# 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.
Asia Opportunity Fund	Global Insight Fund
Calvert Sustainable Climate Aligned Fund	Global Macro Fund
Calvert Sustainable Climate Transition Fund	Global Multi-Asset Opportunities Fund Calvert Sustainable Developed Europe Equity Select Fund	Global Opportunity Fund
Calvert Sustainable Developed Markets Equity Select Fund	Global Permanence Fund Calvert Sustainable Diversity, Equity and Inclusion Fund	Global Property Fund Calvert Sustainable Emerging Markets Equity Select Fund	Latin American Equity Fund Calvert Sustainable Global Equity Engagement Fund	Liquid Alpha Capture 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	Real Assets Fund
Emerging Markets Corporate Debt Fund	Short Duration US Government Income 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 Credit Fund
Emerging Markets Fixed Income Opportunities Fund	Sustainable Global Fixed Income Opportunities Fund Emerging Markets Local Income Fund	Sustainable Global High Yield Bond Fund
Europe Opportunity Fund	Sustainable US High Yield Bond Fund
European Fixed Income Opportunities Fund	US Advantage Fund
Frontier Markets Local Debt Fund	US Core Equity Fund
Global Asset Backed Securities Fund	US Dollar Corporate Bond Fund
Global Balanced Sustainable Fund	US Dollar High Yield Bond Fund
Global Bond Fund	US Dollar Short Duration Bond Fund
Global Convertible Bond Fund	US Dollar Short Duration High Yield Bond Fund
Global Core Equity Fund	US Focus Property Fund
Global Endurance Fund	US Growth Fund
Global Fixed Income Opportunities Fund	US Insight Fund
Global Focus Property Fund	US Permanence Fund
Global High Yield Bond Fund	US Value Fund
Global Infrastructure Fund	Vitality 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 EQUITY 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 and 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.
All Funds may hold cash, including placing cash on deposit and/or invest in cash equivalents such as money market instruments. Money market instruments include without limitation commercial paper, 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.
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The Morgan Stanley Liquidity Funds (including all of its sub-funds) are not approved for distribution to non-qualified investors in Switzerland.
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. 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 nor have a sustainable investment as their objective and are considered as falling within the scope of Article 6 of the SFDR except the Funds listed below:
- Asia Opportunity Fund (Article 8 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 SFDR);
- Developing Opportunity Fund (Article 8 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 SFDR);
- European Fixed Income Opportunities Fund (Article 8 of the SFDR);
- European High Yield Bond Fund (Article 8 of the SFDR);
- Frontier Markets Local Debt 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 9 of the SFDR);
- Global Bond Fund (Article 8 of the SFDR);
- Global Brands Equity Income Fund (Article 8 SFDR);
- Global Brands Fund (Article 8 SFDR);
- Global Convertible Bond Fund (Article 8 of the SFDR);
- Global Endurance Fund (Article 8 SFDR);
- Global Fixed Income Opportunities Fund (Article 8 of the SFDR);
- Global High Yield Bond Fund (Article 8 of the SFDR);
- Global Insight Fund (Article 8 SFDR);
- Global Opportunity Fund (Article 8 SFDR);
- Global Permanence Fund (Article 8 SFDR);
- Global Quality Fund (Article 8 SFDR);
- Global Sustain Fund (Article 8 of the SFDR);
- Japanese Equity Fund (Article 8 of the SFDR);
- NextGen Emerging Markets Fund (Article 8 SFDR);
- Short Maturity Euro 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 9 of the SFDR);
- Sustainable Euro Strategic Bond Fund (Article 9 of the SFDR);
- Sustainable European High Yield Bond Fund (Article 9 of the SFDR);
- Sustainable Global Credit Fund (Article 9 of the SFDR);
- Sustainable Global Fixed Income Opportunities Fund (Article 9 of the SFDR);
- Sustainable Global High Yield Bond Fund (Article 9 of the SFDR);
- Sustainable US High Yield Bond Fund (Article 9 of the SFDR);
- US Advantage Fund (Article 8 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 Growth Fund (Article 8 SFDR);
- US Insight Fund (Article 8 SFDR);
- US Permanence Fund (Article 8 SFDR; and
- Vitality Fund (Article 8 SFDR).

EQUITY FUNDS
The various Equity Funds have the following objectives:
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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 may include companies principally engaged in the development and/ or ownership of income-producing property and collective investment vehicles with exposure to property such as publicly quoted property unit trusts, 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 may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Sub-Adviser may engage with company management regarding corporate governance practices as well as what the Sub-Adviser 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 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, as reflected in the appropriate Paris-Aligned benchmark, or in the absence of an approved Paris- Aligned benchmark 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.
Although the focus is intended to be on climate-related objectives, the Fund may invest across all of the environmental objectives described below.
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 Advisor 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 research to the Investment Advisor to assist the Investment Advisor in its management of the Fund. Calvert has no discretion to make or recommend investment decisions on behalf of the Fund, such investment discretion being vested solely in the Investment Advisor.
The Fund is actively managed, and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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, as reflected in the appropriate Paris-Aligned benchmark, or in the absence of an approved Paris- Aligned benchmark 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 Advisor 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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, as reflected in the appropriate Paris-Aligned benchmark, or in the absence of an approved Paris- Aligned benchmark 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 Advisor 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 number 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 Advisor 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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, as reflected in the appropriate Paris-Aligned benchmark, or in the absence of an approved Paris- Aligned benchmark 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 Advisor 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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, as reflected in the appropriate Paris-Aligned benchmark, or in the absence of an approved Paris- Aligned benchmark 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 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 research to the Investment Advisor to assist the Investment Advisor in its management of the Fund. Calvert has no discretion to make or recommend investment decisions on behalf of the Fund, such investment discretion being vested solely in the Investment Advisor.
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.
Taxonomy Regulation disclosure
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of theTaxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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, as reflected in the appropriate Paris-Aligned benchmark, or in the absence of an approved Paris- Aligned benchmark 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 Advisor 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level oftaxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle

- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 and 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 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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub-industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 and best-in-class practices 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, 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 and cash equivalents). The Fund may invest up to 20% of its net assets in China A-Shares via Stock Connect.
The Investment Adviser integrates the consideration of ESG issues in its investment decision-making.
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 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 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 both a best-in-class and 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
- 4
- ;
- adult entertainment;
- civilian firearms;
- controversial weapons;
- coal
- 5
- ;
- oil sands
- 6
- ;
- Arctic oil
- 7
- ; and
- gambling
- 8
- .

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
4 
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.
5 
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.
6 
The Fund does not invest in securities that derive 5% or more of their revenues from the extraction or production of oil sands.
7 
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).
8 
The Fund does not invest in securities of issuers that generate 5% or more of revenue from gambling activities.
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 benchmark is used for performance comparison purposes only and does not integrate environmental or social characteristics.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 European real estate industry Located throughout Europe. Companies in the real estate industry may include property development companies, companies principally engaged in the development and/or ownership of income-producing property and collective investment vehicles with exposure to property such as publicly quoted property unit trusts, 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 may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Investment Adviser may engage with company management regarding corporate governance practices as well as what the Investment Adviser 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 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 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 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 has been excluded from the MSCI World ex Controversial Weapons Index due to its involvement with controversial weapons, as defined by that index.


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. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI World ex Controversial Weapons Index for the purpose of determining the companies involved with controversial weapons the Fund will not invest in.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 has been excluded from the MSCI World ex Controversial Weapons Index due to its involvement with controversial weapons, as defined by that index.


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. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI World ex Controversial Weapons Index for the purpose of determining the companies involved with controversial weapons the Fund will not invest in.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 related to the real estate industry, including, but not limited to, real estate management, brokers, and building products, and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of 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 invest on an ancillary basis in in equity securities not meeting the criteria of the Fund’s primary investments, preference shares and convertible preferred securities, debt securities convertible into common shares, rights and warrants to purchase equity securities, shares of investment companies, China A-Shares via Stock Connect, limited partnership interests, 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. 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 process may consider information about ESG issues in its bottom-up stock selection process when making
investment decisions. The Investment Adviser and Sub-Advisers may engage with company management regarding corporate governance practices as well as what the Investment Adviser and Sub-Advisers 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 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 process may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Sub-Advisers may engage with company management regarding corporate governance practices as well as
what the Sub-Advisers 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 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 INFRASTRUCTURE UNCONSTRAINED FUND
The Global Infrastructure Unconstrained Fund’s investment objective is to seek to provide an attractive annualized return, measured in US Dollars, by investing in an index-agnostic manner primarily in equity securities issued by companies, for the avoidance of doubt including closed-end Real Estate Investment Trusts (REITS), Located throughout the world, including in both developed markets and emerging markets, that are engaged in the infrastructure business. While diversification is a significant consideration in constructing and managing the Fund, there is no regional, country, sector or market capitalization bias in the security selection process. 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. In accordance with Appendix A “Investment Powers and Restrictions” non-US Dollar currency exposure may be partially or fully hedged back to US Dollars.
The Fund may also invest on an ancillary basis in preference shares, Fixed Income Securities, warrants and other equity linked instruments issued by any corporations engaged in infrastructure related business.
The Fund will not invest more than 10% of its assets in other collective investment vehicles.
The Fund will not invest in asset backed securities, mortgage backed securities or Contingent Convertible Instruments.
The investment process may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Sub-Advisers may engage with company management regarding corporate governance practices as well as what the Sub-Advisers deem to be materially important environmental and/or social issues facing a company.
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 Global Infrastructure Unconstrained 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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture orproduction of civilian firearms or ammunition) and cluster munitions and anti-personnel mines (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 may include companies principally engaged in the development and/or ownership of income-producing property and collective investment vehicles with exposure to property such as publicly quoted property unit trusts, 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 may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Investment Adviser may engage with company management regarding corporate governance practices as well as what the Investment Adviser 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 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 has been excluded from the MSCI World ex Controversial Weapons Index due to its involvement with controversial weapons, as defined by that index.


