrants and other equity linked instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and is not designed to track a benchmark. The management of the Fund is not constrained by the composition of any benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the US Core Equity Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US FOCUS PROPERTY FUND
The US Focus Property Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, by investing primarily in a focused, concentrated portfolio of equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of companies in the real estate industry or closely related to the real estate industry Located in the United States that the Investment Adviser considers offer higher forecasted total return potential relative to other opportunities within the above mentioned asset classes.
Companies in the real estate industry or closely related to the real estate industry may include companies principally engaged in the development and/or ownership of income-producing property; companies that operate, construct, finance or sell real estate; companies with substantial real estate related holdings and/or services or products related to the real estate industry, including, but not limited to, real estate management, brokers, building products and property technology; and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of eligible closed-end Real Estate Investment Trusts (REITS) and undertakings for collective investment.
The Fund may also invest on an ancillary basis in equity securities not meeting the criteria of the Fund’s primary investments including but not limited to: preference shares and convertible preferred securities, debt securities convertible into common shares, rights and warrants to purchase equity securities, shares of investment companies, limited partnership interests, and other equity linked instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Investment Adviser actively manages the Fund using a high- conviction, disciplined, bottom-up, fundamentally driven investment methodology. The Fund will be comprised of those securities which the Investment Adviser considers offer higher forecasted total return potential based upon valuation relative to other opportunities in the investment universe. The Investment Adviser will assess real estate specific factors, broader equity factors, as well as ESG factors in their fundamental analysis in order to calculate appropriate valuation metrics. Top-down considerations are incorporated into the portfolio construction process and seek to achieve exposure across sectors and integrate forecasted fundamental inflections and macroeconomic considerations, among other factors. The Investment Adviser actively selects positions in a limited number of equity securities.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third-party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. Key ESG topics may include, but are not limited to: energy usage and renewables, water usage, emissions, diversity and gender equality, labour and human rights, employee and tenant health, wellness and safety and company ESG governance and disclosure. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their real estate operations. While ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning or operating real estate used for prisons;
- owning or operating real estate used to manufacture cannabis;
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of coal mining;
- owning, manufacturing or production of controversial weapons and civilian firearms; and
- owning, manufacturing or production of arctic oil and gas.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Focus Property Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US GROWTH FUND
The US Growth Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, by investing primarily in securities issued by US companies and on an ancillary basis in securities issued by companies that are not from the US. An issuer may be considered to be from a particular country (including the US) or geographic region if (i) its principal securities trading market is in that country or geographic region; (ii) alone or on a consolidated basis it derives 50% or more of its annual revenue from goods produced, sales made or services performed in that country or geographic region; or (iii) it is organized under the laws of, or has a principal office in, that country or geographic region. By applying these tests, it is possible that a particular issuer could be deemed to be from more than one country or geographic region. Under normal market conditions, the Fund’s investment objective will be pursued by investing primarily in equity securities of high quality growth oriented companies. The investment process will emphasize a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in unique companies it believes have sustainable competitive advantages with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/reward. Individual security selection will be emphasized.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis, in equities of companies not meeting the above requirements, debt securities convertible into common shares, depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), preference shares, warrants on securities, China A-Shares via Stock Connect, Cash Equivalents and other equity linked securities. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process
include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Growth Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US INSIGHT FUND
The US Insight Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, by investing primarily
in securities issued by US companies and on an ancillary basis in securities issued by companies that are not from the US. An issuer may be considered to be from a particular country (including the US) or geographic region if (i) its principal securities trading market is in that country or geographic region; (ii) alone or on a consolidated basis it derives 50% or more of its annual revenue from goods produced, sales made or services performed in that country or geographic region; or (iii) it is organized under the laws of, or has a principal office in, that country or geographic region. By applying these tests, it is possible that a particular issuer could be deemed to be from more than one country or geographic region.
Under normal market conditions, the Fund’s investment objective will be pursued by investing primarily in equity securities of established and emerging companies. The investment process will emphasize a bottom-up stock selection process, seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in unique companies it believes have sustainable competitive advantages with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/reward. Individual security selection will be emphasized.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis, in equities of companies not meeting the above requirements, debt securities convertible into common shares, depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), preference shares, warrants on securities, China A-Shares via Stock Connect, Cash Equivalents and other equity linked securities. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies,
specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Insight Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US PERMANENCE FUND
The US Permanence Fund’s investment objective is to seek long- term capital appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of established companies located in the US, with capitalizations within the range of companies included in the S&P 500 Index.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, China A-Shares via Stock Connect, warrants and other equity linked instruments. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The investment process will emphasize a bottom up stock selection process seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in companies it believes have strong name recognition and sustainable competitive advantages with above average business visibility, the ability to deploy capital at high rates of return, strong balance sheets and an attractive risk/reward.
The Fund will make long-term investments in companies that the Investment Adviser believes have qualities of Permanence including durable long-term competitive advantages. The Fund may also invest in more moderate growth companies, companies with lower earnings volatility and/or companies with some cyclicality in their end markets.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies,
specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of the S&P 500 Index. The Fund references the S&P 500 Index for the purpose of setting the capitalization range of issuers the Fund will invest in. The Fund’s performance is measured against the S&P 500 Index as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Permanence Funds’ investment objective, it may be appropriate for investors who;
- seek to invest in equity securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US PROPERTY FUND
The US Property Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, by investing primarily in equity securities of companies in the US real estate industry Located in the US. Companies in the real estate industry or closely related to the real estate industry may include companies principally engaged in the development and/or ownership of income-producing property; companies that operate, construct, finance or sell real estate; companies with substantial real estate related holdings and/ or services or products related to the real estate industry, including, but not limited to, real estate management, brokers, building products and property technology; and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of eligible closed-end Real Estate Investment Trusts (REITS) and undertakings for collective investment.
The investment process utilizes internal proprietary research to invest in public real estate companies that may offer the best relative value relative to their underlying assets and earnings. The Investment Adviser utilizes a bottom-up approach, valuing each security within the investment universe to arrive at an estimate of net asset value and forward cash flows. Real estate specific factors, broader equity factors, and ESG factors are assessed in the fundamental analysis to calculate appropriate valuation metrics.
The Investment Adviser also incorporates a top-down approach in the portfolio construction process by integrating several factors which may include forecasted fundamental inflections, macroeconomic considerations, and geopolitical and country risk assessments, to achieve diversified exposure across countries and/or sectors.
The Investment Adviser actively integrates sustainability into the investment process by assessing key ESG risks and opportunities in the bottom-up stock selection process primarily by leveraging third-party ESG providers to assess and quantify ESG performance for issuers, supplementing third-party research with proprietary research conducted by the Investment Adviser including utilizing a proprietary framework for assessing and quantifying risks and opportunities related to ESG which results in a quantitative adjustment to valuation estimates, and through engagements with company management to discuss ESG related strengths, weaknesses, and opportunities in an effort to effect positive change within the industry. Key ESG topics may include, but are not limited to: energy usage and renewables, water usage, emissions, diversity and gender equality, labour and human rights, employee and tenant health, wellness and safety and company ESG governance and disclosure. In an effort to drive positive change and encourage companies to improve their performance on material ESG issues, the Investment Adviser may approach company management with competitive insights, financially sound business cases and practical solutions to potentially improve their real estate operations. While
ESG considerations are an integrated and fundamental part of the investment process, they are only one of several key determinants used by the Investment Adviser to determine if an investment will be made or size adjusted in the overall portfolio.
Investments shall not knowingly include any company whose primary business activity in any of the following is more than 10% of company revenue:
- owning or operating real estate used for prisons;
- owning or operating real estate used to manufacture cannabis;
- owning, manufacturing or production of tobacco;
- owning, manufacturing or production of coal mining;
- owning, manufacturing or production of controversial weapons and civilian firearms; and
- owning, manufacturing or production of arctic oil and gas.

Investments shall not knowingly include the following companies:
- companies that have a notable controversy related to their operations and/or products, where the severity of the social or environmental impact of the controversy, is judged by the Investment Adviser;
- companies that fail to comply with the UN Global Compact or the ILO Fundamental Principles, without material remediation and improvement.

The Investment Adviser references third party ESG data and its own proprietary research during the security research process. The Investment Adviser will review controversy cases (such as the exclusions noted above) that it views as being very severe using ratings by relevant ESG data providers and internal research. However, in some cases data on specific issuers or the exclusions noted above may not be readily available and/or may be estimated by the Investment Adviser using reasonable estimates.
The Fund may also invest, on an ancillary basis, in preference shares, debt securities convertible into common shares, warrants and other equity-linked instruments.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Property Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US VALUE FUND
The US Value Fund’s investment objective is to seek long term capital growth, by investing in a broadly diversified selection of transferable equity securities, emphasizing common stocks of leading companies the Investment Adviser believes have been systematically mispriced by the market. Value stocks are common stocks that the Investment Adviser believes are inexpensive relative its estimates of the intrinsic value of the business.
The Fund will invest primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of companies Located in the US.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, Fixed Income Securities, warrants on securities, Cash Equivalents and other equity linked securities.
The Investment Adviser of the Fund employs a bottom-up, research-driven and value-oriented approach that seeks to identify pricing anomalies that occur due to fundamental factors that are perceived to be temporary and not permanent. In selecting securities, the Fund focuses mainly on U.S. issuers with attractive valuations and sound business fundamentals. The Investment Adviser also considers how constructing the portfolio and purchasing or selling an investment impacts the overall portfolio’s risk profile (for example, the portfolio’s beta relative to its benchmark and each economic sector, its standard deviation of return, its active share and tracking error, as well as how its tracking error is composed on an industry and stock level).
In addition to the above, in making investment decisions, the Investment Adviser will integrate ESG criteria. The Investment Adviser utilizes the extensive proprietary ESG research generated by its affiliate, Calvert, in evaluating investments. The Investment Adviser may consider financially material ESG factors as part of the Fund’s securities selection process. Such financially material factors comprise Sustainability Risks or opportunities likely to affect the financial condition or performance of the issuer over a long-term investment horizon and may include, without limitation, business ethics, energy use, energy efficiency and renewable energy,
workplace diversity, climate change, data security and workplace safety.
The Investment Adviser believes that corporate governance practices of issuers have a direct impact on business performance and results produced by those issuers and incorporating companies’ ESG behaviours into investment decisions provides a more comprehensive, holistic approach to investing that the Investment Adviser believes can enhance both stock selection and risk-adjusted returns over the long term.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the US Value Fund’s investment objective it may be appropriate for investors who:
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

VITALITY FUND
The Vitality Fund’s investment objective is to seek long-term capital appreciation, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in equity securities, including depositary receipts (including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of companies Located in the US that are principally engaged in the discovery, development, production, or distribution of products or services related to advances in healthcare. These companies include, but are not limited to, biotechnology, pharmaceuticals, medical equipment and supplies, healthcare technology, healthcare providers and services, and life sciences tools and services.
In relation to this Fund, Vitality means the power to endure and thrive. This reflects the healthcare sector-oriented focus of the Fund and the view of the Investment Adviser that the sector will offer superior opportunity for long-term capital appreciation.
The Fund may also allocate to industries related to the healthcare industry, but are not primarily engaged in the scientific advancement of healthcare. The allocation among these areas will vary depending on the relative potential the Investment Adviser sees within each area and the outlook for the overall healthcare sector.
The Fund may also invest, on an ancillary basis, in equity securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, warrants and other equity linked instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The investment process will emphasize a bottom up stock selection process seeking attractive investments on an individual company basis. In selecting securities for investment, the Investment Adviser typically invests in unique companies it believes have sustainable competitive advantages, strong research and development and productive new product flow, financial strength, and an attractive risk/reward profile. The Fund generally seeks investments in companies that are developing new and effective medicines, enabling novel and more efficient research and development efforts, as well as companies whose business models reduce costs or improve quality in healthcare systems.
The Fund will make long-term investments in companies that the Investment Adviser believes have the most durable long-term competitive advantages. The Fund may also invest in more moderate growth companies, companies with lower earnings volatility and/or companies with some cyclicality in their end markets. The Investment Adviser generally considers selling a portfolio holding when it determines that the holding no longer satisfies its investment criteria.
The Investment Adviser actively integrates sustainability into the investment process by using ESG factors as a lens for additional fundamental research, which can contribute to investment decision- making. The Investment Adviser seeks to understand how environmental and social initiatives within companies can create value by strengthening durable competitive advantages, creating growth opportunities, driving profitability, and/or aligning with secular growth trends. The Investment Adviser generally engages with company management teams to discuss their ESG practices, with the aim of identifying how sustainability themes present opportunities
and risks that can be material to the value of the security over the long term. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation.
Investments shall not knowingly include any company whose primary business activity involves the following:
- tobacco;
- coal; or
- weapons, comprising civilian firearms, cluster munitions and anti-personnel mines.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). Further to the above, the Investment Adviser may, in its discretion, elect to apply additional investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im. Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund is actively managed, not designed to track a benchmark, and therefore not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L
Profile of the typical investor
In light of the Vitality Fund’s investment objective, it may be appropriate for investors who;
- seek to invest in equity securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

BOND FUNDS
The various Bond Funds have the following objectives:
CALVERT SUSTAINABLE GLOBAL GREEN BOND FUND
The Calvert Sustainable Global Green Bond Fund’s investment objective is to provide an attractive level of total return, measured in US Dollars, through investment in global Fixed Income Securities that meet the Investment Adviser’s ESG and Impact criteria (as further described below) and qualify as sustainable investments under the SFDR, with the objective of supporting positive environmental and social impacts and outcomes. The Fund will seek to achieve the investment policy through allocation across fixed income asset classes as well as through market and instrument selection.
The Fund will invest primarily in Green Bonds (as defined below) including the global securities of corporate, government and government related issuers across a spectrum of fixed income asset classes including, investment-grade bonds, high yield bonds, mortgage-backed securities, asset-backed securities, convertibles and currencies, and subject to applicable law, in other asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised. High yield bonds are considered to be Fixed Income Securities issued by corporations that are rated lower than “BBB-” by S&P or “Baa3” by Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. These investments may include fixed income securities issued in emerging markets.
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of sustainability themes and ESG issues in its investment decision-making on a discretionary basis as detailed below. The Investment Adviser may engage company management around corporate governance practices and what it deems to be materially important environmental and/or social issues facing a company. It will also seek to support positive environmental and social impacts and outcomes, having regard to sustainability themes such as Decarbonisation & Climate Risk, Circular Economy & Waste Reduction, Diverse & Inclusive Business and Decent Work & Resilient Jobs.
For the purpose of this Fund, ‘Green Bonds’ include but are not limited to the following instruments:
- Green Use of Proceeds Bonds, with proceeds targeted to environmentally beneficial projects (with or without external Green Bond labelling);
- Sustainability Bonds, with a proportion of the proceeds targeted to environmentally beneficial projects;
- Transition Bonds, with proceeds targeted to transitioning to more environmentally favourable business models;
- Sustainability-linked Bonds, with environmental key performance indicators and targets; and
- Bonds of issuers that seek to provide environmental solutions or that demonstrate environmental sustainability leadership.

The Investment Adviser employs a proprietary assessment framework for Green Bonds (which has regard to, where appropriate, recognised green bond guidelines such as the Green Bonds Principles of the International Capital Market Association), through which the robustness, expected impact and transparency of all such instruments in the Fund are evaluated. The Investment Adviser uses third-party data and ESG research as part of its analysis. Where data may not be available, the Investment Adviser will use internal methodologies or reasonable estimates. The methodologies used by different data providers can vary and may result in different evaluations. Details of the evaluation methodology and Calvert Principles for Responsible Investment is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
On an ancillary basis the Fund may invest in securities which are not identified by the Investment Adviser as Green Bonds, provided the Investment Adviser has assessed that the issuer and/or security makes a significant contribution to positive social impacts or outcomes either through the issuer’s products and services or through its practices or through the specific projects or investments financed by the bond issue, and provided the Investment Adviser has established that the activities of the issuer or projects associated with the bond issue, as applicable, do not result in adverse environmental or social impacts, or cause significant harm in accordance with the SFDR sustainable investment requirements. Such investments may include labelled Social Bonds, with proceeds allocated to projects focussed on positive social outcomes and / or target populations, or labelled Sustainability-linked Bonds with social key performance indicators and targets. Such labelled bonds will also be subject to the Investment Adviser’s proprietary assessment framework, as described above. The labels “Green”, “Social”, “Sustainability” and “Sustainability-Linked” attached to the bonds by their issuers stand for the fact that their frameworks are, in most cases, although not exclusively, aligned with the International Capital Market Association (ICMA) Green/Social/ Sustainability-Linked Bond Principles, or Sustainability Bond Guidelines, or principles/guidelines established in other jurisdictions.
The aim of the Investment Adviser will be to ensure that at least 90% of the securities in the portfolio are assessed with respect to the sustainability themes and ESG issues described above.
In relation to this Fund, the use of “Calvert” in the name refers to Calvert Research and Management (“Calvert”), whose role in relation to this Fund is limited to the provision of non-discretionary investment advice to the Investment Adviser to assist the Investment Adviser in its management of the Fund. Calvert has no discretion to make discretionary investment decisions on behalf of the Fund, such investment discretion being vested solely in the Investment Adviser.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers
and restrictions set out in Appendix A) make use of derivative instruments such as index futures, contracts for difference (CFDs), TRS, structured notes (including participatory notes), convertible bonds, convertible preferred stocks, options, foreign exchange options, currency forwards and forward contracts and other derivatives for investment or efficient portfolio management (including hedging) purposes.
Investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of:
	- controversial weapons;
	- manufacturing or production of civilian firearms;
	- manufacturing or production of tobacco, or where the company derives >10% revenue from tobacco distribution or retail;
	- gambling, where the company derives >10% revenue from such business activity; and
	- adult entertainment, where the company derives >10% revenue from such business activity.


The Fund will also not invest in securities of issuers that fail to comply with the UN Global Compact or the ILO Fundamental Principles, and where the Investment Adviser believes appropriate remedial action has not been taken.
Investments that are held by the Fund but subsequently become restricted due to the application of the ESG criteria above, after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
It is not expected that the Fund will invest more than 50% of its net assets in aggregate in securitized instruments. It is not expected that the Fund will invest more than 20% of its net assets in any one type of securitized instrument (e.g., asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), agency mortgage-backed securities (MBS)).
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds
and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation and as such the Fund’s sustainable investments do not take into account the criteria for environmentally sustainable economic activities under the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Calvert Sustainable Global Green Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EMERGING MARKETS CORPORATE DEBT FUND
The Emerging Markets Corporate Debt Fund’s investment objective is to seek to maximize total return, measured in US Dollars, primarily through investments across the credit spectrum of Fixed Income Securities of corporate issuers, together with investing in Fixed Income Securities of government and government related issuers located in each case in Emerging Markets countries. The Fund intends to invest its assets in Emerging Market countries’ Fixed Income Securities that provide a high level of current income, while at the same time holding the potential for capital appreciation.
“Emerging Market” countries, for the purposes of this Fund, are as defined by the JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified, provided that the markets of these countries are considered to be recognized exchanges (“Recognized Exchanges”) within the meaning of Article 41(1) of the 2010 Law. As markets in other countries develop, the Fund expects to expand and further diversify the emerging markets in which it primarily invests as such markets are added to this index. To achieve its principal investment in Emerging Market countries, the Fund may invest in Fixed Income Securities of companies organised and located in Emerging Market countries and may also invest in Fixed Income Securities of companies organised and located in Developed Market countries (for the purpose of this Fund, as defined by the
JP Morgan Government Bond Index) where the value of the company’s securities will reflect principally conditions in an Emerging Market country or where the principal securities trading market for such Emerging Market country, or where 50% of the company’s revenue alone or on a consolidated basis is derived from either goods produced, sales made or services performed in Emerging Market countries (“EM Exposed Securities”). Fixed Income Securities held by the Fund will take the form of bonds, notes, bills, debentures, convertible securities, bank debt obligations, short-term paper, mortgage and, subject to applicable law, other asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may also invest on an ancillary basis in the aforementioned Fixed Income Securities where such securities are issued by issuers organised and located (1) in neither Developed Market countries nor Emerging Market countries; or (2) in Developed Market countries but the securities are not EM Exposed Securities.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 20% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes. The Fund may, on an ancillary basis, invest in other emerging markets Fixed Income Securities and in emerging markets Fixed Income Securities denominated in currencies other than US Dollars.
The Fund may also invest, to a limited extent, in warrants on transferable securities issued by issuers in emerging markets.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund is actively managed and references the JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified for the purpose of defining a geographical allocation of the countries the Fund will invest into. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified, it can invest in such securities from countries in different proportions, and it can hold assets which are not exposed to countries referenced in the JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Markets Corporate Debt Fund’s investment objective, it may be appropriate for investors who:
- seek to invest in Fixed Income Securities in emerging markets;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EMERGING MARKETS DEBT FUND
The Emerging Markets Debt Fund’s investment objective is to seek to maximise total return, measured in US Dollars, primarily through investment in the Fixed Income Securities of government and government-related issuers located in Emerging Market (as defined below) countries (including, to the extent these instruments are securitised, participations in loans between governments and financial institutions), together with investing in the Fixed Income Securities of corporate issuers located in, organised under the laws of, or which have a principal office in, Emerging Market countries. The Fund intends to invest its assets in Emerging Market country Fixed Income Securities that provide a high level of current income, while at the same time holding the potential for capital appreciation.
“Emerging Market” countries, for the purposes of this Fund, are as defined by the JP Morgan Emerging Market Bond Index Global Diversified provided that the markets of these countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law. As markets in other countries develop, the Fund expects to expand and further diversify the emerging markets in which it primarily invests as or before such markets are added to the JP Morgan Emerging Market Bond Index Global Diversified. Fixed Income Securities held by the Fund will take the form of bonds, notes, bills, debentures, convertible securities, bank debt obligations, short-term paper, mortgage and, subject to applicable law, other asset-backed securities, loan participations and loan assignments (to the extent that these instruments are securitised) and interests issued by entities organised and operated for the purpose of restructuring the investment characteristics of instruments issued by Emerging Market issuers.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on sovereign issuance. Additionally as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as carbon emissions, climate vulnerability, forestry conservation, life expectancy & health, education, living standards, voice & accountability, political stability, effective government, regulatory quality, rule of law,
corruption, violence/terrorism. The Investment Adviser will monitor core sustainability indicators, including ESG assessments from third-party providers in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes good governance and social practices among sovereigns. Consequently, the Investment Adviser will not make any new investments in countries where there is evidence of significant social violations. Investments that are held by the Fund but become restricted because they breach the good governance and social practices exclusions, after they are acquired for the Fund, will be sold. Such sales will take place over a period of time to be determined by the Investment Adviser, taking into account the best interests of the shareholders of the Fund. Any countries exhibiting positive momentum with respect to such violations shall not be subject to the purchase restriction. The Investment Adviser shall disclose the methodology used to evaluate significant social violations on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
To achieve its principal investment in Emerging Market countries, the Fund may invest in the Fixed Income Securities of companies organised under the laws of, located in or which have a principal office in Emerging Market countries and may also invest in the Fixed Income Securities of companies organised under the laws of, located in or which have a principal office in Developed Market countries (for the purpose of this Fund, as defined by JP Morgan Government Bond Index) where the company’s principal Fixed Income Securities trading market is in an Emerging Market country, or where 50% of the company’s revenue alone or on a consolidated basis is derived from goods produced, sales made or services performed in Emerging Market countries (“EM Exposed Securities”).
For investments in such companies specifically, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis in the aforementioned classes of Fixed Income Securities where such Fixed Income Securities are issued by issuers organised under the laws of and located (1) neither in Developed Market countries nor Emerging Market countries; or (2) in Developed Market countries, but where the Fixed Income Securities are not EM Exposed Securities.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 20% of the Fund’s assets will be invested in such securities.
The Fund may also invest, to a limited extent, in warrants issued by Emerging Market issuers and in open-ended ETFs provided that any such ETFs are eligible investments for UCITS funds.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and references the JP Morgan Emerging Market Bond Index Global Diversified for the purpose of defining a geographical allocation of the countries the Fund will invest into. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the JP Morgan Emerging Market Bond Index Global Diversified, it can invest in such securities from countries in different proportions to their allocations under the JP Morgan Emerging Market Bond Index Global Diversified, and it can hold assets which are not exposed to countries referenced in the JP Morgan Emerging Market Bond Index Global Diversified. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the JP Morgan Emerging Market Bond Index Global Diversified. The JP Morgan Emerging Market Bond Index Global Diversified is used for performance comparison purposes only and does not integrate environmental or social characteristics.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Markets Debt Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities in Emerging Markets;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EMERGING MARKETS DEBT OPPORTUNITIES FUND
The Emerging Markets Debt Opportunities Fund’s investment objective is to generate total return, which is defined as income plus capital appreciation, by establishing long and short investment exposures to Emerging Markets (as defined below) debt pool through currencies, local interest rates, and sovereign and corporate credit, while investing primarily in (i) Fixed Income Securities of corporate, government and government-related issuers Located in Emerging Market countries; and/or (ii) derivative instruments denominated in or based on the currencies, interest rates, or issuers of Emerging Market countries. Fixed Income Securities may include zero coupon bonds, preferred stocks, deferred interest bonds and notes and bonds and notes on which the interest is payable in the form of additional eligible stocks, bonds or notes of the same kind (Payment-in-Kind (PIK) securities).
“Emerging Market” country, for the purposes of this Fund, is any country determined by the Investment Adviser to have an emerging market economy, considering factors such as the country’s political and economic stability, and the development of its financial and capital markets. Emerging market countries include so-called frontier market countries. Frontier markets are a sub-category of emerging markets and are generally considered by the Investment Adviser to be countries which are not developed countries and (i) are not included in the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index; or (ii) represent 2% or less of the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index, provided that in each case, the markets of these countries are considered to be recognised exchanges within the meaning of Article 41(1) of the 2010 Law. The Fund does not invest in developed countries except for purposes of hedging, gaining exposure to Fixed Income Securities denominated in currencies of emerging market countries and investments (including through derivative instruments) in U.S treasuries and U.S. government and agency securities and agency mortgage-backed securities.
The Fund may have significant investment in a geographic region or country and, subject to the foregoing in this paragraph, there is no limit on the Fund’s exposure to any geographic region or country. It is not intended that the Fund will have a particular sector or industry focus.
Fixed Income Securities held by the Fund will take the form of sovereign bonds and debentures, mortgage-backed securities and asset-backed securities, convertible debt securities (which may embed derivatives), contingent convertible instruments, municipal obligations, corporate bonds and debentures, fixed income and floating rate debt securities, loan participations and loan assignments, to the extent that these instruments are securitised, and participation notes.
The Fund may invest in instruments of any credit rating, including those rated below investment grade (rated below BBB by either Standard & Poor’s Ratings Services or Fitch Ratings, or below Baa by Moody’s Investors Service, Inc.) or in unrated instruments considered to be of comparable quality by the Investment Adviser.
In evaluating the Fixed Income Securities issued by emerging market corporates and in its engagement with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, currency and duration / local rates, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as carbon emissions, climate vulnerability, forestry conservation, life expectancy & health, education, living standards, voice & accountability, political stability, effective government, regulatory quality, rule of law, corruption, and violence/terrorism. The Investment Adviser will monitor core sustainability indicators, including ESG assessments from third-party providers, in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least annually.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes good governance and social practices among corporate issuers. Consequently, the Investment Adviser will not make any new investments in issuers where there is evidence that the relevant issuer has engaged in significant social violations (being activities which infringe significantly on an individual or a group’s rights). Investments that are held by the Fund but become restricted because they breach the good governance and social practices exclusions, after they are acquired for the Fund, will be sold. Such sales will take place over a period of time to be determined by the Investment Adviser, taking into account the best interests of the shareholders of the Fund. Any issuers exhibiting positive momentum with respect to such violations shall not be subject to the purchase restriction. The methodology used by the Investment Adviser to evaluate significant social violations shall be disclosed on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
With respect to investment in Fixed Income Securities issued by corporates, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exceptions to the above coal exclusion are that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices of issuers on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
The Investment Adviser also promotes good governance and social practices among sovereigns. Consequently, the Investment Adviser will not make any new investments in countries where there is evidence of significant social violations (being significant failures by the government to ensure that an individual or a group’s social rights are protected). However, any existing investments in such countries shall not necessarily need to be sold, and any countries exhibiting positive momentum with respect to such violations shall not be subject to the purchase restriction. The Investment Adviser shall disclose the methodology used to evaluate significant social violations on its website.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with the investment objective of the Fund. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser
using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Investment Adviser believes that as sustainability issues are sources of long-term risk and return, the integration of sustainability risks as outlined above may assist in enhancing the returns of the Fund over the long term. Further information in respect of the integration of sustainability risks in relation to the Company is included in the section of the Prospectus headed “General information relating to Sustainability Risks integration”.
In managing the Fund, the Investment Adviser performs macroeconomic and political research and analysis on individual countries. It considers such factors as a country’s political system and environment, fiscal policy, monetary policy, incomes policy (i.e. any government policy that affects corporate or individual earnings in the particular country subject to the policy (such as tax policy, subsidies in particular economic sectors, minimum wage laws, or industry regulations)) and trade policy, among other factors. Based on this research and analysis, the Investment Adviser seeks to identify countries and currencies it believes have potential to outperform investments in other countries and currencies, and to anticipate changes in global economies, markets, political conditions and other factors for this purpose. The Investment Adviser selects and adjusts investments in an effort to take advantage of differences in the perceived values of countries’ currencies, interest rates and credit spreads. To implement investment decisions, the Investment Adviser selects an asset class and specific instrument that most optimally and efficiently expresses the Investment Adviser’s view of that particular country. The Investment Adviser considers the relative risk/return characteristics of prospective investments in determining the most efficient means for achieving desired exposures.
The Fund may also invest, on an ancillary basis, in Fixed Income Securities not meeting the criteria of the Fund’s primary investments, equity securities, warrants on securities, Cash Equivalents and other equity linked securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund may invest no more than 20% of its assets in debt securities that are not paying current income in anticipation of the receipt of possible future income or capital appreciation which are unrated or categorised as the lowest rated obligations (rated C by Moody’s or D by S&P).
The Fund may invest no more than 10% of its assets in participation notes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest no more than 20% of its assets in aggregate asset-backed securities (ABS) and/or mortgage-backed securities (MBS).
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and references the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index for the purposes of defining a geographical allocation of the countries the Fund will invest into and monitoring error relative to the benchmark. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/ Local Currency 50-50 Index, it can invest in such securities from countries in different proportions to their allocations under the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index, and it can hold assets which are not exposed to countries referenced in the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Markets Debt Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EMERGING MARKETS DOMESTIC DEBT FUND
The Emerging Markets Domestic Debt Fund’s investment objective is to seek to maximise total return, measured in US Dollars, primarily through investment in a portfolio of Emerging Market bonds and other Emerging Market (as defined below) Fixed Income Securities, denominated in the local currency of issue. The Fund intends to invest its assets in Emerging Market Fixed Income Securities that provide a high level of current income, while at the same time holding the potential for capital appreciation.
“Emerging Market” countries, for the purposes of this Fund, are as defined by the JP Morgan Government Bond Index – Emerging Markets Global Diversified, provided that the markets of these countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law. As emerging markets in other countries develop, the Fund expects to expand and further diversify the emerging markets in which it primarily invests as or before such markets are added to the JP Morgan Government Bond Index – Emerging Markets Global Diversified.
To achieve its principal investment in Emerging Market countries, the Fund may invest in Fixed Income Securities of government and government-related issuers located in Emerging Markets countries (including, to the extent these instruments are securitised, participations in loans between governments and financial institutions) and Fixed Income Securities of corporate issuers located in, organised under the laws of, or which have a principal office in, Emerging Market countries, denominated in the local currency of issue (“EM Exposed Securities”).
The Fund may invest in Fixed Income Securities of entities organised to restructure outstanding debt of Emerging Market issuers.
Fixed Income Securities held by the Fund will take the form of bonds, notes, bills, debentures, convertible securities, bank debt obligations, short-term paper, mortgage and, subject to applicable law, other asset-backed securities, loan participations and loan assignments to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on sovereign issuance. Additionally as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the
Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as carbon emissions, climate vulnerability, forestry conservation, life expectancy & health, education, living standards, voice & accountability, political stability, effective government, regulatory quality, rule of law, corruption, violence/terrorism. The Investment Adviser will monitor core sustainability indicators, including ESG assessments from third-party providers in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes good governance and social practices among sovereigns. Consequently, the Investment Adviser will not make any new investments in countries where there is evidence of significant social violations. Investments that are held by the Fund but become restricted because they breach the good governance and social practices exclusions, after they are acquired for the Fund, will be sold. Such sales will take place over a period of time to be determined by the Investment Adviser, taking into account the best interests of the shareholders of the Fund. Any countries exhibiting positive momentum with respect to such violations shall not be subject to the purchase restriction. The Investment Adviser shall disclose the methodology used to evaluate significant social violations on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
For investments in corporate issuers specifically, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it
deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis in the aforementioned classes of Fixed Income Securities where such securities are issued by issuers organised under the laws of and located (1) neither in Developed Market (for the purposes of this Fund, as defined by the JP Morgan Government Bond Index – Emerging Markets Global Diversified) countries nor Emerging Market countries; or (2) in Developed Market countries, but where the Fixed Income Securities are not EM Exposed Securities.
In addition, the Fund may invest on an ancillary basis in Fixed Income Securities which are not denominated in the local currency of issue, provided that for temporary defensive purposes, during periods in which the Company believes changes in economic, financial or political conditions make it advisable, the Fund may
reduce its holdings denominated in the local Emerging Market currency of issue to below 50% of the Fund’s assets and invest in eligible Fixed Income Securities denominated in the currencies of Developed Market countries.
The Fund may also invest, to a limited extent, in warrants on transferable securities issued by issuers in Emerging Market countries and in open-ended ETFs provided that any such ETFs are eligible investments for UCITS funds.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 20% of the Fund’s assets will be invested in such securities.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and references the JP Morgan Government Bond Index – Emerging Markets Global Diversified for the purpose of defining a geographical allocation of the countries the Fund will invest into. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the JP Morgan Government Bond Index – Emerging Markets Global Diversified, it can invest in such securities from countries in different proportions to their allocations under the JP Morgan Government Bond Index – Emerging Markets Global Diversified, and it can hold assets which are not exposed to countries referenced in the JP Morgan Government Bond Index – Emerging Markets Global Diversified. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the JP Morgan Government Bond Index – Emerging Markets Global Diversified. The JP Morgan Government Bond Index – Emerging Markets Global Diversified is used for performance comparison purposes only and does not integrate environmental or social characteristics.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Markets Domestic Debt Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities in Emerging Markets;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”, specifically the risks relating to Emerging Markets and in particular Fixed Income Securities denominated in the currency of the countries of investment.

EMERGING MARKETS FIXED INCOME OPPORTUNITIES FUND
The Emerging Markets Fixed Income Opportunities Fund’s investment objective is to seek to maximise total return, measured in US Dollars, primarily through investment in the Fixed Income Securities of issuers located in Emerging Market Countries or issues denominated in the currencies of Emerging Market Countries. The Fund intends to invest its assets in Emerging Market countries’ Fixed Income Securities that provide a high level of current income, while at the same time holding the potential for capital appreciation.
“Emerging Market” countries, for the purposes of this Fund, are any countries included in JP Morgan Emerging Markets Blended Index – Equally Weighted which is an equally weighted index of JP Morgan Emerging Market Bond Index Global Diversified, JP Morgan Corporate Emerging Market Bond Index Broad Diversified and JP Morgan Government Bond Index – Emerging Markets Global Diversified Index, provided that the markets of these countries are considered to be recognised exchanges (“Recognised Exchanges”) within the meaning of Article 41(1) of the 2010 Law. For the avoidance of doubt, an investment in an issue included in this index will constitute an investment within the primary investment strategy of the Fund. As markets in other countries develop, the Fund expects to expand and further diversify the emerging markets in which it primarily invests as such markets are added to this index.
To achieve its principal investment in Emerging Market countries, the Fund may also invest in the Fixed Income Securities of companies organised and located in Developed Market countries (for the purpose of this Fund, as defined by the JP Morgan Government Bond Index) where the value of the company’s securities will reflect principally conditions in an Emerging Market country or where the principal securities trading market for such is in an Emerging Market country, or where 50% of the company’s revenue alone or on a consolidated basis is derived from either goods produced, sales made or services performed in Emerging Market countries (“EM Exposed Securities”).
The Fund may invest in Fixed Income Securities of issuers organised to restructure outstanding debt of Emerging Market issuers.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exceptions to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it
deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may invest on an ancillary basis in Fixed Income Securities issued by issuers organised and located (1) in neither Developed Market countries nor Emerging Market countries; or
(2) in Developed Market countries but the securities are not EM Exposed Securities.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 20% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and references the JP Morgan Emerging Markets Blended Index – Equally Weighted for the purpose of defining a geographical allocation of the countries the Fund will invest into. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the JP Morgan Emerging Markets Blended Index – Equally Weighted, it can invest in such securities from countries in different proportions, and it can hold assets which are not exposed to countries referenced in the JP Morgan Emerging Markets Blended Index – Equally Weighted. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the JP Morgan Emerging Markets Blended Index – Equally Weighted.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Markets Fixed Income Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EMERGING MARKETS LOCAL INCOME FUND
The Emerging Markets Local Income Fund’s investment objective is to generate total return, which is defined as income plus capital appreciation, by establishing a locally denominated Emerging Markets (as defined below) debt pool through currencies and interest rates, while investing primarily in: (i) Fixed Income Securities of corporate, government and government related issuers
Located in Emerging Market countries or denominated in currencies of Emerging Markets countries and/or (ii) derivative instruments, denominated in or based on the currencies, interest rates, or issues of, Emerging Market countries.
For the purposes of this Fund, “Emerging Markets” countries are defined to include any country that did not become a member of the OECD prior to 1975 and Turkey. Emerging market countries include so-called frontier market countries, which generally are considered by the Investment Adviser to be less developed countries that: (i) are not included in the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified; or (ii) represent 2% or less of the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified.
The Fund may have significant investment in a geographic region or country. It is not intended that the Fund will have a particular sector or industry focus.
Fixed Income Securities held by the Fund will take the form of sovereign bonds and debentures, mortgage-backed securities and asset-backed securities, convertible debt securities, municipal obligations, corporate bonds and debentures, fixed-income and floating rate debt securities and, to a limited extent, participation notes. Fixed Income Securities may include zero coupon bonds, preferred stocks, deferred interest bonds and notes and bonds and notes on which the interest is payable in the form of additional eligible stocks, bonds or notes of the same kind (“Payment-in-Kind (PIK) securities”).
The Fund may invest in instruments of any credit rating, including those rated below investment grade (rated below BBB by either Standard & Poor’s Ratings Services or Fitch Ratings, or below Baa by Moody’s Investors Service, Inc.) or in unrated instrument considered to be of comparable quality by the Investment Adviser.
The investment process and strategy seeks to identify local emerging markets and their currencies that will outperform on a relative basis other comparable emerging markets and their currencies. The principal risk factors in analysing emerging markets debt are credit, duration, foreign exchange, and sustainability risk. Any or all of these factors may be identified as having the potential to contribute to outperformance. Therefore, in some cases, the Investment Adviser will take the view that a country’s currency will appreciate and will seek to obtain exposure to that currency through the derivative instruments referenced above or investment in the securities denominated in such currency.
In evaluating the Fixed Income Securities issued by emerging market corporates and in its engagement with issuers, the Investment Adviser incorporates an assessment of sustainability- related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for
valuation and spreads, currency and duration / local rates, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to environmental, social and governance (“
ESG
”) themes such as carbon emissions, climate vulnerability, forestry conservation, life expectancy & health, education, living standards, voice & accountability, political stability, effective government, regulatory quality, rule of law, corruption, and violence/terrorism. The Investment Adviser will monitor core sustainability indicators, including ESG assessments from third-party providers, in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least annually.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes good governance and social practices among corporate issuers. Consequently, the Investment Adviser will not make any new investments in issuers where there is evidence that the relevant issuer has engaged in significant social violations (being activities which infringe significantly on an individual or a group’s rights). Investments that are held by the Fund but become restricted because they breach the good governance and social practices exclusions, after they are acquired for the Fund, will be sold. Such sales will take place over a period of time to be determined by the Investment Adviser, taking into account the best interests of the shareholders of the Fund. Any issuers exhibiting positive momentum with respect to such violations shall not be subject to the purchase restriction. The methodology used by the Investment Adviser to evaluate significant social violations shall be disclosed on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
With respect to investment in Fixed Income Securities issued by corporates, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion are that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions.
Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices of issuers on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
The Investment Adviser also promotes good governance and social practices among sovereigns. Consequently, the Investment Adviser will not make any new investments in countries where there is evidence of significant social violations (being significant failures by the government to ensure that an individual or a group’s social rights are protected). However, any existing investments in such countries shall not necessarily need to be sold, and any countries exhibiting positive momentum with respect to such violations shall not be subject to the purchase restriction. The Investment Adviser shall disclose the methodology used to evaluate significant social violations on its website.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with the investment objective of the Fund. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Investment Adviser believes that as sustainability issues are sources of long-term risk and return, the integration of sustainability risks as outlined above may assist in enhancing the returns of the Fund over the long term. Further information in respect of the integration of sustainability risks in relation to the Company is
included in the section of the Prospectus headed “General information relating to Sustainability Risks integration”.
In managing the Fund, the Investment Adviser performs macroeconomic and political research and analysis on individual countries. It considers such factors as a country’s political system and environment, fiscal policy, monetary policy, incomes policy (i.e. any government policy that affects corporate or individual earnings in the particular country subject to the policy (such as tax policy, subsidies in particular economic sectors, minimum wage laws, or industry regulations)) and trade policy, among other factors. Based on this research and analysis, the Investment Adviser seeks to identify countries and currencies it believes have potential to outperform investments in other countries and currencies, and to anticipate changes in global economies, markets, political conditions and other factors for this purpose. The Investment Adviser selects and adjusts investments in an effort to take advantage of differences in the perceived values of countries’ currencies, interest rates and credit spreads. To implement investment decisions, the Investment Adviser selects an asset class and specific instrument that most optimally and efficiently expresses the Investment Adviser’s view of that particular country. The Investment Adviser considers the relative risk/return characteristics of prospective investments in determining the most efficient means for achieving desired exposures.
The Fund may invest no more than 20% of its assets in debt securities that are not paying current income in anticipation of the receipt of possible future income or capital appreciation which are unrated or categorised as the lowest rated obligations (rated C by Moody’s or D by S&P).
The Fund may invest no more than 20% of its assets in aggregate in asset-backed securities (ABS) and/or mortgage-backed securities (MBS).
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund may also invest, on an ancillary basis, in Fixed Income Securities not meeting the criteria of the Fund’s primary investments, equity securities, warrants on securities, Cash Equivalents and other equity linked securities.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers
and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and references the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified for the purposes of defining a geographical allocation of the countries the Fund will invest into and monitoring error relative to the benchmark. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will generally hold assets within the countries referenced in the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified, it can invest in such securities from countries in different proportions to their allocations under the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI- EM) Global Diversified, and it can hold assets which are not exposed to countries referenced in the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified.
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Emerging Markets Local Income Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EURO BOND FUND
The Euro Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro.
The Fund will invest primarily in Euro denominated Fixed Income Securities whether issued by corporations, governments or government guaranteed issuers. With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in
Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six months of its downgrade.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest to a limited extent in open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Euro Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EURO CORPORATE BOND FUND
The Euro Corporate Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro.
The Fund will invest primarily in Euro denominated Fixed Income Securities, issued by corporations and other non-government related issuers (“Corporate Bonds”). With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below
BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six months of its downgrade.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activityThe exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as ithas been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.

In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may, on an ancillary basis, invest in:
- Non-Euro denominated Fixed Income Securities. In accordance with Appendix A “Investment Powers and Restrictions” non- Euro currency exposure may be hedged back to the Euro.
- Fixed Income Securities that are not Corporate Bonds.

The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Euro Corporate Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EURO CORPORATE BOND – DURATION HEDGED FUND
The Euro Corporate Bond – Duration Hedged Fund’s investment objective is to provide an attractive rate of return, measured in Euro, while seeking to reduce the Fund’s exposure to market interest rate movements.
Duration is a measure of the sensitivity of the price of a debt security to changes in interest rates. Duration risk is the risk that an investment’s value will change due to changes in interest rates. The value of debt securities will generally increase when interest rates fall and decrease when interest rates rise. The Fund seeks to reduce its exposure to market interest rate movements by hedging the duration of the Fund.
The Fund will invest primarily in high quality issues of Euro denominated Fixed Income Securities, issued by corporations and other non-government related issuers (“Corporate Bonds”).
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it
deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
Securities will be deemed to be high quality if at the time of purchase they are rated either “BBB-” or better by S&P or “Baa3” or better by Moody’s or similarly rated by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. The Fund may continue to hold such securities that are downgraded after purchase but it will not hold securitised bonds downgraded below “BBB-” by S&P or “Baa3” by Moody’s and/or other securities downgraded below “B-” by S&P or “B3” by Moody’s, or, in each case, a similar rating by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. The Fund may not make additional purchases of securities that are downgraded.
The Fund may, on an ancillary basis, invest in:
- Corporate Bonds which at the time of purchase are rated either lower than “BBB-” by S&P or “Baa3” by Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser.
- Non-Euro denominated Fixed Income Securities. In accordance with Appendix A “Investment Powers and Restrictions” non- Euro currency exposure may be hedged back to the Euro.
- Fixed Income Securities that are not Corporate Bonds.

The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest no more that 20% of its assets in mortgage- backed securities or assets backed securities.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Euro Corporate Bond – Duration Hedged Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EURO STRATEGIC BOND FUND
The Euro Strategic Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro.
The Fund will invest primarily in issues of Euro denominated Fixed Income Securities whether issued by corporations, government or government guaranteed issuers, and subject to applicable law, in asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in non-Euro denominated Fixed Income Securities. In accordance with Appendix A “Investment Powers and Restrictions” non-Euro currency exposure may be hedged back to the Euro.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Euro Strategic Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EUROPEAN FIXED INCOME OPPORTUNITIES FUND
The European Fixed Income Opportunities Fund’s investment objective is to provide an attractive level of total return, measured in Euro, through the selection of Euro-denominated Fixed Income Securities. The Fund will seek to achieve the investment policy
through allocation across fixed income asset classes as well as through market and instrument selection.
The Fund will invest primarily in Euro-denominated Fixed Income Securities of corporate, government and government related issuers across a spectrum of fixed income asset classes including investment- grade bonds, high-yield bonds, mortgage-backed securities, convertibles and currencies and subject to applicable law, in other asset-backed securities as well as loan participations and loan assignments to the extent that these instruments are securitised. High yield bonds are considered to be Fixed Income Securities issued by corporations that are rated lower than “BBB-” by S&P or “Baa3” by Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. The Investment Adviser may invest in any combination of two or more of the above asset classes.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may also invest, on an ancillary basis, in Fixed Income Securities that are not denominated in Euro, emerging markets Fixed Income Securities and additional securities including but not
limited to debt securities convertible into common shares, Cash Equivalents, equity or other equity linked securities.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange- traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the European Fixed Income Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

EUROPEAN HIGH YIELD BOND FUND
The European High Yield Bond Fund’s investment objective is to provide an attractive rate of return, measured in Euro, through
investments worldwide primarily in lower rated and unrated Fixed Income Securities issued by governments, agencies and corporations that offer a yield above that generally available on the Fixed Income Securities in the four highest rating categories of S&P or Moody’s denominated in European currencies. These investments may include Fixed Income Securities issued by non-European issuers and such securities issued in emerging markets and, subject to applicable law, asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms; and
- manufacturing or production of tobacco.

With respect to fossil fuel activities specifically, the Investment Adviser may engage company management around the topics of
decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company. Investments shall not knowingly include any company whose business activity involves the mining and extraction of thermal coal, where the company derives >5% revenue from such business activity.
The exception to the above is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Fund may invest in issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the financial product such as hedging instruments.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may, on an ancillary basis, invest in non-European currency denominated Fixed Income Securities. In order to optimize European currency exposure, the non-Euro currency exposure may be hedged back to the Euro and the Fund may, on an ancillary basis, use derivatives contracts to create synthetic European currency high yield Fixed Income Securities within the limits set forth in Appendix A – Investment Powers and Restrictions.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the European High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

FLOATING RATE ABS FUND
The Floating Rate ABS Fund’s investment objective is to generate an attractive return, whilst minimising exposure to changes in interest rates through investments in a portfolio of floating rate asset-backed securities (“ABS”), measured in Euro.
The Fund will invest primarily in floating-rate Fixed Income Securities with a duration of less than two years that are mortgage- backed  securities,  commercial  mortgage-backed  securities,
collateralized mortgage obligations, covered bonds that are covered by mortgages including uniform mortgage-backed securities and other ABS rated investment-grade by an internationally recognised rating agency, securities determined to be of similar creditworthiness by the Investment Adviser, or securities backed by the United States of America. Floating-rate securities are defined as securities that are benchmarked to a floating-rate index. The Fund will maintain an average duration between 0 – 1 year.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund will invest in. Additionally, as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, lenders and servicers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Fund promotes sustainable and responsible business practices by issuers of securitisations. In order to do this, the Fund shall not knowingly purchase any securitisation where the Investment Adviser has perceived any of the following which are directly related to the issuer of a securitisation:
- predatory lending practices;
- breaches in compliance of standards of the Consumer Financial Protection Bureau (CFPB);
- severe malpractice in payment collection processes and foreclosure practices; and
- fraudulent behaviour.

The Investment Adviser uses third-party data and in some cases data on specific issuers. ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates, using best efforts and in good faith. The methodologies used by different data providers may also vary and may result in different scores.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives.
Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures, swaps, options on swaps (swaptions) and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in Fixed Income Securities not meeting the above requirements.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Floating Rate ABS Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the short term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL ASSET BACKED SECURITIES FUND
The Global Asset Backed Securities Fund’s investment objective is to provide an attractive rate of total return, measured in USD.
The Fund will invest primarily in Fixed Income Securities that are mortgage-backed securities, commercial mortgage-backed securities, collateralized mortgage obligations and covered bonds that are covered by mortgages including uniform mortgage-backed securities (“Mortgage-Backed Securities”). At least 50% of the Fund’s assets will be invested in securities rated investment-grade
by an internationally recognised rating agency, securities determined to be of similar creditworthiness by the Investment Adviser, or securities backed by the United States of America.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund will invest in. Additionally, as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, lenders and servicers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Fund promotes sustainable and responsible business practices by issuers of securitisations. In order to do this, the Fund shall not knowingly purchase any securitisation where the Investment Adviser has perceived any of the following which are directly related to the issuer of a securitisation:
- predatory lending practices;
- breaches in compliance of standards of the Consumer Financial Protection Bureau (CFPB);
- severe malpractice in payment collection processes and foreclosure practices; and
- fraudulent behaviour.

The Investment Adviser uses third-party data and in some cases data on specific issuers. ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates, using best efforts and in good faith. The methodologies used by different data providers may also vary and may result in different scores.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures, swaps, options on swaps (swaptions) and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in Fixed Income Securities that are not Mortgage-Backed Securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Asset Backed Securities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BOND FUND
The Global Bond Fund’s investment objective is to provide an attractive rate of return, measured in US Dollars, through market, instrument and currency selection. The Fund will invest primarily in domestic, international, emerging market and Euromarket Fixed Income Securities of varying maturities denominated in US Dollars and other currencies, including asset-backed securities (including mortgage-backed securities), loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment
process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including ESG assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global
Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
Securities will be deemed to be suitable for investment if at the time of purchase they are rated either “BBB-” or better by S&P or “Baa3” or better by Moody’s, or similarly rated by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. The Fund may continue to hold investments in such securities that are downgraded after purchase. In addition, the Fund may invest, up to 10% of its Net Asset Value, in securities which at the time of purchase are rated either lower than “BBB-” by S&P or “Baa3” by either Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such Fixed Income Securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any such ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL CONVERTIBLE BOND FUND
The Global Convertible Bond Fund’s investment objective is to seek long term capital appreciation, measured in US Dollars, through investment primarily in convertible bonds issued by companies organised or operating in either the developed or emerging markets which will be denominated in global currencies.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including ESG assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion
of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms; and
- manufacturing or production of tobacco.

With respect to fossil fuel activities specifically, the Investment Adviser may engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company. Investments shall not knowingly include any company whose business activity involves the mining and extraction of thermal coal, where the company derives >5% revenue from such business activity.
The exceptions to the above are, firstly, that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. Secondly, the Fund may invest in issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the financial product such as hedging instruments.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in other Fixed Income Securities as well as a combination of equities and warrants on transferable securities either as a result of exercising the conversion option in the convertible bonds in the Fund or as an alternative to convertible bonds when it deems it appropriate.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest to a limited extent in open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Convertible Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- seek to invest in Fixed Income Securities;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL CREDIT FUND
The Global Credit Fund’s investment objective is to provide an attractive rate of relative return, measured in USD.
The Fund will invest primarily in Fixed Income Securities issued by corporations and other non-government issuers (“Corporate Bonds”) organised or operating in both developed and emerging markets and denominated in global currencies. With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focused on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but subsequently become restricted due to the application of the ESG criteria above, after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment
Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six months of its downgrade.
The Fund may, on an ancillary basis, invest in Fixed Income Securities that are not Corporate Bonds.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Credit Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL CREDIT OPPORTUNITIES FUND
The Global Credit Opportunities Fund’s investment objective is to provide an attractive level of total return, measured in US Dollars.
The Fund will invest primarily in Fixed Income Securities issued by corporations (“Corporate Bonds”) and other non-government related issuers Located in developed markets, including investment- grade bonds, high-yield bonds. High yield bonds are considered to be Fixed Income Securities issued by corporations that are rated lower than “BBB-” by Standard & Poor’s Corporation (“S&P”) or “Baa3” by Moody’s Investors Services, Inc. or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. The Fund may also invest primarily in mortgage-backed securities, and convertibles subject to applicable law and in other asset-backed securities as well as loan participations and loan assignments to the extent that these instruments are securitised. The Investment Adviser may invest in any combination of two or more of the above asset classes.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by S&P or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six (6) months of its downgrade.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate and securitized issuance. Additionally, as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-
related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Fund promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human health and wellbeing, through exclusion of tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such
incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may, on an ancillary basis, invest in Fixed Income Securities not meeting the criteria of the Fund’s primary investments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange- traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s
performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Credit Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL FIXED INCOME OPPORTUNITIES FUND
The Global Fixed Income Opportunities Fund’s investment objective is to provide an attractive level of total return, measured in US Dollars, through investment in global fixed income securities. The Fund will seek to achieve the investment policy through allocation across fixed income asset classes as well as through market and instrument selection.
The Fund will invest primarily in the global securities of corporate, government and government related issuers across a spectrum of fixed income asset classes including high yield bonds, investment- grade bonds, mortgage-backed securities, convertibles and currencies, and subject to applicable law, in other asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised. High yield bonds are considered to be Fixed Income Securities issued by corporations that are rated lower than “BBB-” by S&P or “Baa3” by Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. These investments may include Fixed Income Securities issued in emerging markets. The Investment Adviser may invest in any combination of two or more of the above asset classes.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment
process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant
ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may also invest, on an ancillary basis, additional securities including but not limited to Cash Equivalents, equity or other equity linked securities.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Fixed Income Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL HIGH YIELD BOND FUND
The Global High Yield Bond Fund’s investment objective is to provide an attractive rate of return, measured in US Dollars, through investments worldwide primarily in Fixed Income Securities issued by corporations that are rated lower than “BBB-” by S&P or “Baa3” by Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. These investments may include Fixed Income Securities issued in emerging markets and, subject to applicable law, asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent
per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms; and
- manufacturing or production of tobacco.

With respect to fossil fuel activities specifically, the Investment Adviser may engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company. Investments shall not knowingly include any company whose business activity involves the mining and extraction of thermal coal, where the company derives >5% revenue from such business activity.
The exceptions to the above is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Fund may invest in issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the financial product such as hedging instruments.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in other Fixed Income Securities (including securities issued by governments and agencies, and securities which are rated “BBB-” or higher by S&P or “Baa3” or higher by Moody’s, or similarly rated by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser).
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL MACRO FUND
The Global Macro Fund’s investment objective is to deliver a positive absolute return in all market conditions, in the form of income plus capital appreciation over a rolling three-year period, through exposure to currencies, and U.S. and non-U.S. interest rates and issuers.
The Fund will seek to achieve its investment objective by investing primarily in a portfolio of transferable securities and Fixed Income Securities globally and through the use of financial derivative instruments.
The Fund’s primary investment universe will include Fixed Income Securities (issued by governments and government related, as well as corporate issuers Located in both developed and Emerging Market countries, which include, without limitation, mortgage- backed securities and other asset-backed securities, inflation- indexed bonds issued by governmental, government-related, and corporate issuers, corporate debt securities (including, without limitation, convertible securities and corporate commercial paper)), units in open and closed-ended collective investment schemes, structured products, deposits, and, to a limited extent, participation notes.
The Fund will not have any particular sectoral or industry focus. The Fund’s investments may be highly concentrated in a geographic region or country, and there is no limit on the Fund’s exposure to any geographic region or country. The Fund may invest up to 100% of its net assets in the securities of issuers Located in Emerging Market countries (for the purposes of this Fund, defined as any country which did not become a member of the OECD prior to 1975 and Turkey).
The Investment Adviser adjusts investments to take advantage of differences in securities, countries, currencies and credits based on its perception of various factors, including the most favourable markets, interest rates and issuers, the relative yield and appreciation potential of a particular country’s securities, and the relationship of a country’s currency to the USD. The Investment Adviser identifies countries and currencies where the Fund’s investments will out- perform comparable investments in other countries and currencies and in many cases seeks to predict changes in economies, markets, political conditions, and other factors.
In evaluating the debt securities issued by governments, government agencies and government- sponsored enterprises in which the Fund may invest, the Investment Adviser will integrate environmental, social and governance (“ESG”) criteria. The Investment Adviser, as part of its research and asset selection process in respect of debt securities, will consider the ESG issues in respect of each country and will carry out a qualitative analysis of each country, rating the ESG factors for each country based on information gathered by the research staff of the Investment Adviser, sub-adviser (if applicable) and/or their affiliates as well as third party sources. Such qualitative analysis will be supplemented by quantitative ESG scores attributed by the Investment Adviser to each country and the ESG scores allow for cross-country comparisons. As part of the Investment Adviser’s analysis, the Investment Adviser may have regard to ESG factors comprising Sustainability Risks or opportunities likely to affect the financial condition or performance of the country over a long term investment horizon, including, without limitation, pollution/environmental/ecosystem health, risk of social unrest, human development, democracy and rights and freedoms.
The Investment Adviser believes that as sustainability issues are sources of long-term risk and return, the integration of Sustainability Risks as outlined above may assist in enhancing the returns of the Fund over the long term.
The Fund may invest no more than 20% of its assets in aggregate in asset-backed securities (ABS) and/or mortgage-backed securities (MBS).
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund may also invest, on an ancillary basis, in warrants.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Global Macro Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SHORT DURATION US GOVERNMENT INCOME FUND
The Short Duration US Government Income Fund’s investment objective is to seek total return, which is defined as income plus capital appreciation, by investing at least 90% of its net assets in Fixed Income Securities issued, backed or otherwise guaranteed by the U.S. Government or its agencies or instrumentalities. The dollar weighted average duration of the Fund will normally be less than 3 years, although this may be higher under certain market conditions. In general, the longer the average duration of the portfolio the greater the exposure to interest rate risk and as such the more volatile the value of the fund. Due to the Fund’s relative short duration, the Fund is likely to generate reasonably steady returns and maintain relatively low levels of volatility in the value of the Fund. Since the Fund’s return will primarily be generated by income payments from the underlying investments rather than by capital appreciation of the portfolio.
The Fund may enter into forward commitments to purchase mortgage-backed securities (
“MBS”
) issued by Ginnie Mae, Fannie Mae and Freddie Mac (to-be-announced transactions, or “TBAs”). The Fund may also enter into generic MBS coupon swaps, agency swaps, and term swaps by entering into forward commitments to both purchase and sell MBS. Such forward commitments may be entered into for the purposes of increasing returns or reducing risk and may result in investment leverage.
The Fund may also enter into Mortgage Dollar Rolls, whereby the Fund sells MBS for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) MBS on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the MBS.
The Fund’s Investment Adviser utilizes the information provided by, and the expertise of, the research staff of the Investment Adviser, sub-adviser (if applicable) and/or their affiliates in making investment decisions. When selecting which securities to invest in, the Investment Adviser seeks to identify the securities which it believes to be the best relative value with regard to price, yield, and expected total return in relation to other available instruments. Securities are analysed using various prepayment models (i.e., models which analyse the expected level of prepayments on a portfolio of assets) and scenarios which are proprietary to the Investment Adviser, and evaluated versus the overall market on a risk/return basis. Securities are also reviewed in the context of the Fund’s overall portfolio to determine if the security fits the portfolio and to make sure that allocation does not overweight the portfolio to a particular risk factor. As part of the selection process, the Investment Adviser will analyse a number of factors in relation to each security, including (i) the underlying collateral characteristics of the security, (ii) their prepayment expectations for the collateral, and (iii) the compatibility of the security’s structure with those prepayment expectations. Collateral analysis involves an in-depth examination of borrower characteristics that may influence a security’s propensity to prepay and includes factors such as agency, borrower geographic dispersion, mortgage servicer mix, loan size, etc. Security structure selection involves identifying structures that are expected to be enhanced by the Investment Adviser’s prepayment expectations. The Investment Adviser makes its investment decisions primarily on the basis of fundamental research, including the factors outlined above, and relative value and may sell a security when it believes it no longer represents the best relative value based on the fundamental research. Based on the analysis and research undertaken by the Investment Adviser, which will include the relative risk / return characteristics of each prospective investment, the Investment Adviser will select securities which it believes will provide the Fund with the most appropriate relative value.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange trades and over-the-counter options, futures and other derivatives for efficient portfolio management (including hedging) purposes.
In addition to the above, in making investment decisions, the Investment Adviser may integrate environmental, social and governance (
“ESG”
) criteria. The Investment Adviser may utilize the extensive proprietary ESG research generated by its affiliate, Calvert Research and Management, as well as its own ESG research in evaluating investments. Given the investment focus of the Fund on debt instruments issued, backed or otherwise guaranteed by the
U.S. Government or its agencies or instrumentalities, it is not generally expected that ESG considerations will be an significant factor in the Fund’s investment decisions. The Investment Adviser believes that as sustainability issues are sources of long-term risk
and return, the integration of sustainability risks as outlined above may assist in enhancing the returns of the Fund over the long term.
The Fund may invest more than 20% of its assets in aggregate in mortgage-backed securities (MBS).
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund may also invest, to a limited extent, in Fixed Income Securities not meeting the criteria of the Fund’s primary investments, warrants on securities, Cash Equivalents and other equity linked securities.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Short Duration US Government Income Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SHORT MATURITY EURO BOND FUND
The Short Maturity Euro Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro.
The Fund will invest primarily in Euro denominated Fixed Income Securities whether issued by corporations, government or government guaranteed issuers. With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund will invest primarily, in order to reduce volatility, in individual securities with maturity dates having a maximum unexpired term of five years.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six months of its downgrade.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds
and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Short Maturity Euro Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the short term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SHORT MATURITY EURO CORPORATE BOND FUND
The Short Maturity Euro Corporate Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro.
The Fund will invest, in order to reduce volatility, primarily in Euro denominated Fixed Income Securities, issued by corporations(“Corporate Bonds”) with maturity dates or call dates (whichever is earlier) having a maximum unexpired term of three
(3) years.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to
such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six (6) months of its downgrade.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, and securitized issuance. Additionally, as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include but are not limited to ESG themes such as decarbonisation and climate risk, circular economy and waste reduction, diverse and inclusive business and decent work and resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Fund promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human health and wellbeing through exclusion of tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www. morganstanley.com/im. Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund may, on an ancillary basis, invest in Fixed Income Securities not meeting the criteria of the Fund’s primary investments.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest no more than 20% of its assets in aggregate asset-backed securities (ABS) and/or mortgage-backed securities (MBS).
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund’s investments may result in exposure to emerging markets and to higher yielding securities.
The Fund is actively managed and is not designed to track a benchmark. Therefore, the management of the Fund is not constrained by the composition of a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Short Maturity Euro Corporate Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the short term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE EURO CORPORATE BOND FUND
The Sustainable Euro Corporate Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro, while integrating ESG characteristics by screening out sectors and issuers with low overall sustainability scores, and maintaining a lower carbon footprint than the corporate bond component of the Bloomberg European Corporate Index (see below) taking into account the long-term global warming objectives of the Paris Agreement, as further described below.
The Fund will invest primarily in Euro denominated Fixed Income Securities, issued by corporations and other non-government related issuers (“Corporate Bonds”).
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of sustainable themes and ESG issues in its investment decision-making on a discretionary basis as further detailed below. In addition, the investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals and may engage company
management around corporate governance practices as well as what it deems to be materially important environmental and/or social issues facing a company.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at on an annual basis.
The Fund will not invest in corporate issuers which:
- Derive any revenue from any of the following activities:
	- Thermal coal mining and extraction;
	- Controversial weapons manufacturing or retail (anti- personnel landmines, cluster munitions, biological or chemical weapons, and nuclear weapons);
	- Civilian firearms manufacturing or retail;
	- Tobacco manufacturing;

- Derive more than 5% revenue from any of the following activities:
	- Oil sands extraction;
	- Arctic oil and gas production

- Derive more than 10% revenue from the following activities:
	- Coal-fired power generation;
	- Gambling;
	- Tobacco retail and distribution;
	- Adult entertainment; or

- Violate any of the following norm-based exclusions:
- Are deemed to have violated the UN Global Compact;
- Are deemed to have violated the UN Guiding Principles on Business and Human Rights;
- Are deemed to have violated the ILO Fundamental Principles; or
- Have experienced very severe ESG-related controversies, including in relation to violations of the OECD Guidelines for Multinational Enterprises.