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. In the context of the Fund’s ESG integration, the Investment Adviser uses the MSCI World ex Controversial Weapons Index for the purpose of determining the companies involved with controversial weapons the Fund will not invest in.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 has been excluded from the MSCI World ex Controversial Weapons Index due to its involvement with controversial weapons, as defined by that index.
- 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. In the context of the Fund’s
ESG integration, the Investment Adviser uses (i) the MSCI World ex Controversial Weapons Index for the purpose of determining the companies involved with controversial weapons the Fund will not invest in, and (ii) the MSCI AC World Index for the purposes of comparing the Fund’s GHG emissions intensity.
Taxonomy Regulation disclosure
Pursuant to the Taxonomy Regulation, the Fund, that promotes environmental characteristics in line with Article 8 of the SFDR and that partially invests in economic activities that contribute to one or more environmental objectives, is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy; (e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objectives by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information.
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle.
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of 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 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 and opportunities 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 an annual basis.
Investments shall not knowingly include any company involved in the manufacturing or production of:
- tobacco
- 9
- ;
- gambling
- 10
- ;
- adult entertainment
- 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
9 
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.
10 
The Fund does not invest in securities of issuers that generate 5% or more of their revenue from gambling activities.
11 
The Fund does not invest in securities of issuers that generate 5% or more of their revenue from adult entertainment.
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.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 Advisor 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 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 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 both a best-in-class and best effort approach to its investment selection in this regard. By applying a best-in-class approach, priority is given to the companies best positioned from a non-financial viewpoint within their sector of activity, without favouring or excluding one sector relative to the stock market index used as a basis for starting. 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 any company whose core business activity, according to the Investment Adviser’s methodology, involve the following:
- thermal coal mining;
- oil sands;
- Arctic oil and gas;
- tobacco;
- adult entertainment;
- gambling; and
- weapons related: civilian firearms, cluster munitions, weapons and landmines.

For the purposes of all the investment restrictions outlined above, a core business activity is one that accounts for more than 10% of the relevant company’s revenue as classified by MSCI, except for oil sands, Arctic oil & gas, and gambling which is considered at a 5% revenue threshold and weapons related which is considered at above 0% revenue.
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 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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 and 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 the cash equivalent positions 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-equivalent positions, 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, 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 and 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 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 issues 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 climate change, natural capital, human capital, access and affordability, and innovation/infrastructure. 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 Asia ex Japan 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. 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 any company involved in the manufacturing or production of:
- tobacco
- 14
- ;
- adult entertainment;
- civilian firearms;
- controversial weapons;
- coal
- 15
- ;
- oil sands
- 16
- ;
- Arctic oil
- 17
- ; and
- gambling
- 18
- .

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 exclusions 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.
14 
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.
15 
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.
16 
The Fund does not invest in securities that derive 5% or more of their revenues from the extraction or production of oil sands.
17 
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).
18 
The Fund does not invest in securities of issuers that generate 5% or more of revenue from gambling activities.
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 Asia ex Japan 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
Pursuant to the Taxonomy Regulation, the Fund, that promotes environmental characteristics in line with Article 8 of the SFDR and that partially invests in economic activities that contribute to one or more environmental objectives, is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy; (e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objectives by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information.
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle.
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 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, 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, climate change, natural capital, human capital, access and affordability, and innovation/infrastructure. 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 both a best-in-class and best effort approach to its investment selection in this regard. By applying a best-in-class approach, priority is given to the companies best positioned from a non-financial viewpoint within their sector of activity, without favouring or excluding one sector relative to the stock market index used as a basis for starting. 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 any company involved in the manufacturing or production of:
- tobacco
- 19
- ;
- adult entertainment;
- civilian firearms;
- controversial weapons;
- coal
- 20
- ;
- oil sands
- 21
- ;
- Arctic oil
- 22
- ; and
- gambling
- 23
- .

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 current exclusions (and any additional restrictions applied over time) are determined by the Investment Adviser’s own proprietary analysis rather than reliance on third party analysis. However, the analysis may be supported by third party ESG controversies analysis and business involvement research. The exclusions are applied to all equity investments within the Fund. 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
19 
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.
20 
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.
21 
The Fund does not invest in securities that derive 5% or more of their revenues from the extraction or production of oil sands.
22 
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).
23 
The Fund does not invest in securities of issuers that generate 5% or more of revenue from gambling activities.
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
Pursuant to the Taxonomy Regulation, the Fund, that promotes environmental characteristics in line with Article 8 of the SFDR and that partially invests in economic activities that contribute to one or more environmental objectives, is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy; (e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objectives by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information.
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle.
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments
underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 and 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 related to the real estate industry, including, but not limited to, real estate management, brokers, and building products, and collective investment vehicles with exposure to property, such as publicly quoted property unit trusts, all types of 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, 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 process may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Investment Adviser and Sub-Advisers may engage with company management regarding corporate governance practices as well as what the Investment Adviser and Sub-Advisers 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 U.S. 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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 and 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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 
- (securities of issuers classified as Global Industry Classification Standard (“
- GICS
- ”) sub-industry tobacco, or generate 5% or more of revenue from the manufacture of tobacco products);
- coal mining 
- (securities of issuers classified as GICS sub- industry coal & consumable fuels, or generate 10% or more of revenue from the mining and extraction of thermal coal); or
- weapons, including 
- civilian firearms 
- (securities of issuers that generate 10% or more of revenue from the manufacture or production of civilian firearms or ammunition) and 
- cluster munitions and anti-personnel mines 
- (securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines).

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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. The Fund intends to invest in the publicly traded securities of closed-end Real Estate Investment Trusts (REITS) and similar Real Estate Operating Companies (REOCS). REITS and REOCS are companies that acquire and/or develop real property for long term investment purposes. They invest the majority of their assets directly in real property and derive their income primarily from rents.
The investment process may consider information about ESG issues in its bottom-up stock selection process when making investment decisions. The Sub-Adviser may engage with company management regarding corporate governance practices as well as what the Sub-Adviser deems to be materially important environmental and/or social issues facing a company.
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 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 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 and 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; 
- securities of issuers classified as GICS sub-industry tobacco, or generate >5% or more of revenue from the manufacture of tobacco products;
- coal mining; 
- securities of issuers classified as GICS sub-industry coal & consumable fuels, or generate >10% or more of revenue from the mining and extraction of thermal coal; and
- weapons, including 
- civilian firearms; 
- securities of issuers that generate >10% or more of revenue from the manufacture or production of civilian firearms or ammunition; and 
- cluster munitions and anti-personnel mines; 
- securities of issuers that manufacture, produce or distribute cluster munitions or anti- personnel landmines.

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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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. In addition, the Investment Adviser may include evaluation of positive and negative contributions towards the UN Sustainable Development Goals. 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 research to the Investment Advisor to assist the Investment Advisor in its management of the Fund. Calvert has no discretion to make or recommend investment decisions on behalf of the Fund, such investment discretion being vested solely in the Investment Advisor.
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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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.
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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 thematic 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. 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 Advisor 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; 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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 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 in issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the financial product such as hedging instruments, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 a blended 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 thematic 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). However, any existing investments in such issuers shall not necessarily need to be sold, and 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; 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 that the Fund may invest in labelled thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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 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 Fund may take exposure to issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the Fund such as hedging instruments, unscreened investments for diversification purposes, investments for which data is lacking or cash held as ancillary liquidity.
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 and 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).
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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 thematic 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. 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 Advisor 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; 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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 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 in issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the financial product such as hedging instruments, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 Manager 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 thematic 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). However, any existing investments in such issuers shall not necessarily need to be sold, and 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; 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 that the Fund may invest in labelled thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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 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 Fund may take exposure to issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the Fund such as hedging instruments, unscreened investments for diversification purposes, investments for which data is lacking or cash held as ancillary liquidity.
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 and cash equivalents 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.
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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued
to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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, 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 is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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”.

FRONTIER MARKETS LOCAL DEBT FUND
The Frontier Markets Local Debt Fund’s investment objective is to generate total return, which is defined as income plus capital appreciation by investing primarily in (i) Fixed Income Securities of corporate, government and government-related issuers Located in Frontier Market countries or denominated in currencies of Frontier Market countries and/or (ii) derivative instruments, denominated in or based on the currencies, interest rates, or issues of, Frontier Market countries.
For the purposes of this Fund, “Frontier Market” 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 JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) or (ii) represent 2% or less of the JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM), 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. Large Emerging Market countries that are not included in the JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) such as Korea, Taiwan, Hong Kong, Singapore, Israel and India are not considered Frontier Markets countries and the Fund will not have exposure to such countries.
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, corporate bonds and debentures, fixed-income and floating rate debt securities and, to a limited extent, participation notes. Fixed Income Securities may also 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 up to 100% of its assets in instruments which are rated at least B- by either Standard & Poor’s Ratings Services or Fitch Ratings, or B3 by Moody’s Investors Service, Inc. or an equivalent rating from another rating agency or an equivalent internal rating from the Investment Adviser as at the date of investment.
In evaluating the Fixed Income Securities issued by frontier 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 thematic sustainable bonds, through which the robustness, impact and transparency of such instruments are evaluated. The proprietary assessment framework is part of the Fund’s screening policy available on the following websites: www.morganstanleyinvestmentfunds.com and on www.morganstanley.com/im.
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). However, any existing investments
in such issuers shall not necessarily need to be sold, and 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; 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 that the Fund may invest in labelled thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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 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 frontier markets 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 Fund may take exposure to in issuers who may not themselves contribute to the specific environmental or social characteristics promoted by the Fund such as hedging instruments, unscreened investments for diversification purposes, investments for which data is lacking or cash held as ancillary liquidity.
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, including on a country’s political system and environment, fiscal policy, monetary policy, borrowing rates, the level of national debt, 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. 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 based on the research undertaken by the
Investment Adviser, the Investment Adviser will select securities to which the Fund will obtain exposure, which it believes will provide the Fund with the most optimal and efficient exposure to the relevant 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 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 and cash equivalents 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.
The Fund is actively managed and references the JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM)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 (GBI-EM), it can invest in such securities in different proportions to their allocations under the JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM), and it can hold assets which are not exposed to countries referenced in the JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM). 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 (GBI-EM).
The Fund’s performance is measured against a benchmark as detailed in the Fund’s key information document.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
Profile of the typical investor
In light of the Frontier Markets Local Debt 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”.

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 thematic 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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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, 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 is actively managed and the composition of the portfolio holdings is not constrained by any benchmarks.
Taxonomy Regulation disclosure
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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”;
- ccept 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”). Such forward commitments may be entered into for purposes of investment leverage.
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 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, to a limited extent, in Fixed Income Securities not meeting the criteria of the Fund’s primary investments, warrants on securities, cash and 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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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”.

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 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.
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; and
	- gambling, where the company derives >10% revenue from such business activity.


With respect to fossil fuel activities specifically, investments shall not knowingly include any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives>10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity.

The exception to the above is that the Fund may invest in labelled Sustainable Bonds (see below), or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to the fossil fuel exclusions above, 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, including those related to the OECD Guidelines for Multinational Enterprises, 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.
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 such as Decarbonisation & Climate Risk, Circular Economy & Waste Reduction, Diverse & Inclusive Business and Decent Work & Resilient Jobs. 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 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 Sustainable 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;
- Sustainability Bonds;
- Transition Bonds; and
- Sustainability-linked Bonds.

The Investment Adviser deploys a proprietary assessment framework for labelled thematic 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.
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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 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.
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; and
	- gambling, where the company derives >10% revenue from such business activity.


With respect to fossil fuel activities specifically, investments shall not knowingly include any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives>10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity.

The exception to the above is that the Fund may invest in labelled Sustainable Bonds (see below), or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to the fossil fuel exclusions above, 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, including those related to the OECD Guidelines for Multinational Enterprises, 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.
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 such as such as Decarbonisation & Climate Risk, Circular Economy & Waste Reduction, Diverse & Inclusive Business and Decent Work & Resilient Jobs. 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 Sustainable 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 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 Sustainable 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;
- Sustainability Bonds;
- Transition Bonds; and
- Sustainability-linked Bonds.

The Investment Adviser deploys a proprietary assessment framework for labelled thematic 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.
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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 primarily in a diversified portfolio of Fixed Income Securities from issuers that are Located in Europe 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 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 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.
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; and
	- gambling, where the company derives >10% revenue from such business activity.


With respect to fossil fuel activities specifically, investments shall not knowingly include any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives >10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity .

The exception to the above is that the Fund may invest in labelled Sustainable Bonds (as defined below), or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to the fossil fuel exclusions above, 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 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 sustainable 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;
- Sustainability Bonds;
- Transition Bonds; and
- Sustainability-linked Bonds.

The Investment Adviser deploys a proprietary assessment framework for labelled thematic 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 and 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle

- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 CREDIT FUND
The Sustainable Global Credit Fund’s investment objective is to provide an attractive rate of relative return, measured in USD.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 Corporate Index taking into account the long-term global warming objectives of the Paris Agreement, as further described below.
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.
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, 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 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.
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; and
	- gambling, where the company derives >10% revenue from such business activity.


With respect to fossil fuel activities specifically, investments shall not knowingly include any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives>10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity.

The exception to the above is that the Fund may invest in labelled Sustainable Bonds (as defined below), or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to the fossil fuel exclusions above, 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, including those related to the OECD Guidelines for Multinational Enterprises, 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 Fund will only invest in the top 80% of ESG-scoring corporates in each sub-sector of the Bloomberg Global Aggregate Corporate Index. The ESG scores are determined by the Investment Adviser, using third party ESG data as a base having regard to ESG themes such as Decarbonisation & Climate Risk, Circular Economy & Waste Reduction, Diverse & Inclusive Business and Decent Work & Resilient Jobs. The aforementioned ESG criteria should result in a 20% reduction of the investible universe, 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.
The Fund will maintain a lower carbon footprint than the corporate bond component of the Bloomberg Global Aggregate 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 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 sustainable 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;
- Sustainability Bonds;
- Transition Bonds; and
- Sustainability-linked Bonds.

The Investment Adviser deploys a proprietary assessment framework for labelled thematic 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.
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 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 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 Bloomberg Global Aggregate Corporate Index.
Taxonomy Regulation disclosure
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
Profile of the typical investor
In light of the Sustainable 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”.

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 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 thematic 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;
	- 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.


With respect to fossil fuel activities specifically, investments shall not knowingly include any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives >10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity.

The exceptions to the above is that the Fund may invest in labelled thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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 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.
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 such as decarbonisation & climate risk, circular economy & waste reduction, diverse & inclusive business and decent work & resilient jobs.
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 Sustainable 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 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 Sustainable 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;
- Sustainability Bonds;
- Transition Bonds; and
- Sustainability-linked Bonds.

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 and 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementionedobjective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 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.
As part of the investment and screening process, the Fund shall not knowingly invest in 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; and
	- gambling, where the company derives >10% revenue from such business activity.


With respect to fossil fuel activities specifically, the Fund shall also not knowingly invest in any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives >10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity.

An exception to the fossil fuel exclusions in the preceding paragraph is that the Fund may invest in labelled sustainable bonds or other Fixed Income Securities that are issued to raise capital specifically for climate-related or environmental projects (“
Sustainable Bonds
”), which are issued by issuers that would otherwise be subject to the fossil fuel exclusions above, 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;
- Sustainability bonds;
- Transition bonds; and
- Sustainability-linked bonds.

Prior to investing in Sustainable Bonds, the Investment Adviser deploys a proprietary assessment framework for labelled thematic 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 Securities that are not Corporate Bonds, equity securities, warrants on securities, cash and cash equivalents 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary dataanalytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle– Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 Baa 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 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.
As part of the investment and screening process, the Fund shall not knowingly invest in 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; and
	- gambling, where the company derives >10% revenue from such business activity.