The exception to the above is that the Fund may invest in labelled Green and Sustainability Bonds (see below), which are issued to raise capital specifically for climate-related projects, so long as the Investment Adviser has determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers.
The Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund will only invest in the top 80% of rated ESG-scoring corporates in each sub-sector of the Bloomberg European Corporate Index. The ESG scores are determined by the Investment Adviser, using third party ESG data as a base having regard to ESG themes including, but not limited to, climate change mitigation, responsible use of natural resources, sustainable waste management, inclusive human capital management, and gender equality. The aforementioned ESG criteria should result in at least 20% reduction of the investible universe of corporates, and the Investment Adviser will use its best efforts to ensure that at least 90% of the corporates in the portfolio are assessed through its ESG scoring methodology. The positive screening process and methodology is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but subsequently become restricted due to the application of the ESG criteria above, after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
For the proportion of the Fund invested in bonds issued by corporates, the Fund will maintain a lower carbon footprint than the corporate bond component of the Bloomberg European Corporate Index, taking into account the long-term global warming objectives of the Paris Agreement. Carbon footprint shall be measured as Weighted Average Carbon Intensity, defined as tonnes of CO2 equivalent per $1million revenue. Green and Sustainability (as below) Bonds with climate-related objectives may be determined to have different carbon footprints than the issuers of the bonds. In such cases, the Investment Adviser shall disclose its methodology for determining the relevant carbon footprint of such instruments.
As part of its strategy, the Investment Adviser may invest a proportion of the Fund in Green and Sustainability Bonds, as labelled in the securities’ documentation, where the issuer commits to allocate the proceeds to projects making a positive environmental or social contribution. This includes, but is not limited to bonds that align with the International Capital Market Association (ICMA)’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines.
The Investment Adviser deploys a proprietary assessment framework for the above-mentioned labelled bonds, through which the robustness, impact and transparency of such instruments are evaluated.
As noted above, the Investment Adviser uses third-party data and ESG scores and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of derivative instruments such as index futures, contracts for difference (CFDs), TRS, structured notes (including participatory notes), convertible bonds, convertible preferred stocks, options, foreign exchange options, currency forwards and forward contracts and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to
such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six months of its downgrade.
The Fund may, on an ancillary basis, invest in:
- Non-Euro denominated Fixed Income Securities. In accordance with Appendix A “Investment Powers and Restrictions” non- Euro currency exposure may be hedged back to the Euro.
- Fixed Income Securities that are not Corporate Bonds.

The Fund may invest no more than 20% of its assets in asset- backed securities.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and references the Bloomberg European Corporate Index for the purpose of defining the investment universe. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will primarily invest in securities that are within the Bloomberg European Corporate Index, it may invest in such components in different weights to those of the Bloomberg European Corporate Index, and it may hold securities which are not included within the Bloomberg European Corporate Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the Bloomberg European Corporate Index.
In addition, the Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the corporate bond component of the Bloomberg European Corporate Index for the purposes of comparing the Fund’s carbon footprint.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable Euro Corporate Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE EURO STRATEGIC BOND FUND
The Sustainable Euro Strategic Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in Euro, by investing in securities that meet the Investment Adviser’s Fixed Income Securities’ ESG criteria while integrating ESG characteristics by screening out sectors and issuers with low overall sustainability scores, and maintaining a lower carbon footprint than the corporate bond component of the Bloomberg Euro Aggregate Index (see below), taking into account the long term global warming objectives of the Paris Agreement, as further described below.
The Fund will invest primarily in issues of Euro denominated Fixed Income Securities whether issued by corporations, government or government guaranteed issuers, and subject to applicable law, no more than 20% of its assets in asset-backed securities to the extent that these instruments are securitised.
In relation to this Fund, “Sustainable” means that the Investment Adviser, integrates the consideration of sustainable themes and ESG issues in its investment decision-making on a discretionary basis as further detailed below. In addition, the investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals and may engage company management around corporate governance practices as well as what it deems to be materially important environmental and/or social issues facing a company.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability
indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at on an annual basis.
The Fund will not invest in corporate issuers which:
- Derive any revenue from any of the following activities:
	- Thermal coal mining and extraction;
	- Controversial weapons manufacturing or retail (anti- personnel landmines, cluster munitions, biological or chemical weapons, and nuclear weapons);
	- Civilian firearms manufacturing or retail;
	- Tobacco manufacturing;

- Derive more than 5% revenue from any of the following activities:
	- Oil sands extraction;
	- Arctic oil and gas production;

- Derive more than 10% revenue from the following activities:
	- Coal-fired power generation;
	- Gambling;
	- Tobacco retail and distribution;
	- Adult entertainment; or

- Violate any of the following norm-based exclusions:
	- Are deemed to have violated the UN Global Compact;
	- Are deemed to have violated the UN Guiding Principles on Business and Human Rights;
	- Are deemed to have violated the ILO Fundamental Principles; or
	- Have experienced very severe ESG-related controversies, including in relation to violations of the OECD Guidelines for Multinational Enterprises.


The exception to the above is that the Fund may invest in labelled Green and Sustainability Bonds (see below), which are issued to raise capital specifically for climate-related projects, so long as the Investment Adviser has determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers.
The Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
For its investments in Fixed Income Securities issued by corporations, the Fund will only invest in the top 80% of rated ESG-scoring corporates in each sub-sector of the Bloomberg Euro Aggregate Index. The ESG scores are determined by the Investment Adviser, using third party ESG data as a base having regard to ESG themes including, but not limited to, climate change mitigation, responsible use of natural resources, sustainable waste management, inclusive human capital management, and gender equality. For the Fund’s investments in Fixed Income Securities issued by sovereigns, the Fund will only invest in sovereigns within the top 80% of ESG scoring sovereigns that we have evaluated, unless the Investment Adviser perceives that a sovereign in the bottom 20% is demonstrating positive sustainability momentum, and/or issues a labelled Green, Social or Sustainability Bond (see below). The Fund will not invest in bonds from sovereigns which we have not scored. The aforementioned ESG criteria should result in at least 20% reduction of the investible universe of corporates and sovereigns, and the Investment Adviser will use its best efforts to ensure that at least 90% of the corporates in the portfolio are assessed through its ESG scoring methodology. The positive screening process and methodology is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but subsequently become restricted due to the application of the ESG criteria above, after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
For the proportion of the Fund invested in bonds issued by corporates, the Fund will maintain a lower carbon footprint than the corporate bond component of the Bloomberg Euro Aggregate Index, taking into account the long term global warming objectives of the Paris Agreement. Carbon footprint shall be measured as Weighted Average Carbon Intensity, defined as tonnes of CO2 equivalent per $1million revenue. Green and Sustainability Bonds (as below) with climate-related objectives may be determined to have different carbon footprints than the issuers of the bonds. In
such cases, the Investment Adviser shall disclose its methodology for determining the relevant carbon footprint of such instruments.
As part of its strategy, the Investment Adviser may invest a proportion of the Fund in Sustainable Bonds, defined as labelled Green, Social, or Sustainability Bond as labelled in the securities’ documentation, Bonds where the issuer commits to allocate the proceeds to projects making a positive environmental or social contribution. This includes, but is not limited to bonds that align with the International Capital Market Association (ICMA) ’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines.
The Investment Adviser deploys a proprietary assessment framework for the above-mentioned labelled bonds, through which the robustness, impact and transparency of such instruments are evaluated.
As noted above, the Investment Adviser uses third-party data and ESG scores and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of derivative instruments such as index futures, contracts for difference (CFDs), TRS, structured notes (including participatory notes), convertible bonds, convertible preferred stocks, options, foreign exchange options, currency forwards and forward contracts and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may, on an ancillary basis, invest in non-Euro denominated Fixed Income Securities. In accordance with Appendix A “Investment Powers and Restrictions” non-Euro currency exposure may be hedged back to the Euro.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and references the Bloomberg Euro Aggregate Index for the purpose of defining the investment universe. The Investment Adviser has full discretion over the composition of the assets in the Fund. While the Fund will primarily invest in securities that are within the Bloomberg Euro Aggregate Index, it may invest in such components in different weights to those of the Bloomberg Euro Aggregate Index, and it may hold securities which are not included within the Bloomberg Euro Aggregate Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the Bloomberg Euro Aggregate Index.
In addition, the Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document. In the context of the Fund’s ESG integration, the Investment Adviser uses the corporate bond component of the Bloomberg Euro Aggregate Index for the purposes of comparing the Fund’s carbon footprint.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable Euro Strategic Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE EUROPEAN HIGH YIELD BOND FUND
The Sustainable European High Yield Bond Fund’s investment objective is to generate current income and total return, while integrating ESG characteristics by screening out sectors and issuers with low overall sustainability scores, with a view to achieving the long-term global warming objectives of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (the “
Paris Agreement
”), as further described below.
The Fund will invest in Fixed Income Securities that are rated Baa3 or lower by Moody’s Investors Service, Inc. (“Moody’s”), BBB- or lower by Standard & Poor’s Ratings Group (“S&P”), BBB- or lower by Fitch’s Investors Service, Inc. or an equivalent rating from
another rating agency or an equivalent internal rating from the Investment Adviser as of the date of investment
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of sustainable themes and ESG issues in its investment decision-making on a discretionary basis as further detailed below. In addition, the Investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals and may engage company management around corporate governance practices as well as what it deems to be materially important environmental and/or social issues facing a company.
The Investment Adviser utilizes a screening process, the extensive proprietary ESG research generated by its affiliate, Calvert Research and Management, as well as its own ESG research and data from third party providers in evaluating investments. The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focused on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability- related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least annually. This assessment has regard to ESG themes such as decarbonisation and climate risk, circular economy and waste reduction, diverse and inclusive business and decent work and resilient jobs.
The Fund will not invest in corporate issuers which:
- Derive any revenue from any of the following activities:
	- Thermal coal mining and extraction;
	- Controversial weapons manufacturing or retail (anti- personnel landmines, cluster munitions, biological or chemical weapons, and nuclear weapons);
	- Civilian firearms manufacturing or retail;

- Tobacco manufacturing;
- Derive more than 5% revenue from any of the following activities:
- Oil sands extraction;
- Arctic oil and gas production;
- Derive more than 10% revenue from the following activities:
- Coal-fired power generation;
- Gambling;
- Tobacco retail and distribution;
- Adult entertainment; or
- Violate any of the following norm-based exclusions:
- Are deemed to have violated the UN Global Compact;
- Are deemed to have violated the UN Guiding Principles on Business and Human Rights;
- Are deemed to have violated the ILO Fundamental Principles; or
- Have experienced very severe ESG-related controversies, including in relation to violations of the OECD Guidelines for Multinational Enterprises.

The exception to the above is that the Fund may invest in labelled Sustainable Bonds (as defined below), which are issued to raise capital specifically for climate-related projects, so long as the Investment Adviser has determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers.
The Fund will not invest in securities of issuers with controversy cases that the Investment Adviser views as being very severe based on ratings by relevant ESG data providers, where the Investment Adviser believes appropriate remedial action has not been taken. The Fund will also not invest in securities of issuers that fail to comply with the UN Global Compact or the ILO Fundamental Principles, and where the Investment Adviser believes appropriate remedial action has not been taken.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives.
Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Investment Adviser will also elect to apply positive screening criteria in its investment process that it believes are consistent with its objectives. The positive screening process and methodology are available at the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The aforementioned ESG criteria will result in a reduction of the investible universe by at least 20%, and the Investment Adviser will ensure that at least 90% of the Net Asset Value of the Fund is assessed through its ESG research. The investment universe for these purposes is defined as the Index. The Investment Adviser will also monitor core sustainability indicators, including ESG assessments from third-party providers, and carbon footprint (for the proportion of the Fund invested in fixed income debt securities issued by corporates) in order to measure and evaluate the contribution of the fixed income debt securities to the ESG themes described above. The investible universe will be reviewed on an ongoing basis. The ESG criteria will be reviewed in respect of each individual company at least annually, but this may be carried out more frequently. The Investment Adviser will make adjustments and changes to the methodology as necessary. The indicators referred to above will be measured and evaluated at least annually.
Investments that are held by the Fund but subsequently become restricted after they are acquired for the Fund due to the application of the ESG criteria above, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Fund will maintain a lower carbon footprint than the ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index, taking into account the long-term global warming objectives of the Paris Agreement. Carbon footprint shall be measured as weighted average Carbon Intensity, defined as tonnes of CO2 equivalent per $1million revenue. Sustainable Bonds with climate-related objectives may be determined to have different carbon footprints than the issuers of the bonds. In such cases, the Investment Adviser shall disclose its methodology for determining the relevant carbon footprint of such instruments.
As part of its strategy, the Investment Adviser may invest a proportion of the Fund in 
“Sustainable Bonds”
, defined as labelled Green or Sustainability bonds where the issuer has committed to financing or attaining specific environmental and/or social objectives, including but not limited to the below based on
the main labels of bonds issued to date, including those recognised by the International Capital Market Association (ICMA):
- Green Bonds;
- Social Bonds; and
- Sustainability Bonds.

The Investment Adviser deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
As noted above, the Investment Adviser uses third-party data and ESG scores and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund will not have any particular sectoral or industry focus and the investment by the Fund is generally not intended to exceed 25% of its net assets in any one industry but investment may exceed this from time to time.
The Fund may invest no more than 20% of its assets in debt securities that are not paying current income in anticipation of the receipt of possible future income or capital appreciation which are unrated or categorized as the lowest rated obligations (rated C by Moody’s or D by S&P).
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund may also invest, on an ancillary basis, in equity securities or Fixed Income Securities not meeting the criteria of the Fund’s primary investments, warrants on securities, Cash Equivalents and other linked securities.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document, and this benchmark will also be designated as the ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index and will be used to monitor error relative to the benchmark. While the Fund will
generally hold assets referenced in the ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index, it can invest in such securities in different proportions to their allocations under the ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index, and it can hold assets which are not referenced in the ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable European High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE GLOBAL FIXED INCOME OPPORTUNITIES FUND
The Sustainable Global Fixed Income Opportunities Fund’s investment objective is to provide an attractive level of total return, measured in US Dollars, through investment in global Fixed Income Securities that meet the Investment Adviser’s ESG criteria while integrating ESG characteristics by screening out sectors and issuers with low overall sustainability scores and maintaining a lower carbon footprint than the corporate bond component of the Bloomberg Global Aggregate Index, taking into account the long- term global warming objectives of the Paris Agreement, as further described below. The Fund will seek to achieve the investment policy through allocation across fixed income asset classes as well as through market and instrument selection.
The Fund will invest primarily in the global securities of corporate, government and government related issuers across a spectrum of fixed income asset classes including high yield bonds, investment- grade bonds, mortgage-backed securities, convertibles and currencies, and subject to applicable law, in other asset-backed
securities, loan participations and loan assignments, to the extent that these instruments are securitised. High yield bonds are considered to be Fixed Income Securities issued by corporations that are rated lower than “BBB-” by S&P or “Baa3” by Moody’s or similarly by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. These investments may include Fixed Income Securities issued in emerging markets.
In relation to this Fund, “Sustainable” means that the Investment Adviser, integrates the consideration of sustainable themes and ESG issues in its investment decision-making on a discretionary basis as detailed below. In addition, the Investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals and may engage company management around corporate governance practices as well as what it deems to be important environmental and/or social issues facing a company.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Fund will not invest in corporate issuers which:
- Derive any revenue from any of the following activities:
	- Thermal coal mining and extraction;

- Controversial weapons manufacturing or retail (anti- personnel landmines, cluster munitions, biological or chemical weapons, and nuclear weapons);
- Civilian firearms manufacturing or retail;
- Tobacco manufacturing;
- Derive more than 5% revenue from any of the following activities:
	- Oil sands extraction;
	- Arctic oil and gas production;

- Derive more than 10% revenue from the following activities:
	- Coal-fired power generation;
	- Gambling;
	- Tobacco retail and distribution;
	- Adult entertainment; or

- Violate any of the following norm-based exclusions:
	- Are deemed to have violated the UN Global Compact;
	- Are deemed to have violated the UN Guiding Principles on Business and Human Rights;
	- Are deemed to have violated the ILO Fundamental Principles; or
	- Have experienced very severe ESG-related controversies, including in relation to violations of the OECD Guidelines for Multinational Enterprises.


The exceptions to the above is that the Fund may invest in labelled Green and Sustainability Bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers.
The Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The Fund will invest in the top 80% of rated ESG-scoring corporates in each sub-sector of any of the Bloomberg Global Aggregate Corporate Index, the Bloomberg Global High Yield Corporate Index and the J.P. Morgan CEMBI Broad Diversified Index. Where any corporates appear in both (A) the J.P. Morgan CEMBI Broad Diversified Index and (B) either the Bloomberg Global Aggregate Corporate Index or the Bloomberg Global High Yield Corporate Index, the ESG scoring for those corporates will be considered by reference to the J.P. Morgan CEMBI Broad Diversified Index only. The ESG scores are determined by the Investment Adviser, using third party ESG data as a base having regard to ESG themes including, but not limited to, climate change mitigation, responsible use of natural resources, sustainable waste management, inclusive human capital management, and gender equality.
For the Fund’s investments in Fixed Income Securities issued by sovereigns, the Fund will only invest in sovereigns within the top 80% of ESG scoring sovereigns evaluated by the Investment Adviser, unless the Investment Adviser perceives that a sovereign in the bottom 20% is demonstrating positive sustainability momentum, and/or issues a labelled Green, Social or Sustainability Bond (see below). The Fund will not invest in bonds from sovereigns which the Investment Adviser has not scored.
The aforementioned ESG criteria will seek to achieve a selection of corporates and sovereigns that are better rated than the other corporates and sovereigns of the investment universe (the corporate component of which is defined as corporates in any one or more of the Bloomberg Global Aggregate Corporate Index, the Bloomberg Global High Yield Corporate Index and the J.P. Morgan CEMBI Broad Diversified Index, subject to a maximum 10% of the Fund’s portfolio that may be invested in corporates not covered by these indices). In this respect, the ESG-scoring of corporates should result in at least a 20% reduction of the corporate component of the investment universe of the Fund, and the aim of the Investment Adviser will be to ensure that at least 90% of the corporate issuers in the portfolio are assessed through its ESG scoring methodology. The positive screening process and methodology is available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
For the Fund’s investments in non-corporate and non-sovereign Fixed Income Securities, ESG criteria are considered by the Investment Adviser during the research and investment process to limit exposure to Sustainability Risks and evaluate investment opportunities.
Investments that are held by the Fund but subsequently become restricted due to the application of the ESG criteria above, after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment
Adviser, taking into account the best interests of the Shareholders of the Fund.
For the proportion of the Fund invested in bonds issued by corporates, the Fund will maintain a lower carbon footprint than the corporate bond component of the Bloomberg Global Aggregate Index, taking into account the long-term global warming objectives of the Paris Agreement. Carbon footprint shall be measured as Weighted Average Carbon Intensity, defined as tonnes of CO2 equivalent per $1million revenue. Sustainable Bonds with climate- related objectives may be determined to have different carbon footprints than the issuers of the bonds. In such cases, the Investment Adviser shall disclose its methodology for determining the relevant carbon footprint of such instruments.
As part of its strategy, the Investment Adviser may invest a proportion of the Fund in Green, Social, or Sustainability Bonds, as labelled in the securities’ documentation, where the issuer commits to allocate the proceeds to projects making a positive environmental or social contribution. This includes, but is not limited to, bonds that align with the International Capital Market Association (ICMA)’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines.
The Investment Adviser deploys a proprietary assessment framework for the above-mentioned labelled bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser uses third-party data and ESG scores and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in Fixed Income Securities not meeting the above requirements, Cash Equivalents, equity securities or other equity linked securities.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
It is not expected that the Fund will invest more than 50% of its net assets in aggregate in securitized instruments. It is not expected that the Fund will invest more than 20% of its net assets in any one
type of securitized instrument (e.g., asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), agency mortgage-backed securities (MBS)).
The Fund may invest in Fixed Income Securities acquired on the China Interbank Bond Market. No more than 10% of the Fund’s assets will be invested in such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark, and therefore the composition of the portfolio holdings is not constrained by any benchmarks. In the context of the Fund’s ESG integration, the Investment Adviser uses (i) the corporate bond component of the Bloomberg Global Aggregate Index for the purpose of comparing the Fund’s carbon footprint and (ii) the sub- sectors of the Bloomberg Global Aggregate Corporate Index, the Bloomberg Global High Yield Corporate Index and the J.P. Morgan CEMBI Broad Diversified Index for the purposes of defining the top rated ESG-scoring corporates the Fund will invest into.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable Global Fixed Income Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE GLOBAL HIGH YIELD BOND FUND
The Sustainable Global High Yield Bond Fund’s investment objective is to generate current income and total return, while integrating ESG characteristics by screening out sectors and issuers
with low overall sustainability scores, with a view to achieving the long-term global warming objectives of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (the “
Paris Agreement
”), as further described below.
The Fund will invest primarily in a diversified portfolio of high yielding, Fixed Income Securities issued by corporations and other non-government issuers (
“Corporate Bonds”
) organised or operating in both developed and emerging markets and denominated in global currencies, which may include zero coupon bonds, preferred stocks, deferred interest bonds and notes and bonds and notes on which the interest is payable in the form of additional eligible stocks, bonds or notes of the same kind (Payment-in-Kind (PIK) securities).
The Fund will invest in securities that are rated Baa3 or lower by Moody’s, BBB- or lower by Standard & Poor’s, BBB- or lower by Fitch’s, or similarly rated by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser as at the date of investment.
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of sustainable themes and ESG issues into its investment decision-making on a discretionary basis as further detailed below. In addition, the Investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals and may engage company management around corporate governance practices, as well as what it deems to be materially important environmental and/or social issues facing a company. The Fund will maintain a lower carbon footprint than the ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index with a view to achieving the long-term global warming objectives of the Paris Agreement. Carbon footprint shall be measured as weighted average carbon intensity (WACI), defined as tonnes of CO2 equivalent per $1million revenue. Sustainable Bonds (as defined below) with climate-related objectives may be determined to have different carbon footprints than the issuers of the bonds, such as for example where the bond is issued as part of the climate transition strategy of an issuer.
The Investment Adviser utilizes a screening process, the extensive proprietary ESG research generated by its affiliate, Calvert Research and Management, as well as its own ESG research and data from third party providers in evaluating investments. The Investment Adviser also applies proprietary assessment and scoring methodologies that are bespoke to the Fixed Income Securities in which the Fund may invest, focused on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom-up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the
assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. This assessment has regard to ESG themes such as decarbonisation and climate risk, circular economy and waste reduction, diverse and inclusive business and decent work and resilient jobs.
The Investment Adviser will also elect to apply positive screening criteria in its investment process that it believes are consistent with its objectives. The positive screening process and methodology are available at the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The aforementioned ESG criteria will result in a reduction of the investible universe by at least 20%, and the Investment Adviser will ensure that at least 90% of the Net Asset Value of the Fund is assessed through its ESG research. The investment universe for these purposes is defined as the Index. The Investment Adviser will also monitor core sustainability indicators, including ESG assessments from third-party providers, and carbon footprint (for the proportion of the Fund invested in fixed income debt securities issued by corporates) in order to measure and evaluate the contribution of the fixed income debt securities to the ESG themes described above. The investible universe will be reviewed on an ongoing basis. The ESG criteria will be reviewed in respect of each individual company at least annually, but this may be carried out more frequently. The Investment Adviser will make adjustments and changes to the methodology as necessary. The indicators referred to above will be measured and evaluated at least annually.
The Fund will not invest in corporate issuers which:
- Derive any revenue from any of the following activities:
	- Thermal coal mining and extraction;
	- Controversial weapons manufacturing or retail (anti- personnel landmines, cluster munitions, biological or chemical weapons, and nuclear weapons);
	- Civilian firearms manufacturing or retail;
	- Tobacco manufacturing;

- Derive more than 5% revenue from any of the following activities:
	- Oil sands extraction;
	- Arctic oil and gas production;

- Derive more than 10% revenue from the following activities:
	- Coal-fired power generation;

- Gambling;
- Tobacco retail and distribution;
- Adult entertainment; or
- Violate any of the following norm-based exclusions:
- Are deemed to have violated the UN Global Compact;
- Are deemed to have violated the UN Guiding Principles on Business and Human Rights;
- Are deemed to have violated the ILO Fundamental Principles; or
- Have experienced very severe ESG-related controversies, including in relation to violations of the OECD Guidelines for Multinational Enterprises.

An exception to the fossil fuel exclusions in the preceding paragraph is that the Fund may invest in labelled Green and Sustainability Bonds which are issued to raise capital specifically for climate- related projects (
“Sustainable Bonds”
), so long as the Investment Adviser has determined that the objectives of such instruments are consistent with a reduction by the issuer of its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. Examples of Sustainable Bonds include, but are not limited to:
- Green bonds;
- Social bonds; and
- Sustainability bonds.

Prior to investing in Sustainable Bonds, the Investment Adviser deploys a proprietary assessment framework for labelled Sustainable Bonds, through which the robustness, impact and transparency of such instruments are evaluated.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers.
In addition to the above exclusions, the Fund will not invest in securities of issuers with controversy cases that the Investment Adviser views as being very severe based on ratings by relevant ESG data providers, and where the Investment Adviser believes appropriate remedial action has not been taken. The Fund will also not invest in securities of issuers that fail to comply with the UN Global Compact or the ILO Fundamental Principles, and where the Investment Adviser believes appropriate remedial action has not been taken.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but subsequently become restricted after they are acquired for the Fund due to the application of the ESG criteria above, will be sold.
As noted above, the Investment Adviser uses third-party data and ESG scores and, in some cases, data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
Further information in respect of the integration of sustainability risks in relation to the Company is included in the section of the Prospectus headed “General information relating to Sustainability Risks integration”.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest, on an ancillary basis, in Fixed Income Securities not meeting the criteria of the Fund’s primary investments such as fixed-income and floating rate transferable debt securities issued or guaranteed by the U.S. Government, any state or territory of the United States, any non-U.S. government or any of their respective political subdivisions, agencies or instrumentalities, equity securities, warrants on securities, Cash Equivalents and other equity linked securities. Under normal circumstances, the Fund may invest no more than 10% of its assets in such equity securities, warrants on securities and other equity linked securities.
The Fund generally intends to invest no more than 5% of its net assets in emerging markets, however, investment in emerging markets may comprise up to 20% of the net assets of the Fund.
In addition to exposure to sustainable investments, all investments made by the Fund will be deemed to do no significant harm to environmental or social factors, as determined by the Investment Adviser. The Investment Adviser assesses this according to an internal methodology (as amended from time to time) which considers a representative sub-set of principal adverse sustainability impact indicators.
The Fund will not have any particular sectoral or industry focus and the investment by the Fund is generally not intended to exceed 25% of its net assets in any one industry but investment may exceed this from time to time.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund may invest no more than 20% of its assets in unrated or lowest rated categorised debt securities (rated C by Moody’s or D by S&P).
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document, and this benchmark will also be designated as the ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index and used to monitor error relative to the benchmark. While the Fund will generally hold assets referenced in the ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index, it can invest in such securities in different proportions to their allocations under the ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index, and it can hold assets which are not referenced in the ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable Global High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

SUSTAINABLE US HIGH YIELD BOND FUND
The Sustainable US High Yield Bond Fund’s investment objective is to generate current income and total return, while integrating ESG characteristics by screening out sectors and issuers with low overall sustainability scores, with a view to achieving the long-term global warming objectives of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (the “
Paris Agreement
”), as further described below.
The Fund will invest primarily in a diversified portfolio of Fixed Income Securities from issuers that are Located in the U.S. and which may include zero coupon bonds, deferred interest bonds and bonds on which the interest is payable in the form of additional eligible bonds of the same kind (Payment-in-Kind (PIK) bonds).
The Fund will invest in Fixed Income Securities that are rated Baa3 or lower by Moody’s Investors Service, Inc. (“Moody’s”), BBB- or lower by Standard & Poor’s Ratings Group (“S&P”), BBB- or lower by Fitch’s Investors Service, Inc. or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as of the date of investment.
In relation to this Fund, “Sustainable” means that the Investment Adviser integrates the consideration of sustainable themes and ESG issues into its investment decision-making on a discretionary basis, as further detailed below. In addition, the Investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals and may engage company management around corporate governance practices, as well as what it deems to be materially important environmental and/or social issues facing a company. The Fund will maintain a lower carbon footprint than the ICE BofA U.S. High Yield Index with a view to achieving the long-term global warming objectives of the Paris Agreement. Carbon footprint shall be measured as weighted average carbon intensity (WACI), defined as tonnes of CO2 equivalent per $1million revenue. Sustainable Bonds (as defined below) with climate-related objectives may be determined to have different carbon footprints than the issuers of the bonds, such as for example where the bond is issued as part of the climate transition strategy of an issuer.
The Investment Adviser utilizes a screening process, the extensive proprietary ESG research generated by its affiliate, Calvert Research and Management, as well as its own ESG research and data from third party providers in evaluating investments. The Investment Adviser also applies proprietary assessment and scoring methodologies that are bespoke to the Fixed Income Securities in which the Fund may invest, focused on corporate, sovereign and securitized issuance. Additionally, as part of the Investment Adviser’s bottom-up, fundamental research process, and in its
engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. This assessment has regard to ESG themes such as decarbonisation and climate risk, circular economy and waste reduction, diverse and inclusive business and decent work and resilient jobs.
The Investment Adviser will also elect to apply positive screening criteria in its investment process that it believes are consistent with its objectives. The positive screening process and methodology are available at the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
The aforementioned ESG criteria will result in a reduction of the investible universe by at least 20%, and the Investment Adviser will ensure that at least 90% of the Net Asset Value of the Fund is assessed through its ESG research. The investment universe for these purposes is defined as the Index. The Investment Adviser will also monitor core sustainability indicators, including ESG assessments from third-party providers, and carbon footprint (for the proportion of the Fund invested in fixed income debt securities issued by corporates) in order to measure and evaluate the contribution of the fixed income debt securities to the ESG themes described above. The investible universe will be reviewed on an ongoing basis. The ESG criteria will be reviewed in respect of each individual company at least annually, but this may be carried out more frequently. The Investment Adviser will make adjustments and changes to the methodology as necessary. The indicators referred to above will be measured and evaluated at least annually.
The Fund will not invest in corporate issuers which:
- Derive any revenue from any of the following activities:
	- Thermal coal mining and extraction;
	- Controversial weapons manufacturing or retail (anti- personnel landmines, cluster munitions, biological or chemical weapons, and nuclear weapons);
	- Civilian firearms manufacturing or retail;
	- Tobacco manufacturing;

- Derive more than 5% revenue from any of the following activities:
	- Oil sands extraction;
	- Arctic oil and gas production;

- Derive more than 10% revenue from the following activities:
- Coal-fired power generation;
- Gambling;
- Tobacco retail and distribution;
- Adult entertainment; or
- Violate any of the following norm-based exclusions:
- Are deemed to have violated the UN Global Compact;
- Are deemed to have violated the UN Guiding Principles on Business and Human Rights;
- Are deemed to have violated the ILO Fundamental Principles; or
- Have experienced very severe ESG-related controversies, including in relation to violations of the OECD Guidelines for Multinational Enterprises.

An exception to the fossil fuel exclusions in the preceding paragraph is that the Fund may invest in labelled Green and Sustainability Bonds which are issued to raise capital specifically for climate- related projects (
“Sustainable Bonds”
), so long as the Investment Adviser has determined that the objectives of such instruments are consistent with a reduction by the issuer of its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. Examples of Sustainable Bonds include, but are not limited to:
- Green bonds;
- Social bonds; and
- Sustainability bonds.

Prior to investing in Sustainable Bonds, the Investment Adviser deploys a proprietary assessment framework for labelled Sustainable Bonds, through which the robustness, impact and transparency of such instruments are evaluated.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers.
In addition to the above exclusions, the Fund will not invest in securities of issuers with controversy cases that the Investment Adviser views as being very severe based on ratings by relevant ESG data providers, and where the Investment Adviser believes appropriate remedial action has not been taken. The Fund will also not invest in securities of issuers that fail to comply with the UN Global Compact or the ILO Fundamental Principles, and where the Investment Adviser believes appropriate remedial action has not been taken.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but subsequently become restricted after they are acquired for the Fund due to the application of the ESG criteria above, will be sold.
As noted above, the Investment Adviser uses third-party data and ESG scores and, in some cases, data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
Further information in respect of the integration of sustainability risks in relation to the Company is included in the section of the Prospectus headed “General information relating to Sustainability Risks integration”.
The Fund will not have any particular sectoral or industry focus.
The Fund may also invest, on an ancillary basis, in equity securities or Fixed Income Securities not meeting the criteria of the Fund’s primary investments, warrants on securities, Cash Equivalents and other linked securities.
The Fund may invest no more than 10% of its assets in debt securities that are not paying current income in anticipation of the receipt of possible future income or capital appreciation which are unrated or categorized as the lowest rated obligations (rated C by Moody’s or D by S&P).
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
In addition to exposure to sustainable investments, all investments made by the Fund will be deemed to do no significant harm to environmental or social factors, as determined by the Investment Adviser. The Investment Adviser assesses this according to an internal methodology (as amended from time to time) which
considers a representative sub-set of principal adverse sustainability impact indicators.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document, and this benchmark will also be designated as the ICE BofA U.S. High Yield Index and will be used to monitor error relative to the benchmark. While the Fund will generally hold assets referenced in the ICE BofA U.S. High Yield Index, it can invest in such securities in different proportions to their allocations under the ICE BofA U.S. High Yield Index, and it can hold assets which are not referenced in the ICE BofA U.S. High Yield Index. Hence, there are no restrictions on the extent to which the Fund’s performance may deviate from the ICE BofA U.S. High Yield Index.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Sustainable US High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the long term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US DOLLAR CORPORATE BOND FUND
The US Dollar Corporate Bond Fund’s investment objective is to provide an attractive rate of relative return, measured in US Dollars.
The Fund will seek to achieve its investment objective by investing primarily in US Dollar denominated Fixed Income Securities issued by corporations and other non-government issuers (“Corporate Bonds”).
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with
issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs. The Investment Adviser will monitor core sustainability indicators, including environmental, social and governance assessments from third-party providers, and carbon footprint (measured by carbon intensity, defined as tonnes of CO2 equivalent per $1 million revenue for the proportion of the Fund invested in bonds issued by corporates) in order to measure and evaluate the contribution of the Fixed Income Securities to the ESG themes described above. The indicators will be measured and evaluated at least on an annual basis.
The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
The Investment Adviser promotes the low carbon transition through excluding corporate issuers for which thermal coal production is a core business, and promotes human life through excluding products that are detrimental to health and wellbeing, specifically tobacco, controversial weapons and civilian firearms manufacturing. Accordingly, investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms;
- manufacturing or production of tobacco; and
- mining and extraction of thermal coal, where the company derives 5% or more revenue from such business activity.

The exception to the above coal exclusion is that the Fund may invest in labelled Green and Sustainability bonds, which are issued to raise capital specifically for climate-related projects, so long as it has been determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser. The Investment Adviser may also engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third
party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, at its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund which as a result of the application of the ESG criteria above become restricted after they are acquired for the Fund, will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may invest in derivatives (in accordance with the investment powers and restrictions set out in Appendix A) such as exchange traded and over-the-counter options, futures, swaps and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund will not invest in any securities that are rated below B- (or below BBB- in the case of asset-backed securities, including mortgage-backed securities) by Standard & Poor’s Corporation (“S&P”) or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment. In the event that any securities held by the Fund are subsequently downgraded to a rating below B- (or below BBB- in the case of asset-backed securities, including mortgage- backed securities), the Investment Adviser may maintain a maximum total exposure of 3% of the Fund’s Net Asset Value to such downgraded securities but will divest any such security that has not been upgraded to a rating of at least B- within six months of its downgrade.
The Fund may, on an ancillary basis, invest in:
- Non-US Dollar denominated Fixed Income Securities. In accordance with Appendix A “Investment Powers and Restrictions” non US Dollar currency exposure may be hedged back to US Dollars;
- Fixed Income Securities that are not Corporate Bonds.

The Fund may invest no more than 20% of its assets in asset- backed securities and mortgage-backed securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund may invest in issuers or securities which may not themselves contribute to the specific environmental or social characteristics promoted by the financial product, such as hedging instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Dollar Corporate Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US DOLLAR HIGH YIELD BOND FUND
The US Dollar High Yield Bond Fund’s investment objective is to provide an attractive rate of total return, measured in US Dollars. The Fund will seek to achieve its investment objective by investing primarily in high yield and unrated US Dollar denominated Fixed Income Securities, including without limitation those issued by governments, agencies and corporations located in emerging markets and for the avoidance of doubt and subject to applicable law, including asset-backed securities and loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs, The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
Investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms; and
- manufacturing or production of tobacco.

With respect to fossil fuel activities specifically, the Investment Adviser may engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company. Investments shall not knowingly include any company whose business activity involves the mining and extraction of thermal coal, where the company derives >5% revenue from such business activity. The exception to the above is that the Fund may invest in labelled Green and Sustainability Bonds, which are issued to raise capital specifically for climate-related projects, so long as it has determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over
time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but, due to the application of the ESG criteria above, become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
High yield Fixed Income Security means a Fixed Income Security that has a rating less than “BBB-” by S&P or “Baa3” by Moody’s or similarly rated by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser.
The Fund may, on an ancillary basis, invest in higher quality Fixed Income Securities and non-USD denominated Fixed Income Securities.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Dollar High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US DOLLAR SHORT DURATION BOND FUND
The US Dollar Short Duration Bond Fund’s investment objective is to provide an attractive rate of return, measured in US Dollars. The Fund will seek to achieve its investment objective by investing primarily in high quality USD denominated Fixed Income Securities, and for the avoidance of doubt including asset-backed securities (including mortgage-backed securities). The weighted average duration of the Fund will normally be less than 1 year, although this may be higher under certain market conditions.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs, The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
Investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms; and
- manufacturing or production of tobacco.

With respect to fossil fuel activities specifically, the Investment Adviser may engage company management around the topics of
decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company. Investments shall not knowingly include any company whose business activity involves the mining and extraction of thermal coal, where the company derives >5% revenue from such business activity. The exception to the above is that the Fund may invest in labelled Green and Sustainability Bonds, which are issued to raise capital specifically for climate-related projects, so long as it has determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but, due to the application of the ESG criteria above, become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
Securities will be deemed to be high quality if at the time of purchase they are rated either “BBB-” or better by Standard & Poor’s Corporation (“S&P”) or “Baa3” or better by Moody’s Investors Service, Inc. (“Moody’s”), or similarly rated by another
internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser. The Fund may continue to invest in such securities that are downgraded after purchase but may not make additional purchases of such securities.
The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any ETFs are eligible investments for UCITS funds.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Dollar Short Duration Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the short term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

US DOLLAR SHORT DURATION HIGH YIELD BOND FUND
The US Dollar Short Duration High Yield Bond Fund’s investment objective is to provide an attractive rate of total return, measured in USD. The Fund will seek to achieve its investment objective by investing primarily in high yield and unrated USD denominated High Yield Fixed Income Securities, including without limitation those issued by governments, agencies and corporations located in emerging markets and for the avoidance of doubt and subject to applicable law, including asset-backed securities, loan participations and loan assignments, to the extent that these instruments are securitised.
The Investment Adviser applies proprietary assessment and scoring methodologies that are bespoke to Fixed Income Securities the Fund may invest in, focussed on corporate, sovereign and securitized issuance. Additionally as part of the Investment Adviser’s bottom- up, fundamental research process, and in its engagements with issuers, the Investment Adviser incorporates an assessment of
sustainability-related risks and opportunities into the assessment process to determine impacts on credit fundamentals, implications for valuation and spreads, and any material aspects that may affect the trading technicalities of the Fixed Income Securities. These criteria may include, but are not limited to ESG themes such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs, The Investment Adviser also deploys a proprietary assessment framework for labelled sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated.
Investments shall not knowingly include any company whose business activity involves the following:
- manufacturing or production of controversial weapons;
- manufacturing or production of civilian firearms; and
- manufacturing or production of tobacco.

With respect to fossil fuel activities specifically, the Investment Adviser may engage company management around the topics of decarbonisation and climate risk, as well as corporate governance practices and what it deems to be materially important other environmental and/or social issues facing a company. Investments shall not knowingly include any company whose business activity involves the mining and extraction of thermal coal, where the company derives >5% revenue from such business activity.
The exception to the above is that the Fund may invest in labelled Green and Sustainability Bonds, which are issued to raise capital specifically for climate-related projects, so long as it has determined that the objectives of such instruments are consistent with a reduction by the issuer in its carbon emissions. Investment in such instruments will be subject to diligence by the Investment Adviser.
In addition to the above sectoral exclusions, the Investment Adviser monitors business practices on an ongoing basis, through data on ESG controversies and standards screening sourced from third party providers. The Investment Adviser will consider controversy cases that it views as being very severe based on ratings by relevant ESG data providers, and failures to comply with the UN Global Compact or the ILO Fundamental Principles, although such incidents will not automatically result in exclusion from the portfolio.
Further to the above, the Investment Adviser may, in its discretion, elect to apply additional ESG-related investment restrictions over time that it believes are consistent with its investment objectives. Such additional restrictions will be disclosed as they are implemented on www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
Investments that are held by the Fund but, due to the application of the ESG criteria above, become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund. The Investment Adviser uses third-party data and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The weighted average duration of the Fund will normally be less than 3 years, although this may be higher under certain market conditions.
High Yield Fixed Income Security means a Fixed Income Security that has a rating less than “BBB-” by S&P or “Baa3” by Moody’s or similarly rated by another internationally recognised rating service or determined to be of similar creditworthiness by the Investment Adviser.
The Fund may, on an ancillary basis, invest in:
- Higher quality Fixed Income Securities than High Yield Fixed Income Securities; and
- Non-USD denominated Fixed Income Securities.

The Fund may invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds and open-ended ETFs provided that any such ETFs are eligible investments for UCITS funds.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
The Fund is actively managed and is not designed to track a benchmark. The Fund’s performance is measured against a benchmark as detailed in the Fund’s key investor information document.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the US Dollar Short Duration High Yield Bond Fund’s investment objective it may be appropriate for investors who:
- seek to invest in Fixed Income Securities;
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

ASSET ALLOCATION FUNDS
The following Asset Allocation Funds have the following objectives:
GLOBAL BALANCED DEFENSIVE FUND
The Global Balanced Defensive Fund’s investment objective is to provide an attractive level of total return, measured in Euro, through investing primarily in a portfolio of transferable securities and money market instruments globally and through the use of financial derivative instruments. The Fund is managed within a clearly-defined, risk-controlled framework, actively managing the total portfolio risk, by managing the portfolio volatility level in line with a pre-defined target volatility below that of the Global Balanced Fund. The Investment Adviser dynamically adjust the portfolio positioning in a balanced mix of equity, fixed income, Cash Equivalents, and commodity-linked securities, aiming to maintain a stable risk profile using an ex-ante approach.
The Fund will implement top-down, tactical views on global asset classes across (1) equity including closed-end Real Estate Investment Trusts (REITS); (2) Fixed Income Securities; and (3) Cash Equivalents.
The Investment Adviser’s tactical view will be implemented by accessing the following investment universe:
- Primary investments: equity securities, including closed-end Real Estate Investment Trusts (REITS); Fixed Income Securities (including investment grade, non-investment grade and unrated); and Cash Equivalents. This investment may be direct, or via derivatives. The Fund may invest in financial derivative instruments to achieve its investment objective and derivatives may be used for both investment and hedging purposes. These derivative instruments may include but are not limited to futures, options, warrants, contracts for difference, forward contracts on financial instruments and options on such contracts, credit linked instruments and swap contracts, whether traded on or off exchange.
- Ancillary investments: other transferable securities or, to a limited extent, to collective investment schemes including the Company’s Funds and ETFs as well as China A-Shares via Stock Connect. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.

The Investment Adviser anticipates it will predominantly employ the following investment strategies:
- Global asset allocation: investing in securities in line with individual asset class indices. The Investment Adviser will select the indices which will be used to make tactical views globally across (1) equity securities including Real Estate Investment Trusts (REITS); (2) Fixed Income Securities; and (3) Cash Equivalents. The Investment Adviser may use on or off exchange traded derivatives such as futures or swaps to gain diversified and/or more efficient exposure to specific global markets where due to the intended allocation size or due to inefficiencies in transacting directly in the underlying securities, investing via derivatives is a preferable investment option in the Investment Adviser’s opinion.
- ESG screening: in addition, the Investment Adviser may consider ESG factors on a bottom-up basis; where investing directly in transferable securities, the Investment Adviser may consider the relative ranking of issuers for ESG factors as part of assessing the potential for return and as part of managing total portfolio risk.

The Investment Adviser may use additional investment strategies such as:
- Commodity-linked investments: the Fund may (in accordance with the investment powers and restrictions set out in AppendixA) implement tactical views on commodities via exchange traded commodities (ETCs) and/or commodity linked notes.
- Use of derivatives for efficient portfolio management: the Fund may also invest in Cash Equivalents, warrants, exchange traded and over-the-counter options, and other derivatives for efficient portfolio management (including hedging) purposes as well as for the investment purposes as outlined above.

The Fund’s investments may result in exposure to emerging markets and to higher yielding securities.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Global Balanced Defensive Fund’s investment objective it may be appropriate for investors who:
- seek capital appreciation over the medium term;
- seek a balanced investment that focuses on those asset classes the Investment Adviser finds tactically most attractive;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BALANCED FUND
The Global Balanced Fund’s investment objective is to provide an attractive level of total return, measured in Euro, by investing in a broad and balanced asset mix of both equity and Fixed Income Securities while incorporating ESG considerations. The Fund is managed within a clearly-defined, risk-controlled framework, actively managing the total portfolio risk, by managing the portfolio volatility level in line with a pre-defined target volatility. The Investment Adviser dynamically adjust the portfolio positioning in a balanced mix of equity, fixed income, Cash Equivalents, and commodity- linked securities, aiming to maintain a stable risk profile using an ex-ante approach.
The Investment Adviser will implement a flexible top-down driven approach to identify investment opportunities across the permissible investment universe.
Sustainability factors are considered by the Investment Adviser during both the investment and research process to limit exposure to Sustainability Risks and seek out investment opportunities. These criteria may include, but are not limited to, climate change, carbon emissions, water scarcity, waste management, biodiversity, labour management, gender diversity, health & safety, product safety, data privacy & security, executive remuneration, board independence, shareholder rights, and bribery and corruption.
In relation to this Fund, “Sustainable” means that the Investment Adviser, in its discretion, integrates ESG considerations in its investment decision-making as further detailed below. The Investment Adviser may engage company management around corporate governance practices as well as what it deems to be materially important environmental and/or social issues facing a company in order to ensure that the target companies follow good governance practices.
The Investment Adviser shall not knowingly include the following companies in the investment universe, companies:
- associated with severe ESG controversies;
- involved with controversial weapons (including civilian firearms);
- involved in gambling;
- associated with tobacco; and
- that derive revenue from thermal coal and oil sands.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). The exclusions (which comprise, but are not limited to, the above exclusions) are determined by the Investment Adviser’s own proprietary analysis rather than the reliance on third party analysis. However, the analysis may be supported by third party ESG controversies analysis and business involvement research. The exclusions criteria is applied to all direct investments within the Fund. The exclusion criteria will not be applied to investments in which the Investment Adviser does not have direct control of the underlying holdings, for example collective investment schemes or open-ended ETFs. The exclusion criteria is subject to periodic review and any changes will be reflected in the exclusion policy document.
Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Investment Adviser integrates ESG data including ratings and scores from third parties when constructing security baskets to implement asset class views, subject to a tracking error and other constraints. The Investment Adviser uses third-party data and ESG scores and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Investment Adviser tilts the portfolio of the Fund towards high ESG performing stocks, and aims to improve the aggregated fund ESG performance versus that of the underlying equity index. In addition to ESG factors, the Investment Adviser treats climate change as a separate consideration, and also applies an additional climate change score during the tilting process.
The Investment Adviser creates – for all 11 GICS sectors within each regional equity market – individual baskets that tilt towards the top quartile ESG and low-carbon transition leaders.
The Fund’s primary investment universe includes equity securities, including eligible closed-end Real Estate Investment Trusts (REITS); Fixed Income Securities (including investment grade, non-investment grade and unrated); and Cash Equivalents. This investment may be direct, or via derivatives. The Fund may invest in financial derivative instruments for both investment and hedging purposes. These derivative instruments may include but are not
limited to futures, options, warrants, contracts for difference, forward contracts on financial instruments and options on such contracts, credit linked instruments and swap contracts, whether traded on or off exchange.
The Fund’s ancillary investment universe may also invest to a limited extent in units/shares of other collective investment schemes including the Company’s Funds and open-ended ETFs, provided that any ETFs are eligible investments for UCITS funds. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser may use additional investment strategies such as commodity-linked investments which qualify as transferable securities in accordance with article 1(34) of the 2010 Law and article 2 of the Grand-Ducal Regulation of 8 February 2008. The Fund may (in accordance with the investment powers and restrictions set out in Appendix A) implement tactical views on commodities via exchange traded commodities (ETCs) and/or commodity linked notes.
The Fund may also invest in Cash Equivalents, warrants, exchange traded and over-the-counter options, and other derivatives for efficient portfolio management (including hedging) purposes as well as for the investment purposes as outlined above.
The Fund’s investments may result in exposure to emerging markets and to higher yielding securities.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The Fund does not take account of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Balanced Fund’s investment objective it may be appropriate for investors who:
- seek capital appreciation over the medium term;
- seek a balanced investment that focuses on those asset classes the Investment Adviser finds tactically most attractive;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BALANCED INCOME FUND
The Global Balanced Income Fund’s investment objective is to provide regular income and capital appreciation, measured in Euro, through investing primarily in a portfolio of transferable securities
and money market instruments globally and through the use of financial derivative instruments. The Fund is managed within a clearly-defined, risk-controlled framework, actively managing the total portfolio risk, by managing the portfolio volatility level in line with a pre-defined target volatility. The Investment Adviser dynamically adjust the portfolio positioning in a balanced mix of equity, fixed income, Cash Equivalents, and commodity-linked securities, aiming to maintain a stable risk profile using an ex-ante approach.
The Fund will implement top-down, tactical views on global asset classes across (1) equity including closed-end Real Estate Investment Trusts (REITS); (2) Fixed Income Securities; and (3) Cash Equivalents. The Investment Adviser’s tactical view will be implemented by accessing the following investment universe:
- Primary investments: equity securities, including closed-end Real Estate Investment Trusts (REITS); Fixed Income Securities (including investment grade, non-investment grade and unrated); and Cash Equivalents. This investment may be direct, or via derivatives. The Fund may invest in financial derivative instruments to achieve its investment objective and derivatives may be used for both investment and hedging purposes. These derivative instruments may include but are not limited to futures, options, warrants, contracts for difference, forward contracts on financial instruments and options on such contracts, credit linked instruments and swap contracts, whether traded on or off exchange.
- Ancillary investments: other transferable securities or, to a limited extent, to UCIs including the Company’s Funds and ETFs as well as China A-Shares via Stock Connect. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.

Investment in equity securities will not be less than 10% of the Fund’s net asset value, nor more than 90% of the Fund’s net asset value.
Investment in non-investment grade bonds will not exceed 30% of the Fund’s net asset value.
The Investment Adviser anticipates it will predominantly employ the following investment strategies:
- Global asset allocation: investing in securities in line with individual asset class indices. The Investment Adviser will select the indices which will be used to make tactical views globally across (1) equity securities including Real Estate Investment Trusts (REITS); (2) Fixed Income Securities; and (3) Cash Equivalents. The Investment Adviser may use on or off exchange traded derivatives such as futures or swaps to gain diversified and/or more efficient exposure to specific global markets where due to the intended allocation size or due to inefficiencies in transacting directly in the underlying securities,investing via derivatives is a preferable investment option in the Investment Adviser’s opinion.
- Income generation: in addition to purchasing income generating transferable securities, additional income will be sought through the receipt of premiums as a result of writing on or off exchange traded options, which may be written on indices; single securities; or currencies.

The Investment Adviser may use additional investment strategies such as:
- Commodity-linked investments: the Fund may (in accordance with the investment powers and restrictions set out in AppendixA) implement tactical views on commodities via exchange traded commodities (ETCs) and/or commodity linked notes.
- Use of derivatives for efficient portfolio management: the Fund may also invest in cash warrants, exchange traded and over-the- counter options, and other derivatives for efficient portfolio management (including hedging) purposes as well as for the investment purposes as outlined above.
- Use of open and closed ended UCIs, including the Company’s Funds and ETFs; the Investment Adviser would primarily use UCIs and ETFs to gain diversified and/or more efficient exposure to specific global markets where due to the intended allocation size or due to inefficiencies in transacting directly in the underlying securities an UCI or ETF is a preferable investment option in the Investment Adviser’s opinion.

The Fund’s investments may result in exposure to emerging markets and to higher yielding securities.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Global Balanced Income Fund’s investment objective it may be appropriate for investors who:
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BALANCED RISK CONTROL FUND OF FUNDS
The Global Balanced Risk Control Fund of Funds’ investment objective is to invest in units/shares of other collective investment schemes to provide an attractive level of total return, measured in
Euro, while actively managing total portfolio risk. The Fund is managed within a clearly-defined, risk-controlled framework, actively managing the volatility level in line with a pre-defined target volatility. The Investment Adviser adjust the portfolio positioning in a balanced mix of equity, fixed income, Cash Equivalents, and commodity-linked securities, aiming to maintain a stable risk profile using an ex-ante approach. The Fund will implement tactical views on global fixed income and equity asset classes by investing primarily in undertakings for collective investments (“UCI”) including the Company’s Funds, ETFs, futures, investment funds managed by the Investment Adviser or its affiliates and other collective investment schemes.
On an ancillary basis and with a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) implement tactical views on commodities via exchange traded commodities (ETCs) and/or commodity linked notes, and may also invest in Cash Equivalents, warrants, exchange traded and over-the-counter options, and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also invest on an ancillary basis in equity securities, including eligible closed-end Real Estate Investment Trusts (REITS); Fixed Income Securities (including investment grade, non-investment grade and unrated); China A-Shares via Stock Connect. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Fund’s investments may result in exposure to emerging markets and to higher yielding securities.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Global Balanced Risk Control Fund of Funds’ investment objective it may be appropriate for investors who:
- seek capital appreciation over the medium term;
- seek income whether in the form of capital appreciation or distributions, as outlined in “Dividend Policy”;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL BALANCED SUSTAINABLE FUND
The Global Balanced Sustainable Fund’s investment objective is to provide an attractive level of total return, measured in Euro, by investing in a broad and balanced asset mix of both equity and
Fixed Income Securities while incorporating ESG considerations and taking into account the long term global warming objectives of the Paris Agreement. The Fund is managed within a clearly- defined, risk-controlled framework, actively managing the volatility level in line with a pre-defined target volatility. The managers adjust the portfolio positioning in a balanced mix of equity, fixed income, Cash Equivalents, and commodity-linked securities, aiming to maintain a stable risk profile using an ex-ante approach.
The Investment Adviser will implement a flexible top-down driven approach to identify investment opportunities across the permissible investment universe.
Sustainability factors are considered by the Investment Adviser during both the investment and research process to limit exposure to Sustainability Risks and seek out investment opportunities. These criteria may include, but are not limited to, climate change, carbon emissions, water scarcity, waste management, biodiversity, labour management, gender diversity, health & safety, product safety, data privacy & security, executive remuneration, board independence, shareholder rights, and bribery and corruption.
In relation to this Fund, “Sustainable” means that the Investment Adviser, in its discretion, integrates ESG considerations in its investment decision-making as further detailed below. The Investment Adviser may engage company management around corporate governance practices as well as what it deems to be materially important environmental or social issues facing a company in order to ensure that the target companies follow good governance practices.
The Investment Advisor shall not knowingly include the following companies in the investment universe companies:
- associated with severe ESG controversies;
- involved with controversial weapons (including civilian firearms);
- involved in gambling;
- associated with tobacco;
- that derive revenue from thermal coal and oil sands.