With respect to fossil fuel activities specifically, the Fund shall also not knowingly invest in any company whose business activity involves the following:
- mining and extraction of thermal coal;
- coal-fired power generation, where the company derives >10% revenue from such business activity;
- extraction or production from oil sands, where the company derives >5% revenue from such business activity; and
- oil or gas extraction or production in the Arctic region, where the company derives >5% revenue from such business activity.

An exception to the fossil fuel exclusions in the preceding paragraph is that the Fund may invest in labelled sustainable bonds or other Fixed Income Securities that are issued to raise capital specifically for climate-related or environmental projects (“
Sustainable Bonds
”), which are issued by issuers that would otherwise be subject to the fossil fuel exclusions above, 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;
- Sustainability bonds;
- Transition bonds; and
- Sustainability-linked bonds.

Prior to investing in Sustainable Bonds, the Investment Adviser deploys a proprietary assessment framework for labelled thematic 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 and 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
	- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
	- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
	- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.


It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of the Fund do not take into account the EU criteria for environmentally sustainable economic activities.
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 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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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, unscreened investments for diversification purposes, investments for which data are lacking or cash held as ancillary liquidity.
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 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments
underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 thematic 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 thematic sustainable bonds, or other debt securities that are issued to raise capital specifically for climate-related or environmental projects, which are issued by issuers that would otherwise be subject to this fossil fuel exclusion, 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 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 and money market instruments.
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); money market instruments and cash. 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 and money market instruments. 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 cash and derivatives for efficient portfolio management: the Fund may also invest in cash and 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 adjusts the portfolio positioning in a balanced mix of equity, fixed income, cash 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); money market instruments and cash. 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 and 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
In light of the Taxonomy Regulation, investors’ attention is drawn to the fact that the “Do No Significant Harm” principle does not apply to any of the investments of the Fund, since the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
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 adjusts the portfolio positioning in a balanced mix of equity, fixed income, cash 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 and money market instruments. 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); money market instruments and cash. 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 andETFs 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 and money market instruments. 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 cash and 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 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, 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 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.
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Morgan Stanley Investment Funds July 2022
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); money market instruments and cash. 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 and 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
Pursuant to the Taxonomy Regulation, as the Fund invests in economic activities that contributes to one or more environmental objectives and is subject to the disclosure requirements of Article 9 of the SFDR, it is required to disclose information about the environmentally sustainable investments made.
In relation only to the portion of the portfolio that invests in economic activities that contribute to one or more environmental objectives:
- The Fund may contribute to one or more of the following environmental objectives set out in the Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) sustainable use and protection of water and marine resources; (d) transition to a circular economy;(e) pollution prevention and control; (f) protection and restoration of biodiversity and ecosystems.
- In line with the current state of the SFDR and of the Taxonomy Regulation the Investment Adviser currently ensures that such investments of the Fund contribute to the abovementioned objective(s) while not significantly harming any other sustainable objective by using a combination of some or all of company- sourced information, third-party data, and its own research and analysis.
- Where companies provide information regarding the taxonomy alignment of their activities, this would be the Fund’s preferred source of information
- Where company information may not be directly available, the Investment Adviser has developed proprietary data analytics tools that utilise taxonomy-alignment data sourced from third parties to determine the Fund’s overall level of taxonomy alignment, including the evaluation of the “Principal Adverse Sustainability Impacts” indicators and assessment of the “Do No Significant Harm” principle
- Company-sourced information and/or third-party-data- driven analytics may be complemented by the Investment Adviser’s own research and direct engagement with companies.

It is expected that the calculation of the alignment of the Fund with the Taxonomy Regulation will be made available to investors as data becomes available. Such data will therefore be integrated in a future version of this Prospectus. We wish to draw attention to the fact that the actual level of taxonomy alignment may be limited.
The attention of the investors is drawn to the fact that the “Do No Significant Harm” principle applies only to those investments underlying the Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of 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 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, cash 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 and money market instruments.
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 Income Securities (including investment grade, non-investment grade and unrated); money market instruments and cash. 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 and money market instruments. 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 mayconsider 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 cash and derivatives for efficient portfolio management: the Fund may also invest in cash and 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 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”.

REAL ASSETS FUND
The Real Assets Fund’s investment objective is to seek total return, targeted to be in excess of inflation, through capital appreciation and income.
The Fund will seek to achieve its investment objective through investing primarily in transferable securities globally that provide exposure to real assets and/or that may provide inflation protection.
This may include, but is not limited to fixed income and/or equity securities, including depositary receipts (such as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs)), of issuers located throughout the world, that are engaged in the infrastructure,
real estate, natural resources, commodities and/or precious metals business; units of closed-end collective investment vehicles, including publicly quoted property unit trusts, master limited partnerships (MLPs), closed-end Real Estate Investment Trusts (REITS) that provide exposure to those asset classes; other UCITS eligible instruments that provide exposure to or are linked to those asset classes; other equity securities including, but not limited to, inflation- sensitive equities; and Fixed Income Securities including, but not limited to, US Treasury Inflation Protection Securities (TIPS), global inflation linked Fixed Income Securities and other inflation-sensitive Fixed Income Securities. In all cases, the Fund will gain exposure to these asset categories through instruments that are eligible for investment by a UCITS under the 2010 Law.
The Fund may invest in securities of companies or issuers of any size market capitalization. Companies in the infrastructure and real estate business may include companies principally engaged in the development and/or ownership of income-producing property.
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 and Fixed Income Securities not meeting the criteria of the Fund’s primary investments, debt securities convertible into common shares, preference shares, cash and cash equivalents, warrants and other equity linked instruments.
When making allocation decisions, the Sub-Adviser conducts quantitative and qualitative analysis, aiming to optimize the balance between return potential and risk across the publicly traded real asset categories. Across the underlying real asset categories, the Sub-Adviser’s approach combines a top-down process with bottom- up stock selection. The Sub-Adviser’s allocation decisions might result in the Fund being fully exposed to one single real asset category.
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 Real Assets Fund’s investment objective it may be appropriate for investors who:
- seek exposure to real assets through investing primarily in transferable securities globally;
- 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”.

ALTERNATIVE INVESTMENT FUNDS
The following Alternative Investment Funds have the following objectives:
LIQUID ALPHA CAPTURE FUND
The Liquid Alpha Capture Fund’s investment objective is to provide an attractive level of total return, measured in US Dollars, through investment in a global portfolio of financial instruments including equity securities and Fixed Income Securities of all types.
For the avoidance of doubt, the Fund may invest in depositary receipts, debt securities convertible into equity securities, equity- linked securities, preference shares, closed-ended ETFs and rights and warrants to purchase equity 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, forwards, swaps, options on swaps (swaptions) and other derivatives for investment or efficient portfolio management (including hedging) purposes.
The Fund may invest to a limited extent in collective investment schemes and open-ended ETFs, which are eligible investments for UCITS under the 2010 Law.
The Fund will use a range of investment strategies in order to achieve its investment objective. Securities will be used in order to gain exposure to the performance of a range of strategies commonly used by hedge funds including, but not limited to, long short security selection (‘alpha strategies’) and alternative beta or trading strategies (‘alternative beta strategies’). The Fund intends to provide access to this hedge fund performance by investing only in securities whose liquidity profile is consistent with that of a daily dealing fund.
Alpha strategies seek to achieve an attractive level of return relative to a benchmark through investment in equity securities combined with synthetic short exposure to the benchmark. Alternative beta strategies include a range of trading strategies that isolate risk premiums within hedge fund returns. The Investment Adviser will seek to allocate the portfolio across Alpha strategies and Alternatives
Beta strategies in order to provide an attractive level of total return while managing total portfolio risk.
The Fund may also seek exposure to volatility as an investment strategy. Volatility as an investment strategy typically involves making an investment decision based on the comparison between implied volatility (e.g. the price of options on the reference assets can show the market’s view of anticipated volatility on a forward basis) and realised volatility (i.e. that actually experienced by the reference assets). The Fund may obtain this exposure by use of derivatives, collective investment schemes, or other eligible assets providing such exposure.
The Fund may invest no more than 20% of its assets in Contingent Convertible Instruments.
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 Fund’s investment objective it may be appropriate for investors who:
- seek a return over the medium-term with lower volatility than traditional equity markets;
- accept the risks associated with this type of investment, as set out in Section 1.5 “Risk Factors”.
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Translation (ENDE, 2022-07-01):
# Anlageziele und Anlagepolitik
Ziel der Gesellschaft ist es, den Anlegern eine Gelegenheit für die Kapitalanlage in eine professionell verwaltete Fondspalette zu bieten, die eine Streuung des Anlagerisikos anstrebt, um eine möglichst hohe Rendite des eingesetzten Kapitals zu erzielen.
Hierfür bietet die Gesellschaft zahlreiche Fonds an, um dem Anleger durch Kombination seiner Kapitalanlage in den verschiedenen Fonds nach eigenen Wünschen die Möglichkeit zur Verfolgung seiner persönlichen Anlagestrategie zu bieten.
Gemäß dem OGAW-Regelwerk enthalten die nachfolgenden Informationen auch eine Beschreibung des Profils des typischen Anlegers, auf den die einzelnen Fonds zugeschnitten sind. Bitte beachten Sie jedoch, dass diese Informationen keine Anlageberatung darstellen, und dass potenzielle Anleger ihre eigenen professionellen Berater zum Erwerb, Besitz oder zur Veräußerung von Anteilen an dem jeweiligen Fonds befragen sollten. Weder die Gesellschaft noch die Verwaltungsgesellschaft geben Zusicherungen irgendeiner Art im Hinblick auf die Eignung, Angemessenheit oder sonstige Aspekte einer Anlage in Anteile der Fonds ab.
Unter-Vertriebsstellen oder andere Vermittler, die die Zielmarktbestimmung der Konzepteure für die Zwecke von MiFID II benötigen, werden gebeten, sich an die Verwaltungsgesellschaft zu wenden unter der E-Mail- Adresse cslux@morganstanley.com.
Die Fonds werden in einer bestimmten Rechtsordnung erst dann zum öffentlichen Verkauf angeboten, nachdem alle Genehmigungen in der jeweiligen Rechtsordnung ordnungsgemäß eingeholt wurden.
Jeder der Fonds wird unter Beachtung der in Anhang A aufgeführten Beschränkungen für Anlagen und Darlehensaufnahmen verwaltet.
Die Fonds dürfen sowohl zur Risikoabsicherung (Hedging) als auch für ein effizientes Portfoliomanagement oder im Rahmen ihrer jeweiligen Anlagestrategien, die in den
Anlagezielen der Fonds beschrieben sind, Derivate einsetzen. Sofern in den Anlagezielen eines Fonds nichts anderes angegeben ist, wird ein Fonds, der Derivate einsetzt dies lediglich zur Risikoabsicherung (Hedging) und/oder für ein effizientes Portfoliomanagement tun. Fonds, die Derivate einsetzen werden dies innerhalb der in Ziffer 3 des Anhangs A aufgeführten Beschränkungen tun. Anleger werden auf die besonderen Risikoerwägungen in Abschnitt 1.5. „Risikofaktoren“ verwiesen, die für Derivate gelten. Die Fonds dürfen über ein oder mehrere Total Return Swaps („TRS“) oder ähnliche derivative Finanzinstrumente ein Engagement in zulässige Finanzindizes oder Referenzvermögenswerte, die, wie näher in Anhang A beschrieben, im Einklang mit ihren Anlagezielen stehen, eingehen.
Die nachstehend genannten Fonds können mit Futures, Optionen auf Futures oder auf Rohstoffe und/oder bestimmte Swaps handeln. Wenngleich Morgan Stanley Investment Management Inc., ein Unter-Anlageberater, bei der US-amerikanischen Commodities Futures Trading Commission („CFTC“) als Terminhandelsberater (Commodity Trading Advisor („CTA“)) registriert und in dieser Eigenschaft Mitglied der US-amerikanischen National Futures Association ist, stützt sich Morgan Stanley Investment Management Inc. im Hinblick auf die nachstehend genannten Fonds, für die sie als Unter- Anlageberater tätig ist, auf die Ausnahmeregelung zur Registrierung als Terminhandelsberater nach CFTC Rule 4.14(a)8 und erbringt den Fonds auf Basis der Annahme derBefreiungvonderRegistrierungalsTerminhandelsberater Beratungsleistungen auf dem Gebiet Terminhandel (commodity interest trading advice). Morgan Stanley Investment Management Limited und die übrigen Unter- Anlageberater sind im Hinblick auf die nachstehend genannten Fonds, für die das jeweilige Unternehmen als Anlageberater bzw. Unter-Anlageberater tätig ist, nach Rule3.10(c)3vonderRegistrierungalsTerminhandelsberater bei der CFTC befreit.
Asia Opportunity Fund	Global Insight Fund
Calvert Sustainable Climate Aligned Fund	Global Macro Fund
Calvert Sustainable Climate Transition Fund	Global Multi-Asset Opportunities Fund Calvert Sustainable Developed Europe Equity Select Fund	Global Opportunity Fund
Calvert Sustainable Developed Markets Equity Select Fund	Global Permanence Fund Calvert Sustainable Diversity, Equity and Inclusion Fund	Global Property Fund Calvert Sustainable Emerging Markets Equity Select Fund	Latin American Equity Fund Calvert Sustainable Global Equity Engagement Fund	Liquid Alpha Capture 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	Real Assets Fund
Emerging Markets Corporate Debt Fund	Short Duration US Government Income 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 Credit Fund
Emerging Markets Fixed Income Opportunities Fund	Sustainable Global Fixed Income Opportunities Fund Emerging Markets Local Income Fund	Sustainable Global High Yield Bond Fund
Europe Opportunity Fund	Sustainable US High Yield Bond Fund
European Fixed Income Opportunities Fund	US Advantage Fund
Frontier Markets Local Debt Fund	US Core Equity Fund
Global Asset Backed Securities Fund	US Dollar Corporate Bond Fund
Global Balanced Sustainable Fund	US Dollar High Yield Bond Fund
Global Bond Fund	US Dollar Short Duration Bond Fund
Global Convertible Bond Fund	US Dollar Short Duration High Yield Bond Fund
Global Core Equity Fund	US Focus Property Fund
Global Endurance Fund	US Growth Fund
Global Fixed Income Opportunities Fund	US Insight Fund
Global Focus Property Fund	US Permanence Fund
Global High Yield Bond Fund	US Value Fund
Global Infrastructure Fund	Vitality Fund
Die Fonds dürfen im Rahmen der in Ziffer 3 von Anhang A spezifizierten Grenzen Techniken für ein effizientes Portfoliomanagement einsetzen. Die Anleger werden darauf aufmerksam gemacht, dass alle Fonds von Zeit zu Zeit Techniken für ein effizientes Portfoliomanagement,	beispielsweise Wertpapierleihen, Pensionsgeschäfte und umgekehrte Pensionsgeschäfte einsetzen können. Anleger werden auf die besonderen Risikoerwägungen   im   Abschnitt   1.   5
„Risikofaktoren“ verwiesen, die für die Techniken für ein effizientes Portfoliomanagement und für Derivate gelten.
Bei einer Anlage in einen Fonds der Gesellschaft handelt es sich weder um eine Einlage bei einer Bank noch bei einer sonstigen abgesicherten Verwahrstelle. Möglicherweise ist diese Anlage nicht für alle Anleger geeignet. Die Fonds sollen keine vollständigen Investmentprogramme darstellen und Anleger sollten ihre Anlageziele und finanziellen Bedürfnisse sorgfältig prüfen, wenn sie eine Entscheidung über eine Anlage in einen bestimmten Fonds treffen. Eine Anlage in einen Fonds der Gesellschaft sollte auf mittel- bis langfristiger Basis erfolgen. Die Fonds sollten nicht als kurzfristige Anlageinstrumente eingesetzt werden.
ALLGEMEINE INFORMATIONEN ÜBER DIE FONDS
Die Formulierung „in beschränktem Umfang“ bezieht sich auf einen Umfang von 10 % oder weniger des tatsächlich angelegten Vermögens (Nettovermögen abzüglich Bargeld und geldnahe Mittel) eines jeden Fonds. Für einzelne Fonds können abweichende Prozentsätze gelten; diese werden in den Anlagezielen der betreffenden Fonds angegeben. Die Anlageziele und Anlagestrategien der Fonds legen möglicherweise nicht alle zusätzlichen zulässigen Anlagen nach dem Gesetz von 2010, die die Fonds halten dürfen, umfassend offen, sofern diese zulässigen Anlagen 5 % des Nettovermögens der Fonds nicht übersteigen.
Alle Fonds können Bargeld halten, hinterlegen und/oder in geldnahe Mittel, zum Beispiel in Geldmarktinstrumente investieren. Geldmarktinstrumente umfassen insbesondere Commercial Paper, Einlagenzertifikate und kurzfristige Staatsanleihen. Alle Fonds können ferner in kurzfristige Geldmarktfonds und Geldmarktfonds
im Sinne der „CESR’s Guidelines on a common definition of European money market funds“ vom 19. Mai 2010 (CESR/10 049) (Kurzfristige Geldmarktfonds und Geldmarktfonds) investieren. Hierzu können Anlagen in Teilfonds der Morgan Stanley Liquidity Funds oder in andere kurzfristige Geldmarktfonds und Geldmarktfonds, die von den Anlageberatern oder einem Unter-Anlageberater verwaltet werden, gehören.
3
Die russische Börse und die Moscow Interbank Currency Exchange (MICEX) sind die einzigen Börsen in der Russischen Föderation, welche die Anforderungen an eine anerkannte Börse (i. S. v. Artikel 41 (1) des Gesetzes von 2010 erfüllen.
Investitionen in SPACs werden auf 10 % des Nettovermögens der Fonds beschränkt.
Die Fonds können in dem im Rahmen ihres Anlageziels zulässigen Umfang über Stock Connect in China A-Shares investieren. Anleger der betreffenden Fonds werden auf die in Abschnitt 1.5.
„Risikofaktoren“ genannten besonderen Risikoerwägungen, die für über Stock Connect getätigte Anlagen in China A-Shares gelten, hingewiesen.
Wenn hinter dem Namen eines Fonds eine Währung angegeben ist, so handelt es sich hierbei um die Referenzwährung dieses Fonds, die für die Messung der Wertentwicklung und für Rechnungslegungszwecke verwendet wird. Diese kann von der Anlagewährung des Fonds abweichen.
Für die Erreichung der Anlageziele der Fonds wird keine Garantie gegeben.
Anleger sollten für Informationen über die Performance in der Vergangenheit die wesentlichen Anlegerinformationen der jeweiligen Anteilklasse zu Rate ziehen.
ALLGEMEINE INFORMATIONEN ÜBER DIE INTEGRATION VON NACHHALTIGKEITSRISIKEN
Im Einklang mit der Verpflichtung von Morgan Stanley Investment Management zu nachhaltigen Anlagen hat die Gesellschaft eine Richtlinie für nachhaltige Anlagen verabschiedet, die unter www.morganstanley.com/im/sustainable-investing und www.morganstanleyinvestmentfunds.com zu finden ist. Die Richtlinie der Gesellschaft für nachhaltige Anlagen beschreibt, wie die Governance-Struktur der Gesellschaft, die ESG-Integration, die ESG-Fonds sowie die Stewardship-, Engagement- und Abstimmungsaktivitäten die Gesellschaft dabei unterstützen, ihre treuhänderische Pflicht zu erfüllen und auf die Präferenzen und Bedürfnisse der Anleger einzugehen. Insbesondere ist engagiertes Aktionärstum (Stewardship) wesentlicher Bestandteil unserer Rolle als aktiver langfristiger Investor, da es uns ermöglicht, Unternehmen
3 
Die Morgan Stanley Liquidity Funds (einschließlich aller Teilfonds) sind nicht zum Vertrieb an nicht- qualifizierte Anleger in der Schweiz zugelassen.
und Emittenten zu ermutigen, ihre Performance in Bezug auf eine Reihe von Nachhaltigkeitsthemen, -risiken und -chancen zu verbessern. Die Ansätze für Engagement und Stewardship variieren in unseren Anlageteams je nach Wertpapier/Unternehmen, Anlageklasse, Anlagestrategie und Wesentlichkeit der Nachhaltigkeitsthemen, -risiken und -chancen. Weitere Einzelheiten können in unserer Richtlinie für nachhaltige Anlagen gefunden werden, die unter www.morganstanley.com/im/sustainable-investing und www.morganstanleyinvestmentfunds.com zu finden ist.
Gemäß der EU-Verordnung (EU) 2019/2088 über nachhaltigkeitsbezogene Offenlegungspflichten im Finanzdienstleistungssektor (Sustainable Finance Disclosure Regulation oder kurz „
SFDR
“) sind die Fonds verpflichtet, die Art und Weise, in der Nachhaltigkeitsrisiken (wie in Abschnitt 1.5.1. „Allgemeine Risikofaktoren“ nachfolgend definiert) in die Anlageentscheidung einbezogen werden, sowie die Ergebnisse der Bewertung der wahrscheinlichen Auswirkungen von Nachhaltigkeitsrisiken auf die Renditen der Fonds offenzulegen.
Die Gesellschaft ist sich bewusst, dass verschiedene Nachhaltigkeitsrisiken die Anlagen auf Ebene der einzelnen Vermögenswerte und des Portfolios bedrohen können. Zu diesen Nachhaltigkeitsrisiken können der Übergang zum Klimawandel und physische Risiken, die Erschöpfung natürlicher Ressourcen, die Abfallintensität, die Bindung von Arbeitskräften, Fluktuation und Unruhen, die Unterbrechung der Lieferkette, Korruption und Betrug sowie Reputationsprobleme im Zusammenhang mit Menschenrechtsverletzungen gehören.
Die Gesellschaft ist sich bewusst, dass die Gesamtheit der einschlägigen Nachhaltigkeitsrisiken im Laufe der Zeit zunehmen und sich weiterentwickeln wird. Die Wesentlichkeit solcher Risiken und finanzieller Auswirkungen auf einen einzelnen Vermögenswert und auf ein Portfolio als Ganzes hängt von Branche, Land, Anlageklasse und Anlagestil ab. Die Anlageberater, die Unter- Anlageberater bzw. die Verwaltungsgesellschaft sind letztlich dafür verantwortlich, dass die wesentlichen einschlägigen Nachhaltigkeitsrisiken neben anderen wesentlichen Risikofaktoren in die Due-Diligence-Prüfung und Analyse, die Bewertung, die Auswahl von Vermögenswerten, die Portfoliogestaltung und die laufende Anlageüberwachung einbezogen werden.
Die Bewertung der wahrscheinlichen Auswirkungen der einschlägigen Nachhaltigkeitsrisiken muss daher auf jeder Fondsebene durchgeführt werden. Da die Fonds ein diversifiziertes Portfolio aufweisen, können sie unterschiedlichen Nachhaltigkeitsrisiken ausgesetzt sein, die von Emittenten, Märkten, Sektoren, Finanzinstrumenten, geografischen Regionen usw. abhängen. Sofern in Abschnitt 1.2. „Anlageziele und Anlagepolitik“ keine spezifischen Informationen zu einem Fonds angegeben werden, ist nicht zu erwarten, dass ein einzelnes
Nachhaltigkeitsrisiko einen wesentlichen negativen finanziellen Einfluss auf den Wert eines Fonds hat. Weitere Informationen zur SFDR, die gegebenenfalls für die Gesellschaft gelten, sind zu finden unter www.morganstanley.com/im.
Die Fonds fördern weder ökologische noch soziale Merkmale noch haben sie ein nachhaltiges Investment zum Ziel und werden als in den Anwendungsbereich von Artikel 6 der SFDR fallend betrachtet; eine Ausnahme hierzu bilden folgende Fonds:
- Asia Opportunity Fund (Artikel 8 der SFDR);
- Calvert Sustainable Climate Aligned Fund (Artikel 9 der SFDR);
- Calvert Sustainable Climate Transition Fund (Artikel 9 der SFDR;
- Calvert Sustainable Developed Europe Equity Select Fund (Artikel 9 der SFDR);
- Calvert Sustainable Developed Markets Equity Select Fund (Artikel 9 der SFDR);
- Calvert Sustainable Diversity, Equity and Inclusion Fund (Artikel 9 der SFDR);
- Calvert Sustainable Emerging Markets Equity Select Fund (Artikel 9 der SFDR);
- Calvert Sustainable Global Equity Engagement Fund (Artikel 9 der SFDR);
- Calvert Sustainable Global Green Bond Fund (Artikel 9 der SFDR);
- Calvert Sustainable US Equity Select Fund (Artikel 9 der SFDR);
- Counterpoint Global Fund (Artikel 8 der SFDR);
- Developing Opportunity Fund (Artikel 8 der SFDR);
- Emerging Leaders Equity Fund (Artikel 8 der SFDR);
- Emerging Markets Corporate Debt Fund (Artikel 8 der SFDR);
- Emerging Markets Debt Fund (Artikel 8 der SFDR);
- Emerging Markets Debt Opportunities Fund (Artikel 8 der SFDR);
- Emerging Markets Domestic Debt Fund (Artikel 8 der SFDR);
- Emerging Markets Fixed Income Opportunities Fund (Artikel 8 der SFDR);
- Emerging Markets Local Income Fund (Artikel 8 der SFDR);
- Euro Bond Fund (Artikel 8 der SFDR);
- Euro Corporate Bond Fund (Artikel 8 der SFDR);
- Euro Corporate Bond – Duration Hedged Fund (Artikel 8 der SFDR);
- Euro Strategic Bond Fund (Artikel 8 der SFDR);
- Europe Opportunity Fund (Artikel 8 der SFDR);
- European Fixed Income Opportunities Fund (Artikel 8 der SFDR);
- European High Yield Bond Fund (Artikel 8 der SFDR);
- Frontier Markets Local Debt Fund (Artikel 8 der SFDR);
- Global Asset Backed Securities Fund (Artikel 8 der SFDR);
- Global Balanced Fund (Artikel 8 der SFDR);
- Global Balanced Sustainable Fund (Artikel 9 der SFDR);
- Global Bond Fund (Artikel 8 der SFDR);
- Global Brands Equity Income Fund(Artikel 8 der SFDR);
- Global Brands Fund (Artikel 8 der SFDR);
- Global Convertible Bond Fund (Artikel 8 der SFDR);
- Global Endurance Fund (Artikel 8 der SFDR);
- Global Fixed Income Opportunities Fund (Artikel 8 der SFDR);
- Global High Yield Bond Fund (Artikel 8 der SFDR);
- Global Insight Fund (Artikel 8 der SFDR);
- Global Opportunity Fund (Artikel 8 der SFDR);
- Global Permanence Fund (Artikel 8 der SFDR);
- Global Quality Fund (Artikel 8 der SFDR);
- Global Sustain Fund (Artikel 8 der SFDR);
- Japanese Equity Fund (Artikel 8 der SFDR);
- NextGen Emerging Markets Fund (Artikel 8 der SFDR);
- Short Maturity Euro Bond Fund (Artikel 8 der SFDR);
- Sustainable Asia Equity Fund (Artikel 8 der SFDR);
- Sustainable Emerging Markets Equity Fund (Artikel 8 der SFDR);
- Sustainable Euro Corporate Bond Fund (Artikel 9 der SFDR);
- Sustainable Euro Strategic Bond Fund (Artikel 9 der SFDR);
- Sustainable European High Yield Bond Fund (Artikel 9 der SFDR);
- Sustainable Global Credit Fund (Artikel 9 der SFDR);
- Sustainable Global Fixed Income Opportunities Fund (Artikel 9 der SFDR);
- Sustainable Global High Yield Bond Fund (Artikel 9 der SFDR);
- Sustainable US High Yield Bond Fund (Artikel 9 der SFDR);
- US Advantage Fund (Artikel 8 der SFDR);
- US Dollar Corporate Bond Fund (Artikel 8 der SFDR);
- US Dollar High Yield Bond Fund (Artikel 8 der SFDR);
- US Dollar Short Duration Bond Fund (Artikel 8 der SFDR);
- US Dollar Short Duration High Yield Bond Fund (Artikel 8 der SFDR);
- US Growth Fund (Artikel 8 der SFDR);
- US Insight Fund (Artikel 8 der SFDR);
- US Permanence Fund (Artikel 8 der SFDR); und
- Vitality Fund (Artikel 8 der SFDR).