The details of the above exclusions can be found in the Fund’s exclusion policy which is available on the Company’s website (www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im). The exclusions (which comprise, but are not limited to, the above exclusions) are determined by the Investment Adviser’s own proprietary analysis rather than the reliance on third party analysis. However, the analysis may be supported by third party ESG controversies analysis and business involvement research. The exclusions criteria is applied to all direct investments within the Fund. The exclusion criteria will not be applied to investments in which the Investment Adviser does not have direct control of the
underlying holdings, for example collective investment schemes or open-ended ETFs. The exclusion criteria is subject to periodic review and any changes will be reflected in the exclusion policy document.
Investments that are held by the Fund but become restricted after they are acquired for the Fund will be sold. Such sales will take place over a time period to be determined by the Investment Adviser, taking into account the best interests of the Shareholders of the Fund.
The Investment Adviser integrates ESG rating scores data from third parties when constructing security baskets to implement asset class views, subject to a tracking error and other constraints. The Investment Adviser tilts the portfolio of the Fund towards high ESG performing stocks, and aims to improve the aggregated fund ESG performance versus that of the underlying equity index. In addition to ESG factors, the Investment Adviser treats climate change as a separate consideration, and also applies an additional climate change score during the tilting process.
The Fund will take into account the long-term global warming objectives of the Paris Agreement. To reach this environmental objective the Investment Adviser’s ESG integration process has two distinct climate tilts: 1) stock-specific and 2) sector-specific.
For the stock-specific, the Investment Adviser creates – for all 11 GICS sectors within each regional equity market – individual baskets that tilt towards the top quartile ESG and low-carbon transition leaders. For the sector-specific, the Investment Adviser aggregates the sector baskets subject to an overall carbon budget, aligned with a science-based climate trajectory subject to tracking error.
The Investment Adviser will also allocate 5% to 30% of the Fund for investment in assets with a measurable positive social or environmental impact (based on the Investment Adviser’s methodology), alongside a competitive long term financial return. These investments can be held directly through equity or Fixed Income Securities, or indirectly through collective investment schemes.
The aforementioned ESG criteria should result in a reduction of the investible universe (as described below) in a significantly engaging manner, and the Investment Adviser will use its best efforts to ensure that at least 90% of the issuers in the portfolio are assessed against these ESG considerations.
As noted above, the Investment Adviser uses third-party data and ESG scores and in some cases data on specific issuers, ESG themes or the exclusions noted above may not be available and/or may be estimated by the Investment Adviser using internal methodologies or reasonable estimates. The methodologies used by different data providers may also vary and may result in different scores.
The Fund’s Primary investment universe includes equity securities, including eligible closed-end Real Estate Investment Trusts (REITS); Fixed Income Securities (including investment grade,
non-investment grade and unrated); and Cash Equivalents. This investment may be direct, or via derivatives. The Fund may invest in financial derivative instruments for both investment and hedging purposes, including derivative instruments that may not, meet the ESG criteria noted above. These derivative instruments may include but are not limited to futures, options, warrants, contracts for difference, forward contracts on financial instruments and options on such contracts, credit linked instruments and swap contracts, whether traded on or off exchange.
The Fund’s ancillary investment universe may also invest to a limited extent in units/shares of other collective investment schemes, including the Company’s Funds, and open-ended ETFs, provided that any ETFs are eligible investments for UCITS funds. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser may use additional investment strategies such as Commodity-linked investments which qualify as transferable securities in accordance with article 1(34) of the 2010 Law and article 2 of the Grand-Ducal Regulation of 8 February 2008. The Fund may (in accordance with the investment powers and restrictions set out in Appendix A) implement tactical views on commodities via exchange traded commodities (ETCs) and/or commodity linked notes.
The Fund may also invest in Cash Equivalents, warrants, exchange traded and over-the-counter options, and other derivatives for efficient portfolio management (including hedging) purposes as well as for the investment purposes as outlined above.
The Fund’s investments may result in exposure to emerging markets and to higher yielding securities.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The Fund’s sustainable investments do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Further information about the Fund’s environmental and social characteristics can be found in Appendix L.
Profile of the typical investor
In light of the Global Balanced Sustainable Fund’s investment objective it may be appropriate for investors who:
- seek capital appreciation over the medium term;
- seek a balanced investment that focuses on those asset classes the Investment Adviser finds tactically most attractive;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

GLOBAL MULTI-ASSET OPPORTUNITIES FUND
The Global Multi-Asset Opportunities Fund’s investment objective is to provide an absolute return, measured in Euros, while actively managing total portfolio risk. The Investment Adviser seeks to manage downside risk and targets below market volatility.
The Fund will seek to achieve its investment objective by investing in baskets of stocks, ETFs, bonds and derivatives.
The Fund may take both long and short positions, either directly or (specifically in the case of short positions) through the use of derivatives as described below, in a diversified range of equity and equity related securities of any market capitalisation, Fixed Income Securities, currencies and commodities. The Fund will only take indirect exposure to commodities, by investing into eligible structured products such as commodity-linked notes the underlying of which are commodity indices and/or sub-indices and/or derivative instruments referencing one or more commodity indices qualifying as financial indices under UCITS Regulations. When using such indices, the Fund must comply with the diversification limits set out in the UCITS Regulations: each component of a financial index may represent up to 20% of the index, except that in exceptional market circumstances one single component may represent up to 35% of the index.
With a view to enhancing returns and/or as part of the investment strategy, the Fund may (in accordance with the investment powers and restrictions set out in Appendix A) make use of exchange traded and over-the-counter options, futures, swaps and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may also make the following investments or use the following financial instruments:
- currency spot transactions, currency forward transactions, non- deliverable currency forward transactions and Money Market Funds, the assets of which may be managed by the Investment Adviser or any of its related, associated or affiliated companies; and/or
- deposits, fixed or floating rate instruments (including but not limited to commercial paper), floating rate notes, certificates of deposit, debentures, asset-backed securities and government or corporate bonds, and Cash Equivalents; and/or
- Fixed Income Securities acquired on the China Interbank Bond Market which will account for no more than 20% of the Fund’s net assets; and/or
- China A-Shares via Stock Connect which will account for no more than 10% of the Fund’s net assets; and/or
- up to 10% of the Fund may be invested in accordance with paragraph 2.2. of Appendix A.

The Investment Adviser will utilize a top-down, global macroeconomic and thematic investment approach that focuses on asset class, sector, region and country selection, as opposed to individual security selection. The Fund’s allocations will be based upon the Investment Adviser’s evaluations and analyses, taking into account its fundamental investment research, which is primarily driven by quantitative macroeconomic and market data.
Investment decisions will be made without regard to any particular limit, subject to Appendix A, as to geographical location, sector, credit rating, maturity, currency denomination or market capitalization. The Fund may invest in any country, including developing or emerging market countries. The Fund’s investments may be denominated in Euros or in currencies other than the Euro.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Global Multi-Asset Opportunities Fund’s investment objective it may be appropriate for investors who:
- seek a return over the medium term;
- seek a balanced investment that focuses on those asset classes the Investment Adviser finds tactically most attractive;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.

MULTI-ASSET RISK CONTROL FUND
The Multi-Asset Risk Control Fund’s investment objective is to provide an attractive level of total return, measured in USD, through investing primarily in a portfolio of transferable securities and money market instruments globally and through the use of financial derivative instruments.
The Fund will implement top-down, tactical views on global asset classes across (1) equity including closed-end Real Estate Investment Trusts (REITS); (2) Fixed Income Securities; and (3) Cash Equivalents.
The Investment Adviser’s tactical view will be implemented by accessing the following investment universe:
- Primary investments: equity securities, including closed-end Real Estate Investment Trusts (REITS) which are eligible for investment by a UCITS under the 2010 Law; Fixed IncomeSecurities (including investment grade, non-investment grade and unrated); and Cash Equivalents. This investment may be direct, or via derivatives. The Fund may invest in financial derivative instruments to achieve its investment objective and derivatives may be used for both investment and hedging purposes. These derivative instruments may include but are not limited to futures, options, warrants, contracts for difference, forward contracts on financial instruments and options on such contracts and swap contracts, whether traded on or off exchange.
- Ancillary investments: other transferable securities or, to a limited extent, to collective investment schemes including the Company’s Funds and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law, as well as China A-Shares via Stock Connect. The Fund may invest up to 10% of its net assets in China A-Shares via Stock Connect.

The Investment Adviser anticipates it will predominantly employ the following investment strategies:
- Global asset allocation: investing in securities in line with individual asset class indices. The Investment Adviser will select the indices which will be used to make tactical views globally across (1) equity securities including Real Estate Investment Trusts (REITS); (2) Fixed Income Securities; and (3) Cash Equivalents. The Investment Adviser may use on or off exchange traded derivatives such as futures or swaps to gain diversified and/or more efficient exposure to specific global markets where due to the intended allocation size or due to inefficiencies in transacting directly in the underlying securities, investing via derivatives is a preferable investment option in the Investment Adviser’s opinion.
- ESG screening: in addition, the Investment Adviser may consider ESG factors on a bottom-up basis; where investing directly in transferable securities, the Investment Adviser may consider the relative ranking of issuers for ESG factors as part of assessing the potential for return and as part of managing total portfolio risk.

The Investment Adviser may use additional investment strategies such as:
- Commodity-linked investments: the Fund may (in accordance with the investment powers and restrictions set out in Appendix
	- implement tactical views on commodities via exchange traded commodities (ETCs) which qualify as transferable securities in accordance with article 1(34) of the 2010 Law and article 2 of the Grand-Ducal Regulation of 8 February 2008.

- Use of derivatives for efficient portfolio management: the Fund may also invest in Cash Equivalents, warrants, exchange traded and over-the counter options, and other derivatives for efficientportfolio management (including hedging) purposes as well as for the investment purposes as outlined above.

The Fund’s investments may result in exposure to emerging markets and to higher yielding securities. The Fund aims to manage total portfolio risk by managing the volatility level of the portfolio.
The Fund is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
The investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Multi-Asset Risk Control Fund’s investment objective it may be appropriate for investors who:
- seek capital appreciation over the medium term;
- seek a balanced investment that focuses on those asset classes the Investment Adviser finds tactically most attractive;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.
-

Translation (ENFR, 2023-01-01):
# Objectifs et politiques d’investissement
La Société a pour objectif d’offrir aux investisseurs la possibilité d’investir dans une gamme de compartiments gérés par des professionnels et qui vise à répartir les risques d’investissement afin d’obtenir un rendement optimal du capital investi.
La Société offre à cette fin une gamme de Compartiments qui permettent aux investisseurs d’établir leur propre stratégie de placement en combinant des investissements dans les différents Compartiments proposés, selon la pondération de leur choix.
Conformément au régime applicable aux OPCVM, les informations ci-après comprennent un descriptif du profil de l’investisseur type pour lequel chaque Compartiment a été conçu. Veuillez cependant noter que ces informations ne constituent pas une prestation de conseil en investissements et que les investisseurs potentiels sont invités à consulter leurs propres conseillers professionnels au sujet de la souscription, de la détention ou de la cession d’Actions de l’un quelconque des Compartiments. La Société et la Société de Gestion ne formulent aucune déclaration quant au caractère adapté, approprié ou autre d’un investissement en Actions de l’un quelconque des Compartiments.
Les sous-distributeurs ou autres intermédiaires ayant besoin d’obtenir l’évaluation du marché cible au sens de la directive MIF II sont invités à contacter la Société de Gestion à l’adresse électronique suivante : cslux@morganstanley.com. Les Compartiments ne seront pas proposés à la vente au public dans quelque juridiction que ce soit tant que toutes les autorisations nécessaires dans ladite juridiction n’auront pas été obtenues.
Chaque Compartiment est géré conformément aux restrictions applicables aux investissements et aux emprunts spécifiées à l’Annexe A.
Les Compartiments sont autorisés à utiliser des produits dérivés à des fins de gestion efficace de portefeuille ou de couverture ou dans le cadre de leurs stratégies d’investissement, tel que décrit dans leurs objectifs
d’investissement. Sauf indication contraire dans les objectifs d’investissement d’un Compartiment, un Compartiment qui utilise des produits dérivés le fera uniquement à des fins de gestion efficace de portefeuille ou de couverture. Les Compartiments utilisant des instruments dérivés le feront dans les limites spécifiées à la section 3 de l’annexe A. Il est recommandé aux investisseurs de consulter la section 1.5 « Facteurs de risque » pour de plus amples informations sur les risques inhérents aux instruments dérivés. Les Compartiments pourront s’exposer à des indices financiers éligibles ou à des actifs de référence conformes à leurs objectifs d’investissement par l’intermédiaire d’un ou de plusieurs contrats de conversion sur rendement global (« total return swaps » – TRS) ou d’instruments financiers dérivés semblables, comme décrits plus en détails dans l’Annexe A.
Les Compartiments énumérés ci-dessous peuvent conclure des contrats à terme, des options sur contrats à terme ou sur produits de base et/ou certains contrats d’échange (swaps). Bien que le Sous-Conseiller en Investissement Morgan Stanley Investment Management Inc. soit enregistré auprès de la U.S. Commodity Futures Trading Commission (« CFTC ») en tant que commodity trading advisor (« CTA ») et soit, à ce titre, membre de la
U.S. National Futures Association, en ce qui concerne les Compartiments visés ci-dessous pour lesquels il intervient en tant que sous-conseiller en investissement, Morgan Stanley Investment Management Inc. bénéficie d’une dispense d’enregistrement en tant que CTA en vertu de la règle 4.14(a)(8) de la CFTC et, par conséquent, fournit ses services en la matière aux Compartiments comme s’il n’était pas enregistré en tant que CTA. Morgan Stanley Investment Management Limited et les autres Sous-Conseillers en Investissement sont dispensés de s’enregistrer auprès de la CFTC en tant que CTA en vertu de la règle 3.10(c)(3) de la CFTC en ce qui concerne les Compartiments visés ci-dessous pour lesquels ils agissent soit en tant que conseiller en investissement, soit en tant que sous-conseiller en investissement.
American Resilience Fund Asia Opportunity Fund
Calvert Sustainable Climate Aligned Fund Calvert Sustainable Climate Transition Fund
Calvert Sustainable Developed Europe Equity Select Fund Calvert Sustainable Developed Markets Equity Select Fund Calvert Sustainable Diversity, Equity and Inclusion Fund Calvert Sustainable Emerging Markets Equity Select Fund Calvert Sustainable Global Equity Engagement Fund Calvert Sustainable Global Green Bond Fund
Calvert Sustainable US Equity Select Fund Counterpoint Global Fund
Developing Opportunity Fund
Emerging Markets Corporate Debt Fund Emerging Markets Debt Fund
Emerging Markets Debt Opportunities Fund Emerging Markets Domestic Debt Fund
Emerging Markets Fixed Income Opportunities Fund Emerging Markets Local Income Fund
Europe Opportunity Fund
European Fixed Income Opportunities Fund Floating Rate ABS Fund
Global Asset Backed Securities Fund Global Balanced Sustainable Fund Global Bond Fund
Global Convertible Bond Fund Global Core Equity Fund Global Credit Fund
Global Credit Opportunities Fund Global Endurance Fund
Global Fixed Income Opportunities Fund Global Focus Property Fund
Global High Yield Bond Fund Global Infrastructure Fund Global Insight Fund
Global Macro Fund
Global Multi-Asset Opportunities Fund Global Opportunity Fund
Global Permanence Fund Global Property Fund
Latin American Equity Fund NextGen Emerging Markets Fund Parametric Emerging Markets Fund
Parametric Global Defensive Equity Fund Short Duration US Government Income Fund Short Maturity Euro Corporate Bond Fund Sustainable Emerging Markets Equity Fund Sustainable European High Yield Bond Fund
Sustainable Global Fixed Income Opportunities Fund Sustainable Global High Yield Bond Fund Sustainable US High Yield Bond Fund
US Advantage Fund US Core Equity Fund
US Dollar Corporate Bond Fund US Dollar High Yield Bond Fund
US Dollar Short Duration Bond Fund
US Dollar Short Duration High Yield Bond Fund US Focus Property Fund
US Growth Fund US Insight Fund
US Permanence Fund US Value Fund
Vitality Fund
Les Compartiments sont autorisés à utiliser des techniques de gestion efficace de portefeuille dans les limites spécifiées à la section 3 de l’Annexe A. L’attention des investisseurs est attirée sur le fait que tous les Compartiments pourront utiliser, en tant que de besoin, des techniques de gestion efficace de portefeuille telles que des opérations de prêt, de mise en pension et de prise en pension de titres. Il est recommandé aux investisseurs de consulter la section 1.5 « Facteurs de risque » pour de plus amples informations sur les techniques de gestion efficace de portefeuille et les produits dérivés.
Un investissement dans l’un quelconque des Compartiments de la Société n’est pas un dépôt auprès d’une banque ou d’un autre organisme de dépôt garanti. Un tel investissement peut ne pas convenir à tous les investisseurs. Aucun des Compartiments n’est conçu comme un programme d’investissement complet et les investisseurs doivent considérer leurs objectifs d’investissement ainsi que leurs besoins financiers avant de prendre une décision d’investissement dans un Compartiment en particulier. Un investissement dans l’un quelconque des Compartiments de la Société doit être considéré comme un investissement à moyen ou à long terme. Les Compartiments ne doivent pas être utilisés comme des véhicules de trading.
INFORMATIONS GÉNÉRALES RELATIVES AUX COMPARTIMENTS
L’expression « dans une moindre mesure » fait référence à un niveau inférieur ou égal à 10 % des actifs effectivement investis (actifs nets après déduction des Instruments assimilés aux liquidités) de chaque Compartiment. Certains Compartiments spécifiques peuvent imposer des restrictions différentes, auquel cas mention en sera faite dans l’objectif du Compartiment considéré. Les objectifs et stratégies d’investissement des Compartiments peuvent ne pas divulguer de manière exhaustive tous les investissements à titre accessoire éligibles au titre de la Loi de 2010 que les Compartiments peuvent avoir fait, à condition que ces investissements éligibles ne dépassent pas 5 % de l’actif net des Compartiments.
Sauf indication contraire dans sa stratégie et son objectif d’investissement ou dans ses informations publiées au titre du SFDR, chaque Compartiment peut détenir des actifs liquides à titre
accessoire (dépôts bancaires à vue, tels que lez espèces détenues sur des comptes courants accessibles à tout moment auprès d’une banque) à hauteur de 20 % de son actif net au maximum afin de couvrir les paiements courants ou exceptionnels, ou pendant le temps nécessaire pour réinvestir dans les actifs éligibles visés à l’article 41(1) de la Loi de 2010 ou pendant la période strictement nécessaire en cas de conditions défavorables sur les marchés. Dans des conditions de marché exceptionnellement défavorables (par exemple en cas de crise comme les attentats du 11 septembre ou la faillite de Lehman Brothers en 2008), cette limite peut être dépassée temporairement pendant le temps strictement nécessaire, jusqu’à 100 % de l’actif net, afin de prendre des mesures en vue d’atténuer les risques liés à ces conditions de marché exceptionnellement défavorables dans l’intérêt des Actionnaires.
Sauf indication contraire dans leurs stratégies et objectifs d’investissements ou dans leurs informations publiées au titre du SFDR, tous les Compartiments peuvent détenir des Instruments assimilés aux liquidités jusqu’à 100 % de leur actif net afin
(i) d’atteindre leurs objectifs d’investissement, (ii) à des fins de trésorerie et/ou (en cas de conditions défavorables sur les marchés. Les instruments du marché monétaire comprennent notamment les effets de commerce, les certificats de dépôt et les obligations souveraines à court terme. Tous les Compartiments pourront également investir dans des fonds monétaires à court terme et des fonds monétaires, tels que définis par les Directives du CESR sur une définition commune des fonds monétaires européens datées du 19 mai 2010 (CESR/10 049) (Fonds monétaires à court terme et Fonds monétaires). De tels investissements peuvent être réalisés dans tout Compartiment du Morgan Stanley Liquidity Funds, ou encore dans tout autre Fonds monétaire à court terme ou Fonds monétaire géré par les Conseillers en Investissement ou l’un des Sous-Conseillers en Investissement.
2
Le Russian Trading Stock Exchange et le Moscow Interbank Currency Exchange sont, au sein de la Fédération de Russie, les seuls marchés reconnus au sens de l’article 41(1) de la Loi de 2010.
Tout investissement dans les SPAC sera limité à 10 % de l’actif net des Compartiments.
Les Compartiments pourront investir dans des Actions A chinoises via Stock Connect dans la mesure autorisée par leur objectif d’investissement. Il est recommandé aux investisseurs dans les Compartiments concernés de consulter la section 1.5 « Facteurs de risque » pour de plus amples informations sur les risques inhérents aux investissements dans des Actions A chinoises via Stock Connect.
2 
Aucun Compartiment du Morgan Stanley Liquidity Funds n’est approuvé pour distribution aux investisseurs non qualifiés en Suisse.
Lorsqu’une devise est mentionnée entre parenthèses dans la dénomination d’un Compartiment, il s’agit de la devise de référence du Compartiment en question, qui est utilisée à des fins de mesure de la performance et à des fins comptables. Elle peut être différente de la devise utilisée par le Compartiment en question pour ses investissements.
Il n’existe aucune garantie que les Compartiments atteignent leurs objectifs d’investissement.
Il est recommandé aux investisseurs de consulter le document d’informations clés pour l’investisseur de la Classe d’Actions concernée pour des informations relatives à leur performance historique.
INFORMATIONS GÉNÉRALES RELATIVES À L’INTÉGRATION DES RISQUES EN MATIÈRE DE DURABILITÉ
Conformément à l’engagement de Morgan Stanley Investment Management en matière d’investissement durable, la Société a adopté une Politique d’Investissement Durable, disponible aux adresses www.morganstanley.com/im/sustainable-investing et www.morganstanleyinvestmentfunds.com. La Politique d’Investissement Durable de la Société décrit la manière dont la structure de gouvernance de la Société, l’intégration des facteurs ESG, les Compartiments ESG et les activités de gestion du capital, d’engagement et de vote permettent à la Société de remplir ses obligations fiduciaires et de répondre aux préférences et aux besoins des investisseurs. Les activités de bonne gestion, en particulier, font partie intégrante de notre rôle en tant qu’investisseurs actifs à long terme étant donné qu’elles nous permettent d’encourager les sociétés à améliorer leur performance sur toute une série de questions, de risques et d’opportunités liés au développement durable. Les approches de l’engagement et de la bonne gestion varient entre les équipes d’investissement en fonction du titre/de l’entreprise, de la classe d’actifs, de la stratégie d’investissement et du caractère matériel des questions, risques et opportunités liés au développement durable. Des informations plus détaillées sont disponibles dans notre Politique d’Investissement Durable, disponible aux adresses www.morganstanley.com/im/sustainable-investing et www.morganstanleyinvestmentfunds.com.
Conformément au Règlement (UE) 2019/2088 sur la publication d’informations en matière de durabilité dans le secteur des services financiers (le "
Règlement SFDR
"), les Compartiments sont tenus de divulguer la manière dont les Risques en Matière de Durabilité (tels que définis dans la Section 1.5.1. « Facteurs de risque généraux » ci-après) sont intégrés dans la décision d’investissement et les résultats de l’évaluation des incidences probables des Risques en Matière de Durabilité sur les rendements des Compartiments.
La Société reconnaît que divers Risques en Matière de Durabilité peuvent menacer les investissements au niveau des actifs individuels et du portefeuille. Ces Risques en Matière de Durabilité peuvent inclure la transition vers le changement climatique et les risques
physiques, l’épuisement des ressources naturelles, l’intensité des déchets, le maintien ou le roulement (turnover) du personnel, l’agitation sociale, la perturbation dans la chaîne d’approvisionnement, la corruption et la fraude et les problèmes de réputation liés aux violations des droits de l’homme.
La Société reconnaît que l’univers des Risques en Matière de Durabilité pertinents va croître et évoluer au fil du temps. La matérialité de ces risques et de leur incidence financière sur un actif individuel et sur un portefeuille dans son ensemble dépend du secteur, du pays, de la classe d’actifs et du style d’investissement. Les Conseillers en Investissement, les Sous-Conseillers ou la Société de Gestion, selon le cas, sont responsables en dernier ressort de l’intégration des Risques en Matière de Durabilité pertinents dans la diligence raisonnable et la recherche, l’évaluation, la sélection des actifs, la construction du portefeuille et le suivi continu des investissements, ainsi que d’autres facteurs de risque importants.
L’évaluation de l’incidence probable des Risques en Matière de Durabilité pertinents doit donc être effectuée au niveau de chaque Compartiment. Les Compartiments, ayant un portefeuille diversifié, peuvent être exposés à différents Risques en Matière de Durabilité variant selon les émetteurs, les marchés, les secteurs, les instruments financiers, les régions géographiques, etc. A moins que des informations spécifiques ne soient données sur un Compartiment au titre de la Section 1.2 « Objectifs et Politiques d’investissement » du Prospectus, il n’est pas prévu qu’un seul Risque en Matière de Durabilité ait une incidence financière négative importante sur la valeur d’un Compartiment. Des informations complémentaires sur le Règlement SFDR, selon le cas, peuvent être consultées sur www.morganstanley.com/im.
Les Compartiments ne promeuvent pas de caractéristiques environnementales ou sociales, n’ont pas pour objectif l’investissement durable et ne tiennent pas compte des principales incidences négatives sur les facteurs de durabilité. Ils sont considérés comme entrant dans le champ d’application de l’Article 6 du Règlement SFDR, à l’exception des Compartiments énumérés ci-dessous :
- American Resilience Fund (Article 8 du Règlement SFDR) ;
- Asia Opportunity Fund (Article 8 du Règlement SFDR) ;
- Asian Property Fund (Article 8 du Règlement SFDR) ;
- Calvert Sustainable Climate Aligned Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Climate Transition Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Developed Europe Equity Select Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Developed Markets Equity Select Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Diversity, Equity and Inclusion Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Emerging Markets Equity Select Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Global Equity Engagement Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable Global Green Bond Fund (Article 9 du Règlement SFDR) ;
- Calvert Sustainable US Equity Select Fund (Article 9 du Règlement SFDR) ;
- Counterpoint Global Fund (Article 8 du Règlement SFDR) ;
- Developing Opportunity Fund (Article 8 du Règlement SFDR) ;
- Emerging Leaders Equity Fund (Article 8 du Règlement SFDR) ;
- Emerging Markets Corporate Debt Fund (Article 8 du Règlement SFDR) ;
- Emerging Markets Debt Fund (Article 8 du Règlement SFDR) ;
- Emerging Markets Debt Opportunities Fund (Article 8 du Règlement SFDR) ;
- Emerging Markets Domestic Debt Fund (Article 8 du Règlement SFDR) ;
- Emerging Markets Fixed Income Opportunities Fund (Article 8 du Règlement SFDR) ;
- Emerging Markets Local Income Fund (Article 8 du Règlement SFDR) ;
- Euro Bond Fund (Article 8 du Règlement SFDR) ;
- Euro Corporate Bond Fund (Article 8 du Règlement SFDR) ;
- Euro Corporate Bond – Duration Hedged Fund (Article 8 du Règlement SFDR) ;
- Euro Strategic Bond Fund (Article 8 du Règlement SFDR) ;
- Europe Opportunity Fund (Article 8 du Règlement SFDR) ;
- European Fixed Income Opportunities Fund (Article 8 du Règlement SFDR) ;
- European High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- European Property Fund (Article 8 du Règlement SFDR) ;
- Floating Rate ABS Fund (Article 8 du Règlement SFDR).
- Global Asset Backed Securities Fund (Article 8 du Règlement SFDR) ;
- Global Balanced Fund (Article 8 du Règlement SFDR) ;
- Global Balanced Sustainable Fund (Article 9 du Règlement SFDR) ;
- Global Bond Fund (Article 8 du Règlement SFDR) ;
- Global Brands Equity Income Fund (Article 8 du Règlement SFDR) ;
- Global Brands Fund (Article 8 du Règlement SFDR) ;
- Global Convertible Bond Fund (Article 8 du Règlement SFDR) ;
- Global Credit Fund (Article 8 du Règlement SFDR) ;
- Global Credit Opportunities Fund (Article 8 du Règlement SFDR) ;
- Global Endurance Fund (Article 8 du Règlement SFDR) ;
- Global Fixed Income Opportunities Fund (Article 8 du Règlement SFDR) ;
- Global High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- Global Infrastructure Fund (Article 8 du Règlement SFDR) ;
- Global Insight Fund (Article 8 du Règlement SFDR) ;
- Global Opportunity Fund (Article 8 du Règlement SFDR) ;
- Global Permanence Fund (Article 8 du Règlement SFDR) ;
- Global Property Fund (Article 8 du Règlement SFDR) ;
- Global Quality Fund (Article 8 du Règlement SFDR) ;
- Global Sustain Fund (Article 8 du Règlement SFDR) ;
- Japanese Equity Fund (Article 8 du Règlement SFDR) ;
- NextGen Emerging Markets Fund (Article 8 du Règlement SFDR) ;
- Short Maturity Euro Bond Fund (Article 8 du Règlement SFDR) ;
- Sustainable Asia Equity Fund (Article 8 du Règlement SFDR) ;
- Short Maturity Euro Corporate Bond Fund (Article 8 du Règlement SFDR) ;
- Sustainable Emerging Markets Equity Fund (Article 8 du Règlement SFDR) ;
- Sustainable Euro Corporate Bond Fund (Article 8 du Règlement SFDR) ;
- Sustainable Euro Strategic Bond Fund (Article 8 du Règlement SFDR) ;
- Sustainable European High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- Sustainable Global Fixed Income Opportunities Fund (Article 8 du Règlement SFDR) ;
- Sustainable Global High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- Sustainable US High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- US Advantage Fund (Article 8 du Règlement SFDR) ;
- US Dollar Corporate Bond Fund (Article 8 du Règlement SFDR) ;
- US Dollar High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- US Dollar Short Duration Bond Fund (Article 8 du Règlement SFDR) ;
- US Dollar Short Duration High Yield Bond Fund (Article 8 du Règlement SFDR) ;
- US Focus Property Fund (Article 8 du Règlement SFDR) ;
- US Growth Fund (Article 8 du Règlement SFDR) ;
- US Insight Fund (Article 8 du Règlement SFDR) ;
- US Permanence Fund (Article 8 du Règlement SFDR) ;
- US Property Fund (Article 8 du Règlement SFDR) ; et
- Vitality Fund (Article 8 du Règlement SFDR).

COMPARTIMENTS ACTIONS
Les différents Compartiments Actions poursuivent les objectifs suivants :
AMERICAN RESILIENCE FUND
L’objectif d’investissement de l’American Resilience Fund la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement dans tes titres de capital, y compris des certificats de dépôt (y compris des certificats de dépôt américains (ADR) et des certificats de dépôt mondiaux (GDR) d’entreprises situées aux États-Unis. On considère qu’un émetteur est situé aux États-Unis s’il remplit la condition suivante : (i) ses titres sont négociés sur un marché boursier reconnu aux États- Unis ; (ii) seul ou sur base consolidée, il tire au moins 50 % de son chiffre d’affaires ou de ses bénéfices de biens produits, de ventes réalisées ou de services prestés aux États-Unis ; (iii) il est constitué ou possède son antenne principale aux États-Unis ; (iv) il possède au moins 50 % de ses actifs, de ses principales activités commerciales et/ou de ses salariés aux États-Unis ; ou (v) tout autre facteurs qui, selon l’avis raisonnable du Conseiller en Investissement, dénote une exposition économique aux États-Unis.
Le Conseiller en Investissement cherche à investir dans des entreprises de haute qualité présentant une rentabilité opérationnelle durablement élevée en identifiant les entreprises occupant des positions dominantes sur le marché, s’appuyant typiquement sur des actifs immatériels puissants et difficiles à reproduire (y compris des marques, des réseaux, des licences et brevets) et possédant un
pouvoir de fixation de prix qui leur confère des marges brutes élevées. Le Conseiller en Investissement s’attache également à identifier des équipes dirigeantes capables d’allouer les actifs de manière efficiente de sorte à faire croître la franchise, préserver les actifs immatériels et/ou améliorer la rentabilité opérationnelle.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants et autres valeurs mobilières donnant accès au capital.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Restrictions d’investissement :
- Le Compartiment appliquera des restrictions liées au climat afin d’exclure les investissements dans toute société qui, selon le Conseiller en Investissement :
- présente un lien quelconque avec les combustibles fossiles (tels que le pétrole, le gaz et le charbon) ; ou
- exerce une activité principale en lien avec l’énergie, les matériaux de construction, les services aux collectivités (à l’exclusion des services d’électricité renouvelable et d’eau), les métaux et l’exploitation minière.
- En outre, le Compartiment s’abstiendra d’inclure en connaissance de cause toute société :
- dont l’activité principale touche aux armements ou aux armes à feu à usage civil ; ou
- définie selon la base de données MSCI ESG Business Involvement Screening Research (« MSCI ESG BISR ») comme ayant un lien quelconque avec les armes controversées.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en vertu du premier ou du deuxième point ci-avant après avoir été acquis pour le Compartiment seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en
tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
En tant que composante fondamentale et partie intégrante du processus d’investissement, le Conseiller en Investissement évalue les facteurs déterminants pour la pérennité de la rentabilité élevée à long terme, en ce compris les facteurs ESG, et s’attache à débattre avec la direction de la société considérée (Dans le respect de l’objectif d’investissement du Compartiment, le Compartiment garde un pouvoir de décision discrétionnaire sur la sélection des investissements). Bien que facteurs ESG soient une composante fondamentale et fassent partie intégrante du processus d’investissement, les facteurs ESG ne sont pas le seul facteur déterminant pour savoir si un investissement peut être réalisé ou si une participation peut être maintenue dans le portefeuille du Compartiment, mais le Conseiller en Investissement prend en compte les risques ou les opportunités relatives à l’un des facteurs ESG qui pourraient compromettre ou renforcer la rentabilité opérationnelle élevée de l’entreprise.
Le Conseiller en Investissement surveille les pratiques commerciales de manière continue, par le biais de données sur les controverses et le filtrage des normes ESG que le Conseiller en Investissement obtient auprès de fournisseurs tiers, y compris les violations du Pacte mondial des Nations unies, ainsi que par son propre engagement auprès de la direction de l’entreprise considérée et ses propres recherches. Le Conseiller en Investissement examine les titres des émetteurs pour lesquels il estime qu’une violation importante des normes et principes susmentionnés s’est produite et exclut généralement ces émetteurs lorsque, après avoir effectué ses recherches et/ou du fait de son engagement, le Conseiller en Investissement estime que la violation est importante à l’égard de la pérennité de la rentabilité opérationnelle, qu’elle pose un risque financier et de réputation significatif et que l’émetteur ne s’est pas engagé à prendre des mesures correctives appropriées. Ces exclusions sont déterminées par le Conseiller en Investissement à sa discrétion plutôt qu’en fonction de l’analyse d’un tiers. L’analyse peut être étayée par des analyses de controverses ESG de tiers et des mesures d’engagement commercial.
Le Compartiment se fonde sur ses capacités de recherches, ses ressources analytiques et son appréciation pour identifier et contrôler les entreprises de haute qualité répondant à ses critères d’investissement. Conseiller en Investissement estime que le nombre d’émetteurs aux activités de qualité répondant à ses critères pourrait être limité, de sorte que le Compartiment peut limiter ses positions à un nombre relativement restreint d’entreprises.
Le Conseiller en Investissement envisage de vendre une position du portefeuille lorsqu’il estime que cette position ne répond plus aux critères d’investissement ou que le remplacement de cette position par un autre investissement est susceptible d’améliorer la valorisation et/ou la qualité du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Asia Opportunity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

ASIA OPPORTUNITY FUND
L’objectif d’investissement de l’Asia Opportunity Fund consiste à rechercher une croissance du capital à long terme, mesurée en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)) d’émetteurs situés en Asie hors Japon, et des Actions A chinoises via Stock Connect.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur valeurs mobilières, liquidités et
instruments assimilés et autres valeurs mobilières donnant accès au capital.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui feront l’objet d’investissements, le Conseiller en Investissement recherche des sociétés établies ou émergentes qu’il considère comme sous-évaluées au moment de l’acquisition. Le Conseiller en Investissement privilégiera généralement des sociétés à l’égard desquelles il estime qu’elles bénéficient d’avantages concurrentiels durables qui peuvent être monétisés par le biais de la croissance. Le processus d’investissement intègre une analyse de la durabilité en ce qui concerne les changements perturbateurs, la solidité financière, les externalités en matière environnementale, sociale et de gouvernance (également dénommées ESG). Lorsque le Conseiller en Investissement déterminera que des positions en portefeuille ne satisfont plus aux critères d’investissement du Compartiment, la vente sera généralement envisagée.
Le Conseiller en Investissement adopte une approche holistique de l’ESG dans le cadre de son évaluation de la qualité des entreprises en analysant les impacts potentiels sur la santé de l’humanité, l’environnement, la liberté et la productivité ainsi que les pratiques de gouvernance d’entreprises afin de garantir le pouvoir d’agir, la culture et la confiance. Le Conseiller en Investissement considère que l’intégration des risques et des opportunités potentiels liés aux facteurs ESG dans le processus d’investissement est importante pour garantir une gestion à long terme du capital. Sur de longues périodes, le Conseiller en Investissement estime que les risques ESG sont plus susceptibles de se matérialiser et que les externalités non supportées par la société bénéficiaire de l’investissement sont plus susceptibles d’être intégrées dans la valeur des titres. Étant donné que les risques ESG peuvent potentiellement avoir un impact sur le profil de risque et de rendement des opportunités d’investissement, le Conseiller en Investissement engage généralement la direction de la société considérée dans des discussions constructives sur une série de questions ESG que le Conseiller en Investissement juge matériellement importantes.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Asia Opportunity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

ASIAN PROPERTY FUND
L’objectif d’investissement de l’Asian Property Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement en titres de capital de sociétés du secteur immobilier asiatique situées dans toute l’Asie et dans toute l’Océanie. Les sociétés du secteur immobilier ou étroitement liées au secteur immobilier peuvent inclure des sociétés principalement engagées dans le développement et/ou la propriété de biens
immobiliers générateurs de revenus ; des sociétés qui exploitent, construisent, financent ou vendent des biens immobiliers ; des sociétés détenant des participations importantes liées à l’immobilier et/ou des services ou produits liés au secteur immobilier, y compris, sans toutefois s’y limiter, la gestion immobilière, les courtiers, les produits de construction et la technologie immobilière ; et des véhicules de placement collectif en immobilier, tels que les fiducies d’investissement à participation unitaire immobilière cotées en bourse, tous les types de fiducies de placement immobilier (REITS) à capital fixe éligibles et les organismes de placement collectif.
Le Compartiment peut également investir, à titre accessoire, en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires, Actions A chinoises via Stock Connect, warrants et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 20 % de ses actifs nets dans des Actions A Chinoises via Stock Connect.
Le processus d’investissement s’appuie sur des recherches internes exclusives pour investir dans des sociétés immobilières publiques susceptibles d’offrir la meilleure valeur relative par rapport à leurs actifs et revenus sous-jacents. Le Conseiller en Investissement utilise une approche ascendante, en évaluant chaque titre compris dans l’univers d’investissement afin de parvenir à une estimation de la valeur liquidative et des futurs flux de trésorerie. Les facteurs spécifiques à l’immobilier, les facteurs liés aux titres au sens large et les facteurs ESG sont évalués dans l’analyse fondamentale afin de calculer les paramètres d’évaluation appropriés.
Le Conseiller en Investissement applique également une approche descendante lors du processus de construction du portefeuille en y incorporant plusieurs facteurs qui peuvent inclure les inflexions fondamentales prévues, des considérations macroéconomiques et des évaluations des risques géopolitiques et de pays, afin d’obtenir une exposition diversifiée à travers les régions, les pays et/ou les secteurs.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Les principaux thèmes ESG peuvent inclure, sans s’y limiter, la consommation d’énergie et les énergies renouvelables, la consommation d’eau, les émissions, la diversité et l’égalité des sexes, le travail et les droits de l’homme, la santé, le bien-être et la sécurité des employés et locataires, ainsi que
la gouvernance et la communication des informations ESG de la société. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations immobilières. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder ou exploiter des biens immobiliers destinés aux prisons ;
- posséder ou exploiter des biens immobiliers utilisés pour fabriquer du cannabis ;
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des mines de charbon ;
- posséder, fabriquer ou produire des armes controversées et armes à feu à usage civil ; et
- posséder, fabriquer ou produire du pétrole et du gaz arctiques.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucune mesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Asian Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE CLIMATE ALIGNED FUND
L’objectif d’investissement du Calvert Sustainable Climate Aligned Fund consiste à assurer une croissance du capital à long terme en dollars américains en investissant principalement dans des titres de capital (tels qu’énumérés ci-après) d’entreprises situées dans des marchés développés et qui sont impliquées dans des activités économiques touchant à la transition climatique et/ou conformes aux objectifs de décarbonation à long terme de l’Accord de Paris.
Le Compartiment conserve un profil carbone qui suit les objectifs
« net zéro » de l’Accord de Paris, il conservera une empreinte carbone nettement moins élevée, inférieure d’au moins 50 % à celle de l’indice de référence du marché sous-jacent (MSCI World) et tiendra compte des objectifs à long terme de réduction du carbone de l’Accord de Paris qui peuvent nécessiter une révision de la fourchette ciblée ou une réduction dans le temps. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée, définie comme des tonnes de CO2 par million de dollars de valeur de l’entreprise, liquidités comprises.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)).
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que ces entreprises ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier dont il estime qu’ils ont un impact positif sur la société ou l’environnement.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en actions privilégiées, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement utilise un processus de recherche ESG qui vise à différencier les entreprises sur la base de la contribution de leurs produits et services à la transition climatique
et/ou identifie les entreprises qui font preuve d’un engagement en faveur de l’objectif d’émissions nettes nulles de gaz à effet de serre d’ici à 2050 au plus tard. Dans son évaluation, le Conseiller en Investissement analyse les engagements à réduire le carbone, les tendances en matière d’émissions de carbone et les progrès accomplis vers la tenue des engagements « net zéro ». Une fois qu’un univers composé d’entreprises actives dans la transition climatique et/ou alignées sur Paris a été constitué, le Conseiller en Investissement construit le portefeuille par le biais d’un processus d’optimisation qui oriente le portefeuille vers les entreprises présentant un risque carbone moindre tout en minimisant les risques factoriels par rapport à l’indice MSCI World.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice MSCI World.
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- celles impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- des jeux d’argent.

Le Conseiller en Investissement utilise un processus de recherche ESG quantitatif et qualitatif qui vise à différencier les entreprises sur la base de la contribution de leurs produits et services à la transition climatique et/ou à l’alignement sur les objectifs climatiques.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions
supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Le processus et la méthodologie de sélection ainsi que les Principes Calvert de l’Investissement Responsable sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement recourt à l’indice MSCI World à des fins de comparaison de l’empreinte carbone du Compartiment.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Climate Aligned Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE CLIMATE TRANSITION FUND
L’objectif d’investissement du Calvert Sustainable Climate Transition Fund consiste à offrir un rendement total attrayant en dollars américains en investissant principalement dans un portefeuille concentré de titres de capital, y compris des actions privilégiées et des certificats de dépôt (dont des American Depositary Receipts (ADRs), des European Depositary Receipts (EDRs) et des Global Depositary Receipts (GDRs)), d’entreprises situées dans le monde entier et dont les modèles d’affaires contribuent à atténuer le changement climatique ou à s’y adapter et qui possèdent le statut d’investissements durables.
Le Compartiment peut également investir, à titre accessoire, dans des titres de capital de sociétés ne satisfaisant pas aux critères afférents à ses principaux investissements, dans des Titres à Revenu Fixe, dans des titres de créance convertibles en actions ordinaires, dans des warrants et autres titres de capital émis par toute entreprise dont les activités touchent au changement climatique, ainsi que dans des Actions A chinoises via Stock Connect, pour autant que ces investissements soient considérés comme des investissements durables. Le Compartiment peut investir jusqu’à 20 % de ses actifs nets dans des Actions A Chinoises via Stock Connect.
Les entreprises dont l’activité est axée sur le changement climatique peuvent être impliquées directement ou indirectement, entre autres, dans les énergies renouvelables, la gestion de l’eau, la gestion des déchets, l’électrification, le stockage par batterie, la mobilité, l’hydrogène, les biocarburants et l’agriculture ainsi que dans d’autres activités qui contribuent à faciliter un environnement à plus faible intensité de carbone.
Le Compartiment vise à atteindre son objectif d’atténuation du changement climatique et d’adaptation au changement climatique en investissant dans des entreprises actives dans les domaines susmentionnés et dont les modèles d’affaires ont un impact actuel et direct sur la réduction des émissions de carbone ou qui investissent des montants considérables dans des biens, plans et équipements (PP&E), dans des technologies ainsi que dans des processus qui contribueront à faciliter une réduction des émissions de carbone à l’avenir et qui sont considérés comme des investissements durables. Les entreprises sont en outre divisées en deux catégories : celles qui fournissent un produit ou service final (les « 
Fournisseurs 
») et celles qui s’inscrivent dans une chaîne/un processus d’approvisionnement qui facilite la création d’un produit ou d’un service final (les « 
Facilitateurs 
»). Ces deux catégories sont définies au sens large ci-après.
- Fournisseurs et Facilitateurs 
- : Les entreprises dont les produits et services contribuent directement à soutenir l’atténuation du changement climatique ou celles qui facilitent cette atténuation au niveau de la chaîne d’approvisionnement des Fournisseurs ;
- Entreprises en Transition 
- : les entreprises qui ne sont pas actuellement des Fournisseurs ni des Facilitateurs, mais qui sonten train de lancer de nouvelles activités et/ou de modifier d’anciennes activités afin de devenir par la suite des Fournisseurs ou Facilitateurs à l’avenir ;
- Adaptateurs 
- : les entreprises qui fournissent actuellement ou qui fourniront à l’avenir des produits et services qui aident d’autres entreprises ou parties prenantes humaines à s’adapter aux risques posés par le changement climatique.

Le Conseiller en Investissement gère activement le Compartiment en s’appuyant sur des recherches internes exclusives pour mettre en œuvre un processus axé sur les fondamentaux qui allie des recherches « bottom up » et « top down ». Le Compartiment sera composé de titres qui, selon le Conseiller en Investissement, offrent un potentiel de rendement total prévisionnel plus élevé par rapport aux autres opportunités de l’univers d’investissement sur la base de leur valorisation absolue au sein dudit univers.
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement, et qui cherche ensuite à classer les entreprises en tenant compte de la mesure dans laquelle leurs modèles d’affaires contribuent à l’atténuation du changement climatique ou à l’adaptation au changement climatique, tout en s’assurant que ces entreprise ne causent pas de préjudice important aux objectifs environnementaux ou sociaux. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement s’emploiera à engager la direction des entreprises sur les thèmes ESG lorsqu’il est déterminé qu’il est possible de produire un impact positif sur l’objectif de développement durable, sur les facteurs de performance environnementale ou sociale d’une entreprise ou sur ses pratiques de gouvernance d’entreprise.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme une sélection d’entreprises faisant partie de différents secteurs et qui correspondent à certaines catégories GICS (Global Industry Classification Standard), y compris, sans toutefois s’y limiter, l’industrie, les services aux collectivités, les matériaux, l’énergie, la finance, les technologies de l’information, les biens de consommation discrétionnaire et les biens de consommation courante, et qui sont actives dans les domaines axés sur le climat décrits ci-avant. Cette sélection se fonde sur le processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable mentionnés au paragraphe ci-avant.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, initier un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme ainsi que la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires – voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Outre les objectifs ESG ci-avant, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Le Compartiment fait référence à des données ESG de tiers au cours du processus de recherche des valeurs mobilières, mais ne s’appuie pas sur des données ESG de tiers aux fins de construction du portefeuille. Le Conseiller en Investissement s’appuie sur sa propre analyse pour la sélection des titres et la construction du portefeuille plutôt que sur l’analyse de tiers. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables ou des données fournies par des tiers.
L’utilisation de « Calvert » dans le nom de ce Compartiment fait référence à Calvert Research and Management (« Calvert »), dont le rôle vis-à-vis du Compartiment se limite à la fourniture de conseils d’investissement non discrétionnaires au Conseiller en Investissement afin d’aider ce dernier dans sa gestion du Compartiment. Calvert ne possède aucun pouvoir discrétionnaire pour prendre des décisions d’investissement pour le compte du Compartiment, ce pouvoir d’investissement incombant exclusivement au Conseiller en Investissement.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, Calvert Sustainable Climate Transition Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE DEVELOPED EUROPE EQUITY SELECT FUND
L’objectif d’investissement du Calvert Sustainable Developed Europe Equity Select Fund consiste à assurer une croissance du capital à long terme, mesurée en euros, en investissant principalement dans des titres de capital (énumérés ci-après) d’entreprises situées dans les marchés développés d’Europe, sur la base de la classification de l’indice MSCI Europe, et qui sont impliquées dans des activités économiques touchant aux défis environnementaux ou sociétaux du monde entier tels que la durabilité environnementale, l’utilisation efficace des ressources, la diversité, l’équité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations, ou qui sont des leaders dans la gestion de risques et opportunités environnementaux ou sociaux significatifs du point de vue financier, comme la gestion des émissions de carbone et la diversité, l’équité et l’inclusion. Cette stratégie tient également compte des objectifs de réduction du carbone à long terme de l’Accord de Paris.
Le Compartiment conserve un profil carbone qui suit les objectifs
« net zéro » de l’Accord de Paris, il conservera une empreinte carbone nettement moins élevée, inférieure d’environ 50 % à celle de l’indice de référence du marché sous-jacent (MSCI Europe) et tiendra compte des objectifs à long terme de réduction du carbone de l’Accord de Paris qui peuvent nécessiter une révision de la fourchette ciblée ou une réduction dans le temps. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée, définie comme des tonnes de CO2 par million de dollars de revenus.
Indépendamment du profil net zéro carbone recherché par le Compartiment, celui-ci s’efforcera de maintenir une diversité plus élevée au niveau du portefeuille que l’indice MSCI Europe au sens mesuré par le nombre moyen pondéré de femmes siégeant aux conseils d’administration. Le Conseiller en Investissement obtient des données relatives à la diversité des genres des conseils d’administration auprès de fournisseurs tiers, qui fournissent des données concernant le nombre de femmes au sein des conseils d’administration au niveau de chaque émetteur. Le Conseiller en Investissement recueille ces données pour tous les titres de son univers d’investissement pour lesquels ces données sont disponibles et calcule la moyenne pondérée pour le Compartiment et pour l’indice MSCI Europe.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)).
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que ces entreprises ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier dont il estime qu’ils ont un impact positif sur la société ou l’environnement.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à
des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en actions privilégiées, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement cherche à identifier les entreprises qu’il considère comme des leaders dans les domaines de la performance environnementale, sociale et de gouvernance qui sont importants pour la performance à long terme de l’entreprise. La stratégie d’investissement du Conseiller en Investissement comporte trois éléments principaux : 1) l’identification des entreprises, 2) l’optimisation du portefeuille, et 3) l’engagement avec les entreprises.
Le Conseiller en Investissement utilise un processus de recherche ESG quantitatif et qualitatif qui vise à différencier les entreprises sur la base de la contribution de leurs produits et services aux défis environnementaux ou sociétaux du monde entier ou de leur gestion des risques et opportunités importants en matière de durabilité environnementale et sociale. Au travers du processus quantitatif, le Conseiller en Investissement cherche à identifier les entreprises qui se situent dans les 20-40 % supérieurs de leur groupe de pairs pour les facteurs environnementaux ou sociaux jugés financièrement importants pour l’entreprise, et qui ne se situent pas dans les derniers 20-40 % pour tout autre thème environnemental, social ou de gouvernance sur la base des recherches exclusives du Conseiller en Investissement. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant une combinaison de données ESG de tiers et personnalisées comme base et en tenant compte des thèmes ESG tels que la durabilité environnementale et l’utilisation efficace des ressources, la diversité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations. Les entreprises identifiées subissent également une analyse qualitative.
Une fois qu’un univers composé de leaders ESG a été constitué, le Conseiller en Investissement construit le portefeuille par le biais d’un processus d’optimisation qui oriente le portefeuille vers les entreprises leaders dans l’ESG présentant une meilleure diversité
des genres et un risque carbone moindre tout en minimisant les risques factoriels par rapport à l’indice MSCI Europe.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice MSCI Europe.
Restrictions d’investissement :
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- celles impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- des jeux d’argent.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Le processus et la méthodologie de sélection ainsi que les Principes Calvert de l’Investissement Responsable sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Le Compartiment se réfère à l’Indice MSCI Europe afin de déterminer
la situation géographique des pays dans lesquels le Compartiment investit. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement utilise également l’indice MSCI Europe à des fins de comparaison de l’empreinte carbone du Compartiment et de la diversité des genres au niveau des conseils d’administration des entreprises en portefeuille.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Developed Europe Equity Select Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE DEVELOPED MARKETS EQUITY SELECT FUND
L’objectif d’investissement du Calvert Sustainable Developed Markets Equity Select Fund consiste à assurer une croissance du capital à long terme, mesurée en dollars américains, en investissant principalement dans des titres de capital (énumérés ci-après) d’entreprises situées dans les marchés développés et qui sont impliquées dans des activités économiques touchant aux défis environnementaux ou sociétaux du monde entier tels que la durabilité environnementale, l’utilisation efficace des ressources, la diversité, l’équité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la
gouvernance responsable et la transparence des opérations, ou qui sont des leaders dans la gestion de risques et opportunités environnementaux ou sociaux significatifs du point de vue financier, comme la gestion des émissions de carbone et la diversité, l’équité et l’inclusion. Cette stratégie tient également compte des objectifs de réduction du carbone à long terme de l’Accord de Paris.
Le Compartiment conserve un profil carbone qui suit les objectifs
« net zéro » de l’Accord de Paris, il conservera une empreinte carbone nettement moins élevée, inférieure d’environ 50 % à celle de l’indice de référence du marché sous-jacent (MSCI World) et tiendra compte des objectifs à long terme de réduction du carbone de l’Accord de Paris qui peuvent nécessiter une révision de la fourchette ciblée ou une réduction dans le temps. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée, définie comme des tonnes de CO2 par million de dollars de revenus.
Indépendamment du profil « net zéro » carbone recherché par le Compartiment, celui-ci s’efforcera de maintenir un niveau de diversité plus élevé au niveau du portefeuille par rapport à l’indice MSCI World, tel qu’établi en fonction du nombre moyen pondéré de femmes siégeant aux conseils d’administration. Le Conseiller en Investissement obtient des données relatives à la diversité des genres des conseils d’administration auprès de fournisseurs tiers, qui fournissent des données concernant le nombre de femmes au sein des conseils d’administration au niveau de chaque émetteur. Le Conseiller en Investissement recueille ces données pour tous les titres de son univers d’investissement pour lesquels ces données sont disponibles et calcule la moyenne pondérée pour le Compartiment et pour l’indice MSCI World.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)).
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que ces entreprises ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier dont il estime qu’ils ont un impact positif sur la société ou l’environnement.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou
pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en actions privilégiées, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement cherche à identifier les entreprises qu’il considère comme des leaders dans les domaines de la performance environnementale, sociale et de gouvernance qui sont importants pour la performance à long terme de l’entreprise. La stratégie d’investissement du Conseiller en Investissement comporte trois éléments principaux : 1) l’identification des entreprises,
2) l’optimisation du portefeuille, et 3) l’engagement avec les entreprises.
Le Conseiller en Investissement utilise un processus de recherche ESG quantitatif et qualitatif qui vise à différencier les entreprises sur la base de la contribution de leurs produits et services aux défis environnementaux ou sociétaux du monde entier ou de leur gestion des risques et opportunités importants en matière de durabilité environnementale et sociale. Au travers du processus quantitatif, le Conseiller en Investissement cherche à identifier les entreprises qui se situent dans les 20-40 % supérieurs de leur groupe de pairs pour les facteurs environnementaux ou sociaux jugés financièrement
importants pour l’entreprise, et qui ne se situent pas dans les derniers 20-40 % pour tout autre thème environnemental, social ou de gouvernance sur la base des recherches exclusives du Conseiller en Investissement. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant une combinaison de données ESG de tiers et personnalisées comme base et en tenant compte des thèmes ESG tels que la durabilité environnementale et l’utilisation efficace des ressources, la diversité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations. Les entreprises identifiées subissent également une analyse qualitative.
Une fois qu’un univers composé de leaders ESG a été constitué, le Conseiller en Investissement construit le portefeuille par le biais d’un processus d’optimisation qui oriente le portefeuille vers les entreprises leaders dans l’ESG présentant une meilleure diversité des genres et un risque carbone moindre tout en minimisant les risques factoriels par rapport à l’indice MSCI World.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice MSCI World.
Restrictions d’investissement :
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- celles impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- des jeux d’argent.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement
supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Le processus et la méthodologie de sélection ainsi que les Principes Calvert de l’Investissement Responsable sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement recourt à l’indice MSCI World à des fins de comparaison de l’empreinte carbone du Compartiment et de la diversité des genres au niveau des conseils d’administration des entreprises en portefeuille.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Developed Markets Equity Select Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE DIVERSITY, EQUITY AND INCLUSION FUND
L’objectif d’investissement du Calvert Sustainable Diversity, Equity and Inclusion Fund consiste à assurer une croissance du capital à long terme en dollars américains et à faire progresser la diversité, l’équité et l’inclusion en investissant principalement dans des titres de capital (tels qu’énumérés ci-après) d’entreprises du monde entier qui font preuve de leadership ou qui s’améliorent sensiblement sur le plan de la diversité de leurs effectifs ou de leur culture de travail égalitaire et inclusive. Le Conseiller en Investissement utilisera un processus d’optimisation pour choisir les positions prises par le Compartiment sur la base d’une stratégie exclusive.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)).
Le Compartiment s’efforcera de maintenir une diversité des effectifs plus élevée au niveau du portefeuille que l’indice de référence du marché sous-jacent, le MSCI World au sens mesuré sur la base des données disponibles concernant le nombre moyen de femmes siégeant aux conseils d’administration et le pourcentage moyen de membres des conseils d’administration représentant des groupes ethniques sous-représentés. Le Conseiller en Investissement obtient des données relatives à la diversité des genres et à la diversité des genres des conseils d’administration auprès de fournisseurs tiers, qui fournissent des données concernant le nombre de femmes et d’administrateurs représentant des groupes ethniques sous- représentés au sein des conseils d’administration au niveau de chaque émetteur. Le Conseiller en Investissement recueille ces données pour tous les titres de son univers d’investissement pour lesquels ces données sont disponibles et calcule le nombre moyen de femmes et de personnes représentant des groupes ethniques sous représentés au sein des conseils d’administration pour le Compartiment et pour l’indice MSCI World.
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que ces entreprises ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier dont il estime qu’ils ont un impact positif sur la société ou l’environnement.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en actions privilégiées, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement utilise un processus de recherche ESG qui cherche à identifier les entreprises qui font preuve de leadership de par l’équilibre entre les genres de leurs effectifs à différents niveaux et/ou de par la diversité ethnique de leurs collaborateurs par rapport à la démographie du pays dans certains pays concernés. Il est également tenu compte du leadership de l’entreprise dans d’autres dimensions de la diversité parmi les membres de son conseil d’administration, en particulier l’âge, les origines culturelles et les ensembles de compétences. Afin d’identifier les entreprises qui reflètent une culture de travail égalitaire et inclusive, le Conseiller en Investissement cherche à investir dans des entreprises possédant des politiques et procédures qui soutiennent correctement l’égalité des chances dans le processus d’investissement, l’égalité salariale et l’équité de promotion de tous les groupes de diversité.
Le Conseiller en Investissement inclut également les entreprises qui affichent une amélioration significative de leurs pratiques en matière de diversité, comme en témoignent : 1) la diversité accrue de leurs effectifs, plus précisément au niveau de l’équilibre entre les genres et de la diversité ethnique ; ou 2) de progrès démontrables après une grave controverse liée à des questions de diversité et d’inclusion ; ou 3) l’adoption de propositions des actionnaires (entreprises basées aux États-Unis et au Canada uniquement) en matière de diversité et d’inclusion ; ou 4) le fait qu’elles aient été identifiées comme des cibles d’engagement par le Conseiller en Investissement sur les thèmes de la diversité et de l’inclusion.
Les entreprises sont exclues du portefeuille si le Conseiller en Investissement détermine qu’elles ne montrent aucune amélioration de leurs pratiques en matière de diversité et qu’elles répondent à l’un des critères suivants : 1) elles manquent de diversité au sein du conseil d’administration, en particulier manque d’équilibre entre les genres et manque de diversité ethnique ; 2) elles présentent des risques significatifs liés à leurs pratiques en matière de capital humain ; ou 3) elles font l’objet de graves controverses liées aux questions de diversité et d’inclusion.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice MSCI World.
Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier, y compris la diversité et l’inclusion, dont il estime qu’ils auront un impact positif sur la société et l’environnement.
Le Conseiller en Investissement s’abstiendra d’inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- des jeux d’argent.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG
pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Le processus et la méthodologie de sélection ainsi que les Principes Calvert de l’Investissement Responsable sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement recourt à l’indice MSCI World à des fins de comparaison de la diversité des genres et de la diversité ethnique du Compartiment au niveau des conseils d’administration des entreprises en portefeuille.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Diversity, Equity and Inclusion Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE EMERGING MARKETS EQUITY SELECT FUND
L’objectif d’investissement du Calvert Sustainable Emerging Markets Equity Select Fund consiste à assurer une croissance du capital à long terme, mesurée en dollars américains, en investissant principalement dans des titres de capital (énumérés ci-après) d’entreprises situées dans les marchés émergents du monde entier et qui sont impliquées dans des activités économiques touchant aux défis environnementaux ou sociétaux du monde entier tels que la durabilité environnementale, l’utilisation efficace des ressources, la diversité, l’équité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations, ou qui sont des leaders dans la gestion de risques et opportunités environnementaux ou sociaux significatifs du point de vue financier, comme la gestion des émissions de carbone et la diversité, l’équité et l’inclusion. Cette stratégie tient également compte des objectifs de réduction du carbone à long terme de l’Accord de Paris.
Le Compartiment conserve un profil carbone qui suit les objectifs
« net zéro » de l’Accord de Paris, il conservera une empreinte carbone nettement moins élevée, inférieure d’environ 50 % à celle de l’indice de référence du marché sous-jacent (MSCI Emerging Markets) et tiendra compte des objectifs à long terme de réduction du carbone de l’Accord de Paris qui peuvent nécessiter une révision de la fourchette ciblée ou une réduction dans le temps. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée, définie comme des tonnes de CO2 par million de dollars de revenus.
Indépendamment du profil net zéro carbone recherché par le Compartiment, celui-ci s’efforcera de maintenir une diversité plus élevée au niveau du portefeuille que l’indice MSCI Emerging Markets au sens mesuré par le nombre moyen pondéré de femmes siégeant aux conseils d’administration. Le Conseiller en Investissement obtient des données relatives à la diversité des genres des conseils d’administration auprès de fournisseurs tiers, qui fournissent des données concernant le nombre de femmes au sein des conseils d’administration au niveau de chaque émetteur. Le Conseiller en Investissement recueille ces données pour tous les titres de son univers d’investissement pour lesquels ces données sont disponibles et calcule la moyenne pondérée pour le Compartiment et pour l’indice MSCI Emerging Markets.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)).
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que ces entreprises ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier dont il estime qu’ils ont un impact positif sur la société ou l’environnement.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en actions privilégiées, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les
Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement cherche à identifier les entreprises qu’il considère comme des leaders dans les domaines de la performance environnementale, sociale et de gouvernance qui sont importants pour la performance à long terme de l’entreprise. La stratégie d’investissement du Conseiller en Investissement comporte trois éléments principaux : 1) l’identification des entreprises, 2) l’optimisation du portefeuille, et 3) l’engagement avec les entreprises.
Le Conseiller en Investissement utilise un processus de recherche ESG quantitatif et qualitatif qui vise à différencier les entreprises sur la base de la contribution de leurs produits et services aux défis environnementaux ou sociétaux du monde entier ou de leur gestion des risques et opportunités importants en matière de durabilité environnementale et sociale. Au travers du processus quantitatif, le Conseiller en Investissement cherche à identifier les entreprises qui se situent dans les 20-40 % supérieurs de leur groupe de pairs pour les facteurs environnementaux ou sociaux jugés financièrement importants pour l’entreprise, et qui ne se situent pas dans les derniers 20-40 % pour tout autre thème environnemental, social ou de gouvernance sur la base des recherches exclusives du Conseiller en Investissement. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant une combinaison de données ESG de tiers et personnalisées comme base et en tenant compte des thèmes ESG tels que la durabilité environnementale et l’utilisation efficace des ressources, la diversité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations. Les entreprises identifiées subissent également une analyse qualitative.
Une fois qu’un univers composé de leaders ESG a été constitué, le Conseiller en Investissement construit le portefeuille par le biais d’un processus d’optimisation qui oriente le portefeuille vers les entreprises leaders dans l’ESG présentant une meilleure diversité des genres et un risque carbone moindre tout en minimisant les risques factoriels par rapport à l’indice MSCI Emerging Markets.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice MSCI Emerging Markets.
Restrictions d’investissement :
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- celles impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- des jeux d’argent.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Le processus et la méthodologie de sélection ainsi que les Principes Calvert de l’Investissement Responsable sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement recourt à l’indice MSCI Emerging Markets à des fins de comparaison de l’empreinte carbone du Compartiment et de la diversité des genres au niveau des conseils d’administration des entreprises en portefeuille.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Emerging Markets Equity Select Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE GLOBAL EQUITY ENGAGEMENT FUND
L’objectif d’investissement du Calvert Sustainable Global Equity Engagement Fund consiste à générer un rendement total élevé, mesuré en dollars américains, en investissant principalement dans des modèles d’affaires durables susceptibles de créer de la valeur dans le temps. Le Compartiment recherche des entreprises qui sont impliquées dans des activités économiques touchant aux défis environnementaux ou sociétaux du monde entier tels que la durabilité environnementale, l’utilisation efficace des ressources, la diversité, l’équité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable ainsi que la transparence des opérations, ou qui sont des leaders dans la gestion de risques et opportunités environnementaux ou sociaux significatifs du point de vue financier, comme la gestion des émissions de carbone et la diversité, l’équité et l’inclusion. Cette stratégie tient également compte des objectifs de réduction du carbone à long terme de l’Accord de Paris.
Le Compartiment conserve un profil carbone qui suit les objectifs
« net zéro » de l’Accord de Paris, il conservera une empreinte carbone nettement moins élevée, inférieure d’environ 50 % à celle de l’indice de référence du marché sous-jacent (MSCI All Country World) et tiendra compte des objectifs à long terme de réduction du carbone de l’Accord de Paris qui peuvent nécessiter une révision de la fourchette ciblée ou une réduction dans le temps. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée, définie comme des tonnes de CO par million de dollars de revenus.
Indépendamment du profil « net zéro » carbone recherché par le Compartiment, celui-ci s’efforcera de maintenir un niveau de diversité plus élevé au niveau du portefeuille par rapport à l’indice MSCI All Country World, tel qu’établi en fonction du nombre moyen pondéré de femmes siégeant aux conseils d’administration. Le Conseiller en Investissement obtient des données relatives à la diversité des genres des conseils d’administration auprès de fournisseurs tiers, qui fournissent des données concernant le nombre de femmes au sein des conseils d’administration au niveau de chaque émetteur. Le Conseiller en Investissement recueille ces données pour tous les titres de son univers d’investissement pour lesquels ces données sont disponibles et calcule la moyenne pondérée pour le Compartiment et pour l’indice MSCI All Country World.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital d’entreprises situées dans les marchés développés du monde entier, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR), des European Depositary Receipts (EDR) et des Global Depositary Receipts (GDR)).
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que les entreprises concernées ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Le Compartiment peut également investir, à titre accessoire, dans des titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, y compris les
sociétés situées dans des marchés émergents, dans des actions privilégiées, dans des titres de créance convertibles en actions ordinaires ou actions assorties de droits préférentiels, dans des warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Conseiller en Investissement est convaincu qu’une approche d’investissement axée sur la durabilité, l’intégration ESG et l’engagement structuré est idéalement placée pour minimiser les risques et tirer parti de la réussite financière dont il estime qu’elle s’accumule au fil du temps. Le Conseiller en Investissement est convaincu que la véritable valeur d’une action réside dans sa capacité à composer les flux de trésorerie dans la durée. C’est pourquoi le Conseiller en Investissement se concentre sur la détention à long terme d’entreprises aux activités durables.
Le Conseiller en Investissement cherche à identifier des entreprises de qualité ou en cours d’amélioration présentant des caractéristiques de croissance séculaire, des rendements sur capitaux investis élevés ou en cours d’amélioration, des avantages concurrentiels durables, des bilans durables et un solide historique d’allocation du capital, dont la négociation d’effectue avec une décote par rapport à l’estimation de la valeur intrinsèque du titre par le Conseiller en Investissement. Une grande importance est également accordée à l’impact positif de chaque entreprise sur l’environnement et la société.
Tous les travaux accomplis par le Conseiller en Investissement en matière d’ESG sont intégrés tout au long du processus d’investissement utilisé par le Compartiment. Le Conseiller en Investissement adopte une approche multiple de l’intégration ESG dans son processus et est profondément convaincu que des caractéristiques ESG robustes sont essentielles à la durabilité du modèle d’affaires d’une entreprise dans le temps. Lorsqu’il évalue la durabilité d’un modèle d’affaires, le Conseiller en Investissement accorde la même importance aux thèmes ESG qu’à d’autres variables tels que les rendements sur le capital investi ou la génération de flux de trésorerie disponible. Chaque émetteur est évalué par rapport à un groupe de pairs approprié sur la base de facteurs ESG importants du point de vue financier déterminés par le Conseiller en Investissement. L’évaluation des caractéristiques d’investissement responsable d’un titre donné passe généralement par une analyse aussi bien quantitative que qualitative. Lorsqu’il évalue les investissements, le Conseiller en Investissement se concentre généralement sur les facteurs ESG les plus pertinents pour les opérations de l’émetteur, et un émetteur peut être éligible à l’investissement principalement sur la base de cette évaluation.
Le Conseiller en Investissement cherche également à lancer un dialogue avec la direction des entreprises portant sur des thèmes ESG importants sur le plan financier identifiés par le biais de ses processus de recherche fondamentale et de recherche ESG.
L’engagement vise à susciter un changement positif, à améliorer la durabilité de chaque entreprise et à améliorer la création de valeur à long terme. L’approche d’engagement peut inclure un vote par procuration actif, un dialogue avec les équipes de direction et les conseils d’administration des entreprises, un travail dans le cadre de coalitions avec d’autres organisations, le dépôt de résolutions d’actionnaires ainsi que d’autres initiatives.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice MSCI All Country World.
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- celles impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- les sociétés actives dans les jeux d’argent.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales en procédant à l’évaluation de données relatives aux controverses ESG et en utilisant des informations provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, ainsi que des manquements au Pacte mondial des Nations unies ou aux Principes fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im, parallèlement aux Principes Calvert de l’Investissement Responsable.
L’utilisation de « Calvert » dans le nom de ce Compartiment fait référence à Calvert Research and Management (« Calvert »), dont le rôle vis-à-vis du Compartiment se limite à la fourniture de conseils d’investissement non discrétionnaires au Conseiller en Investissement afin d’aider ce dernier dans sa gestion du Compartiment. Calvert ne possède aucun pouvoir discrétionnaire
pour prendre des décisions d’investissement pour le compte du Compartiment, ce pouvoir d’investissement incombant exclusivement au Conseiller en Investissement.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement recourt à l’indice MSCI All Country World à des fins de comparaison de l’empreinte carbone du Compartiment et de la diversité des genres au niveau des conseils d’administration des entreprises en portefeuille.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Global Equity Engagement Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CALVERT SUSTAINABLE US EQUITY SELECT FUND
L’objectif d’investissement du Calvert Sustainable US Equity Select Fund consiste à assurer une croissance du capital à long terme, mesurée en dollars américains, en investissant principalement dans des titres de capital (énumérés ci-après) d’entreprises américaines de grande capitalisation et qui sont impliquées dans des activités économiques touchant aux défis environnementaux ou sociétaux du monde entier en lien avec des domaines tels que la durabilité environnementale, l’utilisation efficace des ressources, la diversité, l’équité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations, ou qui sont des leaders dans la gestion de risques et opportunités environnementaux ou sociaux significatifs du point de vue financier, comme la gestion des émissions de carbone et la diversité, l’équité et l’inclusion. Cette stratégie tient également compte des objectifs de réduction du carbone à long terme de l’Accord de Paris.
Le Compartiment conserve un profil carbone qui suit les objectifs
« net zéro » de l’Accord de Paris, il conservera une empreinte carbone nettement moins élevée, inférieure d’environ 50 % à celle de l’indice de référence du marché sous-jacent (Russell 1000) et tiendra compte des objectifs à long terme de réduction du carbone de l’Accord de Paris qui peuvent nécessiter une révision de la fourchette ciblée ou une réduction dans le temps. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée, définie comme des tonnes de CO2 par million de dollars de revenus.
Indépendamment du profil net zéro carbone recherché par le Compartiment, celui-ci s’efforcera de maintenir une diversité plus élevée au niveau du portefeuille que l’indice Russell 1000 au sens mesuré par le nombre moyen pondéré de femmes siégeant aux conseils d’administration. Le Conseiller en Investissement obtient des données relatives à la diversité des genres des conseils d’administration auprès de fournisseurs tiers, qui fournissent des données concernant le nombre de femmes au sein des conseils d’administration au niveau de chaque émetteur. Le Conseiller en Investissement recueille ces données pour tous les titres de son univers d’investissement pour lesquels ces données sont disponibles et calcule la moyenne pondérée pour le Compartiment et pour l’indice Russell 1000.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American
Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)).
Le Compartiment applique un processus de recherche ESG quantitatif et qualitatif qui applique les Principes Calvert de l’Investissement Responsable pour définir l’univers d’investissement tout en s’assurant que ces entreprises ne causent pas de préjudice important à un objectif environnemental ou social. Les Principes Calvert de l’Investissement Responsable dont disponibles aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Le Conseiller en Investissement peut lancer un dialogue avec la direction des entreprises à propos des thèmes ESG importants sur le plan financier dont il estime qu’ils ont un impact positif sur la société ou l’environnement.
Le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, lancer un dialogue actif/un engagement avec la direction de l’entreprise (par ex. un engagement avec une entreprise concernant ses principaux risques ou opportunités ESG tels que le changement climatique, la diversité, le droit du travail et les droits de l’homme et la publication d’informations ESG, soit seul, soit dans le cadre d’une coalition d’actionnaires, voir « Informations générales relatives à l’intégration des Risques en Matière de Durabilité » pour de plus amples informations) ou ajuster les allocations.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en actions privilégiées, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur titres et autres valeurs mobilières donnant accès au capital, pour autant que ces titres respectent les critères ESG du Conseiller en Investissement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement cherche à identifier les entreprises qu’il considère comme des leaders dans les domaines de la performance environnementale, sociale et de gouvernance qui sont importants pour la performance à long terme de l’entreprise. La stratégie d’investissement du Conseiller en Investissement comporte trois éléments principaux : 1) l’identification des entreprises, 2) l’optimisation du portefeuille, et 3) l’engagement avec les entreprises.
Le Conseiller en Investissement utilise un processus de recherche ESG quantitatif et qualitatif qui vise à différencier les entreprises sur la base de la contribution de leurs produits et services aux défis environnementaux ou sociétaux du monde entier ou de leur gestion des risques et opportunités importants en matière de durabilité environnementale et sociale. Au travers du processus quantitatif, le Conseiller en Investissement cherche à identifier les entreprises qui se situent dans les 20-40 % supérieurs de leur groupe de pairs pour les facteurs environnementaux ou sociaux jugés financièrement importants pour l’entreprise, et qui ne se situent pas dans les derniers 20-40 % pour tout autre thème environnemental, social ou de gouvernance sur la base des recherches exclusives du Conseiller en Investissement. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant une combinaison de données ESG de tiers et personnalisées comme base et en tenant compte des thèmes ESG tels que la durabilité environnementale et l’utilisation efficace des ressources, la diversité et l’inclusion, le respect des droits de l’homme, la responsabilité des produits, la gestion du capital humain, la gouvernance responsable et la transparence des opérations. Les entreprises identifiées subissent également une analyse qualitative.
Une fois qu’un univers composé de leaders ESG a été constitué, le Conseiller en Investissement construit le portefeuille par le biais d’un processus d’optimisation qui oriente le portefeuille vers les entreprises leaders dans l’ESG présentant une meilleure diversité des genres et un risque carbone moindre tout en minimisant les risques factoriels par rapport à l’indice Russell 1000.
Les critères ESG susmentionnés entraîneront une réduction de
20 % ou plus de l’univers d’investissement d’une manière significativement engageante, et le Conseiller en Investissement aura pour but de s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG. L’univers d’investissement à ces fins est défini comme l’ensemble des composantes de l’indice Russell 1000.
Restrictions d’investissement :
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- celles impliquées de graves controverses ESG sans remédiation ni amélioration sensible ;
- les sociétés de fabrication ou de production d’armes controversées et d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- des jeux d’argent.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Le processus et la méthodologie de sélection ainsi que les Principes Calvert de l’Investissement Responsable sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement recourt à l’indice Russell 1000 à des fins de comparaison de l’empreinte carbone du Compartiment et de la diversité des genres au niveau des conseils d’administration des entreprises en portefeuille.
Le Compartiment utilise des données ESG de tiers ainsi que les données issues de ses propres recherches exclusives au cours du processus de recherche des valeurs mobilières. Le Conseiller en Investissement peut également recourir à des données de tiers dans son processus de construction de portefeuille. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires relatives aux investissements durables sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable US Equity Select Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

CHINA A-SHARES FUND
L’objectif d’investissement du China A-shares Fund est la recherche d’une croissance du capital à long terme mesurée en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en Actions A chinoises de sociétés cotées à la bourse de Shanghai et/ou à la bourse de Shenzhen via Stock Connect. Le Compartiment peut également investir en titres d’émetteurs d’autres pays, y compris notamment en titres cotés à la bourse de Hongkong (actions H chinoises et red chips notamment), et en certificats de titres en dépôt (American Depositary Receipts (ADR) et Global Depositary Receipts (GDR) notamment) d’émetteurs, où qu’ils soient situés, et se référant à des sociétés chinoises.
Aux fins de la stratégie d’investissement du China A-shares Fund, le terme « Actions A chinoises » désigne les actions de sociétés cotées à la bourse de Shanghai et/ou à la Bourse de Shenzhen en Renminbi, à savoir notamment : (i) des actions, (ii) des obligations participatives, (iii) des actions assorties de droits préférentiels, et
(iv) des bons de souscription d’actions.
Le Compartiment peut investir, à titre accessoire, en titres de capital ne répondant pas à la définition d’Actions A chinoises, à savoir notamment : (i) des actions assorties de droits préférentiels, (ii) des titres de créance convertibles en actions ordinaires ou assorties de droits préférentiels, ou (iii) d’autres valeurs mobilières donnant accès au capital. Le Compartiment peut également investir, dans une moindre mesure, dans des ETF, des warrants d’actions et d’autres instruments.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le China A-shares Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

Jours de Transaction pour le China A-shares Fund
Le China A-shares Fund investit essentiellement via Stock Connect. Les Jours de Transaction pour le China A-shares Fund tiennent compte par conséquent des dates auxquelles Stock Connect est fermé à la négociation et au règlement-livraison. Dans le présent Prospectus, les références à un Jour de Transaction du China A-shares Fund s’entendent de tout jour à l’exception : (a) des jours au cours desquels les banques commerciales à Luxembourg, en Chine ou à Hongkong sont autorisées ou tenues par la législation applicable ou par décision des autorités de fermer (y compris les samedis et les dimanches), et (b) des jours au cours desquels Stock Connect est fermé à la négociation.
CHINA EQUITY FUND
L’objectif d’investissement du China Equity Fund est la recherche d’un rendement annualisé ajusté aux risques attractif, mesuré en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital de sociétés situées
en Chine, en ce compris, pour lever toute ambiguïté, des Actions A chinoises de sociétés cotées à la bourse de Shanghaï ou à la bourse de Shenzhen via Stock Connect, en titres d’émetteurs d’autres pays, y compris notamment en titres cotés à la bourse de Hongkong (notamment des actions H chinoises et red chips), et en certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et Global Depositary Receipts (GDR)) lorsque la société sous-jacente est située en Chine. Le Compartiment peut également investir, dans le cadre de son univers d’investissement, en titres de capital de sociétés domiciliées ou exerçant une part prépondérante de leur activité en Chine et qui sont cotés ou négociés sur les marchés de gré à gré (sous réserve de l’Annexe A « Limites et restrictions d’investissement »).
Aux fins de la stratégie d’investissement du China Equity Fund, le terme « Actions A chinoises » désigne les titres de capital de sociétés cotées à la bourse de Shanghai ou à la Bourse de Shenzhen en Renminbi, à savoir notamment : (i) des actions, (ii) des obligations participatives, (iii) des actions assorties de droits préférentiels, et
(iv) des bons de souscription d’actions.
Le Compartiment peut investir, à titre accessoire, en titres de capital ne satisfaisant pas aux critères des investissements à titre principal du Compartiment, à savoir notamment : (i) des actions assorties de droits préférentiels, (ii) des titres de créance convertibles en actions ordinaires ou assorties de droits préférentiels, ou (iii) d’autres valeurs mobilières donnant accès au capital. Le Compartiment peut également investir, de manière limitée, dans des warrants sur actions et dans d’autres instruments, y compris des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le processus d’investissement intègre à la prise des décisions d’investissement des éléments liés aux enjeux ESG. Le Sous- Conseiller en Investissement s’attache à débattre avec la direction de la société des questions de gouvernance d’entreprise ainsi que des questions environnementales ou sociales majeures auxquelles nous estimons que les entreprises sont confrontées.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le China Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

Jours de Transaction pour le China Equity Fund
Le China Equity Fund investit via Stock Connect. Les Jours de Transaction pour le China Equity Fund tiennent compte par conséquent des dates auxquelles Stock Connect est fermé à la négociation et au règlement-livraison. Dans le présent Prospectus, les références à un Jour de Transaction pour le China Equity Fund s’entendent de tout jour à l’exception : (a) des jours au cours desquels les banques commerciales au Luxembourg, en Chine ou à Hongkong sont autorisées par la législation applicable ou par décision des autorités à fermer (y compris les samedis et les dimanches), et (b) des jours au cours desquels Stock Connect est fermé à la négociation.
COUNTERPOINT GLOBAL FUND
L’objectif d’investissement du Counterpoint Global Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US.
Le Compartiment cherchera à atteindre son objectif d’investissement en investissant principalement en titres de capital, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), de sociétés établies ou émergentes, situées dans le monde entier, dont la capitalisation est comparable à celles des sociétés incluses dans l’indice MSCI All Country World.
Processus d’investissement
L’équipe d’investissement dispose de nombreuses années d’expérience de la gestion de différentes stratégies d’investissement. Au sein de l’équipe, les gérants collaborent en permanence et définissent et ajustent l’allocation d’actifs de chacune des stratégies d’investissement du Compartiment mise en œuvre, de manière indépendante, par les gérants en fonction des opportunités créées
par les conditions de marché. Le Compartiment peut investir en dehors de ces stratégies d’investissement indépendantes, pour autant que de tels investissements soient compatibles avec l’univers d’investissement du Compartiment.
L’équipe d’investissement met l’accent sur un processus de sélection des titres de type « bottom-up » en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés dont il estime qu’elles ont une forte notoriété et bénéficient d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, ayant un bilan solide et présentant un rapport risque/rendement attractif.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, Actions A chinoises via Stock Connect, warrants sur valeurs mobilières, Instruments assimilés et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 15 % de son actif net en Actions A chinoises via Stock Connect. Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement, il n’est pas conçu pour suivre un indice de référence, et par conséquent, n’est pas limité par la composition de l’Indice MSCI All Country World. Le Compartiment se réfère à l’Indice MSCI All Country World afin de déterminer la fourchette de capitalisation des émetteurs dans lesquels le Compartiment investit.
La performance du Compartiment est mesurée par rapport l’indice MSCI All Country World, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Counterpoint Global Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

DEVELOPING OPPORTUNITY FUND
L’objectif d’investissement du Developing Opportunity Fund est la recherche d’une croissance du capital à long terme mesurée en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital d’émetteurs Situés dans des pays à marchés émergents, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et Global Depositary Receipts (GDR)) et Actions A chinoises.
Dans des conditions normales de marché, l’objectif d’investissement du Compartiment sera poursuivi en investissant principalement en titres de capital d’émetteurs situés dans des pays à marchés en développement, émergents ou des pays frontaliers de marchés émergents. Un pays est considéré comme un marché en développement, émergent ou frontalier de marchés émergents lorsqu’il est considéré comme tel par la classification de l’indice MSCI Emerging Markets Net Index ou par une classification similaire comme étant une économie en développement par une organisation telle que le Fonds Monétaire International, les Nations Unies, ou la Banque Mondiale. Pour ce Compartiment, « marchés en développements », « pays à marchés en développement »,
« marché émergent », « pays à marchés émergents », « pays frontaliers de marchés émergents » ou « pays frontaliers de pays à marchés émergents » et les termes similaires sont utilisés de manière interchangeable mais font référence aux mêmes marchés et pays sous-jacents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants sur valeurs mobilières, liquidités et instruments assimilés et autres valeurs mobilières donnant accès au capital.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des
investissements attractifs société par société. Dans le cadre de la sélection des titres qui feront l’objet d’investissements, le Conseiller en Investissement recherche des sociétés établies ou émergentes qu’il considère comme sous-évaluées au moment de l’acquisition. Le Conseiller en Investissement privilégiera généralement des sociétés à l’égard desquelles il estime qu’elles bénéficient d’avantages concurrentiels durables qui peuvent être monétisés par le biais de la croissance. Le processus d’investissement intègre une analyse de la durabilité en ce qui concerne les changements perturbateurs, la solidité financière, les externalités en matière environnementale, sociale et de gouvernance (également dénommées ESG). Lorsque le Conseiller en Investissement déterminera que des positions en portefeuille ne satisfont plus aux critères d’investissement du Compartiment, la vente sera généralement envisagée.
Le Conseiller en Investissement adopte une approche holistique de l’ESG dans le cadre de son évaluation de la qualité des entreprises en analysant les impacts potentiels sur la santé de l’humanité, l’environnement, la liberté et la productivité ainsi que les pratiques de gouvernance d’entreprises afin de garantir le pouvoir d’agir, la culture et la confiance. Le Conseiller en Investissement considère que l’intégration des risques et des opportunités potentiels liés aux facteurs ESG dans le processus d’investissement est importante pour garantir une gestion à long terme du capital. Sur de longues périodes, le Conseiller en Investissement estime que les risques ESG sont plus susceptibles de se matérialiser et que les externalités non supportées par la société bénéficiaire de l’investissement sont plus susceptibles d’être intégrées dans la valeur des titres. Étant donné que les risques ESG peuvent potentiellement avoir un impact sur le profil de risque et de rendement des opportunités d’investissement, le Conseiller en Investissement engage généralement la direction de la société considérée dans des discussions constructives sur une série de questions ESG que le Conseiller en Investissement juge matériellement importantes.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur
www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement, il n’est pas conçu pour suivre un indice de référence, et par conséquent, n’est pas limité par la composition de l’Indice MSCI Emerging Markets Net. Le Compartiment se réfère à l’MSCI Emerging Markets Net afin de déterminer la situation géographique des pays dans lesquels le Compartiment investit. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Developing Opportunity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EMERGING LEADERS EQUITY FUND
L’objectif d’investissement de l’Emerging Leaders Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, principalement par des investissements dans un portefeuille concentré de titres de capital (y compris des American Depositary Receipts (ADR), des Global Depositary Receipts (GDR) et des Actions A chinoises via Stock Connect) de sociétés de marchés émergents ou périphériques. En ciblant son objectif d’investissement, le Conseiller en Investissement investira dans des sociétés présentant de solides performances par rapport à leurs pairs sur un ou plusieurs paramètres ESG (comme détaillé ci-après).
Un pays est considéré comme un marché émergent ou périphérique lorsqu’il est considéré comme tel par la classification de l’indice MSCI Emerging Markets Net ou par une classification similaire par une organisation telle que le Fonds Monétaire International, les
Nations Unies, ou la Banque Mondiale, à condition que les marchés de ces pays soient considérés comme étant des marchés reconnus (« Marchés Reconnus ») au sens de l’article 41, alinéa 1, de la Loi de 2010.
À titre accessoire, le Compartiment peut investir dans des Instruments assimilés aux liquidités, des titres de créance convertibles en actions ordinaires, des actions assorties de droits préférentiels, des warrants et d’autres valeurs mobilières donnant accès au capital et, à des fins de gestion efficace de portefeuille (notamment à des fins de couverture), des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré.
Le Compartiment peut investir dans des titres de capital (y compris des ADR et GDR) de sociétés organisées et situées dans des pays autres que des pays à marchés émergents ou périphériques, dès lors que la valeur des titres de ces sociétés reflète principalement les conditions prévalant dans un pays émergent ou périphérique, que le marché principal pour la négociation des titres de la société se trouve dans un pays émergent ou périphérique, ou encore que 35 % du chiffre d’affaires, des ventes, des actifs, de l’EBITDA ou du bénéfice avant impôt de ces sociétés proviennent soit de biens produits, soit de ventes effectuées, soit de services fournis dans ces pays émergents ou périphériques. Le Compartiment peut investir dans des obligations participatives qui peuvent être utilisées pour obtenir une exposition à des titres et des marchés qui ne sont pas accessibles efficacement par des investissements directs. L’exposition à des obligations participatives ne dépassera pas 45 % des actifs effectivement investis (actifs bruts après déduction des Instruments assimilés aux liquidités). Le Compartiment peut investir jusqu’à 20 % de ses actifs nets dans des Actions A Chinoises via Stock Connect.
Le Conseiller en Investissement intègre les Risques en Matière de Durabilité dans son processus de prise de décision en matière d’investissement, y compris dans la conduite de la diligence raisonnable et de la recherche, de l’évaluation, de la sélection des actifs, de la construction du portefeuille, ainsi que de la surveillance continue des investissements et de la gestion du portefeuille. Ce faisant, le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, entamer un dialogue/engagement actif avec la direction de l’entreprise ou ajuster les allocations descendantes aux zones géographiques, secteurs ou classes d’actifs. En mettant en œuvre son intégration des Risques en Matière de Durabilité, le Conseiller en Investissement peut utiliser une combinaison de sources d’information, y compris les informations
divulguées par les entreprises, les informations non divulguées par les entreprises et les recherches et données fournies par des tiers.
Le Conseiller en Investissement intègre la prise en considération des critères ESG dans sa prise de décision d’investissement. Le Compartiment cherche à atteindre une empreinte carbone inférieure à celle du MSCI Emerging Markets Net Index.
Le Conseiller en Investissement estime que les entreprises dotées d’équipes de direction tournées vers l’avenir qui établissent des stratégies proactives sur ces questions de durabilité et de critères ESG seront mieux positionnées d’un point de vue commercial et financier sur le long terme que les sociétés qui ne les prennent pas en compte.
En plus d’investir dans des entreprises qui suivent de bonnes pratiques de gouvernance et qui font preuve d’une gestion solide des problématiques de durabilité et des facteurs ESG par rapport à leurs pairs, le Compartiment pourra investir dans des entreprises de Marchés Émergents qui offrent des solutions évolutives et rentables pour répondre aux questions urgentes de durabilité, notamment le changement climatique et la gestion de l’environnement/des ressources. Le Compartiment cherchera à exclure certaines entreprises fortement exposées aux Risques en Matière de Durabilité, en appliquant à la fois une approche « best effort » à sa sélection d’investissements à cet égard. L’objectif du Conseiller en Investissement sera de veiller à ce qu’au moins 90 % du portefeuille du Compartiment soit soumis à l’analyse de durabilité décrite ci-avant.
Les critères ESG sont pris en compte par le Conseiller en Investissement au cours du processus d’investissement et de recherche afin de limiter l’exposition aux Risques en Matière de Durabilité. Ces critères peuvent comprendre, entre autres, les émissions de carbone, la rareté de l’eau, la gestion des déchets, la biodiversité, la gestion du travail, la diversité des genres, la santé et la sécurité, la sécurité des produits, la confidentialité et la sécurité des données, la rémunération des dirigeants, l’indépendance des organes sociaux et les droits des actionnaires. Le Conseiller en Investissement s’efforce de faire en sorte que la direction de l’entreprise s’engage sur les problématiques environnementales, sociales et/ou de gouvernance considérées comme importantes et auxquelles l’entreprise est confrontée. L’application de ces critères ESG devrait entraîner une réduction de 20 % ou plus de l’univers d’investissement, tel que défini dans les quatre premiers paragraphes ci-avant.
Les investissements n’incluront en connaissance de cause aucune société impliquée dans la fabrication ou la production :
- du tabac
- 3 
- ;
- le divertissement pour adultes ;3 Le Compartiment n’investit pas dans des titres d’émetteurs qui tirent 5 % ou plus de leurs revenus de la fabrication du tabac ou de la fourniture de produits nécessaires à la production du tabac, tels que les filtres.
- des armes à feu à usage civil ;
- d’armes controversées ;
- du charbon
- 4 
- ;
- du sable bitumineux
- 5 
- ;
- du pétrole situé en Arctique
- 6 
- ; et
- des jeux d’argent
- 7
- .

Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront publiées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les exclusions sont déterminées exclusivement par l’analyse du Conseiller en Investissement et non par l’analyse d’un tiers. Toutefois, l’analyse peut être étayée par une analyse des enjeux ESG d’un tiers et une recherche sur l’implication des entreprises. Les critères d’exclusion seront appliqués à tous les investissements en titres de capital au sein du Compartiment. Les critères d’exclusion ne seront, en revanche, pas appliqués aux investissements pour lesquels le Conseiller en Investissement n’a pas de contrôle direct sur les participations sous-jacentes, par exemple les organismes de placement collectif ou les fonds indiciels cotés (ETF). Les critères d’exclusion sont soumis à un examen périodique et tout changement sera reflété dans la politique d’exclusion. Les investissements qui sont détenus par le Compartiment mais qui deviennent l’objet de restrictions après avoir été acquis par le Compartiment seront vendus. Ces ventes auront lieu sur une période à déterminer par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
Le Compartiment fait référence à des données ESG de tiers au cours du processus de recherche des valeurs mobilières, mais ne s’appuie pas sur des données ESG de tiers aux fins de construction du portefeuille. Le Conseiller en Investissement s’appuie sur sa propre analyse pour la sélection des titres et la construction du portefeuille plutôt que sur l’analyse de tiers. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables ou des données fournies par des tiers.
4 
Le Compartiment n’investira pas dans des titres d’émetteurs qui tirent 10 % ou plus de leurs revenus de l’exploitation minière et de l’extraction de charbon thermique ou de la production d’électricité à partir de charbon.
5 
Le Compartiment n’investira pas dans des titres d’émetteurs qui tirent 5 % ou plus de leurs revenus de l’extraction ou la production de sable bitumineux.
6 
Le Compartiment n’investira pas dans des titres d’émetteurs qui tirent 5 % ou plus de leurs revenus de l’extraction de pétrole ou de la production de pétrole situé en Arctique, y compris dans l’Arctic National Wildlife Refuge (ANWR).
7 
Le Compartiment n’investira pas dans des titres d’émetteurs qui tirent 5 % ou plus de leurs revenus des jeux d’argent.
Le Compartiment limite l’utilisation d’instruments dérivés à la gestion efficace de portefeuille et à des fins de couverture.
Le Compartiment est géré activement et recourt à l’indice MSCI Emerging Markets Net comme un indice de référence, qui est représentatif de l’univers des actions des marchés émergents. L’indice de référence est utilisé à des fins de comparaison de performance uniquement et n’intègre pas de caractéristiques environnementales ou sociales.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Leaders Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EUROPE OPPORTUNITY FUND
L’objectif d’investissement de l’Europe Opportunity Fund est la recherche d’une croissance du capital à long terme, mesurée en Euro.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)) de sociétés situées en Europe.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants et autres valeurs mobilières donnant accès au
capital. Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui feront l’objet d’investissements, le Conseiller en Investissement recherche des sociétés établies ou émergentes qu’il considère comme sous-évaluées au moment de l’acquisition. Le Conseiller en Investissement privilégiera généralement des sociétés à l’égard desquelles il estime qu’elles bénéficient d’avantages concurrentiels durables qui peuvent être monétisés par le biais de la croissance. Le processus d’investissement intègre une analyse de la durabilité en ce qui concerne les changements perturbateurs, la solidité financière, les externalités en matière environnementale, sociale et de gouvernance (également dénommées ESG). Lorsque le Conseiller en Investissement déterminera que des positions en portefeuille ne satisfont plus aux critères d’investissement du Compartiment, la vente sera généralement envisagée.
Le Conseiller en Investissement adopte une approche holistique de l’ESG dans le cadre de son évaluation de la qualité des entreprises en analysant les impacts potentiels sur la santé de l’humanité, l’environnement, la liberté et la productivité ainsi que les pratiques de gouvernance d’entreprises afin de garantir le pouvoir d’agir, la culture et la confiance. Le Conseiller en Investissement considère que l’intégration des risques et des opportunités potentiels liés aux facteurs ESG dans le processus d’investissement est importante pour garantir une gestion à long terme du capital. Sur de longues périodes, le Conseiller en Investissement estime que les risques ESG sont plus susceptibles de se matérialiser et que les externalités non supportées par la société sont plus susceptibles d’être intégrées dans la valeur des titres. Étant donné que les risques ESG peuvent potentiellement avoir un impact sur le profil de risque et de rendement des opportunités d’investissement, le Conseiller en Investissement engage généralement la direction de la société considérée dans des discussions constructives sur une série de questions ESG que le Conseiller en Investissement juge matériellement importantes.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de
la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Europe Opportunity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EUROPE OPPORTUNITY FUND
L’objectif d’investissement de l’Europe Opportunity Fund est la recherche d’une croissance du capital à long terme, mesurée en Euro.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement dans des titres de capital, notamment des certificats de titres en dépôt (American Depositary Receipts (ADR), Global Depositary Receipts (GDR) et European Depositary Receipts (EDR)) de sociétés situées en Europe.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui feront l’objet d’investissements, le Conseiller en Investissement recherche des sociétés établies ou émergentes qu’il considère comme sous-évaluées au moment de l’acquisition. Le Conseiller en Investissement privilégiera généralement des sociétés à l’égard desquelles il estime qu’elles bénéficient d’avantages concurrentiels durables qui peuvent être monétisés par le biais de la croissance. Le processus d’investissement intègre une analyse de la durabilité en ce qui concerne les changements perturbateurs, la solidité financière, les externalités en matière environnementale, sociale et de gouvernance (également dénommées ESG). Lorsque le Conseiller en Investissement déterminera que des positions en portefeuille ne satisfont plus aux critères d’investissement du Compartiment, la vente sera généralement envisagée.
Le Conseiller en Investissement adopte une approche holistique de l’ESG dans le cadre de son évaluation de la qualité des entreprises en analysant les impacts potentiels sur la santé de l’humanité, l’environnement, la liberté et la productivité ainsi que les pratiques de gouvernance d’entreprises afin de garantir le pouvoir d’agir, la culture et la confiance. Le Conseiller en Investissement considère que l’intégration des risques et des opportunités potentiels liés aux facteurs ESG dans le processus d’investissement est importante pour garantir une gestion à long terme du capital. Sur de longues périodes, le Conseiller en Investissement estime que les risques ESG sont plus susceptibles de se matérialiser et que les externalités non supportées par la société sont plus susceptibles d’être intégrées dans la valeur des titres. Étant donné que les risques ESG peuvent potentiellement avoir un impact sur le profil de risque et de rendement des opportunités d’investissement, le Conseiller en Investissement engage généralement la direction de la société considérée dans des discussions constructives sur une série de questions ESG que le Conseiller en Investissement juge matériellement importantes.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Europe Opportunity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EUROPEAN PROPERTY FUND
L’objectif d’investissement de l’European Property Fund est la recherche d’une croissance du capital à long terme, mesurée en Euro, en investissant principalement en titres de capital de sociétés du secteur immobilier situées dans toute l’Europe. Les sociétés du secteur immobilier ou étroitement liées au secteur immobilier peuvent inclure des sociétés principalement engagées dans le développement et/ou la propriété de biens immobiliers générateurs de revenus ; des sociétés qui exploitent, construisent, financent ou vendent des biens immobiliers ; des sociétés détenant des participations importantes liées à l’immobilier et/ou des services ou produits liés au secteur immobilier, y compris, sans toutefois s’y limiter, la gestion immobilière, les courtiers, les produits de construction et la technologie immobilière ; et des véhicules de placement collectif en immobilier, tels que les fiducies d’investissement à participation unitaire immobilière cotées en bourse, tous les types de fiducies de placement immobilier (REITS) à capital fixe éligibles et les organismes de placement collectif.
Le Compartiment peut également investir, à titre accessoire, en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires, warrants et autres valeurs mobilières donnant accès au capital.
Le processus d’investissement s’appuie sur des recherches internes exclusives pour investir dans des sociétés immobilières publiques susceptibles d’offrir la meilleure valeur relative par rapport à leurs actifs et revenus sous-jacents. Le Conseiller en Investissement utilise une approche ascendante, en évaluant chaque titre compris dans l’univers d’investissement afin de parvenir à une estimation de la valeur liquidative et des futurs flux de trésorerie. Les facteurs spécifiques à l’immobilier, les facteurs liés aux titres au sens large et les facteurs ESG sont évalués dans l’analyse fondamentale afin de calculer les paramètres d’évaluation appropriés.
Le Conseiller en Investissement applique également une approche descendante lors du processus de construction du portefeuille en y incorporant plusieurs facteurs qui peuvent inclure les inflexions fondamentales prévues, des considérations macroéconomiques et des évaluations des risques géopolitiques et de pays, afin d’obtenir une exposition diversifiée à travers les régions, les pays et/ou les secteurs.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des
forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Les principaux thèmes ESG peuvent inclure, sans s’y limiter, la consommation d’énergie et les énergies renouvelables, la consommation d’eau, les émissions, la diversité et l’égalité des sexes, le travail et les droits de l’homme, la santé, le bien-être et la sécurité des employés et locataires, ainsi que la gouvernance et la communication des informations ESG de la société. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations immobilières. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder ou exploiter des biens immobiliers destinés aux prisons ;
- posséder ou exploiter des biens immobiliers utilisés pour fabriquer du cannabis ;
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des mines de charbon ;
- posséder, fabriquer ou produire des armes controversées et armes à feu à usage civil ; et
- posséder, fabriquer ou produire du pétrole et du gaz arctiques.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucune mesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes.
Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’European Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BRANDS EQUITY INCOME FUND
L’objectif d’investissement du Global Brands Equity Income Fund est de générer un flux de revenus réguliers et une croissance du capital à long terme.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement dans des titres de capital de qualité et servant des dividendes réguliers d’émetteurs situés dans les marchés développés mondiaux.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir en titres de capital d’émetteurs situés dans des pays à marchés émergents, y compris des Actions A chinoises via Stock Connect, et en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires ou assorties de droits préférentiels, warrants sur valeurs mobilières et autres valeurs mobilières donnant accès au capital pour obtenir une exposition à des émetteurs situés dans des pays à marchés développés et émergents. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Compartiment investit dans un portefeuille concentré de sociétés dont la réussite est, de l’avis du Conseiller en Investissement, fondée sur des actifs incorporels (dont, notamment, des marques, copyrights ou méthodes de distribution) à la base d’une solide franchise commerciale.
Le Compartiment conclura des contrats dérivés avec Morgan Stanley International Plc pour augmenter ses revenus. Il est prévu que la stratégie inclue la prise d’expositions par le biais d’un ou plusieurs swaps (les « Swaps ») en options sur des indices d’actions. Cela devrait augmenter les revenus perçus via les primes reçues au titre de la conclusion des options sous-jacentes. Toutefois, dans un marché haussier, le risque de pertes en capital sur les Swaps résultant de l’exercice des options peut être atténué par la croissance de la valeur des actifs sous-jacents.
Restrictions d’investissement :
- Le Compartiment appliquera des restrictions liées au climat afin d’exclure les investissements dans toute société qui, selon le Conseiller en Investissement :
- présente un lien quelconque avec les combustibles fossiles (tels que le pétrole, le gaz et le charbon) ; ou
- exerce une activité principale en lien avec l’énergie, les matériaux de construction, les services aux collectivités (à l’exclusion des services d’électricité renouvelable et d’eau), les métaux et l’exploitation minière.
- En outre, le Compartiment s’abstiendra d’inclure en connaissance de cause toute société :
- dont l’activité principale touche aux armements ou aux armes à feu à usage civil ; ou
- définie selon la base de données MSCI ESG Business Involvement Screening Research (« MSCI ESG BISR ») comme ayant un lien quelconque avec les armes controversées.

Les restrictions ci-avant sont appliquées par le Conseiller en Investissement à 100 % des titres de capital du Compartiment, mais il n’est pas possible de les appliquer aux swaps. Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la
société≈(www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en vertu du premier ou du deuxième point ci-avant après avoir été acquis pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Processus d’investissement :
Le processus d’investissement du Compartiment se concentre sur des entreprises à haute qualité dont la rentabilité opérationnelle est durablement élevée. En tant que composante fondamentale et partie intégrante du processus d’investissement, le Conseiller en Investissement évalue les facteurs déterminants pour la pérennité de la rentabilité opérationnelle élevée à long terme, y compris les facteurs ESG, et s’attache à débattre avec la direction de la société considérée. Sous réserve de l’objectif d’investissement du Compartiment, le Conseiller en Investissement conserve un pouvoir discrétionnaire sur la sélection des investissements. Bien que facteurs ESG soient une composante fondamentale et fassent partie intégrante du processus d’investissement, les facteurs ESG ne sont pas le seul facteur déterminant pour savoir si un investissement peut être réalisé ou si une participation peut être maintenue dans le portefeuille du Compartiment, mais le Conseiller en Investissement prend en compte les risques ou les opportunités relatives à l’un des facteurs ESG qui pourraient compromettre ou renforcer la rentabilité opérationnelle élevée de l’entreprise.
Le Conseiller en Investissement surveille les pratiques commerciales de manière continue, par le biais de données sur les controverses et le filtrage des normes ESG que le Conseiller en Investissement obtient auprès de fournisseurs tiers, y compris les violations du Pacte mondial des Nations unies, ainsi que par son propre engagement auprès de la direction de l’entreprise considérée et ses propres recherches. Le Conseiller en Investissement examine les titres des émetteurs pour lesquels il estime qu’une violation importante des normes et principes susmentionnés s’est produite et exclut généralement ces émetteurs lorsque, après avoir effectué ses recherches et/ou du fait de son engagement, le Conseiller en Investissement estime que la violation est importante à l’égard de la pérennité de la rentabilité opérationnelle, qu’elle pose un risque financier et de réputation significatif et que l’émetteur ne s’est pas engagé à prendre des mesures correctives appropriées. Ces exclusions sont déterminées par le Conseiller en Investissement à sa discrétion plutôt qu’en fonction de l’analyse d’un tiers. L’analyse peut être
étayée par des analyses de controverses ESG de tiers et des mesures d’engagement commercial.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Brands Equity Income Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BRANDS FUND
L’objectif d’investissement du Global Brands Fund est de rechercher un taux de rendement à long terme attractif, mesuré en Dollar US, en investissant principalement dans des titres de capital de sociétés de pays développés. Le Compartiment investit dans un portefeuille concentré de sociétés dont la réussite est, de l’avis de la Société, fondée sur des actifs incorporels (dont, notamment, des marques, copyrights ou méthodes de distribution) à la base d’une solide franchise commerciale.
Le Compartiment peut également investir, à titre accessoire, en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires ou assorties de droits préférentiels, warrants sur valeurs mobilières et autres valeurs mobilières donnant accès au capital, pour obtenir une exposition à des entreprises des pays à marchés développés et émergents, ainsi qu’en titres de capital de sociétés de pays à marchés émergents et en Actions A chinoises via Stock Connect. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Compartiment limitera l’utilisation d’instruments dérivés à des fins de couverture.
Restrictions d’investissement :
- Le Compartiment appliquera des restrictions liées au climat afin d’exclure les investissements dans toute société qui, selon le Conseiller en Investissement :
	- présente un lien quelconque avec les combustibles fossiles (tels que le pétrole, le gaz et le charbon) ; ou
	- exerce une activité principale en lien avec l’énergie, les matériaux de construction, les services aux collectivités (à l’exclusion des services d’électricité renouvelable et d’eau), les métaux et l’exploitation minière.

- En outre, le Compartiment s’abstiendra d’inclure en connaissance de cause toute société :
	- dont l’activité principale touche aux armements ou aux armes à feu à usage civil ; ou
	- définie selon la base de données MSCI ESG Business Involvement Screening Research (« MSCI ESG BISR ») comme ayant un lien quelconque avec les armes controversées.


Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en vertu du premier ou du deuxième point ci-avant après avoir été acquis pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Processus d’investissement :
Le processus d’investissement du Compartiment se concentre sur des entreprises à haute qualité dont la rentabilité opérationnelle est durablement élevée. En tant que composante fondamentale et partie intégrante du processus d’investissement, le Conseiller en Investissement évalue les facteurs déterminants pour la pérennité de la rentabilité opérationnelle élevée à long terme, y compris les facteurs ESG, et s’attache à débattre avec la direction de la société considérée. Sous réserve de l’objectif d’investissement du Compartiment, le Conseiller en Investissement conserve un pouvoir discrétionnaire sur la sélection des investissements. Bien que facteurs ESG soient une composante fondamentale et fassent partie
intégrante du processus d’investissement, les facteurs ESG ne sont pas le seul facteur déterminant pour savoir si un investissement peut être réalisé ou si une participation peut être maintenue dans le portefeuille du Compartiment, mais le Conseiller en Investissement prend en compte les risques ou les opportunités relatives à l’un des facteurs ESG qui pourraient compromettre ou renforcer la rentabilité opérationnelle élevée de l’entreprise.
Le Conseiller en Investissement surveille les pratiques commerciales de manière continue, par le biais de données sur les controverses et le filtrage des normes ESG que le Conseiller en Investissement obtient auprès de fournisseurs tiers, y compris les violations du Pacte mondial des Nations unies, ainsi que par son propre engagement auprès de la direction de l’entreprise considérée et ses propres recherches. Le Conseiller en Investissement examine les titres des émetteurs pour lesquels il estime qu’une violation importante des normes et principes susmentionnés s’est produite et exclut généralement ces émetteurs lorsque, après avoir effectué ses recherches et/ou du fait de son engagement, le Conseiller en Investissement estime que la violation est importante à l’égard de la pérennité de la rentabilité opérationnelle, qu’elle pose un risque financier et de réputation significatif et que l’émetteur ne s’est pas engagé à prendre des mesures correctives appropriées. Ces exclusions sont déterminées par le Conseiller en Investissement à sa discrétion plutôt qu’en fonction de l’analyse d’un tiers. L’analyse peut être étayée par des analyses de controverses ESG de tiers et des mesures d’engagement commercial.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Brands Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL CORE EQUITY FUND
L’objectif d’investissement du Global Core Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US. Le Compartiment investit principalement en titres de capital émis par des sociétés à capitalisation boursière moyenne à grande du monde entier, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)) et des titres de Real Estate Investment Trusts (« REITs ») fermés.
Le processus d’investissement repose sur la combinaison du recours à des modèles quantitatifs pour évaluer les facteurs de marché, et à la recherche fondamentale sur des titres spécifiques pour identifier les sociétés aux valorisations attractives, au potentiel d’appréciation supérieur à la moyenne et aux taux de rendement compétitifs.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, en titres de créance convertibles en actions ordinaires, en actions assorties de droits préférentiels, en Instruments assimilés aux liquidités, en warrants d’actions et autres valeurs mobilières donnant accès au capital.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (dans le respect de l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Core Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL ENDURANCE FUND
L’objectif d’investissement du Global Endurance Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), de sociétés établies ou émergentes, situées dans le monde entier, dont la capitalisation est comparable à celles des sociétés incluses dans l’indice MSCI All Country World.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, en titres de créance convertibles en actions ordinaires, en actions assorties de droits préférentiels, en Actions A chinoises via Stock Connect, en warrants d’actions et autres valeurs mobilières donnant accès au capital. Le Compartiment peut également investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le processus d’investissement met l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de sa sélection de titres qui font l’objet d’investissements, le Conseiller en Investissement cherche à investir dans des sociétés disposant d’avantages concurrentiels durables. Le Conseiller en Investissement privilégie généralement les sociétés à la rentabilité opérationnelle croissante, dont la visibilité est supérieure à la moyenne, qui génèrent des flux de trésorerie disponible solides sur la période en cours et présentent un rapport risque/rendement attractif.
Le Compartiment investit à long terme dans des sociétés dans le monde entier qui, de l’avis du Conseiller en Investissement, présentent les avantages concurrentiels à long terme les plus durables.
Le Compartiment peut également investir dans des sociétés à croissance plus modérée, des sociétés affichant une volatilité des bénéfices moins importante ou des sociétés confrontées à une certaine cyclicité sur leurs marchés cibles.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement, il n’est pas conçu pour suivre un indice de référence, et par conséquent, n’est pas limité par la composition de l’Indice MSCI All Country World. Le Compartiment se réfère à l’Indice MSCI All Country World afin de déterminer la fourchette de capitalisation des émetteurs dans lesquels le Compartiment investit. La performance du Compartiment est mesurée par rapport l’indice MSCI All Country World, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Endurance Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL FOCUS PROPERTY FUND
L’objectif d’investissement du Global Focus Property Fund est la recherche d’une croissance du capital à long-terme, mesurée en Dollar US, en investissant principalement dans un portefeuille ciblé et concentré de titres de capital, y compris des certificats de titres en dépôt (notamment des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), de sociétés du secteur immobilier ou étroitement liées au secteur immobilier situées dans le monde et dont le Conseiller en Investissement considère qu’elles offrent un potentiel de rendement total prévisionnel plus élevé par rapport à d’autres opportunités au sein des classes d’actifs mentionnées ci-avant.
Les sociétés du secteur immobilier ou étroitement liées au secteur immobilier peuvent inclure des sociétés principalement engagées dans le développement et/ou la propriété de biens immobiliers générateurs de revenus ; des sociétés qui exploitent, construisent, financent ou vendent des biens immobiliers ; des sociétés détenant des participations importantes liées à l’immobilier et/ou des services ou produits liés au secteur immobilier, y compris, sans toutefois s’y limiter, la gestion immobilière, les courtiers, les produits de construction et la technologie immobilière ; et des véhicules de placement collectif en immobilier, tels que les fiducies
d’investissement à participation unitaire immobilière cotées en bourse, tous les types de fiducies de placement immobilier (REITS) à capital fixe éligibles et les organismes de placement collectif.
Le Compartiment investira principalement dans des sociétés situées dans des pays développés en Amérique du Nord, en Europe et en Asie, mais peut aussi investir dans des sociétés situées dans des pays à marchés émergents.
Le Compartiment peut également investir, à titre accessoire, dans des titres de participation ne satisfaisant pas aux critères des investissements initiaux du Compartiment, y compris, sans toutefois s’y limiter : des actions préférentielles et des titres préférentiels convertibles, des titres de créance convertibles en actions ordinaires, des droits et des warrants de souscription de titres de participations, des actions de sociétés d’investissement, des intérêts dans des sociétés en commandite et d’autres instruments donnant accès au capital.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010. Conformément à l’Annexe A « Limites et restrictions d’investissement », les expositions qui ne sont pas libellées en Dollar US pourront être partiellement ou totalement couvertes en Dollar US. Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Conseiller en Investissement gère activement le Compartiment à l’aide d’une méthodologie d’investissement à forte conviction, disciplinée, ascendante et fondée sur les fondamentaux. Le Compartiment sera composé de titres qui, selon le Conseiller en Investissement, offrent un potentiel de rendement total prévisionnel plus élevé sur la base de la valorisation par rapport aux autres opportunités de l’univers d’investissement. Le Conseiller en Investissement évaluera les facteurs spécifiques à l’immobilier, les facteurs liés aux titres au sens large, ainsi que les facteurs ESG dans leur analyse fondamentale afin de calculer les paramètres d’évaluation appropriés. Des considérations descendantes sont incorporées dans le processus de construction du portefeuille et visent à obtenir une exposition à travers les régions, les pays et/ou les secteurs et à intégrer les inflexions fondamentales prévues, les considérations macroéconomiques, les évaluations du risque géopolitique et du risque pays, entre autres facteurs. Le Conseiller en Investissement sélectionne activement des positions dans un nombre limité de titres de capital.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Les principaux thèmes ESG peuvent inclure, sans s’y limiter, la consommation d’énergie et les énergies renouvelables, la consommation d’eau, les émissions, la diversité et l’égalité des sexes, le travail et les droits de l’homme, la santé, le bien-être et la sécurité des employés et locataires, ainsi que la gouvernance et la communication des informations ESG de la société. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations immobilières. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder ou exploiter des biens immobiliers destinés aux prisons ;
- posséder ou exploiter des biens immobiliers utilisés pour fabriquer du cannabis ;
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des mines de charbon ;
- posséder, fabriquer ou produire des armes controversées et armes à feu à usage civil ; et
- posséder, fabriquer ou produire du pétrole et du gaz arctiques.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucune mesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Focus Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL INFRASTRUCTURE FUND
L’objectif d’investissement du Global Infrastructure Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement en titres de capital de sociétés, y compris, pour lever toute ambiguïté, des Real Estate Investment Trusts (REITs) fermés, situées dans le monde entier et actives dans le secteur des infrastructures. Les sociétés du secteur des infrastructures peuvent être actives, entre autres, dans la transmission et la distribution d’énergie électrique ; le stockage, le transport et la
distribution de ressources naturelles, telles que le gaz naturel, utilisées pour produire de l’énergie ; la construction, l’exploitation et l’entretien d’autoroutes, routes à péage, tunnels, ponts et parkings ; la construction, l’exploitation et l’entretien d’aéroports et de ports, chemins de fer et systèmes de transports en commun ; les télécommunications ; le traitement et la distribution de l’eau ; le traitement des déchets ; la production d’énergie renouvelable ainsi que d’autres secteurs des infrastructures émergentes.
Le Compartiment peut également investir, à titre accessoire, en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires, warrants et autres valeurs mobilières donnant accès au capital émises par des sociétés actives dans des secteurs d’activités liés aux infrastructures.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations dans le secteur des infrastructures. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des armes controversées et armes à feu civiles ;
- posséder ou exploiter une activité de jeux d’argent et de hasard ; et
- posséder ou exploiter un divertissement pour adultes.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucune mesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Infrastructure Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL INSIGHT FUND
LL’objectif d’investissement du Global Insight Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en
investissant principalement en titres émis par des sociétés situées dans le monde entier. Dans des conditions de marché normales, l’objectif d’investissement du Compartiment sera réalisé en investissant essentiellement dans des titres de capital de sociétés bien établies et émergentes. Le processus d’investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom- up) en recherchant des investissements attractifs société par société. Dans le cadre de sa sélection de titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés uniques dont il estime qu’elles bénéficient d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, qui ont un bilan comptable solide et qui présentent un rapport risque/rendement attractif.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également être investi, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, titres de créance convertibles en actions ordinaires, Actions A chinoises via Stock Connect, certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), actions assorties de droits préférentiels, warrants d’actions, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu civiles, les armes à sous- munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Insight Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL OPPORTUNITY FUND
L’objectif d’investissement du Global Opportunity Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US. Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), d’émetteurs situés dans n’importe quel pays.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, Actions A chinoises via Stock Connect, warrants sur valeurs mobilières, Instruments assimilés et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 20 % de ses actifs nets dans des Actions A Chinoises via Stock Connect.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui feront l’objet d’investissements, le Conseiller en Investissement recherche des sociétés établies ou émergentes qu’il considère comme sous-évaluées au moment de l’acquisition. Le Conseiller en Investissement privilégiera généralement des sociétés à l’égard desquelles il estime qu’elles bénéficient d’avantages concurrentiels durables qui peuvent être monétisés par le biais de la croissance. Le processus d’investissement intègre une analyse de la durabilité en ce qui concerne les changements perturbateurs, la solidité financière, les externalités en matière environnementale, sociale et de gouvernance (également dénommées ESG). Lorsque le Conseiller en Investissement déterminera que des positions en portefeuille ne satisfont plus aux critères d’investissement du Compartiment, la vente sera généralement envisagée.
Le Conseiller en Investissement adopte une approche holistique de l’ESG dans le cadre de son évaluation de la qualité des entreprises en analysant les impacts potentiels sur la santé de l’humanité, l’environnement, la liberté et la productivité ainsi que les pratiques de gouvernance d’entreprises afin de garantir le pouvoir d’agir, la culture et la confiance. Le Conseiller en Investissement considère que l’intégration des risques et des opportunités potentiels liés aux
facteurs ESG dans le processus d’investissement est importante pour garantir une gestion à long terme du capital. Sur de longues périodes, le Conseiller en Investissement estime que les risques ESG sont plus susceptibles de se matérialiser et que les externalités non supportées par la société bénéficiaire de l’investissement sont plus susceptibles d’être intégrées dans la valeur des titres. Étant donné que les risques ESG peuvent potentiellement avoir un impact sur le profil de risque et de rendement des opportunités d’investissement, le Conseiller en Investissement engage généralement la direction de la société considérée dans des discussions constructives sur une série de questions ESG que le Conseiller en Investissement juge matériellement importantes.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu civiles, les armes à sous- munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Opportunity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL PERMANENCE FUND
L’objectif d’investissement du Global Permanence Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), de sociétés établies situées dans le monde entier, dont la capitalisation est comparable à celles des sociétés incluses dans l’indice MSCI All Country World.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, en titres de créance convertibles en actions ordinaires, en actions assorties de droits préférentiels, en Actions A chinoises via Stock Connect, en warrants d’actions et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le processus d’investissement met l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de sa sélection de titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés dont il estime qu’elles ont une forte notoriété, qu’elles bénéficient
d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, qui ont un bilan comptable solide et qui présentent un rapport risque/rendement attractif.
Le Compartiment investit à long terme dans des sociétés dans le monde entier qui, de l’avis du Conseiller en Investissement, présentent les avantages concurrentiels à long terme les plus durables. Le Compartiment peut également investir dans des sociétés à croissance plus modérée, des sociétés affichant une volatilité des bénéfices moins importante ou des sociétés confrontées à une certaine cyclicité sur leurs marchés cibles.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu civiles, les armes à sous- munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment
seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement, il n’est pas conçu pour suivre un indice de référence, et par conséquent, n’est pas limité par la composition de l’Indice MSCI All Country World. Le Compartiment se réfère à l’Indice MSCI All Country World afin de déterminer la fourchette de capitalisation des émetteurs dans lesquels le Compartiment investit. La performance du Compartiment est mesurée par rapport l’indice MSCI All Country World, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Communication d’informations au titre du Règlement Taxonomie Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Permanence Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL PROPERTY FUND
L’objectif d’investissement du Global Property Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement en titres de capital de sociétés du secteur immobilier situées dans le monde entier. Les sociétés du secteur immobilier ou étroitement liées au secteur immobilier peuvent inclure des sociétés principalement engagées dans le développement et/ou la propriété de biens immobiliers générateurs de revenus ; des sociétés qui exploitent, construisent, financent ou vendent des biens immobiliers ; des sociétés détenant des participations importantes liées à l’immobilier et/ou des services ou produits liés au secteur immobilier, y compris, sans toutefois s’y limiter, la gestion immobilière, les courtiers, les produits de construction et la technologie immobilière ; et des véhicules de placement collectif en immobilier, tels que les fiducies d’investissement à participation unitaire immobilière cotées en bourse, tous les types de fiducies de placement immobilier (REITS) à capital fixe éligibles et les organismes de placement collectif. Le Compartiment peut également investir, à titre accessoire, en actions
assorties de droits préférentiels, titres de créance convertibles en actions ordinaires, warrants et autres valeurs mobilières donnant accès au capital.
Le processus d’investissement s’appuie sur des recherches internes exclusives pour investir dans des sociétés immobilières publiques susceptibles d’offrir la meilleure valeur relative par rapport à leurs actifs et revenus sous-jacents. Le Conseiller en Investissement utilise une approche ascendante, en évaluant chaque titre compris dans l’univers d’investissement afin de parvenir à une estimation de la valeur liquidative et des futurs flux de trésorerie. Les facteurs spécifiques à l’immobilier, les facteurs liés aux titres au sens large et les facteurs ESG sont évalués dans l’analyse fondamentale afin de calculer les paramètres d’évaluation appropriés.
Le Conseiller en Investissement applique également une approche descendante lors du processus de construction du portefeuille en y incorporant plusieurs facteurs qui peuvent inclure les inflexions fondamentales prévues, des considérations macroéconomiques et des évaluations des risques géopolitiques et de pays, afin d’obtenir une exposition diversifiée à travers les régions, les pays et/ou les secteurs.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Les principaux thèmes ESG peuvent inclure, sans s’y limiter, la consommation d’énergie et les énergies renouvelables, la consommation d’eau, les émissions, la diversité et l’égalité des sexes, le travail et les droits de l’homme, la santé, le bien-être et la sécurité des employés et locataires, ainsi que la gouvernance et la communication des informations ESG de la société. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations immobilières. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder ou exploiter des biens immobiliers destinés aux prisons ;
- posséder ou exploiter des biens immobiliers utilisés pour fabriquer du cannabis ;
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des mines de charbon ;
- posséder, fabriquer ou produire des armes controversées et armes à feu à usage civil ; et
- posséder, fabriquer ou produire du pétrole et du gaz arctiques.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucune mesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL QUALITY FUND
L’objectif d’investissement du Global Quality Fund est de rechercher un taux de rendement à long terme attractif, mesuré en Dollar US, en investissant principalement en titres de capital de sociétés de pays développés. Cette stratégie investit dans un portefeuille concentré d’entreprises de haute qualité bénéficiant d’équipes dirigeantes solides qui peuvent supporter des rendements du capital intercycles élevés. Le Conseiller en Investissement estime que le meilleur moyen d’atteindre la performance à long terme est d’accumuler les rendements et de protéger le portefeuille à la baisse, et que les entreprises à haute qualité peuvent générer des rendements supérieurs pour leurs actionnaires sur le long terme. La recherche d’entreprises de haute qualité s’attachera en particulier à identifier des entreprises aux positions de marché dominantes, généralement soutenues par des actifs incorporels difficiles à reproduire. Les caractéristiques de telles entreprises comprennent notamment des sources de revenus solides, une capacité à fixer leurs prix de vente, une intensité capitalistique généralement faible et des possibilités de croissance organique. Le Conseiller en Investissement vise à acheter ces actions à des valorisations attractives par rapport à leur valorisation fondamentale fondée sur leurs flux de trésorerie.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés situées dans des pays à marchés émergents, y compris des Actions A chinoises via Stock Connect, actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires ou assorties de droits préférentiels, warrants sur valeurs mobilières et autres valeurs mobilières donnant accès au capital. Le Compartiment limitera l’utilisation d’instruments dérivés à des fins de couverture. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Restrictions d’investissement :
- Le Compartiment appliquera des restrictions liées au climat afin d’exclure les investissements dans toute société qui, selon le Conseiller en Investissement :– présente un lien quelconque avec les combustibles fossiles (tels que le pétrole, le gaz et le charbon) ; ou
- exerce une activité principale en lien avec l’énergie, les matériaux de construction, les services aux collectivités (à l’exclusion des services d’électricité renouvelable et d’eau), les métaux et l’exploitation minière.
- En outre, le Compartiment s’abstiendra d’inclure en connaissance de cause toute société :
- dont l’activité principale touche aux armements ou aux armes à feu à usage civil ; ou
- définie selon la base de données MSCI ESG Business Involvement Screening Research (« MSCI ESG BISR ») comme ayant un lien quelconque avec les armes controversées.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en vertu du premier ou du deuxième point ci-avant après avoir été acquis pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Processus d’investissement :
Le processus d’investissement du Compartiment se concentre sur des entreprises à haute qualité dont la rentabilité opérationnelle est durablement élevée. En tant que composante fondamentale et partie intégrante du processus d’investissement, le Conseiller en Investissement évalue les facteurs déterminants pour la pérennité de la rentabilité opérationnelle élevée à long terme, y compris les facteurs ESG, et s’attache à débattre avec la direction de la société considérée. Sous réserve de l’objectif d’investissement du Compartiment, le Conseiller en Investissement conserve un pouvoir discrétionnaire sur la sélection des investissements. Bien que facteurs ESG soient une composante fondamentale et fassent partie intégrante du processus d’investissement, les facteurs ESG ne sont pas le seul facteur déterminant pour savoir si un investissement peut être réalisé ou si une participation peut être maintenue dans le portefeuille du Compartiment, mais le Conseiller en Investissement prend en compte les risques ou les opportunités relatives à l’un des facteurs ESG qui pourraient compromettre ou renforcer la rentabilité opérationnelle élevée de l’entreprise.
Le Conseiller en Investissement surveille les pratiques commerciales de manière continue, par le biais de données sur les controverses et
le filtrage des normes ESG que le Conseiller en Investissement obtient auprès de fournisseurs tiers, y compris les violations du Pacte mondial des Nations unies, ainsi que par son propre engagement auprès de la direction de l’entreprise considérée et ses propres recherches. Le Conseiller en Investissement examine les titres des émetteurs pour lesquels il estime qu’une violation importante des normes et principes susmentionnés s’est produite et exclut généralement ces émetteurs lorsque, après avoir effectué ses recherches et/ou du fait de son engagement, le Conseiller en Investissement estime que la violation est importante à l’égard de la pérennité de la rentabilité opérationnelle, qu’elle pose un risque financier et de réputation significatif et que l’émetteur ne s’est pas engagé à prendre des mesures correctives appropriées. Ces exclusions sont déterminées par le Conseiller en Investissement à sa discrétion plutôt qu’en fonction de l’analyse d’un tiers. L’analyse peut être étayée par des analyses de controverses ESG de tiers et des mesures d’engagement commercial.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Quality Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL SUSTAIN FUND
L’objectif d’investissement du Global Sustain Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US. Le Conseiller en Investissement appliquera également des critères ESG visant à atteindre une intensité d’émissions de gaz à effet de serre (« GES ») pour le Compartiment sensiblement inférieure à celle de
l’univers de référence (qui est défini, uniquement à des fins de comparaison de l’intensité des émissions de GES, comme l’indice MSCI AC World Index). Pour les besoins de ce Compartiment, le terme GES est défini par le protocole sur les GES et comprend le dioxyde de carbone (CO2), le méthane (CH4), l’oxyde nitreux (N2O), les hydrofluorocarbures (HFCs), les perfluorocarbures (PFCs) et l’hexafluorure de soufre (SF6) en tonnes métriques et en tonnes d’équivalent CO2.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital, notamment des certificats de titres en dépôt de sociétés situées partout dans le monde. Le Compartiment peut, à titre accessoire, investir dans des titres de capital de sociétés situées sur des marchés émergents, y compris des Actions A chinoises via Stock Connect, ainsi que dans des actions de préférence, des titres de créance convertibles en actions ordinaires ou en actions de préférence, des warrants sur titres et d’autres titres liés à des actions.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Afin de respecter le critère de faible intensité d’émissions de GES :
- le Compartiment exclura d’abord les investissements dans toute société qui, selon le Conseiller en Investissement :
	- ont un lien quelconque avec les combustibles fossiles (tels que le pétrole, le gaz et le charbon),
	- exerce une activité principale en lien avec l’énergie, les matériaux de construction, les services aux collectivités (à l’exclusion des services d’électricité renouvelable et d’eau), les métaux et l’exploitation minière ; ou
	- pour laquelle les estimations de l’intensité des émissions de GES ne sont pas disponibles et/ou ne peuvent être estimées (à la discrétion du Conseiller en Investissement) ; et

- les émetteurs restants seront ensuite classés en fonction de leurs estimations de l’intensité des émissions de GES, et ceux dont l’intensité est la plus élevée seront exclus de l’univers de référence.