AKTIENFONDS
Die verschiedenen Aktienfonds haben folgende Anlageziele:
ASIA OPPORTUNITY FUND
Anlageziel des Asia Opportunity Fund ist es, ein langfristiges, in US-Dollar gemessenes Kapitalwachstum zu erzielen.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in erster Linie in Aktienwerte, einschließlich Hinterlegungszertifikate (unter anderem American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von in Asien (ausgenommen Japan) ansässigen Emittenten und über Stock Connect in China A-Shares anlegt.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater verfolgt bei der Auswahl der Aktien einen Bottom-Up-Ansatz und sucht auf der Basis einzelner Unternehmen attraktive Anlagemöglichkeiten. Bei der Auswahl der Wertpapiere sucht der Anlageberater etablierte und aufstrebende Unternehmen mit hohen Qualitätsstandards, die nach seiner Auffassung zum Kaufzeitpunkt zu niedrig bewertet sind. Dabei wählt der Anlageberater in der Regel Unternehmen mit nachhaltigen Wettbewerbsvorteilen aus, die sich durch Wachstum monetarisieren lassen. In den Anlageprozess eingebunden ist eine Nachhaltigkeitsanalyse im Hinblick auf disruptive Änderungen, Finanzkraft, ökologische und soziale Faktoren sowie Aspekte der Corporate Governance (auch als ESG bezeichnet). Der Anlageberater erwägt im Allgemeinen einen Verkauf der Portfoliobestände, wenn er zu dem Schluss kommt, dass die Anteilbestände seine Anlagekriterien nicht länger erfüllen.
Der Anlageberater setzt bei der Bewertung der Unternehmensqualität einen ganzheitlichen ESG-Ansatz ein, indem er potenzielle Auswirkungen auf die Gesundheit, die Umwelt, die Freiheit und die Produktivität der Menschen sowie die Corporate Governance- Praktiken analysiert, um Handlungsfähigkeit, Kultur und Vertrauen zu gewährleisten. Der Anlageberater erachtet die Einbindung ESG- bezogener potenzieller Risiken und Chancen in den Anlageprozess als wichtig, um eine langfristige Verwaltung des Kapitals zu gewährleisten. Über einen längeren Zeithorizont betrachtet, ist der Anlageberater der Ansicht, dass ESG-Risiken mit größerer Wahrscheinlichkeit eintreten und externe Effekte, die nicht vom Beteiligungsunternehmen getragen werden, mit größerer Wahrscheinlichkeit in den Wert der Wertpapiere eingepreist werden. Da sich ESG-Risiken potenziell auf das Risiko- und Ertragsprofil von Anlagemöglichkeiten auswirken können, führt der Anlageberater typischerweise konstruktive Gespräche mit der Unternehmensleitung über eine Reihe von ESG-Themen, die er als wesentlich erachtet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Asia Opportunity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