Les critères d’investissement fondés sur les émissions de GES devraient collectivement entraîner une réduction de l’univers de référence d’au moins 20 % de manière significativement engageante et le Conseiller en Investissement veillera à ce qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces critères.
Restrictions d’investissement :
- Outre les restrictions susmentionnées liées aux GES, les investissements ne doivent pas inclure, en connaissance de cause, toute société dont l’activité principale implique les éléments suivants :
	- du tabac ;
	- l’alcool ;
	- le divertissement pour adultes ;
	- des jeux d’argent ;
	- les armes à feu à usage civil ; ou
	- les armes.

- Le Compartiment n’investira dans aucune société définie selon la base de données MSCI ESG Business Involvement Screening Research (« MSCI ESG BISR ») comme ayant un lien quelconque avec les armes controversées.
- Le Compartiment ne peut investir plus de 10 % de ses actifs nets dans des Actions A chinoises via Stock Connect.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en vertu du premier ou du deuxième point ci-avant après avoir été acquis pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Processus d’investissement
Le Conseiller en Investissement investit dans un portefeuille concentré d’entreprises de haute qualité, des franchises dominantes qui se caractérisent par une rentabilité opérationnelle élevée, des actifs incorporels performants tels que des marques, des réseaux, des licences et de brevets, et le pouvoir de fixer leurs prix. Le Conseiller en Investissement s’attache à identifier des équipes dirigeantes capables d’allouer les actifs de manière efficiente de sorte à préserver ou améliorer la rentabilité opérationnelle.
Le processus d’investissement du Compartiment se concentre sur des entreprises à haute qualité dont la rentabilité opérationnelle est durablement élevée. En tant que composante fondamentale et partie intégrante du processus d’investissement, le Conseiller en
Investissement évalue les facteurs déterminants pour la pérennité de la rentabilité élevée à long terme, en ce compris les facteurs ESG, et s’attache à débattre avec la direction de la société considérée. Sous réserve de l’objectif d’investissement du Compartiment et des restrictions d’investissement mentionnées ci-avant, le Conseiller en Investissement conserve un pouvoir discrétionnaire sur la sélection des investissements. Dans l’exercice de ce pouvoir discrétionnaire, les facteurs ESG ne sont pas le seul facteur déterminant pour savoir si un investissement peut être réalisé ou si une participation peut être maintenue dans le portefeuille du Compartiment, mais le Conseiller en Investissement prend en compte les risques ou les opportunités relatives à l’un des facteurs ESG qui pourraient compromettre ou renforcer la rentabilité opérationnelle élevée de l’entreprise.
Le Conseiller en Investissement surveille les pratiques commerciales de manière continue, par le biais de données sur les controverses et le filtrage des normes ESG que le Conseiller en Investissement obtient auprès de fournisseurs tiers, y compris les violations du Pacte mondial des Nations unies, ainsi que par son propre engagement auprès de la direction de l’entreprise considérée et ses propres recherches. Le Conseiller en Investissement examine les titres des émetteurs pour lesquels il estime qu’une violation importante des normes et principes susmentionnés s’est produite et exclut généralement ces émetteurs lorsque, après avoir effectué ses recherches et/ou du fait de son engagement, le Conseiller en Investissement estime que la violation est importante à l’égard de la pérennité de la rentabilité opérationnelle, qu’elle pose un risque financier et de réputation significatif et que l’émetteur ne s’est pas engagé à prendre des mesures correctives appropriées. Ces exclusions sont déterminées par le Conseiller en Investissement à sa discrétion plutôt qu’en fonction de l’analyse d’un tiers. L’analyse peut être étayée par des analyses de controverses ESG de tiers et des mesures d’engagement commercial.
Comme indiqué ci-avant, le Compartiment vise à atteindre une intensité d’émissions de GES nettement inférieure à celle de son univers de référence en excluant des émetteurs sur la base de leurs estimations relatives de l’intensité des émissions de GES. Le Conseiller en Investissement fait appel à des fournisseurs de données tiers pour vérifier l’intensité des émissions de GES d’émetteurs spécifiques et, dans certains cas, les données sur des émetteurs spécifiques peuvent ne pas être disponibles ou être estimées par un autre fournisseur de données tiers ou par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent varier et si le fournisseur de données privilégié change sa méthodologie, les estimations de l’intensité des émissions de GES pour un ou plusieurs émetteurs peuvent également changer de manière significative. Le Conseiller en Investissement s’efforcera également d’exclure toute société qui, selon lui, a un lien avec les combustibles fossiles (par exemple, la propriété de réserves, les revenus connexes et la production
d’électricité), mais dans certains cas, les données peuvent ne pas être disponibles ou totalement représentatives des activités de l’émetteur.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport l’indice MSCI World, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Sustain Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

INDIAN EQUITY FUND
L’objectif d’investissement de l’Indian Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement, directement ou indirectement, en titres de capital de sociétés domiciliées ou dont les activités sont menées principalement en Inde. Le Compartiment peut également investir, directement ou indirectement, à titre accessoire, dans des sociétés cotées sur des marchés indiens qui peuvent ne pas être domiciliées, ou dont les activités ne sont pas menées principalement, en Inde, ainsi qu’en certificats de titres en dépôt (y compris des certificats de titres en dépôt américains (ADR, American Depositary Receipts), des certificats de titres en dépôt globaux (GDR, Global Depositary Receipts) et des certificats de titres en dépôt européens (EDR, European Depositary Receipts)), titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, obligations, warrants sur valeurs mobilières et autres valeurs mobilières donnant accès au capital, y compris des obligations participatives. Le Compartiment investit, directement ou indirectement, dans un portefeuille concentré d’entreprises.
Le processus d’investissement intègre à la prise des décisions d’investissement des éléments liés aux enjeux ESG. Le Conseiller en Investissement s’attache à débattre avec la direction de la société des questions de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Indian Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

Les Jours de Transaction de l’Indian Equity Fund
Les Jours de Transaction de l’Indian Equity Fund tiennent compte des dates auxquelles le Bombay Stock Exchange (BSE) et le National Stock Exchange of India (NSE) sont fermés à la négociation et au règlement-livraison. Dans le présent Prospectus, les références à un Jour de Transaction de l’Indian Equity Fund s’entendent de tout jour à l’exception : (a) des jours au cours desquels les banques commerciales à Luxembourg ou en Inde sont autorisées ou tenues par la législation applicable ou par décision des autorités de fermer (y compris les samedis et les dimanches), et (b) des jours au cours desquels le BSE et le NSE sont fermés à la négociation.
INTERNATIONAL EQUITY (EX US) FUND
L’objectif d’investissement de l’International Equity (ex US) Fund est de rechercher un taux de rendement à long terme attractif, mesuré en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital, y compris des
certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), d’émetteurs situés dans les pays développés du monde hors États- Unis. Le Compartiment investit dans un portefeuille diversifié de sociétés à l’aide d’une analyse fondamentale « bottom-up » approfondie des sociétés. Le processus d’investissement repose sur une approche disciplinée et axée sur la valeur permettant d’identifier des entreprises bénéficiant d’équipes dirigeantes compétente et de positions de marché dominantes, qui sont susceptibles de générer des rendements stables et cohérents. Le Conseiller en Investissement vise à acheter ces actions à des valorisations attractives par rapport à leur valorisation fondamentale fondée sur leurs flux de trésorerie.
En tant que composante fondamentale et partie intégrante du processus d’investissement, le Conseiller en Investissement évalue les facteurs déterminants pour la pérennité de la rentabilité opérationnelle élevée à long terme, y compris les facteurs ESG, et s’attache à débattre avec la direction de la société considérée. Sous réserve de l’objectif d’investissement du Compartiment, le Conseiller en Investissement conserve un pouvoir discrétionnaire sur la sélection des investissements. Bien que facteurs ESG soient une composante fondamentale et fassent partie intégrante du processus d’investissement, les facteurs ESG ne sont pas le seul facteur déterminant pour savoir si un investissement peut être réalisé ou si une participation peut être maintenue dans le portefeuille du Compartiment, mais le Conseiller en Investissement prend en compte les risques ou les opportunités relatives à l’un des facteurs ESG qui pourraient compromettre ou renforcer la rentabilité opérationnelle élevée de l’entreprise.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés situées dans des pays à marchés émergents, y compris des Actions A chinoises via Stock Connect, ou, à la suite d’opérations sur titres, situées aux États-Unis, ou en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires ou assorties de droits préférentiels, warrants sur valeurs mobilières et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Compartiment limitera l’utilisation d’instruments dérivés aux contrats de change à terme conclus à des fins de couverture uniquement.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’International Equity (ex US) Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

JAPANESE EQUITY FUND
L’objectif d’investissement du Japanese Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Yen, en investissant principalement dans des titres de capital de sociétés qui répondent aux critères ESG du Conseiller en Investissement tout en intégrant des caractéristiques ESG en conservant des scores de durabilité plus élevés que ceux de l’indice MSCI Japan. Le Compartiment investira principalement dans des sociétés domiciliées ou exerçant une part prépondérante de leur activité au Japon et qui sont cotés ou négociés sur les marchés de gré à gré (sous réserve de l’Annexe A « Limites et restrictions d’investissement »). Le Compartiment peut également investir, à titre accessoire, en titres de créance convertibles en actions ordinaires, warrants et autres valeurs mobilières donnant accès au capital.
Le Conseiller en Investissement intègre la prise en considération des critères ESG dans sa prise de décision d’investissement.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives aux titres de capital dans lesquels le Compartiment peut investir. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les entreprises, le Conseiller en Investissement intègre une évaluation des risques liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur la valeur d’un titre ou portefeuille. Ces critères peuvent inclure, sans toutefois s’y limiter, des thèmes ESG tels que le changement climatique, les droits de l’homme et la diversité, la santé et la sécurité, la gouvernance et la publication d’informations, considérés par le Conseiller en Investissement comme des « questions ESG matérielles ». Le Conseiller en Investissement s’attache en particulier à mener un engagement avec les équipes de direction sur la santé et la sécurité, les ressources humaines, les comportements abusifs et autres facteurs, sous réserve
d’engagements spécifiques de chaque entreprise, sur la base des questions ESG matérielles. Les entreprises sont notées sur la base des prévisions d’amélioration et de la manière dont leurs activités ESG sont susceptibles d’améliorer leur valeur.
Le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement exclura les cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents.
Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des titres aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base trimestrielle.
Les investissements n’incluront en connaissance de cause aucune société impliquée dans la fabrication ou la production :
- du tabac
- 8 
- ;
- des jeux d’argent
- 9 
- ;
- le divertissement pour adultes
- 10 
- ;
- des armes à feu à usage civil
- 11 
- ;
- d’armes controversées
- 12 
- ; et
- de charbon thermique
- 13
- .

Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les exclusions sont déterminées exclusivement par l’analyse du Conseiller en Investissement et non par l’analyse d’un tiers. Toutefois, l’analyse peut être étayée par une analyse des enjeux ESG d’un tiers et une recherche sur l’implication des entreprises. Les critères d’exclusion seront appliqués à tous les investissements en titres de capital au sein du Compartiment. Les
8 
Le Compartiment n’investit pas dans les titres d’émetteurs qui tirent 5 % ou plus de leur chiffre d’affaires de produits liés au tabac ou de fournitures liées au tabac telles que des filtres.
9 
Le Compartiment n’investit pas dans des titres d’émetteurs qui tirent 5 % ou plus de leur chiffre d’affaires des jeux d’argent.
10 
Le Compartiment n’investit pas dans des titres d’émetteurs qui tirent 5 % ou plus de leur chiffre d’affaires de divertissements pour adultes.
11 
Le Compartiment n’investit pas dans des titres d’émetteurs qui tirent 5 % ou plus de leur chiffre d’affaires de la production d’armes à feu civiles.
12 
Le Compartiment n’investit pas dans des titres d’émetteurs qui produisent des systèmes d’armement controversés, y compris des composants destinés à être utilisés dans de tels systèmes.
13 
Le Compartiment n’investit pas dans des titres d’émetteurs qui tirent 10 % ou plus de leur chiffre d’affaires de l’extraction de charbon thermique ou de la production d’électricité à partir de charbon thermique.
critères d’exclusion sont soumis à un examen périodique et tout changement sera reflété dans la politique d’exclusion. Les investissements qui sont détenus par le Compartiment mais qui deviennent l’objet de restrictions après avoir été acquis par le Compartiment seront vendus. Ces ventes auront lieu sur une période à déterminer par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
Le Compartiment fait référence à des données ESG de tiers au cours du processus de recherche des valeurs mobilières, mais ne s’appuie pas sur des données ESG de tiers aux fins de construction du portefeuille. Le Conseiller en Investissement s’appuie sur sa propre analyse pour la sélection des titres et la construction du portefeuille plutôt que sur l’analyse de tiers. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables ou des données fournies par des tiers.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Japanese Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

Les Jours de Transaction du Japanese Equity Fund
Les Jours de Transaction pour le Japanese Equity Fund tiennent compte des dates (i) auxquelles les marchés du Japan Exchange Group sont fermés à la négociation et au règlement-livraison ou (ii) que les Administrateurs, en consultation avec le Conseiller en Investissement, ont déterminées à leur entière discrétion. Dans le présent Prospectus, les références à un Jour de Transaction du
Japanese Equity Fund s’entendent de tout jour à l’exception : (a) tout autre jour que les Administrateurs, en consultation avec le Conseiller en Investissement, ont déterminé à leur entière discrétion, et (b) des jours au cours desquels les marchés du Japan Exchange Group et les banques commerciales à Luxembourg ou au Japon sont autorisés ou tenus par la législation applicable ou par décision des autorités de fermer (y compris les samedis et les dimanches). La liste des « Jours Fermés à la Négociation » prévus sera disponible sur le site Internet de la Société (www.morganstanleyinvestmentfunds.com) et sera mise à jour à l’avance, au moins deux fois par an. Toutefois, la liste peut être mise à jour ponctuellement en présence de circonstances exceptionnelles lorsque les Administrateurs estiment que c’est dans le meilleur intérêt des Actionnaires du Compartiment.
JAPANESE SMALL CAP EQUITY FUND
L’objectif d’investissement du Japanese Small Cap Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Yen, en investissant principalement dans des titres de capital de sociétés de petite capitalisation situées au Japon et qui sont cotées sur une bourse quelconque ou sur les marchés de gré à gré (sous réserve de l’Annexe A « Limites et restrictions d’investissement »). Le Compartiment peut également investir, à titre accessoire, en titres de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en titres de créance convertibles en actions ordinaires, warrants et autres valeurs mobilières donnant accès au capital.
Aux fins de ce Compartiment, on entend par « sociétés de petite capitalisation » les sociétés dont la capitalisation se situe dans la fourchette des sociétés reprises dans l’indice MSCI Japan Small Cap. L’indice MSCI Japan Small Cap mesure la performance du segment des petites capitalisations du marché japonais. Avec plus de 900 composants, l’indice représente environ 14% de la capitalisation boursière ajustée du flottant de l’univers des actions japonaises. La capitalisation boursière moyenne des entreprises de l’indice MSCI Japan Small Cap est d’environ 100 milliards JPY, avec une valeur médiane d’environ 60-70 milliards JPY (ces chiffres peuvent fluctuer). Voir www.msci.com pour les dernières informations concernant cet indice.
Le Conseiller en Investissement applique une approche d’investissement ascendante. Le Conseiller en Investissement cherche à exploiter les inefficiences du marchés touchant les titres de petite capitalisation, qui font souvent l’objet d’une couverture limitée côté vente, tout en gérant la volatilité qui y est associée. Le Compartiment inclut les titres qui, selon le Conseiller en Investissement, offrent un potentiel de croissance totale prévisionnel plus élevé sur la base de la valorisation par rapport aux autres opportunités.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence, et par conséquent, n’est pas limité par la
composition de l’indice MSCI Japan Small Cap. Le Compartiment se réfère à l’Indice MSCI Japan Small Cap afin de déterminer la fourchette de capitalisation des émetteurs dans lesquels le Compartiment investit. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Japanese Small Cap Equity Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

Jours de Transaction du Japanese Small Cap Equity Fund
Les Jours de Transaction pour le Japanese Small Cap Equity Fund tiennent compte des dates auxquelles les marchés du Japan Exchange Group sont fermés à la négociation et au règlement- livraison. Dans le présent Prospectus, les références à un Jour de Transaction du Japanese Small Cap Equity Fund s’entendent de tout jour à l’exception des jours au cours desquels les marchés du Japan Exchange Group et les banques commerciales à Luxembourg ou au Japon sont autorisés ou tenus par la législation applicable ou par décision des autorités de fermer (y compris les samedis et les dimanches). La liste des « Jours Fermés à la Négociation » prévus sera disponible sur le site Internet de la Société (www.morganstanleyinvestmentfunds.com) et sera mise à jour à l’avance, au moins deux fois par an. Les Administrateurs peuvent toutefois décider que le jour précédant un jour au cours duquel les marchés du Japan Exchange Group et les banques commerciales à Luxembourg ou au Japon sont autorisés ou tenus par la législation applicable ou par décision des autorités de fermer est également un
« Jour Fermé à la Négociation » si cette décision est dans l’intérêt
des Actionnaires.
LATIN AMERICAN EQUITY FUND
L’objectif d’investissement du Latin American Equity Fund est la recherche d’une optimisation du rendement total, mesuré en Dollar US, par des investissements consistant principalement dans des titres de capital et donnant accès au capital de sociétés constituées
ou exerçant la plus grande partie de leur activité économique dans les pays d’Amérique Latine.
Ces pays incluent l’Argentine, la Bolivie, le Brésil, le Chili, la Colombie, le Costa Rica, la République dominicaine, l’Équateur, le Salvador, le Guatemala, le Honduras, le Mexique, le Nicaragua, Panama, le Paraguay, le Pérou, l’Uruguay et le Venezuela, pourvu que les marchés de ces pays soient considérés comme des « Marchés Reconnus » au sens de l’article 41, alinéa 1, de la Loi de 2010. Au fur et à mesure du développement d’autres marchés, le Compartiment entend augmenter la diversité des marchés latino- américains sur lesquels il investit. De temps en temps, le Compartiment pourra concentrer ses investissements dans un nombre limité de pays. Les investissements dans des titres cotés sur des marchés qui ne sont pas des Marchés Reconnus seront considérés comme des investissements dans des titres non cotés (voir l’Annexe A « Limites et restrictions d’investissement ») jusqu’à ce que les marchés concernés remplissent les exigences requises pour constituer des Marchés Reconnus.
Le Compartiment peut également investir, dans le cadre de son principal univers d’investissement, en actions assorties de droits préférentiels, warrants et autres valeurs mobilières donnant accès au capital, y compris en certificats de titres en dépôt (tels que des American Depositary Receipt (ADR) et des Global Depositary Receipts (GDR)), et en titres de créance convertibles en actions ordinaires de sociétés constituées ou exerçant la plus grande partie de leur activité économique dans les pays d’Amérique Latine.
Le Compartiment peut avoir recours aux produits dérivés à des fins de gestion efficace de portefeuille (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A), afin d’obtenir une exposition à certains marchés à moindre coût ou de réduire les risques. Le Compartiment n’investit ni à titre principal ni de manière significative en produits dérivés.
À titre accessoire, le Compartiment peut investir en titres de sociétés constituées et situées dans des pays autres que des pays latino-américains, dès lors que la valeur des titres de ces sociétés reflète principalement les conditions d’un pays latino-américain, que le marché principal pour la négociation de ces titres se trouve dans un pays latino-américain, ou encore que 50 % du chiffre d’affaires de la société considérée, prise indépendamment ou sur une base consolidée, provient de marchandises produites, de ventes réalisées ou de services fournis dans des pays latino-américains.
Le processus d’investissement intègre à la prise des décisions d’investissement des éléments liés aux enjeux ESG. Le Conseiller en Investissement s’attache à débattre avec la direction de la société des questions de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Latin American Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

NEXTGEN EMERGING MARKETS FUND
L’objectif d’investissement du NextGen Emerging Markets Fund consiste à assurer une croissance à long terme du capital mesurée en euros en investissant principalement dans des titres de capital d’émetteurs « NexGen », y compris des certificats de dépôt (tels que des American Depositary Receipts (ADR) et Global Depositary Receipts (GDR)), les émetteurs « NextGen » étant définis comme
1) des émetteurs situés dans des marchés émergents, y compris les marchés frontières, qui sont déterminés sur la base de la classification de l’indice MSCI Emerging Markets Net ou MSCI Frontier Emerging Markets, ou 2) des émetteurs situés dans des marchés en développement prometteurs en dehors des marchés émergents
« traditionnels », dont les marchés de capitaux ont traditionnellement été négligés par les investisseurs étrangers ou qui en sont aux premières phases du développement de leurs marchés de capitaux et/ou de leur développement économique. Il s’agit de pays qui ne font partie ni de l’indice MSCI Emerging Markets Net ni de l’indice MSCI Frontier Emerging Markets et que le Fonds monétaire international, les Nations Unies ou la Banque mondial considèrent généralement moins matures que les pays développés sur le plan économique. Le Compartiment peut investir dans les pays visés au point 2) pour autant que les marchés de ces pays soient considérés comme des marchés boursiers reconnus (« Marchés Reconnus ») au sens de l’article 41(1) de la Loi de 2010.
Les pays relevant des points 1) et 2) de la définition des émetteurs
« NextGen » ci-avant peuvent inclure, entre autres, l’Albanie,
l’Algérie, l’Argentine, le Bahreïn, le Bengladesh, la Bolivie, le Botswana, le Brésil, la Bulgarie, le Chili, la Colombie, le Costa Rica, la Côte d’Ivoire, la Croatie, la République tchèque, la République dominicaine, l’Équateur, l’Égypte, l’Estonie, l’Éthiopie, la Géorgie, le Ghana, la Grèce, le Guatemala, la Guinée, Haïti, le Honduras, la Hongrie, l’Islande, l’Inde, l’Indonésie, la Jamaïque, la Jordanie, le Kazakhstan, le Kenya, le Koweït, le Laos, la Lettonie, le Liban, la Lituanie, la Malaisie, Maurice, le Mexique, la Mongolie, le Maroc, le Mozambique, la Namibie, le Nigeria, Oman, le Pakistan, Panama, le Paraguay, le Pérou, la Pologne, les Philippines, le Quatar, la Roumanie, la Russie, le Rwanda, l’Arabie saoudite, la Serbie, le Sénégal, la Slovénie, la Slovaquie, l’Afrique du Sud, le Sri Lanka, la Tanzanie, Trinité-et-Tobago, la Thaïlande, la Turquie, le Turkménistan, l’Ukraine, les Émirats arabes unis, l’Uganda, l’Uruguay, l’Ouzbékistan, le Vietnam et la Zambie. Les pays de l’univers d’investissement peuvent changer périodiquement.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 20 % de ses actifs nets dans des Actions A Chinoises via Stock Connect. Les investissements dans des titres cotés sur des marchés autres que des Marchés Reconnus seront considérés comme des investissements en titres non cotés (sous réserve de l’Annexe A « Limites et restrictions d’investissement ») jusqu’à ce que ces marchés soient des Marchés Reconnus.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Conseiller en Investissement intègre la prise en compte des critères ESG dans son processus de prise de décision en matière d’investissement, y compris dans la conduite de la diligence raisonnable et de la recherche, de l’évaluation des investissements, de la sélection des actifs, de la construction du portefeuille, ainsi que de la surveillance continue des investissements et de la gestion du portefeuille. Ce faisant, le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de
l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut liquider ou réduire la position sur un titre, entamer un dialogue/engagement actif avec la direction de l’entreprise ou ajuster les allocations descendantes aux zones géographiques, secteurs ou classes d’actifs. En mettant en œuvre son intégration des Risques en Matière de Durabilité, le Conseiller en Investissement peut utiliser une combinaison de sources d’information, y compris les informations communiquées par les entreprises, les informations autres que les informations communiquées par les entreprises et les recherches et données fournies par des tiers.
Les critères ESG sont pris en compte par le Conseiller en Investissement au cours du processus d’investissement et de recherche afin de sélectionner des investissements qui limitent l’exposition aux Risques en Matière de Durabilité. Ces critères peuvent inclure, sans s’y limiter, les émissions de carbone, la gestion des ressources, la biodiversité, la gestion du travail (par ex. la diversité du conseil d’administration), la diversité des genres, la santé et la sécurité, la sécurité des produits, la confidentialité et la sécurité des données, la rémunération des dirigeants, l’indépendance des organes sociaux et les droits des actionnaires.
Le Conseiller en Investissement estime que les entreprises dotées d’équipes de direction tournées vers l’avenir qui établissent des stratégies proactives sur ces questions ESG seront mieux positionnées d’un point de vue commercial et financier sur le long terme que les sociétés qui ne les prennent pas en compte. Le Compartiment investit dans des entreprises qui suivent de bonnes pratiques de gouvernance et qui font preuve d’une gestion solide des facteurs environnementaux et sociaux importants par rapport à leurs pairs. Le Compartiment cherchera à exclure certaines entreprises fortement exposées aux Risques en Matière de Durabilité, en appliquant à la fois une approche « best effort » à sa sélection d’investissements à cet égard. En appliquant une approche best- effort, la priorité est donnée aux émetteurs démontrant une amélioration de leurs pratiques et performances ESG dans le temps ou de bonnes perspectives en la matière.
Le Conseiller en Investissement s’efforce de faire en sorte que la direction de l’entreprise s’engage sur les problématiques environnementales, sociales et/ou de gouvernance considérées comme importantes et auxquelles l’entreprise est confrontée. L’application de ces critères ESG entraînera une réduction de 20 % ou plus de l’univers d’investissement, tel que défini dans les trois premiers paragraphes ci-avant. L’objectif du Conseiller en Investissement sera de veiller à ce qu’au moins 90 % du portefeuille du Compartiment soit soumis à l’analyse des critères ESG décrite ci-avant.
En outre, le Compartiment cherche à atteindre une empreinte carbone inférieure à celle du MSCI Frontier Emerging Markets (sur la base des données de tiers disponibles).
Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés dont l’activité principale a trait aux combustibles fossiles, à l’extraction de charbon thermique, à la production d’électricité à partir de charbon thermique, aux divertissements pour adultes ou au tabac ;
- sociétés tirant plus de 5 % de leur chiffre d’affaires du pétrole et du gaz arctiques, des sables bitumineux et des jeux d’argent ; et
- sociétés présentant une exposition aux armes à feu civiles ou aux armes controversées.

Aux fins de ce qui précède, les activités principales d’une entreprise sont celles qui représentent individuellement plus de 10 % du chiffre d’affaires de l’entreprise concernée au sens de MSCI.
Le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement ESG supplémentaires, y compris sur des entreprises ne répondant pas aux critères d’exclusion ci-avant, qu’il estime compatibles avec son objectif d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre  dans  la  politique  d’exclusion,  disponible sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les exclusions sont définies sur la base de données provenant de tiers, sauf dans les rares cas où il est établi que ces données sont incorrectes. Les critères d’exclusion seront appliqués à tous les investissements en titres de capital au sein du Compartiment. Les critères d’exclusion ne seront, en revanche, pas appliqués aux investissements pour lesquels le Conseiller en Investissement n’a pas de contrôle direct sur les participations sous-jacentes, par exemple les organismes de placement collectif ou les fonds indiciels cotés (ETF). Les critères d’exclusion sont soumis à un examen périodique et tout changement sera reflété dans la politique d’exclusion. Les investissements qui sont détenus par le Compartiment mais qui deviennent l’objet de restrictions après avoir été acquis par le Compartiment seront vendus. Ces ventes auront lieu sur une période à déterminer par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
Le Compartiment fait référence à des données ESG de tiers au cours du processus de recherche des valeurs mobilières, mais ne s’appuie pas sur des données ESG de tiers aux fins de construction du portefeuille. Le Conseiller en Investissement s’appuie sur sa propre analyse pour la sélection des titres et la construction du portefeuille plutôt que sur l’analyse de tiers. Toutefois, dans certains
cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables ou des données fournies par des tiers.
Le Compartiment est géré activement et se réfère à l’indice MSCI Emerging Markets Net ou à l’indice MSCI Frontier Emerging Markets aux fins de définir en partie une allocation géographique des pays dans lesquels le Compartiment peut investir. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne principalement des actifs des pays référencés par l’indice MSCI Emerging Markets Net ou l’indice MSCI Frontier Emerging Markets et puisse investir en titres de ces pays dans des proportions différentes, il peut également détenir des actifs qui ne son pas exposés aux pays référencés par l’indice MSCI Emerging Markets Net ou l’indice MSCI Frontier Emerging Markets. Il n’existe donc aucune restriction sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice MSCI Emerging Markets Net ou de l’indice MSCI Frontier Emerging Markets.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le NextGen Emerging Markets Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ; et
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

PARAMETRIC EMERGING MARKETS FUND
L’objectif d’investissement du Parametric Emerging Markets Fund est de rechercher une appréciation du capital à long terme en investissant principalement dans un portefeuille diversifié de titres de capital d’entreprises situées dans les pays émergents. On appelle généralement « pays émergents » les pays qui ne sont pas considérés comme des marchés développés et qui ne font par conséquent pas
partie de l’indice MSCI World. Le Compartiment compte investir principalement dans des titres d’entreprises situées dans les pays repris dans l’indice MSCI Emerging Markets ou l’indice MSCI Frontier Markets.
Les principaux investissements du Compartiment seront limités aux certificats de dépôt (y compris les certificats de dépôt américains [ADR], les certificats de dépôt mondiaux [GDR] et les certificats de dépôt sans droit de vote [NVDR]) et aux actions ordinaires et privilégiées.
Le Compartiment peut également investir, à titre accessoire, en titres de capital extérieurs à l’univers d’investissement principal du Compartiment, en Titres à Revenu Fixe, en warrants sur valeurs mobilières, Instruments assimilés à des liquidités et autres valeurs mobilières donnant accès au capital.
Dans le cadre de l’intégration des facteurs environnementaux, sociaux et de gouvernance (« ESG ») et des risques de durabilité à son processus d’investissement et afin de s’adapter à l’évolution de la législation européenne et des préférences des investisseurs en ce qui concerne l’investissement dans des entreprises impliquées directement dans le développement, la production, la maintenance ou le commerce d’armes dites « controversées », le Compartiment a adopté comme politique d’exclure ces investissements de son portefeuille. En outre, tout en ne poursuivant pas d’objectifs environnementaux, sociaux ou de gouvernance particuliers, le Compartiment exclura des investissements sur la base de critères conformes au Pacte mondial des Nations Unies et à la liste d’exclusion de Norges Bank. Une liste publique des entreprises figurant dans la liste d’exclusion de Norges Bank est disponible sur le site https://www.nbim.no/en/responsibility/exclusion-of-companies/. Pour déterminer les entreprises à exclure, le Compartiment tiendra compte de la gravité du comportement des entreprises, de la prépondérance des activités controversées ou de leur importance pour l’entreprise et de la réactivité de la direction face aux problèmes.
Afin d’être éligible au statut de « fonds d’actions » au sens de la section 2, para. 6 de la Loi allemande sur la fiscalité des investissements, le Compartiment investira en permanence au moins 25 % de sa Valeur Liquidative dans des positions en titres de capital admis à la négociation officielle d’un marché boursier ou intégrés à un marché organisé.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur
un marché organisé ou de gré à gré, à des fins de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et se réfère à l’indice MSCI Emerging Markets ou à l’indice MSCI Frontier Markets afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’Indice MSCI Emerging Markets ou de l’indice MSCI Frontier Markets, il peut investir en titres de ces pays dans des proportions différentes et il peut détenir des actifs qui ne proviennent pas de pays référencés par l’Indice MSCI Emerging Markets ou l’indice MSCI Frontier Markets. Il n’existe donc aucune restriction sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice MSCI Emerging Markets ou de l’indice MSCI Frontier Markets.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Parametric Emerging Markets Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

PARAMETRIC GLOBAL DEFENSIVE EQUITY FUND
Le Parametric Global Defensive Equity Fund a pour objectif d’investissement d’offrir une exposition défensive aux actions qui devrait générer une performance ajustée au risque favorable par rapport à l’indice MSCI All Country World Index in USD Net (base). Le Compartiment génère des rendements en recevant des primes d’options ainsi que par le rendement des positions détenues sur l’indice d’actions et des positions en Instruments assimilés aux liquidités. À cet égard, le Compartiment vendra des options d’achat sur indices d’actions pour les indices d’actions éligibles aux OPCVM qui, collectivement, offriront une exposition aux marchés similaires à ceux référencés dans l’indice MSCI All Country World
Index in USD Net (base) et vendra des options de vente sur indices d’actions portant sur des indices d’actions éligibles aux OPCVM qui, collectivement, offriront une exposition aux marché similaires à ceux référencés dans le MSCI All Country World Index in USD Net (base). La politique d’investissement du Compartiment vise par conséquent à exploiter la prime de risque de volatilité.
Le Compartiment investira dans un portefeuille de base généralement composé : (i) de positions sur indices d’actions normalement constituées d’OPCVM ETF réglementés sur indices d’actions ; et (ii) de positions en Instruments assimilés aux liquidités qui seront constituées principalement de Titres à Revenu Fixe avec une échéance résiduelle maximale d’un an ou moins. La Compartiment présentera généralement une exposition égale aux éléments (i) et (ii) (il est prévu d’investir 50 % de la Valeur Liquidative du Compartiment dans (i) et 50 % dans (ii)). Le portefeuille de base sera toutefois rééquilibré périodiquement dans les cas où l’exposition s’écarte de plus de 5 % de l’exposition prévue ci-avant (c’est-à-dire lorsque l’exposition à (i) ou (ii) tombe sous les 45 % ou dépasse les 55 % de la Valeur Liquidative du Compartiment).
Ces ETF ou instruments du marché monétaire ne prélèveront pas de commissions de gestion annuelles dépassant 3 % de leur Valeur Liquidative et seront domiciliés dans l’EEE, au Royaume-Uni, aux États-Unis, à Guernesey, à Jersey ou sur l’Île de Man.
Le Compartiment peut également investir, à titre accessoire, dans des titres de capital ne répondant pas aux critères des investissements principaux du Compartiment, des titres à revenu fixe, des warrants sur valeurs mobilières, des Instruments assimilés aux liquidités ainsi que des ETF réglementés sur indices d’actions ayant le statut de fonds d’investissement alternatifs (FIA) mais qui sont éligibles au statut d’OPCVM ainsi que dans des marchés à terme sur indices d’actions cotés en Bourse.
Afin d’être éligible au statut de « fonds d’actions » au sens de la section 2, para. 6 de la Loi allemande sur la fiscalité des investissements, le Compartiment investira en permanence au moins 25 % de sa Valeur Liquidative dans des positions en titres de capital admis à la négociation officielle d’un marché boursier ou intégrés à un marché organisé.
Afin d’améliorer son rendement ou/ou dans le cadre de ses investissements, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Conseiller en Investissement n’intègre pas les risques de durabilité à ses décisions d’investissement, ces risques n’étant pas pertinents au regard de la stratégie d’investissement du Compartiment. Des informations supplémentaires concernant
l’intégration des risques de durabilité vis-à-vis de la Société sont reprises à la section du Prospectus intitulée « Informations générales relatives à l’intégration des Risques en Matière de Durabilité ».
Le Compartiment fera l’objet d’une gestion active et n’a pas été conçu pour reproduire l’indice MSCI All Country World Index in USD net (base), sauf dans la mesure où les ETF dans lesquels le Compartiment investira seront sélectionnés de manière à offrir une exposition aux marchés similaires à ceux référencés dans l’indice MSCI All Country World Index in USD Net (base).
Communication d’informations au titre du Règlement Taxonomie Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Parametric Global Defensive Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SAUDI EQUITY FUND
L’objectif d’investissement du Saudi Equity Fund est de rechercher un taux de rendement et de croissance à long terme attractif, mesuré en Dollars US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en titres de capital d’émetteurs cotés ou échangés sur le principal marché du Saudi Stock Exchange, le Tadawul, ainsi que d’émetteurs ayant initié une introduction en bourse (« IPO ») (y compris des émissions de droits et dans le respect des restrictions listées ci-après). Les investissements en actions cotées du Compartiment peuvent inclure des investissements dans des actions cotées de plus petites entreprises (à savoir des entreprises dont la valeur de marché n’excède pas 1 milliard de SAR).
Le Compartiment peut également investir jusqu’à 20 % de son actif net dans un ou plusieurs titres de Real Estate Investment Trusts (« REITs ») fermés éligibles qui sont cotés au Tadawul, ainsi que dans des parts de REITs éligibles émis au cours d’une IPO et cotés au Tadawul en temps utile.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et
restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, en titres de créance convertibles en actions ordinaires, en actions assorties de droits préférentiels, en Instruments assimilés aux liquidités, en warrants d’actions et autres valeurs mobilières donnant accès au capital.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Saudi Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

Les Jours de Transaction du Saudi Equity Fund
Les Jours de Transaction pour le Saudi Equity Fund tiennent compte du calendrier de négociation saoudien et du calendrier de négociation luxembourgeois. Dans le présent Prospectus, les références à un Jour de Transaction du Saudi Equity Fund s’entendent des lundis, des mardis, des mercredis ou des jeudis au cours desquels les marchés financiers luxembourgeois et saoudiens sont ouverts à la négociation. Le Saudi Equity Fund ne sera pas ouvert à la négociation le Jour de Transaction suivant des jours fériés saoudiens, tels que l’Aïd. En outre, il n’y a pas de règlement des souscriptions et des rachats pour le Saudi Equity Fund les vendredis et le règlement des souscriptions et rachats tient compte des jours fériés liés au Dollar US et des jours fériés liés à la royauté saoudienne. La liste des « Jours Fermés à la Négociation » prévus et jours fériés sera disponible sur le site Internet de la Société (www.morganstanleyinvestmentfunds.com) et sera mise à jour à l’avance, au moins deux fois par an. Toutefois, la liste peut être mise à jour ponctuellement en présence de circonstances exceptionnelles lorsque les Administrateurs estiment que c’est dans le meilleur intérêt des Actionnaires du Compartiment.
SUSTAINABLE ASIA EQUITY FUND
L’objectif d’investissement du Sustainable Asia Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollars US, en investissant essentiellement dans des titres de capital de sociétés, domiciliées ou exerçant la plus grande partie de leur activité économique en Asie, à l’exclusion du Japon, tirant ainsi parti des perspectives de croissance économique dynamique de cette région. En ciblant cet objectif d’investissement, le Conseiller en Investissement prendra en compte des critères ESG (tels que détaillés ci-après) afin d’investir dans des entreprises qui obtiennent de meilleurs résultats que leurs pairs en matière de risques ESG (au sens décrit ci-dessous) ou sur un ou plusieurs thèmes de durabilité et dont le positionnement a pour but de bénéficier du, ou contribuer au, développement durable des pays dans lesquels ces entreprises opèrent, sur la base des critères ESG du Conseiller en Investissement. L’application de ces critères ESG devrait entraîner une réduction de 20 % ou plus de l’univers investissable.
Le Compartiment peut également investir à titre accessoire dans des titres de créance convertibles en actions ordinaires, des actions de préférence, des obligations, des obligations participatives, des warrants et, dans une moindre mesure, le Compartiment peut aussi investir dans des organismes de placement collectif, y compris des fonds fermés, les Compartiments de la Société, des ETF et des titres peu négociés.
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en considération des critères ESG dans sa prise de décision d’investissement. Le Compartiment investira dans des sociétés des marchés de la région Asie, hors Japon, qui contribuent positivement à et/ou prennent en compte un ou plusieurs thèmes de durabilité, y compris, sans toutefois s’y limiter, la transition énergétique responsable, la production durable et l’économie circulaire, l’amélioration de l’accès et du caractère abordable, la croissance économique durable, le travail décent et l’innovation. Le Compartiment s’efforcera également de s’aligner sur les objectifs de l’Accord de Paris sur le changement climatique. Le Compartiment cherche à atteindre une empreinte carbone inférieure à celle du MSCI All Country Asia ex-Japan Net Index.
Le Conseiller en Investissement estime que les entreprises dotées d’équipes de direction tournées vers l’avenir qui établissent des stratégies proactives sur les questions de durabilité et de critères ESG seront mieux positionnées d’un point de vue commercial et financier sur le long terme que les sociétés qui ne les prennent pas en compte. Le Compartiment cherche à investir dans des sociétés dont les revenus de produits, de politiques, d’initiatives, de leadership dans son secteur et/ou d’objectifs établis pour aborder de manière proactive un ou plusieurs des thèmes de durabilité susmentionnés. Le Conseiller en Investissement complètera ce processus de sélection des titres par la recherche et l’analyse, y
compris les engagements directs de l’entreprise et les données fournies par des tiers.
En plus d’investir dans des entreprises qui suivent de bonnes pratiques de gouvernance et qui font preuve d’une gestion solide des problématiques de durabilité et des facteurs ESG par rapport à leurs pairs, le Compartiment investira dans des entreprises en Asie, à l’exclusion du Japon, qui offrent des solutions évolutives et rentables pour répondre aux questions urgentes de durabilité, notamment le changement climatique et la gestion de l’environnement/des ressources. Le Compartiment se concentrera sur les entreprises qui contribuent positivement au développement durable des pays d’Asie, à l’exception du Japon, et cherchera à exclure certaines entreprises fortement exposées aux Risques en Matière de Durabilité. Jusqu’à 10 % du portefeuille du Compartiment peut être composé d’actifs qui ne sont pas soumis à l’analyse de durabilité décrite ci-avant.
Le Conseiller en Investissement utilise une approche d’investissement descendante (top down) flexible afin d’identifier les opportunités d’investissement compatibles avec l’univers d’investissement autorisé et sélectionne les entreprises en utilisant le processus fondamental de sélection de titres ascendant. Les critères ESG sont pris en compte par le Conseiller en Investissement au cours du processus d’investissement et de recherche afin de limiter l’exposition aux Risques en Matière de Durabilité et de rechercher des opportunités d’investissement qui sont alignées sur les thèmes de durabilité identifiés ci-avant. Ces critères peuvent comprendre, entre autres, les émissions de carbone, la rareté de l’eau, la gestion des déchets, la biodiversité, la gestion du travail, la diversité des genres, la santé et la sécurité, la sécurité des produits, la confidentialité et la sécurité des données, la rémunération des dirigeants, l’indépendance des organes sociaux et les droits des actionnaires. Le Conseiller en Investissement s’efforce de faire en sorte que la direction de l’entreprise s’engage sur les problématiques environnementales et/ou sociales considérées comme importantes et auxquelles l’entreprise est confrontée, ainsi que sur les pratiques de gouvernance d’entreprise.
Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés dont l’activité principale (définie comme représentant 10 % du chiffre d’affaires) a trait à l’extraction de charbon thermique, à la production d’électricité à partir de charbon thermique, aux divertissements pour adultes, aux combustibles fossiles, au tabac ou à l’alcool ;
- sociétés tirant plus de 5 % de leur chiffre d’affaires du pétrole et du gaz arctiques, des sables bitumineux et des jeux d’argent ; et
- sociétés présentant une exposition aux armes à feu civiles ou aux armes controversées.

Le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées à des critères ESG, au fil du temps, qu’il estime compatibles avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les exclusions sont définies sur la base de données provenant de tiers, sauf dans les rares cas où il est établi que ces données sont incorrectes. Les critères d’exclusion seront appliqués à tous les investissements en titres de capital au sein du Compartiment sur la base des données de tiers disponibes. Les critères d’exclusion ne seront pas appliqués aux investissements dans lesquels le Conseiller en Investissement n’a pas de contrôle direct sur les participations sous-jacentes, par exemple les organismes de placement collectif ou les ETF à capital variable. Les critères d’exclusion sont soumis à un examen périodique et tout changement sera reflété dans la politique d’exclusion. Les investissements qui sont détenus par le Compartiment mais qui deviennent l’objet de restrictions après avoir été acquis par le Compartiment seront vendus. Ces ventes auront lieu sur une période à déterminer par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
Le Compartiment fait référence à des données ESG de tiers au cours du processus de recherche des valeurs mobilières, mais ne s’appuie pas sur des données ESG de tiers aux fins de construction du portefeuille. Le Conseiller en Investissement s’appuie sur sa propre analyse pour la sélection des titres et la construction du portefeuille plutôt que sur l’analyse de tiers. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables ou des données fournies par des tiers.
Le Conseiller en Investissement intègre les Risques en Matière de Durabilité dans son processus de prise de décision en matière d’investissement, y compris dans la conduite de la diligence raisonnable et de la recherche, de l’évaluation, de la sélection des actifs, de la construction du portefeuille, ainsi que de la surveillance continue des investissements et de la gestion du portefeuille. Ce faisant, le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer ces risques, le Conseiller en Investissement peut vendre ou sous-pondérer un titre, entamer un dialogue/engagement actif avec la direction de l’entreprise ou ajuster les allocations descendantes aux zones géographiques, secteurs ou classes d’actifs. En mettant en œuvre
son intégration des Risques en Matière de Durabilité, le Conseiller en Investissement peut utiliser une combinaison de sources d’information, y compris les informations divulguées par les entreprises, les informations non divulguées par les entreprises et les recherches et données fournies par des tiers.
Pour lever toute ambiguïté, les titres de capital comprennent les certificats de dépôt (y compris les American Depositary Receipts (ADRs), les Global Depositary Receipts (GDRs), les International Depository Receipts (IDRs), les European Depositary Receipts (EDRs)) et les Real Estate Investment Trusts (REITS). Le Compartiment investit sur des marchés de la région Asie à l’exclusion du Japon, tels que la Chine, Hongkong, l’Inde, la Malaisie, Singapour, la Corée du Sud, Taiwan, l’Indonésie et la Thaïlande. Des opportunités supplémentaires sont également recherchées, lorsque la réglementation le permet, sur les marchés émergents et les marchés périphériques en Asie, y compris les Actions A Chinoises via Stock Connect. Le Compartiment peut investir jusqu’à 20 % de ses actifs nets dans des Actions A Chinoises via Stock Connect.
Le Compartiment utilise le MSCI All Country Asia ex-Japan Net Index comme indice de référence, qui est représentatif de l’univers des actions de la région Asie à l’exclusion du Japon. L’indice de référence est utilisé à des fins de comparaison de performance uniquement et n’intègre pas de caractéristiques environnementales ou sociales.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable Asia Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE EMERGING MARKETS EQUITY FUND
L’objectif d’investissement du Sustainable Emerging Markets Equity Fund est la recherche d’une d’une optimisation du
rendement total, mesurée en Dollar US, par des investissements consistant principalement en titres de capital des pays à marchés émergents. Le Compartiment investit principalement dans les pays à Marchés Emergents (tels que définis ci-après) dont la Société considère que les économies sont en pleine croissance et où les marchés deviennent plus sophistiqués. Pour ce Compartiment, les pays à « Marchés Émergents » sont ceux définis comme tels par l’indice MSCI Emerging Markets Net, pourvu que les marchés de ces pays soient considérés comme des « Marchés Reconnus » au sens de l’article 41, alinéa 1, de la Loi de 2010. Pour réaliser son objectif d’investissement à titre principal dans des pays à Marchés Émergents, le Compartiment peut investir dans des titres de sociétés constituées en vertu des lois de pays à Marchés Emergents, ou situées, ou ayant leur principal établissement, dans des pays à Marchés Émergents et peut également investir dans des titres de sociétés constituées en vertu des lois de pays à Marchés Développés, ou situées, ou ayant leur principal établissement, dans des pays à Marchés Développés (tels que définis, pour ce Compartiment, par l’indice MSCI World) lorsque le principal marché de négociation des titres de la Société est dans un pays à Marchés Emergents, ou encore lorsque, au moment de l’achat, 50 % du chiffre d’affaires de la société, pris indépendamment ou sur une base consolidée, provient de marchandises produites, de ventes réalisées ou de services fournis dans un ou plusieurs pays à Marchés Emergents, ou lorsque la société a au moins 50% de ses actifs, de ses activités principales et/ou de ses employés dans des pays à Marchés Emergents, ou dans d’autres valeurs mobilières donnant accès au capital situées dans des Marchés Développés, mais offrant une exposition aux Marchés Émergents (par exemple des certificats de titres en dépôt) (« Titres exposés aux Marchés Émergents »).
Le Compartiment peut investir à titre accessoire dans des titres de capital de Marchés Périphériques éligibles (à savoir les pays qui ne sont ni des Marchés Développés ni des Marchés Émergents tels que ces termes sont définis ci-avant pour ce Compartiment) ou dans des titres de capital ne répondant pas aux critères d’investissement principaux du Compartiment. Le Compartiment peut également investir à titre accessoire dans des parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou d’autres fonds fermés, des Actions A chinoises via Stock Connect, des Titres à Revenu Fixe, des titres de créance convertibles en actions ordinaires, des actions assorties de droits préférentiels, des obligations participatives et des warrants, dans chaque cas pour obtenir une exposition à des Marchés Émergents ou des Marchés Périphériques. Le Compartiment peut également investir jusqu’à 20 % de son actif net en Actions A chinoises via Stock Connect. Dans un but de protection temporaire, au cours de périodes pendant lesquelles la Société considère que des changements économiques, financiers ou politiques le justifient, le Compartiment peut réduire sa détention de titres de capital de pays à Marchés Emergents à moins de 50 % de son actif net et investir dans d’autres titres de capital dans des pays à Marchés Développés (qu’il s’agisse
de Titres exposés aux Marchés Émergents ou non) ou des Titres à Revenu Fixe (qu’ils offrent une exposition aux Marchés Émergents ou aux Marchés Développés).
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en considération des critères ESG dans sa prise de décision d’investissement.
En ciblant son objectif d’investissement, le Conseiller en Investissement prendra en compte des critères ESG (tels que détaillés ci-après) afin d’investir dans des entreprises qui (i) obtiennent de meilleurs résultats que leurs pairs en matière de risques ESG (au sens décrit ci-dessous) ou sur un ou plusieurs thèmes de durabilité (comme détaillé ci-après) et (ii) dont le positionnement a pour but de bénéficier du, ou contribuer au, développement durable des pays dans lesquels ces entreprises opèrent, sur la base des critères ESG du Conseiller en Investissement. L’application de ces critères ESG devrait entraîner une réduction de 20 % ou plus de l’univers d’investissement tels que définis dans les deux premiers paragraphes ci-avant. L’objectif du Conseiller en Investissement sera de veiller à ce qu’au moins 90 % du portefeuille du Compartiment soit soumis à l’analyse de durabilité décrite ci-avant.
Les critères ESG peuvent comprendre, sans s’y limiter, les risques ESG tels que les émissions de carbone, la gestion des ressources, la gestion des déchets, la biodiversité, la gestion du travail, la diversité des genres, la santé et la sécurité, la sécurité des produits, la confidentialité et la sécurité des données, la rémunération des dirigeants, l’indépendance des organes sociaux et les droits des actionnaires. Les thèmes de durabilité peuvent inclure, sans toutefois s’y limiter, la transition énergétique responsable, la production durable et l’économie circulaire, l’amélioration de l’accès et du caractère abordable, la croissance économique durable, le travail décent et l’innovation. Le Compartiment cherche à atteindre une empreinte carbone inférieure à celle du MSCI Emerging Markets Net Index au total au niveau du portefeuille. En mettant davantage l’accent sur les investissements dans des sociétés qui contribuent positivement à un ou plusieurs thèmes de durabilité, dont le changement climatique, ou qui y répondent, le Compartiment s’efforcera de s’aligner sur les objectifs de l’Accord de Paris.
En termes d’investissement dans des entreprises qui obtiennent de meilleurs résultats que leurs pairs sur un ou plusieurs thèmes de durabilité, le Conseiller en Investissement estime que les entreprises dotées d’équipes de direction tournées vers l’avenir qui établissent des stratégies proactives sur les questions de durabilité et de critères ESG tels que définis dans cette politique d’investissement seront mieux positionnées d’un point de vue commercial et financier sur le long terme que les sociétés qui ne les prennent pas en compte. Par conséquent, le Compartiment cherche à investir dans des
sociétés dont les revenus de produits, de politiques, d’initiatives, de leadership dans son secteur et/ou d’objectifs établis pour aborder de manière proactive un ou plusieurs des thèmes de durabilité susmentionnés. Le Conseiller en Investissement complètera ce processus de sélection des titres par la recherche et l’analyse, y compris les engagements directs de l’entreprise et les données fournies par des tiers.
En plus d’investir dans des entreprises qui suivent de bonnes pratiques de gouvernance et qui font preuve d’une gestion solide des problématiques de durabilité et des facteurs ESG par rapport à leurs pairs, le Compartiment investira dans des entreprises des pays à Marchés Emergents qui offrent des solutions évolutives et rentables pour répondre aux questions urgentes de durabilité, notamment le changement climatique et la gestion de l’environnement/des ressources. À cet égard, le Compartiment se concentrera sur les entreprises qui contribuent positivement au développement durable des pays à Marchés Emergents en appliquant à la fois une approche « best effort » à sa sélection d’investissements à cet égard. En appliquant une approche best- effort, la priorité est donnée aux émetteurs démontrant une amélioration de leurs pratiques et performances ESG dans le temps ou de bonnes perspectives en la matière. Le Compartiment cherchera également à exclure les sociétés fortement exposées aux Risques en Matière de Durabilité.
Le Conseiller en Investissement utilise une approche d’investissement descendante (top down) flexible afin d’identifier les opportunités d’investissement compatibles avec l’univers d’investissement autorisé et sélectionne les entreprises en utilisant le processus fondamental de sélection de titres ascendant. Les critères ESG sont pris en compte par le Conseiller en Investissement au cours du processus d’investissement et de recherche afin de limiter l’exposition aux Risques en Matière de Durabilité et de rechercher des opportunités d’investissement qui sont alignées sur les thèmes de durabilité identifiés ci-avant. Le Conseiller en Investissement s’efforce de faire en sorte que la direction de l’entreprise s’engage sur les problématiques environnementales et/ou sociales considérées comme importantes et auxquelles l’entreprise est confrontée, ainsi que sur les pratiques de gouvernance d’entreprise.
Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés dont l’activité principale (définie comme représentant 10 % du chiffre d’affaires) a trait à l’extraction de charbon thermique, à la production d’électricité à partir de charbon thermique, aux divertissements pour adultes, aux combustibles fossiles, au tabac ou à l’alcool ;
- sociétés tirant plus de 5 % de leur chiffre d’affaires du pétrole et du gaz arctiques, des sables bitumineux et des jeux d’argent ; et
- sociétés présentant une exposition aux armes à feu civiles ou aux armes controversées.

Le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées à des critères ESG, au fil du temps, qu’il estime compatibles avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre aux adresses www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im. Les exclusions sont définies sur la base de données provenant de tiers, sauf dans les rares cas où il est établi que ces données sont incorrectes. Les exclusions sont appliquées à tous les investissements en titres de capital au sein du Compartiment sur la base des données de tiers disponibes. Les exclusions ne seront, en revanche, pas appliquées aux investissements pour lesquels le Conseiller en Investissement n’a pas de contrôle direct sur les participations sous-jacentes, par exemple les organismes de placement collectif ou les fonds indiciels cotés (ETF). Les exclusions sont soumises à un examen périodique et tout changement sera reflété dans la politique d’exclusion. Les investissements qui sont détenus par le Compartiment mais qui deviennent l’objet de restrictions après avoir été acquis par le Compartiment seront vendus. Ces ventes auront lieu sur une période à déterminer par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
Le Compartiment fait référence à des données ESG de tiers au cours du processus de recherche des valeurs mobilières, mais ne s’appuie pas sur des données ESG de tiers aux fins de construction du portefeuille. Le Conseiller en Investissement s’appuie sur sa propre analyse pour la sélection des titres et la construction du portefeuille plutôt que sur l’analyse de tiers. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables ou des données fournies par des tiers.
Le Conseiller en Investissement intègre les Risques en Matière de Durabilité dans son processus de prise de décision en matière d’investissement, y compris dans la conduite de la diligence raisonnable et de la recherche, de l’évaluation, de la sélection des actifs, de la construction du portefeuille, ainsi que de la surveillance continue des investissements et de la gestion du portefeuille. Ce faisant, le Conseiller en Investissement prend dûment en considération la pertinence et l’importance potentielle des Risques en Matière de Durabilité pour une opportunité d’investissement particulière ou pour le portefeuille dans son ensemble dans le contexte de l’objectif d’investissement et de l’horizon temporel prévu pour la détention d’un titre particulier. Les Risques en Matière de Durabilité peuvent avoir un impact négatif sur la valeur d’un titre ou d’un portefeuille. Afin d’atténuer les Risques en Matière de Durabilité, le Conseiller en Investissement peut vendre ou sous-pondérer un titre qui est soumis à ces risques, entamer un
dialogue/engagement actif avec la direction de l’entreprise ou ajuster les allocations descendantes aux zones géographiques, secteurs ou classes d’actifs. En mettant en œuvre son intégration des Risques en Matière de Durabilité, le Conseiller en Investissement peut utiliser une combinaison de sources d’information, y compris les informations divulguées par les entreprises, les informations non divulguées par les entreprises et les recherches et données fournies par des tiers.
Le Compartiment est géré activement et se réfère à l’indice MSCI Emerging Markets Net afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’Indice MSCI Emerging Markets Net, il peut investir en titres de ces pays dans des proportions différentes de leur allocation dans l’Indice MSCI Emerging Markets Net et il peut détenir des actifs qui ne proviennent pas de pays référencés par l’Indice MSCI Emerging Markets Net. Il n’existe donc aucune restriction sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice MSCI Emerging Markets Net. L’indice MSCI Emerging Markets Net est utilisé à des fins de comparaison de performance uniquement et n’intègre pas de caractéristiques environnementales ou sociales.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable Emerging Markets Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US ADVANTAGE FUND
L’objectif d’investissement de l’US Advantage Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement dans des titres émis par des sociétés américaines et, à titre accessoire, dans des titres émis par des sociétés hors États-Unis. Un émetteur est considéré comme venant d’un pays (y compris des États-Unis) ou d’une région géographique donné(e) lorsque (i) le marché principal de négociation de ses titres se trouve dans ce pays ou cette région géographique ; (ii) il tire 50 % ou plus de son chiffre d’affaires annuel, seul ou sur une base consolidée, de biens produits, de ventes réalisées ou de services fournis dans ce pays ou cette région géographique ; ou (iii) il est régi par les lois de, ou a un établissement principal qui se situe dans ce pays ou cette région géographique. Sur la base de ces critères, il est possible qu’un émetteur donné soit considéré comme étant de plus d’un pays ou d’une région géographique. Dans des conditions de marché normales, l’objectif d’investissement du Compartiment sera réalisé en investissant principalement dans des titres de capital de sociétés à forte capitalisation bien établies. Le processus d’investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés dont il estime qu’elles ont une forte notoriété, qu’elles bénéficient d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, qui ont un bilan comptable solide et qui présentent un rapport risque/ rendement attractif.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également être investi, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, titres de créance convertibles en actions ordinaires, certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), actions assorties de droits préférentiels, warrants sur valeurs mobilières, Actions A chinoises via Stock Connect, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement
cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Advantage Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US CORE EQUITY FUND
L’objectif d’investissement du US Core Equity Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US. Le Compartiment investit principalement en titres de capital émis par des sociétés à capitalisation boursière moyenne à grande, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)) et des titres de Real Estate Investment Trusts (« REITs ») fermés, émis par des sociétés localisées aux Etats-Unis.
Le processus d’investissement repose sur la combinaison du recours à des modèles quantitatifs pour évaluer les facteurs de marché, et à la recherche fondamentale sur des titres spécifiques pour identifier les sociétés aux valorisations attractives, au potentiel d’appréciation supérieur à la moyenne et aux taux de rendement compétitifs.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, en titres de créance convertibles en actions ordinaires, en actions assorties de droits préférentiels, en Instruments assimilés aux liquidités, en warrants d’actions et autres valeurs mobilières donnant accès au capital.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (dans le respect de l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le US Core Equity Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US FOCUS PROPERTY FUND
L’objectif d’investissement du US Focus Property Fund est la recherche d’une croissance du capital à long-terme, mesurée en Dollar US, en investissant principalement dans un portefeuille ciblé et concentré de titres de capital, y compris des certificats de titres en dépôt (notamment des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), de sociétés du secteur immobilier ou étroitement liées au secteur immobilier situées aux Etats-Unis et dont le Conseiller en Investissement considère qu’elles offrent un potentiel de rendement total prévisionnel plus élevé par rapport à d’autres opportunités au sein des classes d’actifs mentionnées ci-avant.
Les sociétés du secteur immobilier ou étroitement liées au secteur immobilier peuvent inclure des sociétés principalement engagées dans le développement et/ou la propriété de biens immobiliers générateurs de revenus ; des sociétés qui exploitent, construisent, financent ou vendent des biens immobiliers ; des sociétés détenant des participations importantes liées à l’immobilier et/ou des services ou produits liés au secteur immobilier, y compris, sans toutefois s’y limiter, la gestion immobilière, les courtiers, les produits de construction et la technologie immobilière ; et des véhicules de placement collectif en immobilier, tels que les fiducies d’investissement à participation unitaire immobilière cotées en bourse, tous les types de fiducies de placement immobilier (REITS) à capital fixe éligibles et les organismes de placement collectif.
Le Compartiment peut également investir, à titre accessoire, dans des titres de participation ne satisfaisant pas aux critères des investissements initiaux du Compartiment, y compris, sans toutefois s’y limiter : des actions préférentielles et des titres préférentiels convertibles, des titres de créance convertibles en actions ordinaires, des droits et des warrants de souscription de titres de participations, des actions de sociétés d’investissement, des
intérêts dans des sociétés en commandite et d’autres instruments donnant accès au capital.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Conseiller en Investissement gère activement le Compartiment à l’aide d’une méthodologie d’investissement à forte conviction, disciplinée, ascendante et fondée sur les fondamentaux. Le Compartiment sera composé de titres qui, selon le Conseiller en Investissement, offrent un potentiel de rendement total prévisionnel plus élevé sur la base de la valorisation par rapport aux autres opportunités de l’univers d’investissement. Le Conseiller en Investissement évaluera les facteurs spécifiques à l’immobilier, les facteurs liés aux titres au sens large, ainsi que les facteurs ESG dans leur analyse fondamentale afin de calculer les paramètres d’évaluation appropriés. Des considérations descendantes sont incorporées dans le processus de construction du portefeuille et visent à obtenir une exposition à travers les secteurs et à intégrer les inflexions fondamentales prévues, les considérations macroéconomiques, entre autres facteurs. Le Conseiller en Investissement sélectionne activement des positions dans un nombre limité de titres de capital.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Les principaux thèmes ESG peuvent inclure, sans s’y limiter, la consommation d’énergie et les énergies renouvelables, la consommation d’eau, les émissions, la diversité et l’égalité des sexes, le travail et les droits de l’homme, la santé, le bien-être et la sécurité des employés et locataires, ainsi que la gouvernance et la communication des informations ESG de la société. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut
discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations immobilières. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder ou exploiter des biens immobiliers destinés aux prisons ;
- posséder ou exploiter des biens immobiliers utilisés pour fabriquer du cannabis ;
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des mines de charbon ;
- posséder, fabriquer ou produire des armes controversées et armes à feu à usage civil ; et
- posséder, fabriquer ou produire du pétrole et du gaz arctiques.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucune mesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice
de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Focus Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US GROWTH FUND
L’objectif d’investissement de l’US Growth Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement dans des titres émis par des sociétés américaines et, à titre accessoire, dans des titres émis par des sociétés hors États-Unis. Un émetteur est considéré comme venant d’un pays (y compris des États-Unis) ou d’une région géographique donné(e) lorsque (i) le marché principal de négociation de ses titres se trouve dans ce pays ou cette région géographique ; (ii) il tire 50 % ou plus de son chiffre d’affaires annuel, seul ou sur une base consolidée, de biens produits, de ventes réalisées ou de services fournis dans ce pays ou cette région géographique ; ou (iii) il est régi par les lois de, ou a un établissement principal qui se situe dans ce pays ou cette région géographique. Sur la base de ces critères, il est possible qu’un émetteur donné soit considéré comme étant de plus d’un pays ou d’une région géographique. Dans des conditions de marché normales, l’objectif d’investissement du Compartiment sera réalisé en investissant essentiellement dans des titres de capital de sociétés de qualité axées sur la croissance. Le processus d’investissement mettra l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés uniques dont il estime qu’elles bénéficient d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, qui ont un bilan comptable solide et qui présentent un rapport risque/rendement attractif. L’accent est mis sur la sélection des titres individuels.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, titres de créance convertibles en actions ordinaires, certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), actions assorties de droits préférentiels, warrants sur valeurs mobilières, Actions A chinoises via Stock Connect, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime
cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Growth Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US INSIGHT FUND
L’objectif d’investissement de l’US Insight Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement en titres émis par des sociétés des États- Unis et, à titre accessoire, en titres émis par des sociétés hors des États-Unis. Un émetteur est considéré comme venant d’un pays (y compris des États-Unis) ou d’une région géographique donné(e) lorsque (i) le marché principal de négociation de ses titres se trouve dans ce pays ou cette région ; (ii) il tire 50 % ou plus de son chiffre d’affaires annuel, seul ou sur une base consolidée, soit de biens produits, soit de ventes effectuées, soit de services fournis dans ce pays ou cette région ; ou (iii) il est constitué ou a son principal lieu d’exploitation dans ce pays ou cette région géographique. Sur la base de ces critères, il est possible qu’un émetteur donné soit considéré comme étant de plus d’un pays ou d’une région géographique.
Dans des conditions de marché normales, le Compartiment poursuit son objectif d’investissement en investissant principalement en titres de capital de sociétés établies ou émergentes. Le processus d’investissement met l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés uniques dont il estime qu’elles bénéficient d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, qui ont un bilan comptable solide et qui présentent un rapport risque/rendement attractif. L’accent est mis sur la sélection des titres individuels.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, titres de créance convertibles en actions ordinaires, certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), actions assorties de droits préférentiels, warrants sur valeurs mobilières, Actions A chinoises via Stock Connect, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Insight Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US PERMANENCE FUND
L’objectif d’investissement de l’US Permanence Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollars US.
Le Compartiment poursuit son objectif d’investissement en investissant principalement en titres de capital de sociétés établies aux Etats-Unis, y compris dans des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) ou des Global Depositary Receipts (GDR)), dont la capitalisation est comparable à celles des sociétés incluses dans l’indice S&P 500.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères ci-avant, en titres de créance convertibles en actions ordinaires, en actions assorties de droits préférentiels, en Actions A chinoises via Stock Connect, en warrants d’actions et autres valeurs mobilières donnant accès au capital. Le Compartiment peut également investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le processus d’investissement met l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés dont il estime qu’elles ont une forte notoriété, qu’elles bénéficient d’avantages concurrentiels durables, dont la visibilité est supérieure à la moyenne, qui peuvent générer des capitaux à des taux de rendement élevés, qui ont un bilan solide et qui présentent un rapport risque/rendement attractif.
Le Compartiment fera des investissements à long terme dans des sociétés dont le Conseiller en Investissement estime qu’elles disposent d’avantages concurrentiels durables. Le Compartiment peut également investir dans des sociétés à croissance plus modérée, des sociétés affichant une volatilité des bénéfices moins importante et/ou des sociétés confrontées à une certaine cyclicité sur leurs marchés cibles
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant
les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; ou
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement, il n’est pas conçu pour suivre un indice de référence, et par conséquent, n’est pas limité par la composition de l’Indice S&P 500. Le Compartiment se réfère à l’Indice S&P 500 afin de déterminer la fourchette de capitalisation des émetteurs dans lesquels le Compartiment investit. La performance du Compartiment est mesurée par rapport à l’Indice S&P 500, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US PROPERTY FUND
L’objectif d’investissement de l’US Property Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement en titres de capital de sociétés immobilières américaines situées aux Etats-Unis. Les sociétés du secteur immobilier ou étroitement liées au secteur immobilier peuvent inclure des sociétés principalement engagées dans le développement et/ou la propriété de biens immobiliers générateurs de revenus ; des sociétés qui exploitent, construisent, financent ou vendent des biens immobiliers ; des sociétés détenant des participations importantes liées à l’immobilier et/ou des services ou produits liés au secteur immobilier, y compris, sans toutefois s’y limiter, la gestion immobilière, les courtiers, les produits de construction et la technologie immobilière ; et des véhicules de placement collectif en immobilier, tels que les fiducies d’investissement à participation unitaire immobilière cotées en bourse, tous les types de fiducies de placement immobilier (REITS) à capital fixe éligibles et les organismes de placement collectif.
Le processus d’investissement s’appuie sur des recherches internes exclusives pour investir dans des sociétés immobilières publiques susceptibles d’offrir la meilleure valeur relative par rapport à leurs actifs et revenus sous-jacents. Le Conseiller en Investissement utilise une approche ascendante, en évaluant chaque titre compris dans l’univers d’investissement afin de parvenir à une estimation de la valeur liquidative et des futurs flux de trésorerie. Les facteurs spécifiques à l’immobilier, les facteurs liés aux titres au sens large et les facteurs ESG sont évalués dans l’analyse fondamentale afin de calculer les paramètres d’évaluation appropriés.
Le Conseiller en Investissement applique également une approche descendante lors du processus de construction du portefeuille en y incorporant plusieurs facteurs qui peuvent inclure les inflexions fondamentales prévues, des considérations macroéconomiques et des évaluations des risques géopolitiques et de pays, afin d’obtenir une exposition diversifiée à travers les pays et/ou les secteurs.
Le Conseiller en Investissement intègre activement la durabilité dans le processus d’investissement en évaluant les principaux
risques et opportunités ESG dans le processus ascendant de sélection des actions, en faisant principalement appel à des fournisseurs ESG tiers pour évaluer et quantifier la performance ESG des émetteurs, en complétant les recherches de tiers par ses propres recherches exclusives, y compris en utilisant un cadre exclusif pour évaluer et quantifier les risques et les opportunités ESG, ce qui entraîne un ajustement quantitatif des estimations d’évaluation, et en s’entretenant avec la direction pour discuter des forces, des faiblesses et des opportunités ESG dans le but d’apporter un changement positif au sein de l’industrie. Les principaux thèmes ESG peuvent inclure, sans s’y limiter, la consommation d’énergie et les énergies renouvelables, la consommation d’eau, les émissions, la diversité et l’égalité des sexes, le travail et les droits de l’homme, la santé, le bien-être et la sécurité des employés et locataires, ainsi que la gouvernance et la communication des informations ESG de la société. Dans le but de susciter un changement positif et d’encourager les sociétés à améliorer leurs performances sur les questions ESG importantes, le Conseiller en Investissement peut discuter avec la direction des renseignements concurrentiels, des analyses de rentabilité financièrement solides et des solutions pratiques pour améliorer potentiellement leurs opérations immobilières. Bien que les critères ESG fassent partie intégrante et fondamentale du processus d’investissement, il ne s’agit que l’un des nombreux facteurs clés utilisés par le Conseiller en Investissement pour déterminer si un investissement sera réalisé ou si sa taille sera ajustée dans le portefeuille global.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale dans l’un des domaines suivants représente plus de 10 % de son chiffre d’affaires :
- posséder ou exploiter des biens immobiliers destinés aux prisons ;
- posséder ou exploiter des biens immobiliers utilisés pour fabriquer du cannabis ;
- posséder, fabriquer ou produire du tabac ;
- posséder, fabriquer ou produire des mines de charbon ;
- posséder, fabriquer ou produire des armes controversées et armes à feu à usage civil ; et
- posséder, fabriquer ou produire du pétrole et du gaz arctiques.

Les investissements n’incluront pas en connaissance de cause les sociétés suivantes :
- sociétés qui présentent une controverse significative liée à leurs activités et/ou produits, et dont l’impact social ou environnemental de la controverse est considéré comme grave par le Conseiller en Investissement ;
- sociétés qui ne respectent pas le Pacte mondial des Nations Unies ou les Principes fondamentaux de l’OIT, sans qu’aucunemesure correctrice et d’amélioration significative ne soit apportée.

Le Conseiller en Investissement a recours à des données ESG de tiers ainsi qu’à ses propres recherches exclusives lors du processus de recherche de titres. Le Conseiller en Investissement examinera les cas de controverse (tels que les exclusions mentionnées ci-dessus) qu’il considère comme très graves, sur la base des scores des fournisseurs de données ESG pertinents et des recherches internes. Toutefois, dans certains cas, les données sur des émetteurs spécifiques ou les exclusions mentionnées ci-avant peuvent ne pas être facilement disponibles et/ou peuvent être estimées par le Conseiller en Investissement en utilisant des estimations raisonnables.
Le Compartiment peut également investir, à titre accessoire, en actions assorties de droits préférentiels, titres de créance convertibles en actions ordinaires, warrants et autres valeurs mobilières donnant accès au capital.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Property Fund convient aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US VALUE FUND
Le US Value Fund a pour objectif d’investissement de rechercher une croissance du capital à long terme en investissant dans une sélection largement diversifiée de titres de capital en se concentrant sur les actions ordinaires d’entreprises de premier plan dont le marché mésestime systématiquement la valeur selon le Conseiller
en Investissement. Les actions de type « valeur » sont des actions ordinaires que le Conseiller en Investissement juge peu chères par rapport à son estimation de la valeur intrinsèque de l’entreprise.
Le Compartiment investira principalement en titres de capital, y compris des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) et des Global Depositary Receipts (GDR)), d’entreprises situées aux États-Unis.
Le Compartiment peut également investir, à titre accessoire, en titres de capital ne respectant pas les critères d’investissement primaires du Compartiment, en Titres à Revenu Fixe, en warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital.
Le Conseiller en Investissement du Compartiment applique une approche ascendante, axée sur la recherche et orientée vers la valeur qui vise à déceler les anomalies de cours qui peuvent survenir sous l’effet de facteurs fondamentaux jugés temporaires et non permanents. Dans la sélection des titres, le Compartiment se concentre principalement sur les émetteurs américains présentant des valorisations attractives et des fondamentaux solides. Le Conseiller en Investissement examine aussi l’incidence de la composition du portefeuille et de l’achat ou de la vente d’un investissement sur le profil de risque global du portefeuille (par ex. le bêta du portefeuille par rapport à son indice de référence et à chaque secteur économique, l’écart-type de son rendement, sa part active et son erreur de suivi ainsi que la composition de son erreur de suivi au niveau d’un secteur ou d’une action).
Outre ce qui précède, le Conseiller en Investissement intègrera les critères ESG à ses décisions d’investissement. Le Conseiller en Investissement utilise les recherches ESG exclusives et complètes produites par son entité affiliée Calvert pour évaluer les investissements. Le Conseiller en Investissement peut tenir compte des facteurs ESG présentant une importance matérielle sur le plan financier dans le cadre du processus de sélection de titres du Compartiment. Ces facteurs d’une importance matérielle sur le plan financier comprennent les Risques en Matière de Durabilité ou les opportunités susceptibles d’affecter la situation financière ou la performance de l’émetteur sur un horizon d’investissement à long terme et peuvent inclure, sans s’y limiter, l’éthique des affaires, la consommation d’énergie, l’efficacité énergétique et les énergies renouvelables, la diversité sur le lieu de travail, le changement climatique, la sécurité des données et la sécurité sur le lieu de travail.
Le Conseiller en Investissement est convaincu que les pratiques de gouvernance d’entreprise des émetteurs ont une incidence directe sur la performance commerciale et les résultats générés par ces émetteurs, et que l’intégration des comportements ESG des entreprises dans les décisions d’investissement assure une approche de l’investissement davantage globale et holistique qui, selon le
Conseiller en Investissement, peut améliorer aussi bien la sélection d’actions que les rendements ajustés des risques à long terme.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Value Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

VITALITY FUND
L’objectif d’investissement du Vitality Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollars US.
Le Compartiment poursuit son objectif d’investissement en investissant principalement en titres de capital, y compris dans des certificats de titres en dépôt (tels que des American Depositary Receipts (ADR) ou des Global Depositary Receipts (GDR)), de sociétés situées aux États-Unis qui sont principalement actives dans la découverte, le développement, la production ou la distribution de produits ou de services liés aux avancées dans les soins de santé. Ces entreprises incluent, sans toutefois s’y limiter, la biotechnologie, les produits pharmaceutiques, les équipements et fournitures médicaux, les technologies des soins de santé, les prestataires et services de soins de santé ainsi que les outils et services dans les sciences de la vie.
Dans le contexte de ce Compartiment, « Vitality » fait référence à l’endurance et à la capacité à prospérer. Cela traduit l’orientation du Compartiment vers le secteur de la santé et l’avis du Conseiller en Investissement selon lequel ce secteur va offrir d’excellentes opportunités de croissance du capital à long terme.
Le Société peut également allouer à des secteurs liés au secteur de la santé mais qui ne sont pas principalement actifs dans l’avancée scientifique des soins de santé. L’allocation entre ces domaines variera en fonction du potentiel relatif que le Conseiller en Investissement perçoit au sein de chaque domaine et des perspectives du secteur de la santé dans son ensemble.
Le Compartiment peut également investir, à titre accessoire, en titres de capital de sociétés ne satisfaisant pas aux critères des investissements principaux du Compartiment, en titres de créance convertibles en actions ordinaires, actions assorties de droits préférentiels, warrants et autres valeurs mobilières donnant accès au capital.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le processus d’investissement met l’accent sur un processus de sélection des titres ascendant (bottom-up) en recherchant des investissements attractifs société par société. Dans le cadre de la sélection des titres qui font l’objet d’investissements, le Conseiller en Investissement investit généralement dans des sociétés uniques dont il estime qu’elles bénéficient d’avantages concurrentiels durables, d’activités solide de recherche et développement et d’un flux productif de nouveaux produits, d’une solidité financière et d’un profil risque/rendement attrayant. Le Compartiment recherche généralement des investissements dans des entreprises qui développement de nouveaux médicaments efficaces, qui facilitent des efforts de recherche et de développement novateurs et plus efficients ainsi que dans des entreprises dont les modèles d’affaires réduisent les coûts ou améliorent la qualité des systèmes de santé.
Le Compartiment investira à long terme dans des sociétés qui, de l’avis du Conseiller en Investissement, présentent les avantages concurrentiels à long terme les plus durables. Le Compartiment peut également investir dans des sociétés à croissance plus modérée, des sociétés affichant une volatilité des bénéfices moins importante et/ou des sociétés confrontées à une certaine cyclicité sur leurs marchés cibles Lorsque le Conseiller en Investissement déterminera que des positions en portefeuille ne satisfont plus aux critères d’investissement du Compartiment, la vente sera généralement envisagée.
Le Conseiller en Investissement intègre activement la durabilité au processus d’investissement, en tenant compte pour ses travaux additionnels d’analyse fondamentale, lesquels peuvent contribuer à des décisions d’investissement, d’éléments liés aux enjeux ESG. Dans le cadre de ses travaux d’analyse, le Conseiller en Investissement cherche à comprendre comment les initiatives environnementales et sociales au sein des sociétés peuvent créer de la valeur en renforçant les avantages concurrentiels durables, en créant des opportunités de croissance, en augmentant la rentabilité, ou en suivant les tendances de croissance de long terme. Le Conseiller en Investissement s’engage généralement dans des discussions avec les équipes de direction des sociétés considérées à propos de leurs pratiques ESG, dans le but d’identifier comment les thèmes de durabilité présentent des opportunités et des risques qui peuvent être importants pour la valeur des titres sur le long terme. Les autres aspects du processus d’investissement incluent une évaluation systématique des politiques de gouvernance, notamment en ce qui concerne l’alignement des rémunérations sur la création de valeur à long terme.
Les investissements n’incluront pas en connaissance de cause une société dont l’activité principale est liée aux éléments suivants :
- le tabac ;
- le charbon ; et
- les armes, y compris les armes à feu à usage civil, les armes à sous-munitions et les mines antipersonnel.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im). Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer au fil du temps des restrictions d’investissement supplémentaires qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-avant après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Vitality Fund peut convenir aux investisseurs qui :
- souhaitent investir en titres de capital ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

COMPARTIMENTS OBLIGATIONS
Les Compartiments Obligations poursuivent les objectifs d’investissement suivants :
CALVERT SUSTAINABLE GLOBAL GREEN BOND FUND
Le Calvert Sustainable Global Green Bond Fund a pour objectif d’investissement d’offrir un niveau de rendement total attractif, mesuré en dollars américains, en investissant dans des Titres à Revenu Fixe du monde entier répondant aux critères ESG et aux critères d’impact du Conseiller en Investissement (décrits plus en détail ci-après) et considérés comme des investissements durables au titre du SFDR, l’objectif étant de favoriser les impacts et résultats favorables du point de vue environnemental et social. Le Compartiment cherche à mettre en œuvre sa stratégie d’investissement par une allocation dans l’ensemble des classes d’actifs à revenu fixe et par la sélection de marchés et d’instruments.
Le Compartiment investira principalement dans des Obligations Vertes (au sens défini ci-après), y compris des titres d’entreprises, de collectivités publiques et d’émetteurs liés à des collectivités publiques dans le monde entier au sein d’une large gamme d’actifs à revenu fixe, y compris les obligations investment grade, les obligations à haut rendement, les titres adossés à des créances hypothécaires, les titres adossés à des actifs, les obligations convertibles et les devises et, sous réserve de la réglementation applicable, dans d’autres titres et créances adossés à des actifs, pour autant que ces instruments aient été titrisés. Les obligations à haut rendement sont considérées comme des Titres à Revenu Fixe émis par des sociétés et dont la notation établie par S&P est inférieure à
« BBB- »ou à « Baa3 »lorsque la notation est établie par Moody’s, ou à toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Ces investissements peuvent comprendre des titres à revenu fixe émis sur des marchés émergents.
En ce qui concerne ce Compartiment, le terme « Durable » (« Sustainable ») signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme mentionné ci-après. Le Conseiller en Investissement peut mener un dialogue constructif avec la direction de la société sur les questions de gouvernance d’entreprise et les questions environnementales et/ ou sociales majeures auxquelles il estime que les entreprises sont confrontées. Il s’efforcera également de favoriser les impacts et résultats favorables du point de vue environnemental et social en tenant compte de thématiques de développement durable comme la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives, le travail décent et les emplois résilients.
Aux fins de ce Compartiment, les « Obligations Vertes » incluent, sans toutefois s’y limiter, les instruments suivants :
- les obligations à « Utilisation verte des fonds levés », dont le produit de la vente est destiné à des projets bénéfiques pour l’environnement (avec ou sans étiquetage d’Obligation Verte) ;
- les Obligations de Développement Durable, dont une partie du produit de la vente est destinée à des projets bénéfiques pour l’environnement ;
- les Obligations de Transition, dont le produit de la vente est destiné à la transition vers des modèles économiques plus favorables à l’environnement ;
- les Obligations Liées au Développement Durable, avec des indicateurs clés de performance et des objectifs environnementaux ; et
- les obligations d’émetteurs qui visent à fournir des solutions écologiques ou qui font preuve de leadership dans la durabilité environnementale.

Le Conseiller en Investissement utilise un cadre d’évaluation exclusif pour les Obligations Vertes (tenant compte, le cas échéant, des orientations reconnues en matière d’Obligations Vertes comme les Green Bond Principles de l’International Capital Market Association) qui permet d’évaluer la robustesse, l’impact attendu et la transparence de tous ces instruments dans le Compartiment. Le Conseiller en Investissement utilise des données de tiers et des recherches ESG dans le cadre de son analyse. Dans l’éventualité où ces données ne seraient pas disponibles, le Conseiller en Investissement utilisera des méthodologies internes ou des estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent varier et donner lieu à des évaluations différentes. Une description détaillée de la méthodologie de sélection et des Principes Calvert de l’Investissement Responsable sont disponibles sur les sites web suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
À titre accessoire, le Compartiment peut investir dans des titres que le Conseiller en Investissement ne considère pas comme des Obligations Vertes pour autant qu’il estime que l’émetteur et/ou le titre concerné apporte une contribution significative à des impacts ou à des résultats sociaux favorables, que ce soit au travers des produits et services de l’émetteur, au travers de ses pratiques ou par le biais des projets ou investissements particuliers financés par l’émission obligataire, et pour autant que le Conseiller en Investissement se soit assuré que les activités de l’émetteur ou les projets associés à l’émission obligataire, selon le cas, n’entraînent pas d’incidences environnementales ou sociales négatives et ne cause pas de préjudice important conformément aux exigences du règlement SFDR en matière d’investissements durables. Ces obligations peuvent inclure des Obligations Sociales labélisées, dont les produits sont affectés à des projets axés sur des résultats sociaux favorables et/ou des populations cibles, ou encore des Obligations Liées au Développement Durable labélisées assorties d’indicateurs clés de performance et d’objectifs sociaux. Ces obligations labélisées seront également soumises au cadre d’évaluation exclusif du Conseiller en Investissement décrit ci-avant. Les labels « Vert »,
« Social », « De durabilité » et « Associé à la durabilité » attribués
aux obligations par leurs émetteurs indiquent que leurs cadres sont, dans la plupart des cas mais pas de manière exclusive, alignés sur les Principes des Obligations Vertes/Sociales/Liées à la Durabilité de l’International Capital Market Association (ICMA), sur les Lignes directrices en matière d’Obligations de Développement Durable ou sur des principes ou lignes directrices mis en place dans d’autres juridictions.
L’objectif du Conseiller en Investissement sera de veiller à ce qu’au moins 90 % des titres en portefeuille fassent l’objet d’une évaluation portant sur les thématiques de durabilité et les questions ESG décrites ci-avant.
L’utilisation de « Calvert » dans le nom de ce Compartiment fait référence à Calvert Research and Management (« Calvert »), dont le rôle vis-à-vis du Compartiment se limite à la fourniture de conseils d’investissement non discrétionnaires au Conseiller en Investissement afin d’aider ce dernier dans sa gestion du Compartiment. Calvert ne possède aucun pouvoir discrétionnaire pour prendre des décisions d’investissement pour le compte du Compartiment, ce pouvoir d’investissement incombant exclusivement au Conseiller en Investissement.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut investir dans des produits dérivés (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) tels que des contrats à terme sur indices, des contrats de différence (CFD), des contrats de swap sur le rendement total (TRS), des billets structurés (y compris des obligations participatives), des obligations convertibles, des titres de créance convertibles en actions assorties de droits préférentiels, des options, des options sur devises, des contrats à terme sur devises et des
contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production:
	- d’armes controversées ;
	- d’armes à feu à usage civil ;
	- de tabac ou lorsque la société tire plus de 10 % de ses revenus de la distribution ou de la vente de tabac ;
	- de jeux d’argent, lorsque la société tire plus de 10 % de ses revenus de cette activité ; et
	- de divertissements pour adultes, lorsque la société tire plus de 10 % de ses revenus de cette activité.


Le Compartiment s’abstiendra également d’investir dans des titres d’émetteurs qui ne respectent pas les le Pacte mondial des Nations unies ou les Principes Fondamentaux de l’OIT, et pour lesquels le Conseiller en Investissement estime que des mesures correctives appropriées n’ont pas été prises.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints ultérieurement, en raison de l’application des critères ESG ci-dessus, après leur acquisition pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Il n’est pas prévu que le Compartiment investisse plus de 50 % de son actif net au total dans des instruments titrisés. Il n’est pas prévu que le Compartiment investisse plus de 20 % de son actif net dans un même type d’instruments titrisés (par ex. des titres adossés à des actifs (ABS), des titres adossés à des créances hypothécaires commerciales (CMBS), des titres adossés à des créances hypothécaires résidentielles (RMBS) et des titres adossés à des créances hypothécaires d’agences (MBS)).
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie, de sorte que les investissements durables du Compartiment ne tiennent pas compte des critères relatifs aux activités économiques durables sur le plan environnemental selon le Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Calvert Sustainable Global Green Bond Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EMERGING MARKETS CORPORATE DEBT FUND
L’objectif d’investissement de l’Emerging Markets Corporate Debt Fund est la recherche d’une optimisation du rendement total, mesuré en Dollar US, en investissant principalement dans tout type de Titres à Revenu Fixe émis par des sociétés, ainsi qu’en Titres à Revenu Fixe émis par des collectivités publiques et des émetteurs liés à des collectivités publiques, dans tous les cas établis dans des pays à Marchés Émergents. L’actif du Compartiment sera investi dans des Titres à Revenu Fixe de pays à Marchés Émergents, qui fournissent un niveau élevé de revenus courants tout en ayant un potentiel de plus-value.
Pour ce Compartiment, les pays à « Marchés Émergents » sont ceux définis comme tels par l’indice JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified, pourvu que les marchés de ces pays soient considérés comme des « Marchés Reconnus » au sens de l’article 41, alinéa 1, de la Loi de 2010. Au fur et à mesure que les marchés se développent dans d’autres pays, le Compartiment prévoit d’étendre et de diversifier les marchés émergents sur lesquels il investit principalement aux marchés ajoutés à ces indices. Pour réaliser son objectif d’investissement à titre principal dans des pays à Marchés Émergents, le Compartiment peut investir dans des Titres à Revenu Fixe de sociétés constituées et situées dans des pays à Marchés Émergents et peut également investir dans des Titres à
Revenu Fixe de sociétés constituées et situées dans des pays à Marchés Développés (tels que définis, pour ce Compartiment, par l’indice JP Morgan Government Bond) lorsque la valeur des titres de la société reflète principalement les conditions prévalant dans un pays à Marchés Émergents, ou lorsque le principal marché de négociation de ces titres est dans un pays à Marchés Émergents, ou encore lorsque 50 % du chiffre d’affaires de la société, prise indépendamment ou sur une base consolidée, provient de marchandises produites, de ventes réalisées ou de services fournis dans des pays à Marchés Émergents (« Titres exposés aux Marchés Émergents »). Les Titres à Revenu Fixe détenus par le Compartiment peuvent prendre la forme d’obligations, de notes, de titres de créance, de titres convertibles, de billets de trésorerie, de papier commercial, de titres adossés à des créances hypothécaires ou, sous réserve de la réglementation applicable, d’autres titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les
produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée
par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut également investir, à titre accessoire, en Titres à Revenu Fixe relevant des catégories susmentionnées émis par des émetteurs qui sont constitués ou situés (1) dans des pays qui ne sont ni des pays à Marchés Développés ni des pays à Marchés Émergents ; ou (2) dans des pays à Marchés Développés alors que les titres concernés ne sont pas des Titres exposés à des Marchés Émergents.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 20 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture). Le Compartiment peut, à titre accessoire, investir dans d’autres Titres à Revenu Fixe de marchés émergents ainsi que dans des Titres à Revenu Fixe de marchés émergents libellés en des devises autres que le Dollar US.
Le Compartiment peut également investir, dans une moindre mesure, dans des warrants sur valeurs mobilières émis par des émetteurs de marchés émergents.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment est géré activement et se réfère à l’indice JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira. Le Conseiller en
Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’indice JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified, il peut investir en titres de ces pays dans des proportions différentes et il peut détenir des actifs qui ne proviennent pas de pays référencés par l’indice JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Markets Corporate Debt Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe sur des marchés émergents ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EMERGING MARKETS DEBT FUND
L’objectif d’investissement de l’Emerging Markets Debt Fund est la recherche d’une optimisation du rendement total, mesuré en Dollar US, en investissant principalement en Titres à Revenu Fixe d’émetteurs souverains et quasi-souverains situés dans des pays à Marchés Émergents (tels que définis ci-après) (y compris, dans la mesure où ces instruments sont titrisés, des participations à des prêts entre gouvernements et établissements financiers), ainsi qu’en Titres à Revenu Fixe de sociétés situées, ou ayant leur principal établissement, ou constituées selon les lois de pays à Marchés Émergents. L’actif du Compartiment sera investi dans des Titres à Revenu Fixe de pays à Marchés Émergents, qui fournissent un niveau élevé de revenus courants tout en ayant un potentiel de plus- value.
Pour ce Compartiment, les pays à « Marchés Émergents » sont ceux définis comme tels par l’indice JP Morgan Emerging Market Bond Index Global Diversified, pourvu que les marchés de ces pays soient considérés comme des « Marchés Reconnus » au sens de l’article 41, alinéa 1, de la Loi de 2010. Au fur et à mesure que les marchés se développent dans d’autres pays, le Compartiment prévoit d’étendre et de diversifier les marchés émergents sur lesquels il investit à titre principal aux marchés qui sont ou qui seront ajoutés à l’indice JP Morgan Emerging Market Bond Index Global Diversified. Les Titres à Revenu Fixe détenus par le Compartiment prendront la forme d’obligations, billets à ordre, effets, titres convertibles, titres émis par des banques, autres titres à court terme, obligations hypothécaires, ou, sous réserve de la réglementation applicable, d’autres titres ou créances de prêts adossés à des actifs (pour autant que ces instruments aient été titrisés) ou encore d’autres titres émis par des entités organisées et gérées afin de restructurer les caractéristiques d’investissement d’instruments émis par des émetteurs de Marchés Émergents.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions souveraines. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que les émissions de carbone, la vulnérabilité climatique, la conservation des forêts, l’espérance de vie et la santé, l’éducation, les conditions de vie, la participation citoyenne et la responsabilité, la stabilité politique, l’efficacité des pouvoirs publics, la qualité de la réglementation, l’Etat de droit, la corruption et la maîtrise du terrorisme et de la violence. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut les bonnes pratiques sociales et de gouvernance parmi les émetteurs souverains. Par conséquent, le Conseiller en Investissement n’effectuera pas de nouveaux investissements dans des pays où il existe des preuves de violations sociales importantes. Les investissements détenus par le
Compartiment mais qui font l’objet de restrictions pour cause de violation des exclusions en matière bonne gouvernance et de pratiques sociales après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des actionnaires du Compartiment. Les pays présentant une dynamique positive en ce qui concerne ces violations ne seront pas soumis aux restrictions à l’acquisition. Le Conseiller en Investissement publie la méthodologie utilisée pour évaluer  les  violations  sociales  importantes sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Pour réaliser son objectif d’investissement à titre principal dans des pays à Marchés Émergents, le Compartiment peut investir dans des Titres à Revenu Fixe de sociétés constituées selon les lois de pays à Marchés Émergents ou situées ou ayant leur principal établissement dans des pays à Marchés Émergents et peut également investir dans des Titres à Revenu Fixe de sociétés constituées selon les lois de pays à Marchés Développés ou situées ou ayant leur principal établissement dans des pays à Marchés Développés (tels que définis, pour ce Compartiment, par l’indice JP Morgan Government Bond) lorsque le principal marché de négociation de Titres à Revenu Fixe de la société est dans un pays à Marchés Émergents, ou encore lorsque 50 % du chiffre d’affaires de la société, pris indépendamment ou sur une base consolidée, provient de marchandises produites, de ventes réalisées ou de services fournis dans des pays à Marchés Émergents (« Titres exposés aux Marchés Émergents »).
Les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou
sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en Titres à Revenu Fixe relevant des catégories susmentionnées émis par des émetteurs qui sont constitués selon les lois de, ou situés (1) dans des pays qui ne sont ni des pays à Marchés Développés ni des pays à Marchés Émergents ; ou (2) dans des pays à Marchés Développés alors que ces Titres à Revenu Fixe ne sont pas des Titres exposés à des Marchés Émergents.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 20 % de l’actif du Compartiment.
Le Compartiment peut également investir, dans une moindre mesure, dans des warrants sur valeurs mobilières émis par des émetteurs de Marchés Émergents ainsi que dans des ETF à capital
variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et se réfère à l’indice JP Morgan Emerging Market Bond Index Global Diversified afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’indice JP Morgan Emerging Market Bond Index Global Diversified, il peut investir en titres de ces pays dans des proportions différentes de leur allocation dans le cadre de l’indice JP Morgan Emerging Market Bond Index Global Diversified et il peut détenir des actifs qui ne proviennent pas de pays référencés par l’indice JP Morgan Emerging Market Bond Index Global Diversified. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice JP Morgan Emerging Market Bond Index Global Diversified. L’indice JP Morgan Emerging Market Bond Index Global Diversified est utilisé à des fins de comparaison de performance uniquement et n’intègre pas de caractéristiques environnementales ou sociales.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Markets Debt Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe sur des Marchés Émergents ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EMERGING MARKETS DEBT OPPORTUNITIES FUND
L’Emerging Markets Debt Opportunities Fund a pour objectif d’investissement de générer un rendement total, défini comme la combinaison d’un revenu et d’une appréciation du capital, en établissant des expositions d’investissement longues et courtes à une masse de dette mixte des Marchés émergents (au sens défini ci-après) par le biais de devises, de taux d’intérêt locaux et de crédit souverain et d’entreprises, en investissant principalement (i) dans des Titres à Revenu Fixe d’entreprises, de gouvernements et d’émetteurs liés aux gouvernements situés dans les Marchés émergents ; et/ou (ii) dans des instruments dérivés libellés dans les devises des Marchés émergents ou basés sur les devises, les taux d’intérêt ou les émetteurs de ces pays. Les Titres à Revenu Fixe peuvent inclure des obligations à coupon nul, des actions privilégiées, des obligations et billets à intérêts reportés et des obligations et billets dont les intérêts sont payables sous la forme d’actions, d’obligations ou de billets éligibles de la même catégorie (titres à « paiement en nature », Payment-in-Kind, PIK).
Aux fins de ce Compartiment, on entend par « Marché émergent » n’importe quel pays dont le Conseiller en Investissement estime qu’il possède une économie de marché émergente compte tenu de facteurs tels que la stabilité politique et économique du pays et le développement de ses marchés financiers et de capitaux. Les pays émergents incluent les pays dits de « marchés frontières ». Les marchés frontières sont une sous-catégorie de marchés émergents. Ils sont généralement considérés par le Conseiller en Investissement comme des pays qui ne sont pas des pays développés et qui (i) ne sont pas référencés dans l’indice J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index ; ou (ii) représentent 2 % ou moins du J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index pour autant que, dans les deux cas, les marchés de ces pays soient considérés comme des marchés boursiers reconnus au sens de l’article 41(1) de la Loi de 2010. Le Compartiment n’investit pas dans les pays développés sauf à des fins de couverture ou d’acquérir une exposition à des Titres à Revenu Fixe libellés dans les devises des marchés émergents et à des investissements (y compris dérivés) en bons du Trésor américain et titres du gouvernement et d’agences des États-Unis et des titres adossés à des créances hypothécaires d’agences.
Le Compartiment peut posséder des investissements significatifs dans une région géographique ou un pays et, sous réserve de ce qui précède dans ce paragraphe, il n’existe aucune limite d’exposition du Compartiment à une région géographique ou un pays. Il n’est pas prévu que le Compartiment mette l’accent sur un secteur particulier.
Les Titres à Revenu Fixe détenus par le Compartiment prendront la forme d’obligations souveraines, de titres adossés à des créances hypothécaires et à des actifs, de titres de créance convertibles (pouvant intégrer des dérivés), d’instruments convertibles conditionnels, d’obligations municipales, d’obligations d’entreprises, de titres de créance à taux fixe ou variable, de participations à des prêts ou de mises en gages de prêts, dans la mesure où ces instruments sont titrisés, et de billets de participation.
Le Compartiment peut investir dans des instruments assortis de n’importe quelle notation de crédit, y compris ceux dont la notation est inférieure à investment grade (notation inférieure à BBB selon Standard & Poor’s Ratings Services ou Fitch Ratings, ou inférieure à Baa selon Moody’s Investors Service, Inc.) ou dans des instruments dépourvus de notation dont le Conseiller en Investissement estime qu’ils sont d’une qualité comparable.
Dans le cadre de son évaluation des Titres à Revenu Fixe émis par des entreprises des marchés émergents et dans ses activités d’engagement avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, la devise et la duration
/ les taux locaux, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que les émissions de carbone, la vulnérabilité climatique, la conservation des forêts, l’espérance de vie et la santé, l’éducation, les conditions de vie, la participation citoyenne et la responsabilité, la stabilité politique, l’efficacité des pouvoirs publics, la qualité de la réglementation, l’Etat de droit, la corruption et la maîtrise du terrorisme et de la violence. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins une fois par an.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut les bonnes pratiques sociales et de gouvernance parmi les entreprises émettrices. Par conséquent, le Conseiller en Investissement n’effectuera pas de nouveaux investissements dans des émetteurs dont il existe des raisons de penser qu’ils ont commis des violations sociales importantes (activités portant gravement atteinte aux droits d’une personne ou d’un groupe). Les investissements détenus par le Compartiment mais qui font l’objet de restrictions pour cause de violation des exclusions en matière bonne gouvernance et de
pratiques sociales après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des actionnaires du Compartiment. Les émetteurs présentant une dynamique positive en ce qui concerne ces violations ne seront pas soumis aux restrictions à l’acquisition. La méthodologie utilisée par le Conseiller en Investissement pour évaluer les violations sociales importantes sera publiée sur les sites web www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
En ce qui concerne les investissements dans des Titres à Revenu Fixe émis par des entreprises, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et dezs Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales des émetteurs, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Le Conseiller en Investissement promeut également les bonnes pratiques sociales et de gouvernance parmi les émetteurs souverains. Par conséquent, le Conseiller en Investissement n’effectuera pas de
nouveaux investissements dans des pays où il existe des preuves de violations sociales importantes (manquements importants par le gouvernement à son devoir de protection des droits sociaux d’une personne ou d’un groupe). Toutefois, les investissements existants dans de tels pays ne devront pas nécessairement être cédés, et les pays présentant une dynamique positive en ce qui concerne ces violations ne seront pas soumis aux restrictions à l’acquisition. Le Conseiller en Investissement publie la méthodologie utilisée pour évaluer les violations sociales importantes sur son site web.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime conformes à l’objectif d’investissement du Compartiment. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-avant, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes seront réalisées sur une période à déterminer par le Conseiller en Investissement compte tenu de l’intérêt des Actionnaires. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Conseiller en Investissement estime que, puisque les thématiques de durabilité sont des sources de risques et de rendements à long terme, l’intégration des risques de durabilité de la manière décrite ci-avant peut contribuer à augmenter les rendements du Compartiment à long terme. Des informations supplémentaires concernant l’intégration des risques de durabilité vis-à-vis de la Société sont reprises à la section du Prospectus intitulée
« Informations générales relatives à l’intégration des Risques en Matière de Durabilité ».
Dans sa gestion du Compartiment, le Conseiller en Investissement réalise des recherches et des analyses macroéconomiques et politiques sur différents pays. Il tient compte de facteurs tels que le système et l’environnement politiques du pays concerné, sa politique budgétaire, sa politique monétaire, sa politique par rapport aux revenus (c’est-à-dire toute politique publique ayant une incidence sur les revenus des entreprises ou des particuliers dans le pays auquel elle s’applique, comme la politique fiscale, les subsides accordés à des secteurs particuliers, la législation relative au salaire minimum ou les réglementations sectorielles) et sa politique
commerciale, entre autres. Sur la base de ces recherches et analyses, le Conseiller en Investissement s’efforce d’identifier les pays et les devises susceptibles selon lui de surperformer les investissements dans d’autres pays et devises, et d’anticiper l’évolution des économies, des marchés et des conditions politiques dans le monde entier ainsi que d’autres facteurs à cette fin. Le Conseiller en Investissement sélectionne et ajuste les investissements dans le but de tirer un avantage des différences entre les valeurs perçues des devises, taux d’intérêt et écarts de crédit des différents pays. Pour mettre en œuvre ses décisions d’investissement, le Conseiller en Investissement sélectionne une classe d’actifs et un instrument particulier exprimant de manière optimale l’avis du Conseiller en Investissement concernant le pays en question. Le Conseiller en Investissement tient compte des caractéristiques de risque/ rendement relatives des investissements potentiels pour déterminer la manière la plus efficience d’acquérir les expositions souhaitées.
Le Compartiment peut également investir, à titre accessoire, dans des Titres à Revenu Fixe ne respectant pas les critères d’investissement primaires du Compartiment, des titres de capital, des warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Compartiment ne peut investir plus de 20 % de son actif dans des titres de créance qui ne versent pas de revenus courants dans l’attente de recevoir des revenus futurs éventuels ou d’une appréciation du capital et qui sont dépourvus de notation ou possèdent la catégorie de notation la plus basse (notation C par Moody’s ou D par S&P).
Le Compartiment ne peut investir plus de 10 % de son actif en billets de participation.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment ne peut investir plus de 20 % de son actif au total en titres adossés à des actifs (ABS) et/ou en titres adossés à des créances hypothécaires (MBS).
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à
des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et se réfère à l’indice J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira et de surveiller l’erreur par rapport à l’indice de référence. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’indice J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50, il peut investir en titres de ces pays dans des proportions différentes de leur allocation dans le cadre de l’indice J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 et il peut détenir des actifs qui ne proviennent pas de pays référencés par l’indice J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Markets Debt Opportunities Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EMERGING MARKETS DOMESTIC DEBT FUND
L’objectif d’investissement de l’Emerging Markets Domestic Debt Fund est la recherche d’une optimisation du rendement total, mesuré en Dollar US, en investissant principalement dans un portefeuille d’obligations et autres Titres à Revenu Fixe de Marchés
Émergents (tels que définis ci-après), libellés dans la devise du pays où les titres sont émis. L’actif du Compartiment sera investi dans des Titres à Revenu Fixe de Marchés Émergents, qui fournissent un niveau élevé de revenus courants tout en ayant un potentiel de plus- value.
Pour ce Compartiment, les pays à « Marchés Émergents » sont ceux définis comme tels par l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified, pourvu que les marchés de ces pays soient considérés comme des « Marchés Reconnus » au sens de l’article 41, alinéa 1, de la Loi de 2010. Au fur et à mesure que les marchés émergents se développent dans d’autres pays, le Compartiment prévoit d’étendre et de diversifier les marchés émergents sur lesquels il investit à titre principal aux marchés qui sont ou qui seront ajoutés à l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified.
Pour réaliser son objectif d’investissement à titre principal dans des pays à Marchés Émergents, le Compartiment peut investir en Titres à Revenu Fixe d’émetteurs souverains ou quasi-souverains situés dans des pays à Marchés Émergents (y compris, dans la mesure où ces instruments sont titrisés, des participations à des prêts entre gouvernements et établissements financiers) ainsi qu’en Titres à Revenu Fixe de sociétés situées ou ayant leur principal établissement dans des pays à Marchés Émergents ou constituées selon les lois de pays à Marchés Émergents, libellés dans la devise locale d’émission (« Titres Exposés aux Marchés Émergents »).
Le Compartiment peut investir dans des Titres à Revenu Fixe d’entités organisées pour restructurer l’encours de la dette d’émetteurs de Marchés Émergents.
Les Titres à Revenu Fixe détenus par le Compartiment peuvent prendre la forme d’obligations, de notes, de titres de créance, de titres convertibles, de billets de trésorerie, de papier commercial, de titres adossés à des créances hypothécaires ou, sous réserve de la réglementation applicable, d’autres titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions souveraines. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que les émissions de carbone, la vulnérabilité climatique, la conservation des forêts, l’espérance de vie et la santé,
l’éducation, les conditions de vie, la participation citoyenne et la responsabilité, la stabilité politique, l’efficacité des pouvoirs publics, la qualité de la réglementation, l’Etat de droit, la corruption et la maîtrise du terrorisme et de la violence. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut les bonnes pratiques sociales et de gouvernance parmi les émetteurs souverains. Par conséquent, le Conseiller en Investissement n’effectuera pas de nouveaux investissements dans des pays où il existe des preuves de violations sociales importantes. Les investissements détenus par le Compartiment mais qui font l’objet de restrictions pour cause de violation des exclusions en matière bonne gouvernance et de pratiques sociales après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des actionnaires du Compartiment. Les pays présentant une dynamique positive en ce qui concerne ces violations ne seront pas soumis aux restrictions à l’acquisition. Le Conseiller en Investissement publie la méthodologie utilisée pour évaluer les violations sociales importantes sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements ne doivent pas inclure sciemment une société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de
l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, en Titres à Revenu Fixe relevant des catégories susmentionnées émis par des émetteurs qui sont constitués selon les lois de, ou situés (1) dans des pays qui ne sont ni des pays à Marchés Développés (tels que définis, pour ce Compartiment, par l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified) ni des pays à Marchés Émergents ; ou (2) dans des pays à Marchés
Développés alors que ces Titres à Revenu Fixe ne sont pas des Titres exposés aux Marchés Émergents.
En outre, le Compartiment peut investir, à titre accessoire, dans des Titres à Revenu Fixe qui ne sont pas libellés dans la devise locale d’émission pourvu que cela ait lieu à des fins de protection temporaire, au cours de périodes pendant lesquelles la Société considère que des changements économiques, financiers ou politiques le justifient, le Compartiment peut réduire sa détention d’actifs libellés dans la monnaie locale du Marché Émergent d’émission à moins de 50 % de son actif et investir dans des Titres à Revenu Fixe éligibles libellés dans les devises de pays à Marchés Développés.
Le Compartiment peut également investir, dans une moindre mesure, dans des warrants sur valeurs mobilières émis par des émetteurs de pays à Marchés émergents ainsi que dans des ETF à capital variable, pour autant que de tels ETF soient éligibles à l’actif des OPCVM.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 20 % de l’actif du Compartiment.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et se réfère à l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified, il peut investir en titres de ces pays dans des proportions différentes de leur allocation dans le cadre de l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified et il peut détenir des actifs qui ne proviennent pas de pays référencés par l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified. L’indice JP Morgan Government Bond Index – Emerging Markets Global Diversified est utilisé à des fins de comparaison de performance uniquement et n’intègre pas de caractéristiques environnementales ou sociales.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Markets Domestic Debt Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe sur des Marchés Émergents ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque », en particulier les risques liés aux Marchés Émergents, notamment ceux associés aux Titres à Revenu Fixe libellés en devises des pays où sont réalisés les investissements.

EMERGING MARKETS FIXED INCOME OPPORTUNITIES FUND
L’objectif d’investissement de l’Emerging Markets Fixed Income Opportunities Fund est la recherche d’une optimisation du rendement total, mesuré en Dollar US, en investissant principalement dans des Titres à Revenu Fixe d’émetteurs situés dans des Pays à Marchés Émergents ou des émissions libellées dans les devises de Pays à Marchés Émergents. L’actif du Compartiment sera investi dans des Titres à Revenu Fixe de pays à Marchés Émergents, qui fournissent un niveau élevé de revenus courants tout en ayant un potentiel de plus-value.
Pour ce Compartiment, les pays à « Marchés Émergents » sont ceux définis comme tels par l’indice JP Morgan Emerging Markets Blended Index – Equally Weighted qui est un indice équipondéré des indices JP Morgan Emerging Market Bond Index Global Diversified, JP Morgan Corporate Emerging Market Bond Index – Broad Diversified et JP Morgan Government Bond Index – Emerging Markets Global Diversified Index, pourvu que les marchés de ces pays soient considérés comme des « Marchés Reconnus » au sens de l’article 41, alinéa 1, de la Loi de 2010. Pour lever toute ambiguïté, un investissement dans une émission incluse dans cet indice constituera un investissement relevant de l’objectif d’investissement à titre principal du Compartiment. Au fur et à mesure que les marchés se développent dans d’autres pays, le
Compartiment prévoit d’étendre et de diversifier les marchés émergents sur lesquels il investit principalement aux marchés ajoutés à ces indices.
Pour réaliser son objectif d’investissement à titre principal dans des pays à Marchés Émergents, le Compartiment peut également investir dans des Titres à Revenu Fixe de sociétés constituées et situées dans des pays à Marchés Développés (tels que définis, pour ce Compartiment, par l’indice JP Morgan Government Bond) lorsque la valeur des titres de la société reflète principalement les conditions prévalant dans un pays à Marchés Émergents, ou lorsque le principal marché de négociation de ces titres est dans un pays à Marchés Émergents, ou encore lorsque 50 % du chiffre d’affaires de la société, prise indépendamment ou sur une base consolidée, provient de marchandises produites, de ventes réalisées ou de services fournis dans des pays à Marchés Émergents (« Titres exposés aux Marchés Émergents »).
Le Compartiment peut investir dans des Titres à Revenu Fixe d’entités organisées pour restructurer l’encours de la dette d’émetteurs de Marchés Émergents.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des
restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut investir, à titre accessoire, en Titres à Revenu Fixe émis par des émetteurs qui sont constitués ou situés (1) dans des pays qui ne sont ni des pays à Marchés Développés ni des pays à Marchés Émergents ; ou (2) dans des pays à Marchés Développés alors que les titres concernés ne sont pas des Titres exposés à des Marchés Émergents.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 20 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et se réfère à l’indice JP Morgan Emerging Markets Blended Index – Equally Weighted afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne, de manière générale, des actifs des pays référencés par l’indice JJP Morgan Emerging Markets Blended Index – Equally Weighted, il peut investir en titres de ces pays dans des proportions différentes et il peut détenir des actifs qui ne proviennent pas de pays référencés par
l’indice JP Morgan Emerging Markets Blended Index – Equally Weighted. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice JP Morgan Emerging Markets Blended Index – Equally Weighted.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Markets Fixed Income Opportunities Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EMERGING MARKETS LOCAL INCOME FUND
L’Emerging Markets Local Income Fund a pour objectif d’investissement de générer un rendement total, défini comme la combinaison de revenus et d’une appréciation du capital, en établissant une masse de créances des marchés émergents (au sens défini ci-après) en devises locales par le biais de devises et de taux d’intérêt tout en investissant principalement dans : (i) des Titres à Revenu Fixe d’entreprises, de gouvernements et d’émetteurs connexes situés dans les marchés émergents ou libellés dans les devises de pays émergents et/ou (ii) des instruments dérivés libellés dans les devises de pays émergents ou basés sur les devises, taux d’intérêt, taux ou émissions des pays émergents.
Aux fins de ce Compartiment, les pays des « marchés émergents » sont définis de manière à inclure tout pays qui n’est pas devenu membre de l’OCDE avant 1975 ainsi que la Turquie. Les pays émergents incluent les pays dits des « marchés frontières », généralement considérés par le Conseiller en Investissement comme des pays moins développés (i) qui ne sont pas référencés dans l’indice J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified ; ou (ii) qui représentent 2 % ou moins du J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified.
Le Compartiment peut posséder des investissements significatifs dans une région géographique ou un pays. Il n’est pas prévu que le Compartiment mette l’accent sur un secteur particulier.
Les Titres à Revenu Fixe détenus par le Compartiment prendront la forme d’obligations souveraines, de titres adossés à des créances hypothécaires et de titres adossés à des actifs, d’obligations convertibles, d’obligations municipales, d’obligations d’entreprises, de titres de créance à taux fixe ou variable et, dans une mesure limitée, de billets de participation. Les Titres à Revenu Fixe peuvent inclure des obligations à coupon nul, des actions privilégiées, des obligations et billets à intérêts reportés et des obligations et billets dont les intérêts sont payables sous la forme d’actions, d’obligations ou de billets éligibles de la même catégorie (titres à « paiement en nature », Payment-in-Kind, PIK).
Le Compartiment peut investir dans des instruments assortis de n’importe quelle notation de crédit, y compris ceux dont la notation est inférieure à investment grade (notation inférieure à BBB selon Standard & Poor’s Ratings Services ou Fitch Ratings, ou inférieure à Baa selon Moody’s Investors Service, Inc.) ou dans des instruments dépourvus de notation dont le Conseiller en Investissement estime qu’ils sont d’une qualité comparable.
Le processus d’investissement et la stratégie visent à identifier les marchés émergents et les devises de marchés émergents appelés à surperformer les autres marchés émergents et devises de marchés émergents comparables. Les principaux facteurs de risque dans l’analyse de la dette des marchés émergents sont les risques de crédit, de duration, de change et de durabilité. N’importe lequel de ces facteurs ou l’ensemble de ces facteurs peuvent être identifiés comme étant susceptibles de contribuer à la surperformance. Par conséquent, dans certains cas, le Conseiller en Investissement estimera que la devise d’un pays va augmenter de valeur et s’efforcera de s’exposer à cette devise par le biais des instruments dérivés évoqués ci-avant ou par des investissements dans des titres libellés dans cette devise.
Dans le cadre de son évaluation des Titres à Revenu Fixe émis par des entreprises des marchés émergents et dans ses activités d’engagement avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, la devise et la duration
/ les taux locaux, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes environnementaux, sociaux et de gouvernance (« 
ESG 
») tels que les émissions de carbone, la vulnérabilité climatique, la conservation des forêts, l’espérance de vie et la santé, l’éducation, les conditions de vie, la participation citoyenne et la responsabilité, la stabilité politique, l’efficacité des pouvoirs publics, la qualité de la réglementation,
l’Etat de droit, la corruption et la maîtrise du terrorisme et de la violence. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins une fois par an.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut les bonnes pratiques sociales et de gouvernance parmi les entreprises émettrices. Par conséquent, le Conseiller en Investissement n’effectuera pas de nouveaux investissements dans des émetteurs dont il existe des raisons de penser qu’ils ont commis des violations sociales importantes (activités portant gravement atteinte aux droits d’une personne ou d’un groupe). Les investissements détenus par le Compartiment mais qui font l’objet de restrictions pour cause de violation des exclusions en matière bonne gouvernance et de pratiques sociales après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des actionnaires du Compartiment. Les émetteurs présentant une dynamique positive en ce qui concerne ces violations ne seront pas soumis aux restrictions à l’acquisition. La méthodologie utilisée par le Conseiller en Investissement pour évaluer les violations sociales importantes sera publiée sur les sites web www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
En ce qui concerne les investissements dans des Titres à Revenu Fixe émis par des entreprises, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en
Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales des émetteurs, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Le Conseiller en Investissement promeut également les bonnes pratiques sociales et de gouvernance parmi les émetteurs souverains. Par conséquent, le Conseiller en Investissement n’effectuera pas de nouveaux investissements dans des pays où il existe des preuves de violations sociales importantes (manquements importants par le gouvernement à son devoir de protection des droits sociaux d’une personne ou d’un groupe). Toutefois, les investissements existants dans de tels pays ne devront pas nécessairement être cédés, et les pays présentant une dynamique positive en ce qui concerne ces violations ne seront pas soumis aux restrictions à l’acquisition. Le Conseiller en Investissement publie la méthodologie utilisée pour évaluer les violations sociales importantes sur son site web.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime conformes à l’objectif d’investissement du Compartiment. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-avant, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes seront réalisées sur une période à déterminer par le Conseiller en Investissement compte tenu de l’intérêt des Actionnaires. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Conseiller en Investissement estime que, puisque les thématiques de durabilité sont des sources de risques et de rendements à long terme, l’intégration des risques de durabilité de la manière décrite ci-avant peut contribuer à augmenter les rendements du Compartiment à long terme. Des informations supplémentaires concernant l’intégration des risques de durabilité vis-à-vis de la Société sont reprises à la section du Prospectus intitulée
« Informations générales relatives à l’intégration des Risques en Matière de Durabilité ».
Dans sa gestion du Compartiment, le Conseiller en Investissement réalise des recherches et des analyses macroéconomiques et politiques sur différents pays. Il tient compte de facteurs tels que le système et l’environnement politiques du pays concerné, sa politique budgétaire, sa politique monétaire, sa politique par rapport aux revenus (c’est-à-dire toute politique publique ayant une incidence sur les revenus des entreprises ou des particuliers dans le pays auquel elle s’applique, comme la politique fiscale, les subsides accordés à des secteurs particuliers, la législation relative au salaire minimum ou les réglementations sectorielles) et sa politique commerciale, entre autres. Sur la base de ces recherches et analyses, le Conseiller en Investissement s’efforce d’identifier les pays et les devises susceptibles selon lui de surperformer les investissements dans d’autres pays et devises, et d’anticiper l’évolution des économies, des marchés et des conditions politiques dans le monde entier ainsi que d’autres facteurs à cette fin. Le Conseiller en Investissement sélectionne et ajuste les investissements dans le but de tirer un avantage des différences entre les valeurs perçues des devises, taux d’intérêt et écarts de crédit des différents pays. Pour mettre en œuvre ses décisions d’investissement, le Conseiller en Investissement sélectionne une classe d’actifs et un instrument particulier exprimant de manière optimale l’avis du Conseiller en Investissement concernant le pays en question. Le Conseiller en Investissement tient compte des caractéristiques de risque/ rendement relatives des investissements potentiels pour déterminer la manière la plus efficience d’acquérir les expositions souhaitées.
Le Compartiment ne peut investir plus de 20 % de son actif dans des titres de créance qui ne versent pas de revenus courants dans l’attente de recevoir des revenus futurs éventuels ou d’une appréciation du capital et qui sont dépourvus de notation ou possèdent la catégorie de notation la plus basse (notation C par Moody’s ou D par S&P).
Le Compartiment ne peut investir plus de 20 % de son actif au total en titres adossés à des actifs (ABS) et/ou en titres adossés à des créances hypothécaires (MBS).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Compartiment peut également investir, à titre accessoire, dans des Titres à Revenu Fixe ne respectant pas les critères d’investissement primaires du Compartiment, des titres de capital, des warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et se réfère à l’indice J.P. Morgan Government Bond Index: Emerging Market (JPM GBI- EM) Global Diversified afin de déterminer la situation géographique des pays dans lesquels le Compartiment investira et de surveiller l’erreur par rapport à l’indice de référence. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Le Compartiment détiendra généralement des actifs des pays référencés dans l’indice J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified, mais il peut investir dans ces titres de pays dans des proportions différentes de leur allocation au sein de l’indice J.P. Morgan Government Bond Index: Emerging Market (JPM GBI- EM) Global Diversified, et il peut détenir des actifs qui ne sont pas exposés aux pays référencés dans l’indice J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice
J.P. Morgan Government Bond Index: Emerging Market (JPM
GBI-EM) Global Diversified.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Emerging Markets Local Income Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EURO BOND FUND
L’objectif d’investissement de l’Euro Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro.
Le Compartiment investit principalement en Titres à Revenu Fixe libellés en Euro qu’ils soient émis par des sociétés, des émetteurs souverains ou des émetteurs bénéficiant de garanties souveraines. Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par Standard & Poor’s Corporation (« S&P ») ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de 6 mois.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les
entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement
tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir, de manière limitée, en ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les
caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Euro Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EURO CORPORATE BOND FUND
L’objectif d’investissement de l’Euro Corporate Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro.
Le Compartiment investit principalement dans des Titres à Revenu Fixe libellés en Euro émis par des sociétés et autres émetteurs non- souverains (« Obligations de Sociétés »). Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces
indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement
supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut, à titre accessoire, investir en :
- Titres à Revenu Fixe non libellés en Euro. Conformément à l’Annexe A « Limites et restrictions d’investissement » les expositions qui ne sont pas libellées en Euro pourront être couvertes en Euro.
- Titres à Revenu Fixe qui ne sont pas des Obligations de Sociétés.

Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Euro Corporate Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EURO CORPORATE BOND – DURATION HEDGED FUND
L’objectif d’investissement de l’Euro Corporate Bond – Duration Hedged Fund est de générer un taux de rendement attractif, mesuré en Euro, tout en s’attachant à réduire l’exposition du Compartiment aux fluctuations des taux d’intérêt.
La duration est une mesure de la sensibilité du prix d’un titre de créance à l’évolution des taux d’intérêt. Le risque de duration est le risque que la valeur de l’investissement puisse évoluer en raison de fluctuations des taux d’intérêt. En principe, la valeur des titres de créance augmente généralement lorsque les taux d’intérêt baissent et diminue lorsque les taux d’intérêt augmentent. Le Compartiment s’attache à réduire son exposition aux fluctuations des taux d’intérêt par la couverture de la duration du Compartiment.
Le Compartiment investit principalement dans des émissions de haute qualité de Titres à Revenu Fixe libellés en Euro émis par des sociétés et autres émetteurs non souverains (« Obligations de Sociétés »).
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y
limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales,
par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Les titres sont considérés éligibles si, au moment de leur acquisition, ils sont notés au moins « BBB- » par S&P ou au moins « Baa3 » par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, si le Conseiller en Investissement estime que ces titres offrent une solvabilité similaire. Le Compartiment peut conserver ses positions dans des titres dont la notation a été dégradée après leur acquisition, mais il ne peut conserver d’obligations titrisées dont la notation a été dégradée au-dessous de « BBB- » par S&P ou « Baa3 » par Moody’s ni d’autres titres dont la notation a été dégradée au-dessous de « B- » par S&P ou « B3 » par Moody’s, ou, dans un cas comme dans l’autre, une autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Le
Compartiment ne peut investir à nouveau dans des titres dont la notation a été dégradée.
Le Compartiment peut, à titre accessoire, investir en :
- Obligations de Sociétés qui, au moment de leur acquisition, sont notées en-deçà de « BBB- » ou moins par S&P ou de« Baa3 » par Moody’s, ou de toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’elles offrent une solvabilité similaire.
- Titres à Revenu Fixe libellés en devises autres que l’Euro. Conformément à l’Annexe A « Limites et restrictions d’investissement » les expositions qui ne sont pas libellées en Euro pourront être couvertes en Euro.
- Titres à Revenu Fixe qui ne sont pas des Obligations de Sociétés.

Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment ne peut investir plus de 20 % de son actif en titres adossés à des actifs et titres adossés à des créances hypothécaires.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Euro Corporate Bond – Duration Hedged Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EURO STRATEGIC BOND FUND
L’objectif d’investissement de l’Euro Strategic Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro.
Le Compartiment investit principalement dans des émissions de Titres à Revenu Fixe libellés en Euro qu’ils soient émis par des sociétés, des émetteurs souverains ou des émetteurs bénéficiant de garanties souveraines, et, sous réserve de la réglementation applicable, dans des titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des
restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe non libellés en Euro. Conformément à l’Annexe A
« Limites et restrictions d’investissement » les expositions qui ne sont pas libellées en Euro pourront être couvertes en Euro.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les
caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’Euro Strategic Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EUROPEAN FIXED INCOME OPPORTUNITIES FUND
L’objectif d’investissement du European Fixed Income Opportunities Fund est de générer un taux de rendement total attractif, mesuré en Euro, par la sélection de Titres à Revenu Fixe libellés en Euro. Le Compartiment cherche à mettre en œuvre sa stratégie d’investissement par une allocation couvrant l’ensemble des classes d’actifs à revenu fixe et une stratégie de sélection des marchés et des titres.
Le Compartiment investit principalement dans des Titres à Revenu Fixe libellés en Euro émis par des sociétés, des collectivités publiques et des émetteurs liés à des collectivités publiques au sein d’une large gamme d’actifs à revenu fixe, y compris des obligations de qualité supérieure dites « investment grade », des obligations à haut rendement, des titres adossés à des créances hypothécaires, des obligations convertibles et des devises et, sous réserve de la réglementation applicable, dans d’autres titres et créances adossés à des actifs, pour autant que ces instruments aient été titrisés. Les obligations à haut rendement sont considérées comme des Titres à Revenu Fixe émis par des sociétés et notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Le Conseiller en Investissement peut investir dans n’importe quelle combinaison de deux ou plusieurs des classes d’actifs ci-avant.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que
tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut également investir, à titre accessoire, en Titres à Revenu Fixe libellés dans une autre devise que l’Euro, en Titres à Revenu Fixe de marchés émergents ainsi que dans d’autres catégories de titres, y compris notamment des titres de créance convertibles en actions ordinaires, des Instruments assimilés aux liquidités, des actions et d’autres valeurs mobilières donnant accès au capital.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’European Fixed Income Opportunities Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

EUROPEAN HIGH YIELD BOND FUND
L’objectif d’investissement de l’European High Yield Bond Fund est de générer un taux de rendement attractif, mesuré en Euro, par des investissements internationaux consistant principalement en Titres à Revenu Fixe, notés de façon inférieure ou sans notation, émis par des gouvernements, des agences gouvernementales ou des sociétés qui offrent un rendement supérieur aux rendements généralement offerts par les Titres à Revenu Fixe notés dans les quatre catégories supérieures S&P ou Moody’s et libellés en devises européennes. Ces investissements peuvent inclure des Titres à Revenu Fixe émis par des émetteurs non européens et des titres émis sur des marchés émergents ainsi que, sous réserve de la réglementation applicable, des titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- la fabrication ou la production de tabac.

En ce qui concerne spécifiquement les activités liées aux combustibles fossiles, le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée. Les investissements ne doivent pas inclure, en connaissance de cause, une entreprise dont
l’activité implique l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire plus de 5% de ses revenus de cette activité.
Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Compartiment peut investir dans des émetteurs qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut, à titre accessoire, investir dans des Titres à Revenu Fixe libellés dans une devise non européenne. Afin d’optimiser l’exposition du Compartiment aux devises européennes, l’exposition non libellée en Euro peut être couverte en Euro et le
Compartiment peut utiliser, à titre accessoire, des produits dérivés afin de créer des produits synthétiques de Titres à Revenu Fixe et à haut rendement en devise européenne, dans les limites prévues à l’Annexe A « Limites et restrictions d’investissement ».
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’European High Yield Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

FLOATING RATE ABS FUND
L’objectif d’investissement du Floating Rate ABS Fund consiste à générer un rendement attrayant tout en réduisant le plus possible l’exposition aux fluctuations des taux d’intérêt au travers d’investissements dans un portefeuille de titres adossés à des actifs (ABS) à taux flottant mesurés en euros.
Le Compartiment investira principalement dans des Titres à Revenu Fixe à taux flottant d’une échéance de moins de deux ans, c’est-à-dire des titres adossés à des créances hypothécaires, des titres adossés à des financements hypothécaires d’immeubles commerciaux, des obligations adossées à des prêts hypothécaires et des obligations garanties par des actifs hypothécaires, y compris des titres adossés à des créances hypothécaires uniformes et autres ABS notés « investment grade » selon une agence de notation de crédit reconnue internationalement, des titres dont le Conseiller en Investissement estime qu’ils possèdent une qualité de crédit similaire ou des titres garantis par les États-Unis d’Amérique. Les titres à taux flottant sont définis comme des titres ayant pour référence un indice à taux flottant. Le Compartiment maintiendra une duration moyenne située entre 0 et 1 an.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, prêteurs et prestataires de services, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Compartiment encourage les pratiques commerciales durables et responsables des émetteurs de titrisations. Pour ce faire, le Compartiment n’achètera pas, en connaissance de cause, une émission de titrisation où le Conseiller en Investissement a perçu l’un des éléments suivants étant directement liés à l’émetteur d’une titrisation :
- des pratiques de prêts prédateurs ;
- des manquements aux normes du Consumer Financial Protection Bureau (CFPB) ;
- de graves malversations dans les processus de recouvrement des paiements et les pratiques de forclusion ; et
- des comportements frauduleux.

Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques. Les thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimés par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables, dans la mesure du possible et en toute bonne foi. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement.
Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme, swaps, options sur swaps (swaptions) et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe ne répondant pas aux exigences ci-dessus.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Floating Rate ABS Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à court terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ; et
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL ASSET BACKED SECURITIES FUND
L’objectif d’investissement du Global Asset Backed Securities Fund est de générer un taux de rendement total attractif, mesuré en Dollar US.
Le Compartiment investit principalement dans des Titres à Revenu Fixe qui sont des titres adossés à des créances hypothécaires, des titres adossés à des financements hypothécaires d’immeubles commerciaux, des obligations adossées à des prêts hypothécaires et des obligations garanties par des actifs hypothécaires, y compris des titres adossés à des créances hypothécaires uniformes (« Titres Adossés à des Créances Hypothécaires »). Au moins 50 % de l’actif du Compartiment sera investi en titres notés « investment grade » par une agence de notation internationalement reconnue, en titres dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire ou en titres garantis par les États-Unis d’Amérique.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, prêteurs et prestataires de services, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Compartiment encourage les pratiques commerciales durables et responsables des émetteurs de titrisations. Pour ce faire, le Compartiment n’achètera pas, en connaissance de cause, une émission de titrisation où le Conseiller en Investissement a perçu l’un des éléments suivants étant directement liés à l’émetteur d’une titrisation :
- des pratiques de prêts prédateurs ;
- des manquements aux normes du Consumer Financial Protection Bureau (CFPB) ;
- de graves malversations dans les processus de recouvrement des paiements et les pratiques de forclusion ; et
- des comportements frauduleux.

Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques. Les thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimés par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables, dans la mesure du possible et en toute bonne foi. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme, swaps, options sur swaps (swaptions) et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe qui ne sont pas des Titres Adossés à des Créances Hypothécaires.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Asset Backed Securities Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BOND FUND
L’objectif d’investissement du Global Bond Fund est de générer un taux de rendement attractif, mesuré en Dollar US, par le biais d’une sélection de marchés, d’instruments et de devises. Le Compartiment investit principalement dans des Titres à Revenu Fixe du marché national, du marché international, de marchés émergents et de l’Euromarket à des échéances variées, libellés en Dollar US et d’autres devises, y compris des titres adossés à des actifs (y compris des titres adossés à des créances hypothécaires), des créances acquises ou représentatives de participations dans des prêts, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent de CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des
obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Les titres seront considérés éligibles si, au moment de leur acquisition, ils sont notés « BBB- » ou mieux par S&P ou « Baa3 » ou mieux par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, si le Conseiller en Investissement estime que ces titres offrent une solvabilité similaire. Le Compartiment peut conserver des titres dont la notation a été dégradée après leur acquisition mais ne peut investir de nouveau dans de tels titres. Par ailleurs, le Compartiment peut investir, jusqu’à 10 % de sa Valeur Liquidative, dans des titres qui, au moment de leur acquisition, sont notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les Titres à Revenu Fixe de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL CONVERTIBLE BOND FUND
L’objectif d’investissement du Global Convertible Bond Fund est la recherche d’une croissance du capital à long terme, mesurée en Dollar US, en investissant principalement dans des obligations convertibles émises par des sociétés constituées ou exerçant leur activité dans des marchés développés ou émergents et libellées en devises internationales.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus
d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent de CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- la fabrication ou la production de tabac.

En ce qui concerne spécifiquement les activités liées aux combustibles fossiles, le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée. Les investissements ne doivent pas inclure, en connaissance de cause, une entreprise dont l’activité implique l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire plus de 5% de ses revenus de cette activité.
Par exception à ce qui précède, le Compartiment peut, tout d’abord, investir dans des Obligations Vertes et Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles
avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Deuxièmement, le Compartiment peut investir dans des émetteurs qui peuvent ne pas contribuer eux- mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstaneley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-avant, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir dans d’autres Titres à Revenu Fixe ainsi que dans une combinaison d’actions et de warrants sur valeurs mobilières, soit à la suite de l’exercice de l’option de conversion des obligations convertibles du
Compartiment, soit, quand il l’estime approprié, en tant qu’alternative aux obligations convertibles.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir, de manière limitée, en ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Convertible Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- souhaitent investir dans des Titres à Revenu Fixe ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL CREDIT FUND
L’objectif d’investissement du Global Credit Fund est de générer un taux de rendement relatif attractif, mesuré en USD.
Le Compartiment investit principalement dans des Titres à Revenu Fixe libellés en Euro émis par des sociétés et autres émetteurs non- souverains (« Obligations de Sociétés ») constituées ou exerçant leur activité dans des marchés développés et émergents, et libellés en devises internationales. Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à
des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints ultérieurement, en raison de l’application des critères ESG ci-avant, après leur acquisition pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par Standard & Poor’s Corporation
(« S&P ») ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de 6 mois.
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe qui ne sont pas des Obligations de Sociétés.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Credit Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL CREDIT OPPORTUNITIES FUND
L’objectif d’investissement du Global Credit Opportunities Fund est de générer un taux de rendement total attractif, mesuré en Dollars US.
Le Compartiment investira principalement en Titres à Revenu Fixe émis par des sociétés (« Obligations de Sociétés ») et autres émetteurs non-souverains situés sur les marchés développés, y compris des obligations investment grade et des obligations à haut rendement. Les obligations à haut rendement sont considérées comme des Titres à Revenu Fixe émis par des sociétés et notés
« BBB- » ou moins par la Standard & Poor’s Corporation (S&P) ou
« Baa3 » ou moins par Moody’s Investors Services, Inc. (Moody’s) ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Le Compartiment peut également investir principalement dans des titres adossés à des créances hypothécaires et des instruments convertibles dans le respect de la réglementation applicable, et dans d’autres titres et créances adossés à des actifs, pour autant que ces instruments aient été titrisés. Le Conseiller en Investissement peut investir dans n’importe quelle combinaison de deux ou plusieurs des classes d’actifs ci-avant.
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par S&P ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de six (6) mois.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités
liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Compartiment promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la santé humaine et le bien-être en excluant le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ;
- la fabrication ou la production de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales,
par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstaneley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-avant, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe ne répondant pas critères des principaux investissements du Compartiment.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les
Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Credit Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL FIXED INCOME OPPORTUNITIES FUND
L’objectif d’investissement du Global Fixed Income Opportunities Fund est de générer un taux de rendement total attractif, mesuré en Dollar US, en investissant dans des Titres à Revenu Fixe internationaux. Le Compartiment cherche à mettre en œuvre sa stratégie d’investissement par une allocation dans l’ensemble des classes d’actifs à revenu fixe et la sélection de marchés et d’instruments.
Le Compartiment investit principalement dans des titres d’entreprises, de collectivités publiques et d’émetteurs liés à des collectivités publiques dans le monde entier au sein d’une large gamme d’actifs à revenu fixe, y compris des obligations à haut rendement, des obligations de qualité supérieure dites « investment grade », des titres adossés à des créances hypothécaires, des obligations convertibles et des devises et, sous réserve de la
réglementation applicable, dans d’autres titres et créances adossés à des actifs, pour autant que ces instruments aient été titrisés. Les obligations à haut rendement sont considérées comme des Titres à Revenu Fixe émis par des sociétés et notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Ces investissements peuvent comprendre des Titres à Revenu Fixe émis sur des marchés émergents. Le Conseiller en Investissement peut investir dans n’importe quelle combinaison de deux ou plusieurs des classes d’actifs ci-avant.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide
de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut également investir, à titre accessoire, en autres en ce compris notamment des Instruments assimilés aux liquidités, actions et autres valeurs mobilières donnant accès au capital.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Fixed Income Opportunities Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL HIGH YIELD BOND FUND
L’objectif d’investissement du Global High Yield Bond Fund est de générer un taux de rendement attractif, mesuré en Dollar US, par des investissements internationaux consistant principalement en Titres à Revenu Fixe émis par des sociétés et notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Ces investissements peuvent inclure des Titres à Revenu Fixe émis sur des marchés émergents et, sous réserve de la réglementation applicable, d’autres titres et créances adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- la fabrication ou la production de tabac.

En ce qui concerne spécifiquement les activités liées aux combustibles fossiles, le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée. Les investissements ne doivent pas inclure, en connaissance de cause, une entreprise dont l’activité implique l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire plus de 5% de ses revenus de cette activité.
Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Compartiment peut investir dans des émetteurs qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions
supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir dans d’autres Titres à Revenu Fixe, y compris des titres émis par des gouvernements ou des agences gouvernementales et des titres notés « BBB- » ou plus par S&P ou « Baa3 » ou plus par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global High Yield Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL MACRO FUND
Le Global Macro Fund a pour objectif d’investissement de générer un rendement absolu positif, quelles que soient les conditions du marché, sous la forme d’un revenu et d’une appréciation du capital sur une fenêtre glissante de trois ans en s’exposant aux devises ainsi qu’aux taux d’intérêt et émetteurs des États-Unis et du reste du monde.
Le Compartiment s’efforcera d’atteindre son objectif d’investissement en investissant principalement dans un portefeuille de valeurs mobilières et de Titres à Revenu Fixe dans le monde entier et par l’utilisation d’instruments financiers dérivés.
L’univers d’investissement de base du Compartiment comprendra des Titres à Revenu Fixe (émis par des gouvernements et des entités connexes ainsi que par des entreprises de pays développés et émergents et incluant, sans s’y limiter, des titres adossés à des créances hypothécaires et autres titres adossés à des actifs, des obligations indexées sur l’inflation émises par des gouvernements, des entités connexes et des entreprises, des titres de créances d’entreprises (y compris, sans toutefois s’y limiter, des titres convertibles et des effets de commerce d’entreprises)), des parts d’organismes de placement collectif ouverts ou fermés, des produits structurés, des dépôts et, dans une mesure limitée, des billets de participation.
Le Compartiment ne mettra l’accent sur aucun secteur particulier. Les investissements du Compartiment peuvent être fortement concentrés dans une région géographique ou un pays, et il n’existe aucune limite d’exposition du Compartiment à une région géographique ou un pays. Le Compartiment peut investir jusqu’à
100 % de son actif net dans les titres d’émetteurs situés dans des pays émergents (définis, aux fins de ce Compartiment, comme tout pays qui n’est pas devenu membre de l’OCDE avant 1975 ainsi que la Turquie).
Conseiller en Investissement ajuste les investissements de manière à profiter des différences entre les titres, pays, devises et crédits sur la base de sa perception de différents, facteurs, y compris les marchés, taux d’intérêt et émetteurs les plus favorables, le rendement relatif et le potentiel d’appréciation des titres d’un pays donné et la relation entre la devise d’un pays et l’USD. Le Conseiller en Investissement identifie les pays et les devises permettant aux investissements du Compartiment de surperformer les investissements comparables dans d’autres pays et devises. Dans de nombreux cas, il cherche également à prédire l’évolution des économies, des marchés et des conditions politiques ainsi que d’autres facteurs.
Conseilleren Investissement intègrera des critères environnementaux, sociaux et de gouvernance (« ESG ») dans son évaluation des titres de créance émis par des gouvernements, des agences gouvernementales et des entreprises parrainées par l’État dans lesquels le Compartiment peut investir. Le Conseiller en Investissement, dans le cadre de son processus de recherche et de sélection des actifs dans le domaine des titres de créance, tiendra compte des thématiques ESG de chaque pays et réalisera une analyse qualitative de chaque pays en notant les facteurs ESG de chaque pays sur la base des informations recueillies par l’équipe de recherche du Conseiller en Investissement, du conseiller par délégation (le cas échéant) et/ou de leurs entités affiliées ainsi que de sources tierces. Cette analyse qualitative sera complétée par des notations ESG quantitatives attribuées par le Conseiller en Investissement à chaque pays, et ces notations ESG permettent des comparaisons entre pays. Dans le cadre de l’analyse par le Conseiller en Investissement, ce dernier peut tenir compte de facteurs ESG tels que les Risques en Matière de Durabilité ou les opportunités susceptibles d’affecter la situation financière ou les performances du pays sur un horizon d’investissement à long terme, y compris, sans toutefois s’y limiter, la pollution et la santé de l’environnement et des écosystèmes, le risque de troubles sociaux, le développement humain, la démocratie et les droits et libertés.
Conseiller en Investissement estime que, puisque les thématiques de durabilité sont des sources de risques et de rendements à long terme, l’intégration des risques de durabilité de la manière décrite ci-avant peut contribuer à augmenter les rendements du Compartiment à long terme.
Le Compartiment ne peut investir plus de 20 % de son actif au total en titres adossés à des actifs (ABS) et/ou en titres adossés à des créances hypothécaires (MBS).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Compartiment peut également investir, à titre accessoire, dans des warrants.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Communication d’informations au titre du Règlement Taxonomie Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Macro Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SHORT DURATION US GOVERNMENT INCOME FUND
Le Short Duration US Government Income Fund a pour objectif d’investissement de rechercher un rendement total, défini comme une combinaison de revenus et d’appréciation du capital, en investissant au moins 90 % de son actif net en Titres à Revenu Fixe émis, soutenus ou garantis de toute autre manière par le gouvernement des États-Unis, ses agences et administrations publiques. La duration moyenne pondérée en dollars du Compartiment sera normalement inférieure à trois (3) ans, bien qu’elle puisse être plus élevée dans certaines conditions de marché. De manière générale, plus la duration du portefeuille est longue, plus l’exposition au risque de taux d’intérêt est élevée et donc plus la valeur du compartiment peut fluctuer. En raison de la duration
courte relative du Compartiment, celui-ci devrait normalement générer des rendements relativement stables et préserver une volatilité relativement faible de sa valeur étant donné que le rendement du Compartiment proviendra principalement de paiements de revenus provenant des investissements sous-jacents plutôt que de l’appréciation du capital du portefeuille.
Le Compartiment peut prendre des engagements à terme en vue de l’achat de titres adossés à des créances hypothécaires (« 
MBS 
») émis par Ginnie Mae, Fannie Mae et Freddie Mac (transactions non encore annoncées, « to-be-announced » ou « TBA »). Le Compartiment peut aussi conclure des swaps de coupons génériques sur MBS et des swaps d’échéance en prenant des engagements prospectifs à acheter et à vendre des MBS. Ces engagements prospectifs peuvent être pris dans le but d’augmenter les rendements ou de réduire les risques et peuvent entraîner un levier d’investissement.
Le Compartiment peut également recourir à des Mortage Dollar Rolls, dans lesquels il vend des MBS pour une livraison le mois courant tout en concluant un contrat de rachat de MBS similaires (même type, coupon et échéance) à une date future définie. Durant la période de renouvellement, le Compartiment renonce au principal et aux intérêts versés sur le MBS.
Le Conseiller en Investissement du Compartiment utilise les informations et l’expertise de l’équipe de recherche du Conseiller en Investissement, du conseiller par délégation (le cas échéant) et/ou de leurs entités affiliées pour prendre ses décisions d’investissement. Lorsqu’il sélectionne les titres dans lesquels investir, le Conseiller en Investissement s’efforce d’identifier les titres présentant selon lui la meilleure valeur relative en termes de prix, de taux et de rendement total attendu par rapport aux autres instruments disponibles. Les titres sont analysés selon différents modèles de remboursements anticipés (des modèles qui analysent le niveau attendu de remboursements anticipés sur un portefeuille d’actifs) et différents scénarios propres au Conseiller en Investissement, et évalués par rapport au marché dans son ensemble du point de vue du rapport risque/rendement. Les titres sont également analysés dans le contexte du portefeuille global du Compartiment afin de déterminer si le titre convient au portefeuille et de s’assurer que l’allocation envisagée ne confère pas au portefeuille une exposition surpondérée à un facteur de risque particulier. Dans le cadre du processus de sélection, le Conseiller en Investissement analysera un certain nombre de facteurs en lien avec chaque titres, y compris (i) les caractéristiques sous-jacentes de sûreté du titre, (ii) ses prévisions de remboursement anticipé de la sûreté, et (iii) la compatibilité entre la structure du titre et ces prévisions de remboursement anticipé. L’analyse des sûretés implique un examen approfondi des caractéristiques de l’emprunter susceptibles d’influencer la propension d’un titre à pratiquer un remboursement anticipé et couvre des facteurs tels que l’agence, la dispersion géographique et de l’emprunteur, le mix de gestionnaires de créances hypothécaires,
la taille des prêts, etc. La sélection des structures de titres suppose d’identifier les structures qui devraient être améliorées par les prévisions de remboursement anticipé du Conseiller en Investissement. Le Conseiller en Investissement prend ses décisions d’investissement principalement sur la base de recherches fondamentales, y compris les facteurs présentés ci-avant, et de la valeur relative, et il peut vendre un titre lorsqu’il estime que ce titre ne présente plus la meilleure valeur relative sur la base des recherches fondamentales. Sur la base des analyses et recherches réalisées par le Conseiller en Investissement, qui couvriront notamment les caractéristiques risque/rendement relative de chaque investissement potentiel, le Conseiller en Investissement sélectionnera les titres qui, selon lui, apporteront au Compartiment la meilleure valeur relative.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins de gestion efficace de portefeuille (y compris de couverture).
Outre ce qui précède, le Conseiller en Investissement peut intégrer des critères environnementaux, sociaux et de gouvernance (« 
ESG 
») à ses décisions d’investissement. Le Conseiller en Investissement peut utiliser les recherches ESG exclusives et complètes produites par son entité affiliée Calvert Research and Management ainsi que ses propres recherches ESG pour évaluer les investissements. Étant donné que le Compartiment concentre ses investissements sur les instruments de créance émis, soutenus ou garantis de toute autre manière par le gouvernement des États-Unis ou ses agences et administrations publiques, il n’est généralement pas prévu que les considérations ESG soient un facteur significatif dans les décisions d’investissement du Compartiment. Le Conseiller en Investissement estime que, puisque les thématiques de durabilité sont des sources de risques et de rendements à long terme, l’intégration des risques de durabilité de la manière décrite ci-avant peut contribuer à augmenter les rendements du Compartiment à long terme.
Le Compartiment peut investir plus de 20 % de son actif au total en titres adossés à des créances hypothécaires (MBS).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Compartiment peut également investir, dans une mesure limitée, dans des Titres à Revenu Fixe ne respectant pas les critères d’investissement primaires du Compartiment, des warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Short Duration US Government Income Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SHORT MATURITY EURO BOND FUND
L’objectif d’investissement du Short Maturity Euro Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro.
Le Compartiment investit principalement en Titres à Revenu Fixe libellés en Euro qu’ils soient émis par des sociétés, des émetteurs souverains ou des émetteurs bénéficiant de garanties souveraines. Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Afin de réduire la volatilité, le Compartiment investit principalement dans des titres individuels dont les dates de maturité présentent un terme non échu maximal de 5 ans.
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par Standard & Poor’s Corporation (« S&P ») ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en
Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de 6 mois.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les
Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Short Maturity Euro Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à court terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ; et
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SHORT MATURITY EURO CORPORATE BOND FUND
L’objectif d’investissement du Short Maturity Euro Corporate Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro.
Afin de réduire la volatilité, le Compartiment investira principalement dans des Titres à Revenu Fixe libellés en euros émis par des sociétés (« Obligations de Sociétés ») dont la date d’échéance ou la date de remboursement anticipé (selon la date la plus proche) se situe à trois (3) ans ou plus.
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par Standard & Poor’s Corporation (« S&P ») ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en
Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de six (6) mois.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans toutefois s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Compartiment promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la santé humaine et le bien-être en excluant le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des
Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im. Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe ne répondant pas critères des principaux investissements du Compartiment.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur
un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment ne peut investir plus de 20 % de son actif au total en titres adossés à des actifs (ABS) et/ou en titres adossés à des créances hypothécaires (MBS).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. Par conséquent, la gestion du Compartiment n’est pas limitée par la composition d’un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Short Maturity Euro Corporate Bond Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à court terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ; et
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE EURO CORPORATE BOND FUND
L’objectif d’investissement du Sustainable Euro Corporate Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro, tout en intégrant des caractéristiques ESG en éliminant les secteurs et les émetteurs ayant un faible score global de durabilité, et en maintenant une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice Bloomberg European Corporate Index (voir ci-après), en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique, comme décrit plus en détail ci-après.
Le Compartiment investit principalement en Titres à Revenu Fixe libellés en Euro émis par des sociétés et autres émetteurs non- souverains (« Obligations de Sociétés »).
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme mentionné ci-après. En outre, le Conseiller en Investissement peut inclure une évaluation des contributions positives et négatives aux Objectifs de Développement Durable des Nations Unies et s’attache à débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces
indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Compartiment n’investira pas dans des sociétés émettrices qui : Tirent un revenu quelconque de l’une des activités suivantes :
- L’extraction de charbon thermique ;
- La fabrication ou la vente au détail d’armes controversées (mines antipersonnel, armes à sous-munitions, armes biologiques ou chimiques et armes nucléaires) ;
- La fabrication et la vente au détail d’armes à feu à usage civil ;
- La production de tabac ;Tirent plus de 5 % de leur chiffre d’affaires de l’une des activités suivantes :
- L’extraction de sables bitumineux ;
- La production de pétrole et de gaz situés en Arctique ;Tirent plus de 10 % de leur chiffre d’affaires des activités suivantes :
- La production d’électricité à partir de charbon ;
- les jeux d’argent ;
- La vente au détail et la distribution de tabac ;
- Le divertissement pour adultes ; ou quiViolent l’une des exclusions fondées sur des normes suivantes :
- Sont réputées avoir enfreint le Pacte mondial de l’ONU ;
- Sont réputées avoir enfreint les Principes directeurs des Nations unies sur les entreprises et les droits de l’homme ;
- Sont réputées avoir enfreint les principes fondamentaux de l’OIT ; ou
- Ont suscité de très graves controverses liées aux aspects ESG, y compris en lien avec des violations des Directives de l’OCDE pour les entreprises multinationales.

Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et Obligations de Développement Durable labellisées (voir ci-dessous) émises pour lever des capitaux spécifiquement pour des projets liés au climat pour autant que le Conseiller en Investissement ait déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers.
Le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées à des critères ESG, au fil du temps, qu’il estime compatibles avec ses objectifs d’investissement. Ces restrictions supplémentaires seront publiées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Le Compartiment investira uniquement dans les 80 % supérieurs des entreprises ayant le meilleur score sur le plan ESG dans chaque sous-secteur de l’indice Barclays European Corporate Index. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant les données ESG de tiers comme base et en tenant compte des thèmes ESG tels que, mais sans s’y limiter : l’atténuation du changement climatique, l’utilisation responsable des ressources naturelles, la gestion durable des déchets, la gestion inclusive du capital humain et l’égalité entre les genres. Les critères ESG susmentionnés devraient entraîner une réduction d’au moins 20 % de l’univers des entreprises investissables, et le Conseiller en Investissement fera tout son possible pour s’assurer qu’au moins
90 % des entreprises du portefeuille sont évaluées selon sa méthodologie de notation ESG. Le processus et la méthodologie de sélection sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints ultérieurement, en raison de l’application des critères ESG ci-dessus, après leur acquisition pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Pour la part du Compartiment investie dans des obligations émises par des entreprises, le Compartiment maintiendra une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice de référence Bloomberg European Corporate Index, en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique. L’empreinte carbone est mesurée en tant qu’Intensité Carbone Moyenne Pondérée, définie comme des tonnes d’équivalent de CO2 par million de dollars de revenus. Il peut être déterminé que les Obligations Vertes et Obligations de Développement Durable (au sens défini ci-dessous) ayant des objectifs liés au climat ont une empreinte carbone différente de celle des émetteurs de ces obligations. Dans ce cas, le Conseiller en Investissement divulguera sa méthodologie pour déterminer l’empreinte carbone pertinente de ces instruments.
Dans le cadre de sa stratégie, le Conseiller en Investissement peut investir une partie du Compartiment dans des Obligations Vertes et des Obligations de Développement Durable selon le label indiqué dans la documentation des titres, lorsque leur émetteur s’engage à affecter le produit de leur vente à des projets apportant
une contribution environnementale ou sociale positive. Cela inclut, sans s’y limiter, les obligations conformes aux Principes applicables aux Obligations Vertes, aux Principes applicables aux Obligations Sociales et aux Lignes directrices relatives aux Obligations de Développement Durable de l’International Capital Market Association (ICMA).
Le Conseiller en Investissement déploie un cadre d’évaluation exclusif pour les obligations labellisées susmentionnées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Comme indiqué ci-avant, le Conseiller en Investissement utilise des données et des notations ESG provenant de tiers. Dans certains cas, les données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des notations différentes.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut investir dans des produits dérivés (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) tels que des contrats à terme sur indices, des contrats de différence (CFD), des contrats de swap sur le rendement total (TRS), des billets structurés (y compris des obligations participatives), des obligations convertibles, des titres de créance convertibles en actions assorties de droits préférentiels, des options, des options sur devises, des contrats à terme sur devises et des contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par Standard & Poor’s Corporation (« S&P ») ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de 6 mois.
Le Compartiment peut, à titre accessoire, investir en :
- Titres à Revenu Fixe non libellés en Euro. Conformément à l’Annexe A « Limites et restrictions d’investissement » lesexpositions qui ne sont pas libellées en Euro pourront être couvertes en Euro.
- Titres à Revenu Fixe qui ne sont pas des Obligations de Sociétés.

Le Compartiment ne peut investir plus de 20 % de son actif en titres adossés à des actifs.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et se réfère à l’Indice Bloomberg European Corporate Index afin de définir l’univers d’investissement. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne principalement des titres référencés par l’indice Bloomberg European Corporate Index, il peut investir dans ces titres selon des pondérations différentes de celles de l’indice Bloomberg European Corporate Index et il peut détenir des titres qui ne font pas partie de l’indice Bloomberg European Corporate Index Il n’y a pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’Indice Bloomberg European Corporate Index.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement utilise la composante obligations d’entreprise de l’indice Bloomberg European Corporate Index aux fins de la comparaison de l’empreinte carbone du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable Euro Corporate Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE EURO STRATEGIC BOND FUND
L’objectif d’investissement du Sustainable Euro Strategic Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Euro, tout en intégrant des caractéristiques ESG en éliminant les secteurs et les émetteurs ayant un faible score global de durabilité, et en maintenant une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice Bloomberg Euro Aggregate Index (voir ci-dessous), en tenant compte des objectifs à longterme de l’Accord de Paris en matière de réchauffement climatique, comme décrit plus en détail ci-dessous.
Le Compartiment investit principalement dans des émissions de Titres à Revenu Fixe libellés en Euro qu’ils soient émis par des sociétés, des émetteurs souverains ou des émetteurs bénéficiant de garanties souveraines et, sous réserve de la réglementation applicable, dans une limite de 20% de son actif, dans des titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme mentionné ci-après. En outre, le Conseiller en Investissement peut inclure une évaluation des contributions positives et négatives aux Objectifs de Développement Durable des Nations Unies et s’attache à débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y
limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Compartiment n’investira pas dans des sociétés émettrices qui : Tirent un revenu quelconque de l’une des activités suivantes :
- L’extraction de charbon thermique ;
- La fabrication ou la vente au détail d’armes controversées (mines antipersonnel, armes à sous-munitions, armes biologiques ou chimiques et armes nucléaires) ;
- La fabrication et la vente au détail d’armes à feu à usage civil ;
- La production de tabac ;Tirent plus de 5 % de leur chiffre d’affaires de l’une des activités suivantes :
- L’extraction de sables bitumineux ;
- La production de pétrole et de gaz situés en Arctique ;Tirent plus de 10 % de leur chiffre d’affaires des activités suivantes :
- La production d’électricité à partir de charbon ;
- les jeux d’argent ;
- La vente au détail et la distribution de tabac ;
- Le divertissement pour adultes ; ou quiViolent l’une des exclusions fondées sur des normes suivantes :
- Sont réputées avoir enfreint le Pacte mondial de l’ONU ;
- Sont réputées avoir enfreint les Principes directeurs des Nations unies sur les entreprises et les droits de l’homme ;
- Sont réputées avoir enfreint les principes fondamentaux de l’OIT ; ou
- Ont suscité de très graves controverses liées aux aspects ESG, y compris en lien avec des violations des Directives de l’OCDE pour les entreprises multinationales.

Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et Obligations de Développement Durable
labellisées (voir ci-dessous) émises pour lever des capitaux spécifiquement pour des projets liés au climat pour autant que le Conseiller en Investissement ait déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers.
Le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées à des critères ESG, au fil du temps, qu’il estime compatibles avec ses objectifs d’investissement. Ces restrictions supplémentaires seront publiées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Pour ses investissements dans des Titres à Revenu Fixe émis par des sociétés, le Compartiment n’investit que dans les 80 % supérieurs des entreprises ayant le meilleur score sur le plan ESG dans chaque sous-secteur de l’indice Bloomberg Euro Aggregate Index. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant les données ESG de tiers comme base et en tenant compte des thèmes ESG tels que, mais sans s’y limiter : l’atténuation du changement climatique, l’utilisation responsable des ressources naturelles, la gestion durable des déchets, la gestion inclusive du capital humain et l’égalité entre les genres. S’agissant des investissements du Compartiment en Titres à Revenu Fixe émis par des émetteurs souverains, le Compartiment n’investira que dans la tranche des 80 % meilleurs émetteurs souverains en termes de notation sur le plan ESG, à moins que le Conseiller en Investissement considère qu’un émetteur souverain dans les 20 % inférieurs démontre une durabilité positive et/ou émet Une Obligation Verte, Sociale ou de Développement Durable labellisée (voir ci-après). Le Compartiment n’investira pas dans des obligations d’émetteurs souverains non notées. Les critères ESG susmentionnés devraient entraîner une réduction d’au moins 20 % de l’univers des entreprises et émetteurs souverains investissables, et le Conseiller en Investissement fera tout son possible pour s’assurer qu’au moins
90 % des entreprises du portefeuille sont évaluées selon sa
méthodologie de notation ESG. Le processus et la méthodologie de sélection sont disponibles sur les sites Internet suivants : www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints ultérieurement, en raison de l’application des critères ESG ci-dessus, après leur acquisition pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le
Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Pour la part du Compartiment investie dans des obligations émises par des entreprises, le Compartiment maintiendra une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice de référence Bloomberg Euro Aggregate Index, en tenant compte des objectifs à longterme de l’Accord de Paris en matière de réchauffement climatique. L’empreinte carbone est mesurée en tant qu’Intensité Carbone Moyenne Pondérée, définie comme des tonnes d’équivalent de CO2 par million de dollars de revenus. Il peut être déterminé que les Obligations Vertes et Obligations de Développement Durable (au sens défini ci-dessous) ayant des objectifs liés au climat ont une empreinte carbone différente de celle des émetteurs de ces obligations. Dans ce cas, le Conseiller en Investissement divulguera sa méthodologie pour déterminer l’empreinte carbone pertinente de ces instruments.
Dans le cadre de sa stratégie, le Conseiller en Investissement peut investir une partie du Compartiment dans des Obligations Durables, définies comme des Obligations Vertes, Sociales ou de Développement Durable labellisées selon le label indiqué dans la documentation des titres, lorsque leur émetteur s’engage à affecter le produit de leur vente à des projets apportant une contribution environnementale ou sociale positive. Cela inclut, sans s’y limiter, les obligations conformes aux Principes applicables aux Obligations Vertes, aux Principes applicables aux Obligations Sociales et aux Lignes directrices relatives aux Obligations de Développement Durable de l’International Capital Market Association (ICMA).
Le Conseiller en Investissement déploie un cadre d’évaluation exclusif pour les obligations labellisées susmentionnées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Comme indiqué ci-avant, le Conseiller en Investissement utilise des données et des notations ESG provenant de tiers. Dans certains cas, les données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut investir dans des produits dérivés (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) tels que des contrats à terme sur indices, des contrats de différence (CFD), des contrats de swap sur le rendement total (TRS), des billets structurés (y compris des obligations participatives), des obligations convertibles, des titres de créance convertibles en actions assorties de droits préférentiels, des options, des options sur devises, des contrats à terme sur devises et des
contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut, à titre accessoire, investir en Titres à Revenu Fixe non libellés en Euro. Conformément à l’Annexe A
« Limites et restrictions d’investissement » les expositions qui ne sont pas libellées en Euro pourront être couvertes en Euro.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et se réfère à l’Indice Bloomberg Euro Aggregate Index afin de définir l’univers d’investissement. Le Conseiller en Investissement a toute discrétion pour déterminer la composition des actifs du Compartiment. Bien que le Compartiment détienne principalement des titres référencés par l’indice Bloomberg Euro Aggregate Index, il peut investir dans ces titres selon des pondérations différentes de celles de l’indice Bloomberg Euro Aggregate Index et il peut détenir des titres qui ne font pas partie de l’indice Bloomberg Euro Aggregate Index. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice Bloomberg Euro Aggregate Index.
La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement utilise la composante obligations d’entreprise de l’indice Bloomberg Euro Aggregate Index aux fins de la comparaison de l’empreinte carbone du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable Euro Strategic Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE EUROPEAN HIGH YIELD BOND FUND
L’objectif d’investissement du Sustainable European High Yield Bond Fund est de générer un revenu courant et un rendement total tout en intégrant des caractéristiques ESG en éliminant les secteurs et les émetteurs ayant un faible score global de durabilité, en vue d’atteindre les objectifs à long terme de l’Accord de Paris adopté dans le contexte de la Convention-cadre des Nations Unies sur les changements climatiques (l’« Accord de Paris »), décrit plus en détail ci-après.
Le Compartiment investira principalement dans un portefeuille diversifié de Titres à Revenu Fixe d’émetteurs situés en Europe qui peuvent inclure des obligations à coupon nul, des obligations à intérêts reportés et des obligations dont les intérêts sont payables sous la forme d’obligations éligibles de la même catégorie (obligations à « paiement en nature », Payment-in-Kind, PIK).
Le Compartiment investira dans des Titres à Revenu Fixe possédant une notation Baa3 ou inférieure selon Moody’s Investors Service, Inc. (« Moody’s »), BBB ou inférieure selon Standard & Poor’s Ratings Group (« S&P »), BBB ou inférieure selon Fitch Investors Service, Inc. ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement à la date de l’investissement.
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme mentionné ci-après. En outre, le Conseiller en Investissement peut inclure une évaluation des contributions positives et négatives aux Objectifs de Développement Durable des Nations Unies et est susceptible de débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées.
Le Conseiller en Investissement utilise un processus de filtrage, les recherches ESG exclusives et complètes produites par son entité affiliée Calvert Research and Management ainsi que ses propres recherches ESG et des données provenant de fournisseurs tiers pour évaluer les investissements. Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux
Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins une fois par an. Cette évaluation porte sur des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients.
Le Compartiment n’investira pas dans des sociétés émettrices qui : Tirent un revenu quelconque de l’une des activités suivantes :
- L’extraction de charbon thermique ;
- La fabrication ou la vente au détail d’armes controversées (mines antipersonnel, armes à sous-munitions, armes biologiques ou chimiques et armes nucléaires) ;
- La fabrication et la vente au détail d’armes à feu à usage civil ;
- La production de tabac ;Tirent plus de 5 % de leur chiffre d’affaires de l’une des activités suivantes :
- L’extraction de sables bitumineux ;
- La production de pétrole et de gaz situés en Arctique ;Tirent plus de 10 % de leur chiffre d’affaires des activités suivantes :
- La production d’électricité à partir de charbon ;
- les jeux d’argent ;
- La vente au détail et la distribution de tabac ;
- Le divertissement pour adultes ; ou quiViolent l’une des exclusions fondées sur des normes suivantes :
- Sont réputées avoir enfreint le Pacte mondial de l’ONU ;
- Sont réputées avoir enfreint les Principes directeurs des Nations unies sur les entreprises et les droits de l’homme ;
- Sont réputées avoir enfreint les principes fondamentaux de l’OIT ; ou
- Ont suscité de très graves controverses liées aux aspects ESG, y compris en lien avec des violations des Directives de l’OCDE pour les entreprises multinationales.

Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et Obligations de Développement Durable labellisées (au sens défini ci-dessous) émises pour lever des capitaux spécifiquement pour des projets liés au climat pour autant que le Conseiller en Investissement ait déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles mentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur les controverses et les enjeux ESG provenant de fournisseurs tiers.
Le Compartiment n’investira pas dans des titres d’émetteurs présentant des cas de controverse considérés par le Conseiller en Investissement comme très graves sur la base des notations des fournisseurs de données ESG pertinents, lorsque le Conseiller en Investissement estime que les mesures correctives appropriées n’ont pas été prises. Le Compartiment s’abstiendra également d’investir dans des titres d’émetteurs qui ne respectent pas les le Pacte mondial des Nations unies ou les Principes Fondamentaux de l’OIT, et pour lesquels le Conseiller en Investissement estime que des mesures correctives appropriées n’ont pas été prises.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Le Conseiller en Investissement choisira également d’appliquer, dans le cadre de son processus d’investissement, des critères de filtrage positifs qu’il estime conformes à ses objectifs. Le processus et la méthodologie de sélection sont disponibles sur les sites web suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Les critères ESG susmentionnés entraîneront une réduction d’au moins 20 % de l’univers d’investissement, et le Conseiller en Investissement s’assurera qu’au moins 90 % de la Valeur Liquidative du Compartiment fait l’objet d’une évaluation dans le cadre de ses recherches ESG. L’univers d’investissement à ces fins est défini comme l’Indice. Le Conseiller en Investissement surveillera également les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers, et l’empreinte carbone (pour la proportion du Compartiment investie dans des titres de créance à revenu fixe émis par des entreprises) afin de mesurer et d’évaluer la contribution des titres de créance à revenu fixe aux thèmes ESG décrits ci-avant. L’univers investissable sera réexaminé en permanence. Les critères ESG seront analysés pour chaque entreprise au moins une fois par an, mais des analyses plus fréquentes sont possibles. Le Conseiller en Investissement ajustera et modifiera la méthodologie selon les besoins. Les indicateurs évoqués ci-avant seront mesurés et évalués au moins une fois par an.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en raison de l’application des critères ESG ci-avant après leur acquisition pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Compartiment maintiendra une empreinte carbone inférieure à celle de l’indice ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained, en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique. L’empreinte carbone est mesurée en tant qu’Intensité Carbone moyenne pondérée, définie comme des tonnes d’équivalent de CO2 par million de dollars de revenus. Il peut être déterminé que les Obligations Durables ayant des objectifs liés au climat ont une empreinte carbone différente de celle des émetteurs de ces obligations. Dans ce cas, le Conseiller en Investissement divulguera sa méthodologie pour déterminer l’empreinte carbone pertinente de ces instruments.
Dans le cadre de sa stratégie, le Conseiller en Investissement peut investir une proportion du Compartiment dans des « Obligations Durables », définies comme des Obligations Vertes ou de Développement Durable labellisées dans lesquelles l’émetteur s’est engagé à financer ou à atteindre des objectifs environnementaux et/ ou sociaux spécifiques, y compris, sans toutefois s’y limiter, les suivantes sur la base des principaux labels des obligations émises à ce jour, y compris ceux reconnus par l’International Capital Market Association (ICMA) :
- Obligations Vertes ;
- Obligations Sociales ; et
- Obligations de Développement Durable.

Le Conseiller en Investissement déploie un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Comme indiqué ci-avant, le Conseiller en Investissement utilise des données et des notations ESG provenant de tiers. Dans certains cas, les données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des notations différentes.
Le Compartiment ne mettra l’accent sur aucun secteur économique particulier, et il est prévu que le Compartiment n’investisse généralement pas plus de 25 % de son actif net dans un même secteur, même si ce plafond peut être dépassé occasionnellement.
Le Compartiment ne peut investir plus de 20 % de son actif dans des titres de créance qui ne versent pas de revenus courants dans l’attente de recevoir des revenus futurs éventuels ou d’une appréciation du capital et qui sont dépourvus de notation ou possèdent la catégorie de notation la plus basse (notation C par Moody’s ou D par S&P).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Compartiment peut également investir, à titre accessoire, dans des titres de capital ou des Titres à Revenu Fixe ne respectant pas les critères d’investissement primaires du Compartiment, des warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières connexes.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment, et cet indice de référence sera également désigné comme l’ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index et sera utilisé pour contrôler l’erreur par rapport à l’indice de référence. Le Compartiment détiendra généralement des actifs référencés par
l’ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index, mais il peut investir dans ces titres dans des proportions différentes de leur allocation dans l’ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index et il peut détenir des actifs non référencés dans l’ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable European High Yield Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE GLOBAL FIXED INCOME OPPORTUNITIES FUND
L’objectif d’investissement du Sustainable Global Fixed Income Opportunities Fund est de générer un niveau de rendement total attractif, mesuré en Dollar US, en investissant dans des Titres à Revenu Fixe du monde entier répondant aux critères ESG du Conseiller en Investissement tout en intégrant des caractéristiques ESG en éliminant les secteurs et les émetteurs ayant un faible score global de durabilité, et en maintenant une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice Bloomberg Global Aggregate Corporate Index, en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique, comme décrit plus en détail ci-après. Le Compartiment cherche à mettre en œuvre sa stratégie d’investissement par une allocation dans l’ensemble des classes d’actifs à revenu fixe et la sélection de marchés et d’instruments.
Le Compartiment investit principalement dans des titres d’entreprises, de collectivités publiques et d’émetteurs liés à des collectivités publiques dans le monde entier au sein d’une large gamme d’actifs à revenu fixe, y compris des obligations à haut rendement, des obligations de qualité supérieure dites « investment grade », des titres adossés à des créances hypothécaires, des obligations convertibles et des devises et, sous réserve de la réglementation applicable, dans d’autres titres et créances adossés à des actifs, pour autant que ces instruments aient été titrisés. Les obligations à haut rendement sont considérées comme des Titres à Revenu Fixe émis par des sociétés et notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire. Ces investissements peuvent comprendre des Titres à Revenu Fixe émis sur des marchés émergents.
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme indiqué ci-après. En outre, le Conseiller en Investissement peut inclure une évaluation des contributions positives et négatives aux Objectifs de Développement Durable des Nations Unies et s’attache à débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales importantes auxquelles il estime que les entreprises sont confrontées.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des Titres à Revenu Fixe aux
thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Compartiment n’investira pas dans des sociétés émettrices qui : Tirent un revenu quelconque de l’une des activités suivantes :
- L’extraction de charbon thermique ;
- La fabrication ou la vente au détail d’armes controversées (mines antipersonnel, armes à sous-munitions, armes biologiques ou chimiques et armes nucléaires) ;
- La fabrication et la vente au détail d’armes à feu à usage civil ;
- La production de tabac ;Tirent plus de 5 % de leur chiffre d’affaires de l’une des activités suivantes :
- L’extraction de sables bitumineux ;
- La production de pétrole et de gaz situés en Arctique ;Tirent plus de 10 % de leur chiffre d’affaires des activités suivantes :
- La production d’électricité à partir de charbon ;
- les jeux d’argent ;
- La vente au détail et la distribution de tabac ;
- Le divertissement pour adultes ; ou quiViolent l’une des exclusions fondées sur des normes suivantes :
- Sont réputées avoir enfreint le Pacte mondial de l’ONU ;
- Sont réputées avoir enfreint les Principes directeurs des Nations unies sur les entreprises et les droits de l’homme ;
- Sont réputées avoir enfreint les principes fondamentaux de l’OIT ; ou
- Ont suscité de très graves controverses liées aux aspects ESG, y compris en lien avec des violations des Directives de l’OCDE pour les entreprises multinationales.

Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers.
Le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées à des critères ESG, au fil du temps, qu’il estime compatibles avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Le Compartiment investira dans la tranche des 80 % des meilleures entreprises en termes de notation ESG dans chaque sous-secteur de l’indice Bloomberg Global Aggregate Corporate, de l’indice Bloomberg Global High Yield Corporate et et de l’indice J.P. Morgan CEMBI Broad Diversified. Dans le cas d’entreprises référencées aussi bien (A) dans l’indice J.P. Morgan CEMBI Broad Diversified que (B) dans l’indice Bloomberg Global Aggregate Corporate ou l’indice Bloomberg Global High Yield Corporate, le score ESG de ces entreprises sera considéré par référence à l’indice
J.P. Morgan CEMBI Broad Diversified uniquement. Les scores ESG sont établis par le Conseiller en Investissement, en utilisant les données ESG de tiers comme base et en tenant compte des thèmes ESG tels que, mais sans s’y limiter : l’atténuation du changement climatique, l’utilisation responsable des ressources naturelles, la gestion durable des déchets, la gestion inclusive du capital humain et l’égalité entre les genres.
S’agissant des investissements du Compartiment en Titres à Revenu Fixe émis par des émetteurs souverains, le Compartiment n’investira que dans la tranche des 80 % meilleurs émetteurs souverains en termes de notation sur le plan ESG évalués par le Conseiller en Investissement, à moins que le Conseiller en Investissement considère qu’un émetteur souverain de la tranche inférieure des 20 % démontre une durabilité positive et/ou émet des Obligations Vertes, Sociales ou de Développement Durable labellisées (voir ci-après). Le Compartiment n’investira pas dans des obligations d’émetteurs que le Conseiller en Investissement n’a pas notés.
Les critères ESG susmentionnés viseront à aboutir à une sélection d’entreprises et d’émetteurs souverains mieux notés que les autres entreprises et émetteurs souverains de l’univers d’investissement (dont la composante « entreprises » est définie comme l’ensemble des entreprises référencées dans un ou plusieurs des indices Bloomberg Global Aggregate Corporate , Bloomberg Global High Yield Corporate et J.P. Morgan CEMBI Broad Diversified, étant entendu que le Compartiment peut investir au maximum 10 % de son portefeuille dans des entreprises non couvertes par ces indices). À cet égard, la notation ESG des entreprises devrait entraîner une réduction d’au moins 20 % de la composante « entreprises » de l’univers d’investissement du Compartiment, et le Conseiller en
Investissement visera à s’assurer qu’au moins 90 % des entreprises émettrices en portefeuille sont évaluées selon sa méthodologie de notation ESG. Le processus et la méthodologie de sélection sont disponibles sur les sites web suivants : www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Pour les investissements du Compartiment dans des Tires à Revenu Fixe non émis par des entreprises ou des souverains, les critères ESG sont pris en compte par le Conseiller en Investissement au cours du processus d’investissement et de recherche afin de limiter l’exposition aux Risques en Matière de Durabilité et d’évaluer les opportunités d’investissement.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints ultérieurement, en raison de l’application des critères ESG ci-avant, après leur acquisition pour le Compartiment seront vendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Pour la part du Compartiment investie dans des obligations émises par des entreprises, le Compartiment maintiendra une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice de référence Bloomberg Global Aggregate, en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique. L’empreinte carbone est mesurée en tant qu’Intensité Carbone Moyenne Pondérée, définie comme des tonnes d’équivalent de CO2 par million de dollars de revenus. Il peut être déterminé que les Obligations Durables ayant des objectifs liés au climat ont une empreinte carbone différente de celle des émetteurs de ces obligations. Dans ce cas, le Conseiller en Investissement divulguera sa méthodologie pour déterminer l’empreinte carbone pertinente de ces instruments.
Dans le cadre de sa stratégie, le Conseiller en Investissement peut investir une partie du Compartiment dans des Obligations Vertes, Sociales ou de Développement Durable selon le label indiqué dans la documentation des titres, lorsque leur émetteur s’engage à affecter le produit de leur vente à des projets apportant une contribution environnementale ou sociale positive. Cela inclut, sans s’y limiter, les obligations conformes aux Principes applicables aux Obligations Vertes, aux Principes applicables aux Obligations Sociales et aux Lignes directrices relatives aux Obligations de Développement Durable de l’International Capital Market Association (ICMA).
Le Conseiller en Investissement déploie un cadre d’évaluation exclusif pour les obligations labellisées susmentionnées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement utilise des données et des scores ESG de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des notations différentes.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, dans des Titres à Revenu Fixe ne répondant pas aux exigences ci-avant, des Instruments assimilés aux liquidités, des titres de participation et d’autres valeurs mobilières donnant accès au capital.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Il n’est pas prévu que le Compartiment investisse plus de 50 % de son actif net au total dans des instruments titrisés. Il n’est pas prévu que le Compartiment investisse plus de 20 % de son actif net dans un même type d’instruments titrisés (par ex. des titres adossés à des actifs (ABS), des titres adossés à des créances hypothécaires commerciales (CMBS), des titres adossés à des créances hypothécaires résidentielles (RMBS) et des titres adossés à des créances hypothécaires d’agences (MBS)).
Le Compartiment peut investir en Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois. L’investissement dans les titres de ce type ne dépassera pas 10 % de l’actif du Compartiment.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour reproduire un indice de référence et, par conséquent, la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence. Dans le cadre de l’intégration des critères ESG dans le Compartiment, le Conseiller en Investissement utilise (i) la composante obligations d’entreprise de l’indice Bloomberg Global Aggregate aux fins de la comparaison de l’empreinte carbone du Compartiment et (ii) les sous-secteurs des indices Bloomberg Global Aggregate Corporate, Bloomberg Global High Yield Corporate et J.P. Morgan CEMBI Broad Diversified aux fins de
définir les entreprises présentant les meilleurs scores ESG dans lesquelles le Compartiment investira.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable Global Fixed Income Opportunities Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE GLOBAL HIGH YIELD BOND FUND
L’objectif d’investissement du Sustainable Global High Yield Bond Fund est de générer un revenu courant et un rendement total tout en intégrant des caractéristiques ESG en éliminant les secteurs et les émetteurs ayant un faible score global de durabilité, en vue d’atteindre les objectifs à long terme de l’Accord de Paris adopté dans le contexte de la Convention-cadre des Nations Unies sur les changements climatiques (l’« Accord de Paris »), décrit plus en détail ci-après.
Le Compartiment investira principalement dans un portefeuille diversifié de Titres à Revenu Fixe à haut rendement émis par des entreprises et autres émetteurs ne relevant pas des gouvernements (des « Obligations d’Entreprises ») organisés ou actifs dans des marchés développés ou émergents et libellés dans des devises du monde entier, qui peuvent inclure des obligations à coupon nul, des actions privilégiées, des obligations et billets à intérêts reportés et des obligations et billets dont les intérêts sont payables sous la forme d’actions, d’obligations ou de billets éligibles de la même catégorie (titres à « paiement en nature », Payment-in-Kind, PIK).
Le Compartiment investira dans des titres possédant une notation Baa3 ou inférieure selon Moody’s, BBB ou inférieure selon Standard & Poor’s, BBB ou inférieure selon Fitch ou toute notation similaire attribuée par une autre agence de notation mondialement reconnue, ou considérés comme présentant une solvabilité similaire par le Conseiller en Investissement à la date de l’investissement.
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme mentionné ci-après. En outre, le Conseiller en Investissement peut inclure une évaluation des contributions positives et négatives aux Objectifs de Développement Durable des Nations Unies et s’attache à débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées. Le Compartiment maintiendra une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial, en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée (weighted average carbon intensity, WACI), définie comme des tonnes d’équivalent de CO2 par million de dollars de revenus. Il peut être déterminé que les Obligations Durables (définies ci-après) ayant des objectifs liés au climat ont une empreinte carbone différente de celle des émetteurs de ces obligations, par exemple lorsque l’obligation est émise dans le cadre de la stratégie de transition climatique d’un émetteur.
Le Conseiller en Investissement utilise un processus de filtrage, les recherches ESG exclusives et complètes produites par son entité affiliée Calvert Research and Management ainsi que ses propres recherches ESG et des données provenant de fournisseurs tiers pour évaluer les investissements. Le Conseiller en Investissement applique également des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Cette évaluation porte sur des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients.
Le Conseiller en Investissement choisira également d’appliquer, dans le cadre de son processus d’investissement, des critères de filtrage positifs qu’il estime conformes à ses objectifs. Le processus et la méthodologie de sélection sont disponibles sur les sites web suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Les critères ESG susmentionnés entraîneront une réduction d’au moins 20 % de l’univers d’investissement, et le Conseiller en Investissement s’assurera qu’au moins 90 % de la Valeur Liquidative du Compartiment fait l’objet d’une évaluation dans le cadre de ses recherches ESG. L’univers d’investissement à ces fins est défini comme l’Indice. Le Conseiller en Investissement surveillera également les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers, et l’empreinte carbone (pour la proportion du Compartiment investie dans des titres de créance à revenu fixe émis par des entreprises) afin de mesurer et d’évaluer la contribution des titres de créance à revenu fixe aux thèmes ESG décrits ci-avant. L’univers investissable sera réexaminé en permanence. Les critères ESG seront analysés pour chaque entreprise au moins une fois par an, mais des analyses plus fréquentes sont possibles. Le Conseiller en Investissement ajustera et modifiera la méthodologie selon les besoins. Les indicateurs évoqués ci-avant seront mesurés et évalués au moins une fois par an.
Le Compartiment n’investira pas dans des sociétés émettrices qui : Tirent un revenu quelconque de l’une des activités suivantes :
- L’extraction de charbon thermique ;
- La fabrication ou la vente au détail d’armes controversées (mines antipersonnel, armes à sous-munitions, armes biologiques ou chimiques et armes nucléaires) ;
- La fabrication et la vente au détail d’armes à feu à usage civil ;
- La production de tabac ;Tirent plus de 5 % de leur chiffre d’affaires de l’une des activités suivantes :
- L’extraction de sables bitumineux ;
- La production de pétrole et de gaz situés en Arctique ;Tirent plus de 10 % de leur chiffre d’affaires des activités suivantes :
- La production d’électricité à partir de charbon ;
- les jeux d’argent ;
- La vente au détail et la distribution de tabac ;
- Le divertissement pour adultes ; ou quiViolent l’une des exclusions fondées sur des normes suivantes :
- Sont réputées avoir enfreint le Pacte mondial de l’ONU ;
- Sont réputées avoir enfreint les Principes directeurs des Nations unies sur les entreprises et les droits de l’homme ;
- Sont réputées avoir enfreint les principes fondamentaux de l’OIT ; ou
- Ont suscité de très graves controverses liées aux aspects ESG, y compris en lien avec des violations des Directives de l’OCDE pour les entreprises multinationales.

Par exception à l’exclusion relative aux combustibles fossiles énoncée au paragraphe précédent, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat (les « Obligations Durables ») pour autant que le Conseiller en Investissement ait déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Les Obligations Durables peuvent inclure, sans s’y limiter :
- Obligations Vertes ;
- Obligations Sociales ; et
- Obligations de Développement Durable.

Avant d’investir dans des Obligations Durables, le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers.
Outre les exclusions ci-avant, le Compartiment n’investira pas dans des titres d’émetteurs présentant des cas de controverse considérés par le Conseiller en Investissement comme très graves sur la base des notations des fournisseurs de données ESG pertinents, lorsque le Conseiller en Investissement estime que les mesures correctives appropriées n’ont pas été prises. Le Compartiment s’abstiendra également d’investir dans des titres d’émetteurs qui ne respectent pas les le Pacte mondial des Nations unies ou les Principes Fondamentaux de l’OIT, et pour lesquels le Conseiller en Investissement estime que des mesures correctives appropriées n’ont pas été prises.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en raison de l’application des critères ESG
ci-avant après leur acquisition pour le Compartiment seront vendus.
Comme indiqué ci-avant, le Conseiller en Investissement utilise des données et des notations ESG provenant de tiers. Dans certains cas, les données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des notations différentes.
Des informations supplémentaires concernant l’intégration des risques de durabilité vis-à-vis de la Société sont reprises à la section du Prospectus intitulée « Informations générales relatives à l’intégration des Risques en Matière de Durabilité ».
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir, à titre accessoire, dans des Titres à Revenu Fixe ne respectant pas les critères d’investissement primaires du Compartiment, comme des titres de créance à revenu fixe et à taux flottants émis ou garantis par le gouvernement des États-Unis ou n’importe quel État ou territoire des États-Unis, n’importe quel gouvernement extérieur aux États-Unis ou n’importe laquelle de ses subdivisions politiques, agence ou administrations publiques respectives, des titres de capital, des warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières donnant accès au capital. Dans des circonstances normales, le Compartiment ne peut pas investir plus de 10 % de son actif dans ces titres de capital, warrants sur valeurs mobilières et autres valeurs mobilières donnant accès au capital.
Le Compartiment prévoit de manière générale de ne pas investir plus de 5 % de son actif net dans les marchés émergents, mais les investissements dans les marchés émergents peuvent représenter au maximum 20 % de l’actif net du Compartiment.
Outre l’exposition aux investissements durables, tous les investissements réalisés par le Fonds seront réputés ne pas causer de préjudice important aux facteurs environnementaux et sociaux selon l’estimation du Conseiller en Investissement. Le Conseiller en Investissement procède à cette évaluation selon une méthodologie interne (modifiée périodiquement) qui tient compte d’un sous- ensemble représentatif d’indicateurs des incidences négatives sur la durabilité.
Le Compartiment ne mettra l’accent sur aucun secteur économique particulier, et il est prévu que le Compartiment n’investisse généralement pas plus de 25 % de son actif net dans un même secteur, même si ce plafond peut être dépassé occasionnellement.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Le Compartiment ne peut investir plus de 20 % de son actif dans des titres de créance non notés ou possédant la catégorie de notation la plus basse (notation C par Moody’s ou D par S&P).
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment, et cet indice de référence sera également désigné comme l’indice ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial et sera utilisé pour contrôler l’erreur par rapport à l’indice de référence. Le Compartiment détiendra généralement des actifs référencés par l’indice ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial, mais il peut investir dans ces titres dans des proportions différentes de leur allocation dans l’indice ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial et il peut détenir des actifs non référencés dans l’indice ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable Global High Yield Bond Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

SUSTAINABLE US HIGH YIELD BOND FUND
L’objectif d’investissement du Sustainable US High Yield Bond Fund est de générer un revenu courant et un rendement total tout en intégrant des caractéristiques ESG en éliminant les secteurs et les émetteurs ayant un faible score global de durabilité, en vue d’atteindre les objectifs à long terme de l’Accord de Paris adopté dans le contexte de la Convention-cadre des Nations Unies sur les changements climatiques (l’« 
Accord de Paris 
»), décrit plus en détail ci-après.
Le Compartiment investira principalement dans un portefeuille diversifié de Titres à Revenu Fixe d’émetteurs situés aux États-Unis qui peuvent inclure des obligations à coupon nul, des obligations à intérêts reportés et des obligations et billets dont les intérêts sont payables sous la forme d’obligations éligibles de la même catégorie (obligations à « paiement en nature », Payment-in-Kind, PIK).
Le Compartiment investira dans des Titres à Revenu Fixe possédant une notation Baa3 ou inférieure selon Moody’s Investors Service, Inc. (« Moody’s »), BBB ou inférieure selon Standard & Poor’s Ratings Group (« S&P »), BBB ou inférieure selon Fitch Investors Service, Inc. ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement à la date de l’investissement.
En ce qui concerne ce Compartiment, le terme « Sustainable » signifie que le Conseiller en Investissement intègre la prise en compte des thèmes de durabilité et des critères ESG dans sa décision d’investissement sur une base discrétionnaire, comme mentionné ci-après. En outre, le Conseiller en Investissement peut inclure une évaluation des contributions positives et négatives aux Objectifs de Développement Durable des Nations Unies et s’attache à débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées. Le Compartiment maintiendra une empreinte carbone inférieure à celle de la composante obligations d’entreprise de l’indice ICE BofA U.S. High Yield, en tenant compte des objectifs à long terme de l’Accord de Paris en matière de réchauffement climatique. L’empreinte carbone est mesurée en tant qu’intensité carbone moyenne pondérée (weighted average carbon intensity, WACI), définie comme des tonnes d’équivalent de CO2 par million de dollars de revenus. Il peut être déterminé que les Obligations Durables (définies ci-après) ayant des objectifs liés au
climat ont une empreinte carbone différente de celle des émetteurs de ces obligations, par exemple lorsque l’obligation est émise dans le cadre de la stratégie de transition climatique d’un émetteur.
Le Conseiller en Investissement utilise un processus de filtrage, les recherches ESG exclusives et complètes produites par son entité affiliée Calvert Research and Management ainsi que ses propres recherches ESG et des données provenant de fournisseurs tiers pour évaluer les investissements. Le Conseiller en Investissement applique également des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Cette évaluation porte sur des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients.
Le Conseiller en Investissement choisira également d’appliquer, dans le cadre de son processus d’investissement, des critères de filtrage positifs qu’il estime conformes à ses objectifs. Le processus et la méthodologie de sélection sont disponibles sur les sites web suivants : www.morganstanleyinvestmentfunds.com et www.morganstanley.com/im.
Les critères ESG susmentionnés entraîneront une réduction d’au moins 20 % de l’univers d’investissement, et le Conseiller en Investissement s’assurera qu’au moins 90 % de la Valeur Liquidative du Compartiment fait l’objet d’une évaluation dans le cadre de ses recherches ESG. L’univers d’investissement à ces fins est défini comme l’Indice. Le Conseiller en Investissement surveillera également les indicateurs de durabilité de base, y compris les évaluations ESG de prestataires tiers, et l’empreinte carbone (pour la proportion du Compartiment investie dans des titres de créance à revenu fixe émis par des entreprises) afin de mesurer et d’évaluer la contribution des titres de créance à revenu fixe aux thèmes ESG décrits ci-avant. L’univers investissable sera réexaminé en permanence. Les critères ESG seront analysés pour chaque entreprise au moins une fois par an, mais des analyses plus fréquentes sont possibles. Le Conseiller en Investissement ajustera et modifiera la méthodologie selon les besoins. Les indicateurs évoqués ci-avant seront mesurés et évalués au moins une fois par an.
Le Compartiment n’investira pas dans des sociétés émettrices qui : Tirent un revenu quelconque de l’une des activités suivantes :
- L’extraction de charbon thermique ;
- La fabrication ou la vente au détail d’armes controversées (mines antipersonnel, armes à sous-munitions, armes biologiques ou chimiques et armes nucléaires) ;
- La fabrication et la vente au détail d’armes à feu à usage civil ;
- La production de tabac ;Tirent plus de 5 % de leur chiffre d’affaires de l’une des activités suivantes :
- L’extraction de sables bitumineux ;
- La production de pétrole et de gaz situés en Arctique ;Tirent plus de 10 % de leur chiffre d’affaires des activités suivantes :
- La production d’électricité à partir de charbon ;
- les jeux d’argent ;
- La vente au détail et la distribution de tabac ;
- Le divertissement pour adultes ; ou quiViolent l’une des exclusions fondées sur des normes suivantes :
- Sont réputées avoir enfreint le Pacte mondial de l’ONU ;
- Sont réputées avoir enfreint les Principes directeurs des Nations unies sur les entreprises et les droits de l’homme ;
- Sont réputées avoir enfreint les principes fondamentaux de l’OIT ; ou
- Ont suscité de très graves controverses liées aux aspects ESG, y compris en lien avec des violations des Directives de l’OCDE pour les entreprises multinationales.

Par exception à l’exclusion relative aux combustibles fossiles énoncée au paragraphe précédent, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat (les « Obligations Durables ») pour autant que le Conseiller en Investissement ait déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Les Obligations Durables peuvent inclure, sans s’y limiter :
- Obligations Vertes ;
- Obligations Sociales ; et
- Obligations de Développement Durable ;Avant d’investir dans des Obligations Durables, le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.

Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers.
Outre les exclusions ci-avant, le Compartiment n’investira pas dans des titres d’émetteurs présentant des cas de controverse considérés par le Conseiller en Investissement comme très graves sur la base des notations des fournisseurs de données ESG pertinents, lorsque le Conseiller en Investissement estime que les mesures correctives appropriées n’ont pas été prises. Le Compartiment s’abstiendra également d’investir dans des titres d’émetteurs qui ne respectent pas les le Pacte mondial des Nations unies ou les Principes Fondamentaux de l’OIT, et pour lesquels le Conseiller en Investissement estime que des mesures correctives appropriées n’ont pas été prises.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements qui sont détenus par le Compartiment mais qui deviennent restreints en raison de l’application des critères ESG ci-avant après leur acquisition pour le Compartiment seront vendus.
Comme indiqué ci-avant, le Conseiller en Investissement utilise des données et des notations ESG provenant de tiers. Dans certains cas, les données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des notations différentes.
Des informations supplémentaires concernant l’intégration des risques de durabilité vis-à-vis de la Société sont reprises à la section du Prospectus intitulée « Informations générales relatives à l’intégration des Risques en Matière de Durabilité ».
Le Compartiment ne mettra l’accent sur aucun secteur particulier.
Le Compartiment peut également investir, à titre accessoire, dans des titres de capital ou des Titres à Revenu Fixe ne respectant pas les
critères d’investissement primaires du Compartiment, des warrants sur valeurs mobilières, Instruments assimilés aux liquidités et autres valeurs mobilières connexes.
Le Compartiment ne peut investir plus de 10 % de son actif dans des titres de créance qui ne versent pas de revenus courants dans l’attente de recevoir des revenus futurs éventuels ou d’une appréciation du capital et qui sont dépourvus de notation ou possèdent la catégorie de notation la plus basse (notation C par Moody’s ou D par S&P).
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable éligibles à l’actif des OPCVM au sens de la Loi de 2010.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Outre l’exposition aux investissements durables, tous les investissements réalisés par le Fonds seront réputés ne pas causer de préjudice important aux facteurs environnementaux et sociaux selon l’estimation du Conseiller en Investissement. Le Conseiller en Investissement procède à cette évaluation selon une méthodologie interne (modifiée périodiquement) qui tient compte d’un sous- ensemble représentatif d’indicateurs des incidences négatives sur la durabilité.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment, et cet indice de référence sera également désigné comme l’indice ICE BofA U.S. High Yield et sera utilisé pour contrôler l’erreur par rapport à l’indice de référence. Le Compartiment détiendra généralement des actifs référencés par l’indice ICE BofA U.S. High Yield, mais il peut investir dans ces titres dans des proportions différentes de leur allocation dans l’indice ICE BofA U.S. High Yield et il peut détenir des actifs non référencés dans l’indice ICE BofA U.S. High Yield. Il n’y a donc pas de restrictions sur la mesure dans laquelle la performance du Compartiment peut s’écarter de celle de l’indice ICE BofA U.S. High Yield.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques
durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Sustainable US High Yield Bond Fund peut convenir aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à long terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US DOLLAR CORPORATE BOND FUND
L’objectif d’investissement de l’US Dollar Corporate Bond Fund est de générer un taux de rendement relatif attractif, mesuré en Dollar US.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement en Titres à Revenu Fixe libellés en Dollar US émis par des sociétés et d’autres émetteurs non souverains (« Obligations de Sociétés »).
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux du crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement surveillera les indicateurs de durabilité de base, y compris les évaluations environnementales, sociales et de gouvernance de prestataires tiers, et l’empreinte carbone (mesurée par l’intensité carbone, définie en tonnes d’équivalent CO2 par million de dollars de revenus pour la proportion du Compartiment investie dans des obligations émises par des entreprises) afin de mesurer et d’évaluer la contribution des
Titres à Revenu Fixe aux thèmes ESG décrits ci-avant. Ces indicateurs seront mesurés et évalués au moins sur une base annuelle.
Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Le Conseiller en Investissement promeut la transition vers une économie à faible émission de carbone en excluant les sociétés émettrices dont la production de charbon thermique est une activité principale, et promeut la vie humaine en excluant les produits qui nuisent à la santé et au bien-être, notamment le tabac, les armes controversées et la fabrication d’armes à feu à usage civil. Par conséquent, les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- d’armes à feu à usage civil ;
- les sociétés de fabrication ou de production de tabac ; et
- l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire au moins 5 % de son chiffre d’affaires de cette activité.

Par exception à l’exclusion relative au charbon ci-dessus, le Compartiment peut investir dans des Obligations Vertes et des Obligations de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement. Le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut investir dans des produits dérivés (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) tels que des options, contrats à terme, swaps et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment n’investit pas en titres dont la notation est, à la date de l’investissement, inférieure à B- (ou BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires) par Standard & Poor’s Corporation (« S&P ») ou toute notation équivalente d’une autre agence de notation ou notation interne équivalente du Conseiller en Investissement. Lorsque des titres détenus par le Compartiment voient par la suite leur notation dégradée en-deçà de B- (ou de BBB- dans le cas de titres adossés à des actifs, en ce compris des titres adossés à des créances hypothécaires), le Conseiller en Investissement peut maintenir une exposition totale maximale de 3 % de la Valeur Liquidative du Compartiment aux titres dont la notation a été dégradée, mais cédera les titres dont la notation demeure en-deçà de B- pendant une période de 6 mois.
Le Compartiment peut, à titre accessoire, investir en :
- Titres à Revenu Fixe non libellés en Dollar US. Conformément à l’Annexe A « Limites et restrictions d’investissement » les expositions qui ne sont pas libellées en Dollar US pourront être couvertes en Dollar US ;
- Titres à Revenu Fixe qui ne sont pas des Obligations de Sociétés.

Le Compartiment ne peut investir plus de 20 % de son actif en titres adossés à des actifs et titres adossés à des créances hypothécaires.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment peut investir dans des émetteurs ou des titres qui peuvent ne pas contribuer eux-mêmes aux caractéristiques environnementales ou sociales spécifiques promues par le produit financier, tels que des instruments de couverture.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Dollar Corporate Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US DOLLAR HIGH YIELD BOND FUND
L’objectif d’investissement de l’US Dollar High Yield Bond Fund est de générer un taux de rendement total attractif, mesuré en Dollar US. Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement dans des Titres à Revenu Fixe à haut rendement et non notés libellés en Dollar US, y compris notamment des titres émis par des gouvernements, des agences gouvernementales ou des sociétés situées dans des marchés émergents et, pour lever toute ambiguïté, sous réserve de la législation en vigueur, des titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux en matière de crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- la fabrication ou la production de tabac.

En ce qui concerne spécifiquement les activités liées aux combustibles fossiles, le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée. Les investissements ne doivent pas inclure, en connaissance de cause, une entreprise dont l’activité implique l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire plus de 5% de ses revenus de cette activité. Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très
graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
L’expression Titres à Revenu Fixe à haut rendement désigne des Titres à Revenu Fixe notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire.
Le Compartiment peut, à titre accessoire, investir dans des Titres à Revenu Fixe de meilleure qualité et des Titres à Revenu Fixe libellés en devises autres que le Dollar US.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les
Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Dollar High Yield Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US DOLLAR SHORT DURATION BOND FUND
L’objectif d’investissement de l’US Dollar Short Duration Bond Fund est de générer un taux de rendement attractif, mesuré en Dollar US. Le Compartiment cherche à atteindre son objectif d’investissement en investissant principalement dans des émissions de haute qualité de Titres à Revenu Fixe libellés en dollar US, y compris, pour lever toute ambiguïté, des titres adossés à des actifs (y compris des titres adossés à des créances hypothécaires). La duration moyenne pondérée du Compartiment sera normalement inférieure à un (1) an, bien qu’elle puisse être plus élevée dans certaines conditions de marché.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux titres à revenu fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux en matière de crédit, les implications pour l’évaluation et les spreads,
ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- la fabrication ou la production de tabac.

En ce qui concerne spécifiquement les activités liées aux combustibles fossiles, le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée. Les investissements ne doivent pas inclure, en connaissance de cause, une entreprise dont l’activité implique l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire plus de 5% de ses revenus de cette activité. Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur
mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment qui, en raison de l’application des critères ESG ci-dessus, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Les titres seront considérés éligibles si, au moment de leur acquisition, ils sont notés « BBB- » ou mieux par S&P ou « Baa3 » ou mieux par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, si le Conseiller en Investissement estime que ces titres offrent une solvabilité similaire. Le Compartiment peut conserver des titres dont la notation a été dégradée après leur acquisition mais ne peut investir de nouveau dans de tels titres.
Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Dollar Short Duration Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à court terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ; et
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

US DOLLAR SHORT DURATION HIGH YIELD BOND FUND
L’objectif d’investissement de l’US Dollar Short Duration High Yield Bond Fund est de générer un taux de rendement total attractif, mesuré en Dollar US. Le Compartiment cherche à atteindre son objectif de placement en investissant principalement dans des Titres à Revenu Fixe à haut rendement et non notés libellés en Dollar US, y compris notamment des titres émis par des gouvernements, des agences gouvernementales ou des sociétés situées dans des marchés émergents et, pour lever toute ambiguïté, sous réserve de la réglementation applicable, des titres ou créances de prêts adossés à des actifs, pour autant que ces instruments aient été titrisés.
Le Conseiller en Investissement applique des méthodes d’évaluation et de notation exclusives, adaptées aux Titres à Revenu Fixe dans lesquels le Compartiment peut investir, axées sur les émissions de sociétés, souveraines et titrisées. En outre, dans le cadre du processus de recherche fondamentale ascendante du Conseiller en Investissement et de ses engagements avec les émetteurs, le Conseiller en Investissement intègre une évaluation des risques et opportunités liés au développement durable dans le processus d’évaluation afin de déterminer les impacts sur les fondamentaux en matière de crédit, les implications pour l’évaluation et les spreads, ainsi que tout aspect important pouvant affecter les techniques de négociation des Titres à Revenu Fixe. Ces critères peuvent inclure, sans s’y limiter, des thèmes ESG tels que la décarbonation et le risque climatique, l’économie circulaire et la réduction des déchets, les entreprises diverses et inclusives et le travail décent et les emplois résilients. Le Conseiller en Investissement déploie également un cadre d’évaluation exclusif pour les Obligations Durables labellisées, grâce auquel la robustesse, l’impact et la transparence de ces instruments sont évalués.
Les investissements n’incluront en connaissance de cause aucune société dont l’activité implique ce qui suit :
- la fabrication ou la production d’armes controversées ;
- la fabrication ou la production d’armes à feu à usage civil ; et
- la fabrication ou la production de tabac.

En ce qui concerne spécifiquement les activités liées aux combustibles fossiles, le Conseiller en Investissement peut engager des discussions avec la direction de l’entreprise sur les thèmes de la décarbonation et du risque climatique, ainsi que sur les pratiques de gouvernance d’entreprise et sur ce qu’il juge être d’autres questions environnementales et/ou sociales particulièrement importantes auxquelles l’entreprise est confrontée. Les investissements ne doivent pas inclure, en connaissance de cause, une entreprise dont l’activité implique l’exploitation et l’extraction de charbon thermique, lorsque l’entreprise tire plus de 5% de ses revenus de cette activité.
Par exception à ce qui précède, le Compartiment peut investir dans des Obligations Vertes et de Développement Durable labellisées émises pour lever des capitaux spécifiquement pour des projets liés au climat tant qu’il a été déterminé que les objectifs de ces instruments sont compatibles avec une réduction par l’émetteur de ses émissions de carbone. L’investissement dans de tels instruments sera soumis à la diligence du Conseiller en Investissement.
Outre les exclusions sectorielles susmentionnées, le Conseiller en Investissement surveille en permanence les pratiques commerciales, par le biais de données sur l’analyse des controverses et normes ESG provenant de fournisseurs tiers. Le Conseiller en Investissement tiendra compte des cas de controverses qu’il considère comme très graves sur la base des notations des fournisseurs de données ESG pertinents, et des manquements au Pacte mondial des Nations unies ou aux Principes Fondamentaux de l’OIT, bien que de tels incidents n’entraînent pas automatiquement l’exclusion du portefeuille.
Outre ce qui précède, le Conseiller en Investissement peut, à sa discrétion, choisir d’appliquer des restrictions d’investissement supplémentaires liées aux critères ESG au fil du temps, qu’il estime cohérentes avec ses objectifs d’investissement. Ces restrictions supplémentaires seront communiquées au fur et à mesure de leur mise en œuvre sur www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im.
Les investissements détenus par le Compartiment mais qui, en raison de l’application des critères ESG ci-avant, sont soumis à des restrictions après leur acquisition pour le Compartiment, seront vendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment. Le Conseiller en Investissement utilise des données de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
La duration moyenne pondérée du Compartiment sera normalement inférieure à trois (3) ans, bien qu’elle puisse être plus élevée dans certaines conditions de marché.
L’expression Titres à Revenu Fixe à haut rendement désigne des Titres à Revenu Fixe notés « BBB- » ou moins par S&P ou « Baa3 » ou moins par Moody’s, ou toute autre notation équivalente d’une autre agence de notation internationalement reconnue ou encore, dont le Conseiller en Investissement estime qu’ils offrent une solvabilité similaire.
Le Compartiment peut, à titre accessoire, investir dans :
- des Titres à Revenu Fixe de meilleure qualité que les Titres à Revenu Fixe à haut rendement ; et
- des Titres à Revenu Fixe non libellés en Dollar US.

Le Compartiment peut investir, de manière limitée, en parts ou actions d’autres organismes de placement collectif, y compris les Compartiments de la Société ou des ETF à capital variable, pour autant que ces ETF soient éligibles à l’actif des OPCVM.
Le Compartiment ne peut investir plus de 20 % de son actif en Instruments Convertibles Conditionnels.
Le Compartiment est géré activement et n’est pas conçu pour suivre un indice de référence. La performance du Compartiment est mesurée par rapport à un indice de référence, selon la procédure détaillée dans le document d’information clé pour l’investisseur du Compartiment.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, l’US Dollar Short Duration High Yield Bond Fund convient aux investisseurs qui :
- souhaitent investir dans des Titres à Revenu Fixe ;
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

COMPARTIMENTS ALLOCATION D’ACTIFS
Les Compartiments Allocation d’Actifs poursuivent les objectifs d’investissement suivants :
GLOBAL BALANCED DEFENSIVE FUND
L’objectif d’investissement du Global Balanced Defensive Fund est de générer un taux de rendement total attractif, mesuré en Euro, en investissant principalement dans un portefeuille de valeurs mobilières et d’instruments du marché monétaire mondialement et par l’utilisation d’instruments financiers dérivés. Le Compartiment est géré dans un cadre clairement défini et contrôlé en termes de risque, gérant activement le risque total du portefeuille, en gérant le niveau de volatilité du portefeuille conformément à une volatilité cible prédéfinie inférieure à celle du Global Balanced Fund. Le Conseiller en Investissement ajuste dynamiquement le positionnement du portefeuille dans une combinaison équilibrée de titres de capital, de titres à revenu fixe, d’Instruments assimilés aux liquidités et de titres liés aux matières premières, en vue de maintenir un profil de risque stable en utilisant une approche ex ante.
Le Compartiment met en œuvre des convictions tactiques descendantes (top down) sur les classes d’actifs internationales suivantes (1) titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; (2) Titres à Revenu Fixe ; et (3) Instruments assimilés aux liquidités.
Les convictions tactiques du Conseiller en Investissement sont mises en œuvre en accédant aux univers d’investissement suivants :
- Investissements à titre principal : titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; Titres à Revenu Fixe (y compris de qualité « investment grade », « non investment grade » et non notés) ; et Instruments assimilés aux liquidités. Ces investissements peuvent être réalisés directement ou par l’intermédiaire de produits dérivés. Le Compartiment peut investir dans des instruments financiers dérivés pour atteindre son objectif d’investissement et les produits dérivés peuvent être utilisés à des fins d’investissement et de couverture. Ces instruments dérivés peuvent inclure, notamment, des contrats à terme, des options, des warrants, des contrats sur différence, les contrats à terme de gré à gré sur instruments financiers et desoptions sur ces contrats, des instruments liés au risque de crédit et des contrats de swap, qu’ils soient négociés sur un marché organisé ou de gré à gré.
- Investissements à titre accessoire : autres valeurs mobilières ou, dans une moindre mesure, organismes de placement collectif, y compris les Compartiments de la Société et des ETF, et Actions A chinoises via Stock Connect. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.

Le Conseiller en Investissement prévoit qu’il emploiera principalement les stratégies d’investissement suivantes :
- Allocation d’actifs globale : investissement dans des titres correspondant à des indices de classe d’actifs individuelle. Le Conseiller en Investissement sélectionnera les indices qui seront utilisés pour mettre en œuvre des opinions tactiques internationalement parmi (1) les titres de capital, y compris de Real Estate Investment Trusts (REITs) ; (2) les Titres à Revenu Fixe ; et (3) des Instruments assimilés aux liquidités. Le Conseiller en Investissement pourra utiliser des produits dérivés négociés sur un marché organisé ou de gré à gré, comme des contrats à terme ou des swaps, pour obtenir une exposition diversifiée ou plus efficace à des marchés mondiaux particuliers lorsque, en raison de la taille de l’allocation prévue ou en raison de l’inefficacité de négocier directement dans les titres sous- jacents, il juge qu’investir par l’intermédiaire de produits dérivés est préférable.
- Filtrage ESG : en outre, le Conseiller en Investissement peut tenir compte de facteurs ESG de manière ascendante (bottom up) ; lorsqu’il investit directement dans des valeurs mobilières, le Conseiller en Investissement peut considérer le classement relatif des émetteurs en termes de facteurs ESG dans le cadre de l’évaluation du potentiel de rendement et de la gestion du risque total du portefeuille.

Le Conseiller en Investissement peut utiliser des stratégies d’investissement supplémentaires telles que :
- Des investissements liés à des produits de base : le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) mettre en œuvre des opinions tactiques sur des produits de base par l’intermédiaire de produits de base négociés en bourse (ETC) ou d’obligations indexées sur produits de base.
- Utilisation de produits dérivés pour la gestion efficace de portefeuille : le Compartiment peut également investir en Instruments assimilés aux liquidités, en warrants, en options négociées sur un marché ou de gré à gré et dans d’autres produits dérivés à des fins de gestion efficace de portefeuille (ycompris de couverture) ou d’investissement comme indiqué ci-avant.

Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Balanced Defensive Fund convient aux investisseurs qui :
- recherchent une croissance du capital à moyen terme ;
- recherchent un investissement équilibré, est axé sur les catégories d’actifs que le Conseiller en Investissements estime les plus attractives du point de vue tactique ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BALANCED FUND
L’objectif d’investissement du Global Balanced Fund est de générer un taux de rendement total attractif, mesuré en Euro, en investissant dans une gamme d’actifs large et équilibrée composée à la fois d’actions et de Titres à Revenu Fixe, tout en intégrant des facteurs ESG. Le Compartiment est géré dans un cadre clairement défini et contrôlé en termes de risque, gérant activement le risque total du portefeuille, en gérant le niveau de volatilité du portefeuille conformément à une volatilité cible prédéfinie. Le Conseiller en Investissement ajuste dynamiquement le positionnement du portefeuille dans une combinaison équilibrée de titres de capital, de titres à revenu fixe, d’Instruments assimilés aux liquidités et de titres liés aux matières premières, en vue de maintenir un profil de risque stable en utilisant une approche ex ante.
Le Conseiller en Investissement met en œuvre une approche flexible descendante (top down) pour identifier les opportunités d’investissement dans l’univers d’investissement autorisé.
Les facteurs de durabilité sont pris en compte par le Conseiller en Investissement tant pendant la phase de recherche que durant la phase d’investissement afin de limiter l’exposition aux Risques en Matière de Durabilité et de rechercher des opportunités d’investissement. Ces critères peuvent comprendre, entre autres, le
changement climatique, les émissions de carbone, la rareté de l’eau, la gestion des déchets, la biodiversité, la gestion du travail, la diversité des genres, la santé et la sécurité, la sécurité des produits, la confidentialité et la sécurité des données, la rémunération des dirigeants, l’indépendance du conseil d’administration, les droits des actionnaires, ainsi que la corruption.
En ce qui concerne ce Compartiment, « Sustainable » signifie que le Conseiller en Investissement, à sa discrétion, intègre des facteurs ESG dans sa prise de décision d’investissement, comme mentionné ci-après. Le Conseiller en Investissement peut engager des discussions avec la direction de la société considérée sur les pratiques de gouvernance d’entreprise ainsi que sur ce qu’il considère être des questions environnementales et/ou sociales matériellement importantes auxquelles l’entreprise est confrontée, afin de s’assurer que les entreprises cibles suivent de bonnes pratiques de gouvernance.
Le Conseiller en Investissement s’abstiendra d’inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement, c’est-à-dire les sociétés:
- associées à de graves controverses ESG ;
- impliquées dans des armes controversées (y compris des armes à feu à usage civil) ;
- impliquées dans les jeux d’argent ;
- associées au tabac ; et
- qui tirent des revenus des bobines thermiques et des sables bitumineux.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im). Les exclusions (qui comprennent les exclusions ci-avant mais ne s’y limitent pas) sont déterminées par l’analyse personnelle du Conseiller en Investissement et non par l’analyse d’un tiers. Toutefois, l’analyse peut être étayée par une analyse des controverses ESG de tiers et par une recherche sur l’implication des entreprises. Le critère d’exclusion est appliqué à tous les investissements directs au sein du Compartiment. Les critères d’exclusion ne seront pas appliqués aux investissements dans lesquels le Conseiller en Investissement n’a pas de contrôle direct sur les participations sous-jacentes, par exemple les organismes de placement collectif ou les ETF à capital variable. Les critères d’exclusion sont soumis à un examen périodique et tout changement sera reflété dans le document présentant la politique d’exclusion.
Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-dessus après avoir été acquis
pour le compte du Compartiment seront revendus. Ces ventes auront lieu sur une période qui sera déterminée par le Conseiller en Investissement, en tenant compte des meilleurs intérêts des Actionnaires du Compartiment.
Le Conseiller en Investissement intègre des données ESG, y compris des scores et des notations provenant de tiers, lorsqu’il construit des paniers de titres pour mettre en œuvre des vues de classes d’actifs, sous réserve d’une erreur de suivi et d’autres contraintes. Le Conseiller en Investissement utilise des données et des scores ESG de tiers et, dans certains cas, des données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
Le Conseiller en Investissement oriente le portefeuille du Compartiment vers des actions à haute performance ESG et vise à améliorer la performance ESG agrégée du fonds par rapport à celle de l’indice de l’actif sous-jacent. Outre les facteurs ESG, le Conseiller en Investissement traite le changement climatique comme une considération distincte, et applique également une notation supplémentaire pour le changement climatique au cours du processus d’orientation.
Le Conseiller en Investissement crée – pour les 11 secteurs GICS de chaque marché d’actions régional – des paniers individuels qui s’orientent vers les leaders ESG et de la transition vers une économie à faible émission de carbone du quartile supérieur.
L’univers d’investissements à titre principal du Compartiment comprend des titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; Titres à Revenu Fixe (y compris de qualité
« investment grade », « non investment grade » et non notés) ; et Instruments assimilés aux liquidités. Ces investissements peuvent être réalisés directement ou par l’intermédiaire de produits dérivés. Le Compartiment peut investir dans des instruments financiers dérivés à des fins d’investissement et de couverture. Ces instruments dérivés peuvent inclure, notamment, des contrats à terme, des options, des warrants, des contrats sur différence, les contrats à terme de gré à gré sur instruments financiers et des options sur ces contrats, des instruments liés au risque de crédit et des contrats de swap, qu’ils soient négociés sur un marché organisé ou de gré à gré.
L’univers d’investissements à titre accessoire du Compartiment comprend dans une mesure limitée, dans des parts/actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et les ETF à capital variable, à condition que ces ETF soient des investissements éligibles pour les OPCVM. Le
Compartiment peut investir jusqu’à 10 % de ses actifs nets dans des Actions A chinoises via Stock Connect.
Le Conseiller en Investissement peut utiliser des stratégies d’investissement supplémentaires telles que des investissements liés à des produits de base qui sont qualifiés de valeurs mobilières conformément à l’article 1 (34) de la Loi de 2010 et à l’article 2 du Règlement Grand-Ducal du 8 février 2008. Le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) mettre en œuvre des opinions tactiques sur des produits de base par l’intermédiaire de produits de base négociés en bourse (ETC) ou d’obligations indexées sur produits de base.
Le Compartiment pourra aussi investir dans des Instruments assimilés aux liquidités, avoir recours à des options, contrats à terme et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture) ou d’investissement comme indiqué ci-avant.
Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Le Compartiment ne tient pas compte du Règlement Taxonomie.
Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Balanced Fund convient aux investisseurs qui :
- recherchent une croissance du capital à moyen terme ;
- recherchent un investissement équilibré, est axé sur les catégories d’actifs que le Conseiller en Investissements estime les plus attractives du point de vue tactique ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BALANCED INCOME FUND
L’objectif d’investissement du Global Balanced Income Fund est de fournir un revenu régulier et une croissance du capital, mesurés en Euro, en investissant principalement dans un portefeuille de valeurs mobilières et d’instruments du marché monétaire dans le monde
entier et par l’utilisation d’instruments financiers dérivés. Le Compartiment est géré dans un cadre clairement défini et contrôlé en termes de risque, gérant activement le risque total du portefeuille, en gérant le niveau de volatilité du portefeuille conformément à une volatilité cible prédéfinie. Le Conseiller en Investissement ajuste dynamiquement le positionnement du portefeuille dans une combinaison équilibrée de titres de capital, de titres à revenu fixe, d’Instruments assimilés aux liquidités et de titres liés aux matières premières, en vue de maintenir un profil de risque stable en utilisant une approche ex ante.
Le Compartiment met en œuvre des convictions tactiques descendantes (top down) sur les classes d’actifs internationales suivantes (1) titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; (2) Titres à Revenu Fixe ; et (3) Instruments assimilés aux liquidités. Les convictions tactiques du Conseiller en Investissement sont mises en œuvre en accédant aux univers d’investissement suivants :
- Investissements à titre principal : titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; Titres à Revenu Fixe (y compris de qualité « investment grade », « non investment grade » et non notés) ; et Instruments assimilés aux liquidités. Ces investissements peuvent être réalisés directement ou par l’intermédiaire de produits dérivés. Le Compartiment peut investir dans des instruments financiers dérivés pour atteindre son objectif d’investissement et les produits dérivés peuvent être utilisés à des fins d’investissement et de couverture. Ces instruments dérivés peuvent inclure, notamment, des contrats à terme, des options, des warrants, des contrats sur différence, les contrats à terme de gré à gré sur instruments financiers et des options sur ces contrats, des instruments liés au risque de crédit et des contrats de swap, qu’ils soient négociés sur un marché organisé ou de gré à gré.
- Investissements à titre accessoire : autres valeurs mobilières ou, dans une moindre mesure, organismes de placement collectif, y compris les Compartiments de la Société et des ETF, et Actions A chinoises via Stock Connect. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.

La part du portefeuille du Compartiment investie en titres de capital ne peut être ni inférieure à 10 % ni supérieure à 90 % de son actif net.
La part du portefeuille du Compartiment investie en titres de créance de qualité « non investment grade » n’excède pas 30 % de son actif net.
Le Conseiller en Investissement prévoit qu’il emploiera principalement les stratégies d’investissement suivantes :
- Allocation d’actifs globale : investissement dans des titres correspondant à des indices de classe d’actifs individuelle. Le Conseiller en Investissement sélectionnera les indices qui seront utilisés pour mettre en œuvre des opinions tactiques internationalement parmi (1) les titres de capital, y compris de Real Estate Investment Trusts (REITs) ; (2) les Titres à Revenu Fixe ; et (3) des Instruments assimilés aux liquidités. Le Conseiller en Investissement pourra utiliser des produits dérivés négociés sur un marché organisé ou de gré à gré, comme des contrats à terme ou des swaps, pour obtenir une exposition diversifiée ou plus efficace à des marchés mondiaux particuliers lorsque, en raison de la taille de l’allocation prévue ou en raison de l’inefficacité de négocier directement dans les titres sous- jacents, il juge qu’investir par l’intermédiaire de produits dérivés est préférable.
- Génération de revenus : en plus de l’acquisition de valeurs mobilières générant des revenus, le Conseiller en Investissement cherchera à recevoir des revenus supplémentaires sous forme de primes résultant de la vente d’options négociées en bourse ou de gré à gré, y compris des options sur indices, des titres ou des devises.

Le Conseiller en Investissement peut utiliser des stratégies d’investissement supplémentaires telles que :
- Des investissements liés à des produits de base : le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) mettre en œuvre des opinions tactiques sur des produits de base par l’intermédiaire de produits de base négociés en bourse (ETC) ou d’obligations indexées sur produits de base.
- Utilisation de produits dérivés pour la gestion efficace de portefeuille : le Compartiment peut également investir en warrants en espèces, en options négociées sur un marché ou de gré à gré et dans d’autres produits dérivés à des fins de gestion efficace de portefeuille (y compris de couverture) ou d’investissement comme indiqué ci-avant.
- Utilisation d’OPC ouverts et fermés, y compris les Compartiments de la Société et des ETF : le Conseiller en Investissement utilise des OPC et ETF principalement pour obtenir une exposition diversifiée ou plus efficace à des marchés mondiaux particuliers lorsque, en raison de la taille de l’allocation prévue ou en raison de l’inefficacité de négocier directement dans les titres sous-jacents, il juge qu’investir par l’intermédiaire d’OPC ou d’ETF est préférable.

Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Balanced Income Fund convient aux investisseurs qui :
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BALANCED RISK CONTROL FUND OF FUNDS
L’objectif d’investissement du Global Balanced Risk Control Fund of Funds est d’investir en parts ou actions d’autres organismes de placement collectif pour générer un taux de rendement total attractif, mesuré en Euro, tout en gérant activement le risque total du portefeuille. Le Compartiment est géré dans un cadre clairement défini et contrôlé en termes de risque, gérant activement le risque total du portefeuille, en gérant le niveau de volatilité du portefeuille conformément à une volatilité cible prédéfinie. Le Conseiller en Investissement ajuste le positionnement du portefeuille dans une combinaison équilibrée de titres de capital, de titres à revenu fixe, d’Instruments assimilés aux liquidités et de titres liés aux matières premières, en vue de maintenir un profil de risque stable en utilisant une approche ex ante. Le Compartiment met en œuvre des opinions tactiques sur les classes d’actifs actions et obligations internationales en investissant principalement dans des organismes de placement collectif (« OPC »), y compris les Compartiments de la Société et des ETF, des contrats à terme, des fonds d’investissement gérés par le Conseiller en Investissement ou ses sociétés affiliées et d’autres organismes de placement collectif.
À titre accessoire, afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) mettre en œuvre des opinions tactiques sur des produits de base par l’intermédiaire de produits de base négociés en bourse (ETC) ou d’obligations indexées sur produits de base et peut aussi investir en
Instruments assimilés aux liquidités, warrant, options et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir à titre accessoire dans des titres de capital, y compris Real Estate Investment Trusts (« REITs ») fermés éligibles, des Titres à Revenu Fixe (y compris de qualité
« investment grade », « non investment grade » et non notés) ; des Actions A chinoises via Stock Connect. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.
Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Balanced Risk Control Fund of Funds convient aux investisseurs qui :
- recherchent une croissance du capital à moyen terme ;
- recherchent des revenus, que ce soit sous forme de plus-value du capital ou de distributions, tels que décrits à la section« Politique de distribution » ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL BALANCED SUSTAINABLE FUND
L’objectif d’investissement du Global Balanced Sustainable Fund est de générer un taux de rendement total attractif, mesuré en Euro, en investissant dans un large portefeuille d’actions et de Titres à Revenu Fixe qui intègrent des éléments ESG et en tenant compte des objectifs de réchauffement climatique à longterme de l’Accord de Paris. Le Compartiment est géré dans un cadre clairement défini et contrôlé en termes de risque, gérant activement le risque total du portefeuille, en gérant le niveau de volatilité du portefeuille conformément à une volatilité cible prédéfinie. Le Conseiller en Investissement ajuste dynamiquement le positionnement du portefeuille dans une combinaison équilibrée de titres de capital, de titres à revenu fixe, d’Instruments assimilés aux liquidités et de titres
liés aux matières premières, en vue de maintenir un profil de risque stable en utilisant une approche ex ante.
Le Conseiller en Investissement met en œuvre une approche flexible descendante (top down) pour identifier les opportunités d’investissement dans l’univers d’investissement autorisé.
Les facteurs de durabilité sont pris en compte par le Conseiller en Investissement tant pendant la phase de recherche que durant la phase d’investissement afin de limiter l’exposition aux Risques en Matière de Durabilité et de rechercher des opportunités d’investissement. Ces critères peuvent comprendre, entre autres, le changement climatique, les émissions de carbone, la rareté de l’eau, la gestion des déchets, la biodiversité, la gestion du travail, la diversité des genres, la santé et la sécurité, la sécurité des produits, la confidentialité et la sécurité des données, la rémunération des dirigeants, l’indépendance du conseil d’administration, les droits des actionnaires, ainsi que la corruption.
En ce qui concerne ce Compartiment, le terme "Sustainable" signifie que le Conseiller en Investissement, à sa discrétion, intègre des éléments ESG dans sa prise de décision d’investissement, comme détaillé ci-après. Le Conseiller en Investissement s’attache à débattre avec la direction de la société des pratiques de gouvernance d’entreprise ainsi que des questions environnementales et/ou sociales majeures auxquelles il estime que les entreprises sont confrontées, afin de s’assurer que l’entreprise cible suit de bonnes pratiques de gouvernance.
Le Conseiller en Investissement ne doit pas inclure en connaissance de cause les sociétés suivantes dans l’univers d’investissement :
- associées à de graves controverses ESG ;
- impliquées dans des armes controversées (y compris des armes à feu à usage civil) ;
- associés à des jeux d’argent ;
- associées au tabac ;
- qui tirent des revenus des bobines thermiques et des sables bitumineux.

Les détails des exclusions susmentionnées figurent dans la politique d’exclusion du Compartiment qui est disponible sur le site web de la société (www.morganstanleyinvestmentfunds.com et sur www.morganstanley.com/im). Les exclusions (qui comprennent les exclusions ci-avant mais ne s’y limitent pas) sont déterminées par l’analyse personnelle du Conseiller en Investissement et non par l’analyse d’un tiers. Toutefois, l’analyse peut être étayée par une analyse des controverses ESG de tiers et par une recherche sur l’implication des entreprises. Le critère d’exclusion est appliqué à
tous les investissements directs au sein du Compartiment. Les critères d’exclusion ne seront pas appliqués aux investissements dans lesquels le Conseiller en Investissement n’a pas de contrôle direct sur les participations sous-jacentes, par exemple les organismes de placement collectif ou les ETF à capital variable. Les critères d’exclusion sont soumis à un examen périodique et tout changement sera reflété dans le document présentant la politique d’exclusion.
Les investissements détenus par le Compartiment qui feraient l’objet des restrictions mentionnées ci-dessus après avoir été acquis pour le compte du Compartiment seront revendus. Ces reventes auront lieu dans un délai que le Conseiller en Investissement déterminera au mieux des intérêts des Actionnaires du Compartiment.
Le Conseiller en Investissement intègre les notations ESG de tiers lors de la construction des paniers de titres pour mettre en œuvre les vues de classes d’actifs, sous réserve d’une erreur de suivi et d’autres contraintes. Le Conseiller en Investissement oriente le portefeuille du Compartiment vers des actions ESG à haute performance et vise à améliorer la performance ESG du Compartiment agrégée par rapport à celle de l’indice d’actions sous-jacent. En plus des facteurs ESG, le Conseiller en Investissement traite le changement climatique comme une considération distincte, et applique également un score supplémentaire au changement climatique pendant le processus de rotation du portefeuille.
Le Compartiment tiendra compte des objectifs à longterme de l’Accord de Paris en matière de réchauffement climatique. Pour atteindre cet objectif environnemental, le processus d’intégration ESG du Conseiller en Investissement comporte deux inclinaisons climatiques distinctes : 1) spécifique aux actions et 2) spécifique au secteur.
En ce qui concerne les actions, le Conseiller en Investissement crée
- pour les 11 secteurs GICS de chaque marché d’actions régional
- des paniers individuels qui s’orientent vers les leaders ESG et de la transition vers une économie à faible émission de carbone du quartile supérieur. Pour les secteurs spécifiques, le Conseiller en Investissement regroupe les paniers sectoriels soumis à un budget carbone global, alignés sur une trajectoire climatique scientifique soumise à une erreur de suivi.

Le Conseiller en Investissement allouera également de 5 % à 30 % des actifs du Compartiment à des investissements dans des actifs ayant un impact social ou environnemental positif mesurable (selon la méthodologie du Conseiller en Investissement), ainsi qu’un rendement financier compétitif à long terme. Ces investissements peuvent être détenus directement par le biais d’actions ou de titres à revenu fixe, ou indirectement par le biais d’organismes de placement collectif.
Les critères ESG susmentionnés devraient entraîner une réduction de l’univers investissable (tel que décrit ci-après) d’une manière significativement engageante, et le Conseiller en Investissement fera tout son possible pour s’assurer qu’au moins 90 % des émetteurs du portefeuille soient évalués en fonction de ces considérations ESG.
Comme indiqué ci-avant, le Conseiller en Investissement utilise des données et des notations ESG provenant de tiers. Dans certains cas, les données sur des émetteurs spécifiques, des thèmes ESG ou les exclusions mentionnées ci-avant peuvent ne pas être disponibles et/ ou peuvent être estimées par le Conseiller en Investissement à l’aide de méthodologies internes ou d’estimations raisonnables. Les méthodologies utilisées par les différents fournisseurs de données peuvent également varier et donner lieu à des scores différents.
L’univers d’investissements à titre principal du Compartiment comprend des titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; Titres à Revenu Fixe (y compris de qualité
« investment grade », « non investment grade » et non notés) ; et Instruments assimilés aux liquidités. Ces investissements peuvent être réalisés directement ou par l’intermédiaire de produits dérivés. Le Compartiment peut investir dans des instruments financiers dérivés à des fins d’investissement et de couverture, y compris des instruments dérivés qui peuvent ne pas répondre aux critères ESG susmentionnés. Ces instruments dérivés peuvent inclure, notamment, des contrats à terme, des options, des warrants, des contrats sur différence, des contrats à terme de gré à gré sur instruments financiers et des options sur ces contrats, des instruments liés au risque de crédit et des contrats de swap, qu’ils soient négociés sur un marché organisé ou de gré à gré.
L’univers d’investissement à titre accessoire du Compartiment permet aussi d’investir dans une certaine mesure dans des parts/ actions d’autres organismes de placement collectif, y compris les Compartiments de la Société et des ETF à capital variable, à condition que ces derniers soient des investissements éligibles pour les OPCVM. Le Compartiment peut investir jusqu’à 10 % de ses actifs nets dans des Actions A de Chine via Stock Connect.
Le Conseiller en Investissement peut utiliser des stratégies d’investissement supplémentaires telles que les investissements liés aux produits de base entrant dans le champ des valeurs mobilières conformément à l’article 1(34) de la Loi de 2010 et l’article 2 du Règlement grand-ducal du 8 février 2008. Le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) mettre en œuvre des opinions tactiques sur des produits de base par l’intermédiaire de produits de base négociés en bourse (ETC) ou d’obligations indexées sur produits de base.
Le Compartiment pourra aussi investir dans des Instruments assimilés aux liquidités, avoir recours à des options, contrats à terme
et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture) ou d’investissement comme indiqué ci-avant.
Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements durables du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental au sens du Règlement Taxonomie. Des informations supplémentaires concernant les caractéristiques environnementales et sociales du Compartiment sont disponibles à l’Annexe L.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Balanced Sustainable Fund convient aux investisseurs qui :
- recherchent une croissance du capital à moyen terme ;
- recherchent un investissement équilibré, axé sur les catégories d’actifs que le Conseiller en Investissements estime les plus attractives du point de vue tactique ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

GLOBAL MULTI-ASSET OPPORTUNITIES FUND
L’objectif d’investissement du Global Multi-Asset Opportunities Fund est de fournir un rendement absolu, mesuré en Euro, tout en gérant activement le risque total du portefeuille. Le Conseiller en Investissement cherche à gérer le risque à la baisse et cible une volatilité inférieure à celle du marché.
Le Compartiment cherche à atteindre son objectif d’investissement en investissant dans des paniers d’actions, d’ETF, d’obligations et de produits dérivés.
Le Compartiment peut prendre des positions acheteuses et vendeuses, soit directement, soit (en particulier s’agissant des positions vendeuses) en recourant à des produits dérivés tels que décrits ci-après, dans une gamme diversifiée de titres de capital et donnant accès au capital de sociétés de capitalisations boursières variables, des Titres à Revenu Fixe, des devises et des matières premières. Le Compartiment ne peut prendre qu’une exposition indirecte sur les produits de base, en investissant dans des produits structurés éligibles tels que des
obligations indexées sur produits de base dont les sous-jacents sont des indices ou segments d’indices de produits de base ou des instruments dérivés faisant référence à un ou plusieurs indices de produits de base éligibles comme indices financiers en vertu de la réglementation sur les OPCVM. Lors de l’utilisation de ces indices, le Compartiment doit respecter les limites de diversification prévues par la réglementation sur les OPCVM : chaque composant d’un indice financier peut représenter jusqu’à 20 % de l’indice, sauf dans des circonstances de marché exceptionnelles quand un seul composant peut représenter jusqu’à 35 % de l’indice.
Afin d’améliorer son rendement ou dans le cadre de sa stratégie d’investissement, le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) avoir recours à des options, contrats à terme, swaps et autres produits dérivés négociés sur un marché organisé ou de gré à gré, à des fins d’investissement ou de gestion efficace de portefeuille (y compris de couverture).
Le Compartiment peut également investir comme suit ou utiliser les instruments financiers suivants :
- opérations de change au comptant, contrats à terme sur devises, y compris dénouées en numéraire, et Fonds monétaires dont les actifs peuvent être gérés par le Conseiller en Investissement ou une entité liée, affiliée ou associée ; et/ ou
- dépôts, instruments à taux fixe ou flottant (notamment papier commercial), notes à taux flottant, certificats de dépôts, obligations, titres adossés à des actifs et obligations souveraines ou émises par des sociétés, Instruments assimilés aux liquidités ; et/ou
- Titres à Revenu Fixe acquis sur le Marché Obligataire Interbancaire Chinois jusqu’à 20% de son actif net ; et/ou
- Actions A chinoises via Stock Connect jusqu’à 10% de son actif net ; et/ou
- jusqu’à 10 % du Compartiment peuvent être investis conformément au paragraphe 2.2. de l’Annexe A.

Le Conseiller en Investissement utilise une approche d’investissement descendante (top down), macro-économique mondiale et thématique, qui met l’accent sur la sélection de classes d’actifs, de secteurs, de régions et de pays, par opposition à la sélection de titres individuels. Les allocations du Compartiment sont basées sur les évaluations et les analyses du Conseiller en Investissement, qui tiennent compte de ses recherches en investissement fondamentales,
dérivées principalement de données macro-économiques et de marché quantitatives.
Les décisions d’investissement sont prises sans tenir compte, sous réserve de l’Annexe A, de limites particulières en termes de localisation géographique, de secteur, de notation de crédit, de maturité, de libellé de devises ou de capitalisation boursière. Le Compartiment peut investir dans n’importe quel pays, y compris des pays en développement ou à marchés émergents. Les investissements du Compartiment peuvent être libellés en Euro ou en devises autres que l’Euro.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Multi-Asset Opportunities Fund convient aux investisseurs qui :
- recherchent un rendement à moyen terme ;
- recherchent un investissement équilibré, axé sur les catégories d’actifs que le Conseiller en Investissements estime les plus attractives du point de vue tactique ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».

MULTI-ASSET RISK CONTROL FUND
L’objectif d’investissement du Multi-Asset Risk Control Fund est de générer un niveau attractif de rendement total, mesuré en Dollar US, en investissant principalement dans un portefeuille de valeurs mobilières et d’instruments du marché monétaire dans le monde entier et par l’utilisation d’instruments financiers dérivés.
Le Compartiment met en œuvre des convictions tactiques descendantes (top down) sur les classes d’actifs internationales suivantes (1) titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés ; (2) Titres à Revenu Fixe ; et (3) Instruments assimilés aux liquidités.
Les convictions tactiques du Conseiller en Investissement sont mises en œuvre en accédant aux univers d’investissement suivants :
- Investissements à titre principal : titres de capital, y compris de Real Estate Investment Trusts (REITs) fermés éligibles à l’actifdes OPCVM au sens de la Loi de 2010 ; Titres à Revenu Fixe (y compris de qualité « investment grade », « non investment grade » et non notés) ; et Instruments assimilés aux liquidités. Ces investissements peuvent être réalisés directement ou par l’intermédiaire de produits dérivés. Le Compartiment peut investir dans des instruments financiers dérivés pour atteindre son objectif d’investissement et les produits dérivés peuvent être utilisés à des fins d’investissement et de couverture. Ces instruments dérivés peuvent inclure, notamment, des contrats à terme, des options, des warrants, des contrats sur différence, les contrats à terme de gré à gré sur instruments financiers et des options sur ces contrats et des contrats de swap, qu’ils soient négociés sur un marché ou de gré à gré.
- Investissements à titre accessoire : autres valeurs mobilières ou, dans une moindre mesure, organismes de placement collectif éligibles à l’actif des OPCVM au sens de la Loi de 2010, y compris les Compartiments de la Société et des ETF à capital variable, et Actions A chinoises via Stock Connect. Le Compartiment peut investir jusqu’à 10 % de son actif net en Actions A chinoises via Stock Connect.

Le Conseiller en Investissement prévoit qu’il emploiera principalement les stratégies d’investissement suivantes :
- Allocation d’actifs globale : investissement dans des titres correspondant à des indices de classe d’actifs individuelle. Le Conseiller en Investissement sélectionnera les indices qui seront utilisés pour mettre en œuvre des opinions tactiques internationalement parmi (1) les titres de capital, y compris de Real Estate Investment Trusts (REITs) ; (2) les Titres à Revenu Fixe ; et (3) des Instruments assimilés aux liquidités. Le Conseiller en Investissement pourra utiliser des produits dérivés négociés sur un marché organisé ou de gré à gré, comme des contrats à terme ou des swaps, pour obtenir une exposition diversifiée ou plus efficace à des marchés mondiaux particuliers lorsque, en raison de la taille de l’allocation prévue ou en raison de l’inefficacité de négocier directement dans les titres sous- jacents, il juge qu’investir par l’intermédiaire de produits dérivés est préférable.
- Filtrage ESG : en outre, le Conseiller en Investissement peut tenir compte de facteurs ESG de manière ascendante (bottom up) ; lorsqu’il investit directement dans des valeurs mobilières, le Conseiller en Investissement peut considérer le classement relatif des émetteurs en termes de facteurs ESG dans le cadre de l’évaluation du potentiel de rendement et de la gestion du risque total du portefeuille.

Le Conseiller en Investissement peut utiliser des stratégies d’investissement supplémentaires telles que :
- Des investissements liés à des produits de base : le Compartiment peut (sous réserve des limites et restrictions d’investissement spécifiées à l’Annexe A) mettre en œuvre des opinions tactiques sur des produits de base par l’intermédiaire de produits de base négociés en bourse (ETC) entrant dans le champ des valeurs mobilières conformément à l’article 1(34) de la Loi de 2010 et l’article 2 du Règlement grand-ducal du 8 février 2008.
- Utilisation de produits dérivés pour la gestion efficace de portefeuille : le Compartiment peut également investir en Instruments assimilés aux liquidités, en warrants, en options négociées sur un marché ou de gré à gré et dans d’autres produits dérivés à des fins de gestion efficace de portefeuille (y compris de couverture) ou d’investissement comme indiqué ci-avant.

Les investissements du Compartiment peuvent se traduire par une exposition à des marchés émergents et des titres à haut rendement. Le Compartiment vise à gérer le risque total du portefeuille en gérant le niveau de volatilité du portefeuille.
Le Compartiment est géré activement et la composition du portefeuille d’actifs n’est pas limitée par la composition d’un indice de référence.
Obligations d’information du Règlement Taxonomie
Les investissements sous-jacents du Compartiment ne tiennent pas compte des critères de l’UE relatifs aux activités économiques durables sur le plan environnemental.
Profil de l’investisseur type
Au vu de son objectif d’investissement, le Global Balanced Income Fund convient aux investisseurs qui :
- recherchent une croissance du capital à moyen terme ;
- recherchent un investissement équilibré, axé sur les catégories d’actifs que le Conseiller en Investissements estime les plus attractives du point de vue tactique ;
- acceptent les risques associés à ce type d’investissement, tels que décrits à la section 1.5 « Facteurs de risque ».
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