ASIAN PROPERTY FUND
Anlageziel des Asian Property Fund ist ein langfristiges, in US-Dollar gemessenes Kapitalwachstum durch Anlagen vorwiegend in Aktienwerte von Unternehmen, die im Immobiliensektor in Asien und Ozeanien tätig sind. Gesellschaften, die auf dem Immobiliensektor tätig sind, umfassen unter anderem Gesellschaften, deren primärer Zweck die Entwicklung und/oder der Besitz von Ertrag bringendem Grundvermögen ist, –kollektive Kapitalanlagen mit einem Engagement in Immobilien wie zum Beispiel börsennotierte Grundstücks-Sondervermögen (Property Unit Trusts), geschlossene Immobilienfonds (Real Estate Investment Trusts, „REITs“) sowie Organismen für gemeinsame Anlagen.
Die Gesellschaft kann ergänzend auch Anlagen in Vorzugsaktien, Schuldverschreibungen, die in Stammaktien wandelbar sind, China A-Shares über Stock Connect, Optionsscheine sowie andere aktiengebundene Finanzinstrumente vornehmen. Der Fonds kann bis zu 20 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei achtet der Unter- Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die nach Auffassung des Unter- Anlageberaters wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Asian Property Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE CLIMATE ALIGNED FUND
Anlageziel des Calvert Sustainable Climate Aligned Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte (wie nachstehend aufgeführt) von Unternehmen in Industrieländern, die an wirtschaftlichen Aktivitäten beteiligt sind, die sich mit dem Klimawandel befassen und/oder auf die langfristigen Dekarbonisierungsziele des Pariser Abkommens ausgerichtet sind.
Der Fonds wird ein Kohlenstoffprofil einhalten, das den Netto- Null-Zielen des Pariser Abkommens entspricht, wie sie sich in der entsprechenden Paris-Aligned Benchmark widerspiegeln, oder in Ermangelung einer anerkannten Paris-Aligned Benchmark einen wesentlich niedrigeren CO2-Fußabdruck beibehalten, der mindestens 50 % unter dem der zugrunde liegenden Markt- Benchmark (MSCI World Index) liegt, wobei die langfristigen CO2-Reduktionsziele des Pariser Abkommens berücksichtigt werden, was im Laufe der Zeit eine Änderung des angestrebten Reduktionsbereichs erforderlich machen könnte. Der Kohlenstoff- Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz.
Obwohl der Schwerpunkt auf klimabezogenen Zielen liegen soll, kann der Fonds in alle unten beschriebenen Umweltziele anlegen.
Der Fonds wird versuchen, sein Anlageziel hauptsächlich durch Anlage in Aktienwerte, einschließlich Depositary Receipts (wie z.
B. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)) zu erreichen.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise.
Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Vorzugsaktien, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG- Kriterien des Anlageberaters.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater wendet einen ESG-Research-Prozess an, der darauf abzielt, Unternehmen auf der Grundlage des Beitrags ihrer Produkte und Dienstleistungen zur Bewältigung des Klimawandels zu differenzieren und/oder Unternehmen zu identifizieren, die sich für das Ziel engagieren, bis 2050 oder früher keine Treibhausgasemissionen mehr zu verursachen. Der Anlageberater bewertet bei seiner Beurteilung die Verpflichtungen zur Verringerung der Kohlenstoffemissionen, die Entwicklung der Kohlenstoffemissionen und die Fortschritte bei der Erfüllung der Netto-Null-Verpflichtungen. Sobald ein Universum von Unternehmen, die sich mit dem Klimawandel beschäftigen, festgelegt ist, baut der Anlageberater das Portfolio durch einen Optimierungsprozess auf, der das Portfolio auf Unternehmen mit einem geringeren Kohlenstoffrisiko ausrichtet und gleichzeitig die Faktorrisiken im Vergleich zum MSCI World Index minimiert.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der
Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als die Komponenten des MSCI World Index.
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Der Anlageberater wendet einen quantitativen und qualitativen ESG-Research-Prozess an, der darauf abzielt, Unternehmen auf der Grundlage des Beitrags ihrer Produkte und Dienstleistungen und/ oder ihrer Ausrichtung zur Bewältigung des Klimawandels zu differenzieren.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Prozess des Positiv-Screening, die Methodik und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der
Anlageberater den MSCI World Index, um den CO2-Fußabdruck des Fonds zu vergleichen.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten sowie eigene Research-Daten. Der Anlageberater kann bei der Portfoliozusammenstellung auch auf Daten Dritter zurückgreifen. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder die oben genannten Ausschlüsse möglicherweise nicht ohne Weiteres verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen geschätzt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.

- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Climate Aligned Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE CLIMATE TRANSITION FUND
Anlageziel des Calvert Sustainable Climate Transition Fund besteht darin, eine attraktive, in US-Dollar gemessene Gesamtrendite zu erzielen, indem er in erster Linie in ein konzentriertes Portfolio von Aktienwerten von Unternehmen auf der ganzen Welt anlegt, deren Geschäftsmodelle zur Verminderung des Klimawandels oder der Anpassung daran dienen und die als nachhaltige Anlagen eingestuft werden, einschließlich Vorzugsaktien und Hinterlegungsscheine (unter anderem American Depositary Receipts (ADRs), European Depositary Receipts (EDRs) und Global Depositary Receipts (GDRs)).
Der Fonds kann ergänzend in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in festverzinsliche Wertpapiere, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Optionsscheine und andere aktiengebundene Instrumente, die von Unternehmen ausgegeben werden, die sich mit dem Klimawandel beschäftigen, sowie über Stock Connect in China A-Shares, vorausgesetzt, dass es sich
hierbei um nachhaltige Anlagen handelt. Der Fonds kann bis zu
20 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Unternehmen, die sich mit dem Klimawandel beschäftigen, können direkt oder indirekt unter anderem in den Bereichen erneuerbare Energien, Wasserwirtschaft, Abfallwirtschaft, Elektrifizierung, Batteriespeicherung, Mobilität, Wasserstoff, Biokraftstoffe und Landwirtschaft sowie in anderen Bereichen tätig sein, die zu einer kohlenstoffärmeren Umwelt beitragen.
Der Fonds will sein Ziel der Abschwächung des Klimawandels und der Anpassung an den Klimawandel erreichen, indem er in Unternehmen in den oben genannten Bereichen anlegt, deren Geschäftsmodelle entweder einen aktuellen, direkten Einfluss auf die Senkung von Kohlenstoffemissionen haben oder die in erheblichem Umfang in Sachanlagen (Property, Plan, and Equipment (PP&E)), Technologien und Prozesse investieren, die dazu beitragen werden, die Kohlenstoffemissionen in Zukunft zu senken, und die als nachhaltige Anlagen gelten. Unternehmen werden weiter unterschieden in Anbieter eines Endprodukts oder einer Dienstleistung („
Provider
“) oder Teile der Lieferkette bzw. des Lieferprozesses, die ein Endprodukt oder eine Dienstleistung ermöglichen („
Enabler
“). Breitgefasste Definitionen der einzelnen Kategorien werden nachfolgend wiedergegeben:
- Provider und Enabler: 
- Unternehmen, deren Produkte und Dienstleistungen direkt zur Abschwächung des Klimawandels beitragen oder solche, die die Abschwächung über die Lieferkette der Provider ermöglichen.
- Unternehmen im Wandel: 
- Unternehmen, die derzeit noch keine Provider oder Enabler sind, aber dabei sind, neue Geschäftszweige einzuführen und/oder alte zu verändern, so dass sie in Zukunft Provider oder Enabler werden;
- Adapter: 
- Unternehmen, die derzeit oder in Zukunft Produkte und Dienstleistungen anbieten, die anderen Unternehmen oder Stakeholdern helfen, sich an die Risiken des Klimawandels anzupassen.

Der Anlageberater verwaltet den Fonds aktiv, indem er eigene interne Research-Daten verwendet, um einen fundamental orientierten Anlageprozess umzusetzen, der Bottom-up- und Top- down-Research kombiniert. Der Fonds setzt sich aus Wertpapieren zusammen, die nach Ansicht des Anlageberaters auf der Grundlage einer absoluten Bewertung innerhalb des beschriebenen Universums ein höheres prognostiziertes Gesamtrenditepotenzial im Vergleich zu anderen Möglichkeiten im Anlageuniversum bieten.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren, und
der dann anstrebt, Unternehmen danach zu differenzieren, in welchem Umfang ihre Geschäftsmodelle dazu beitragen, den Klimawandel abzuschwächen oder sich an ihn anzupassen, und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater wird sich bemühen, die Unternehmensleitung in ESG-Fragen einzubeziehen, wenn festgestellt wurde, dass es möglich ist, positive Auswirkungen auf das nachhaltige Anlageziel, auf die ökologischen oder sozialen Leistungsfaktoren eines Unternehmens oder auf seine Corporate Governance-Praktiken zu erzielen.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als eine Auswahl von Unternehmen aus verschiedenen Branchengruppen, die in die GICS-Kategorien (Global Industry Classification Standard) passen, einschließlich, aber nicht beschränkt auf Industrie-, Versorgungs-, Werkstoff-, Energie-, Finanz-, Informationstechnologie-, Konsumgüter- und Basiskonsumgüterunternehmen, und die in den oben beschriebenen klimabezogenen Geschäftsbereichen tätig sind. Diese Auswahl basiert auf dem quantitativen und qualitativen ESG-Research-Prozess, der die Calvert Principles for Responsible Investment anwendet, wie im obigen Absatz erwähnt.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zusätzlich zu den obigen ESG-Zielen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG- Konflikten und dem Screening von Standards, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend
ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten, verlässt sich aber bei der Gestaltung des Portfolios nicht auf ESG-Daten von Dritten. Der Anlageberater verlässt sich bei der Wertpapierauswahl und der Portfoliogestaltung auf seine eigenen Analysen und nicht auf die Analysen von Dritten. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen oder Daten Dritter geschätzt.
In Bezug auf diesen Fonds bezieht sich die Verwendung von
„Calvert“ im Namen auf Calvert Research and Management („Calvert“), dessen Rolle in Bezug auf diesen Fonds auf die Bereitstellung von Research für den Anlageberater zur Unterstützung des Anlageberaters bei der Verwaltung des Fonds beschränkt ist. Calvert hat keine Befugnis, Anlageentscheidungen im Namen des Fonds zu treffen oder zu empfehlen; eine solche Anlagebefugnis liegt ausschließlich beim Anlageberater.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammendenInformationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Climate Transition Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE DEVELOPED EUROPE EQUITY SELECT FUND
Anlageziel des Calvert Sustainable Developed Europe Equity Select Fund ist die Erzielung eines langfristigen, in Euro gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte (wie nachstehend aufgeführt) von Unternehmen in Industrieländern Europas auf der Grundlage der Klassifizierung im MSCI Europe Index, die an wirtschaftlichen Aktivitäten beteiligt sind, die sich mit globalen ökologischen oder gesellschaftlichen Herausforderungen wie ökologischer Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement und verantwortungsvoller Unternehmensführung sowie transparenten Abläufen befassen, oder die führend im Umgang mit finanziell wesentlichen ökologischen oder sozialen Risiken und Chancen, unter anderem dem Management von Kohlenstoffemissionen und Diversität, Gleichberechtigung und Inklusion, sind. Diese Strategie berücksichtigt auch die langfristigen Ziele des Pariser Abkommens zur Kohlenstoffreduzierung.
Der Fonds wird ein Kohlenstoffprofil einhalten, das den Netto- Null-Zielen des Pariser Abkommens entspricht, wie sie sich in der entsprechenden Paris-Aligned Benchmark widerspiegeln, oder in Ermangelung einer anerkannten Paris-Aligned Benchmark einen wesentlich niedrigeren CO2-Fußabdruck beibehalten, der etwa 50 % unter dem der zugrunde liegenden Markt-Benchmark (MSCI Europe Index) liegt, wobei die langfristigen CO2-Reduktionsziele des Pariser Abkommens berücksichtigt werden, was im Laufe der Zeit eine Änderung des angestrebten Reduktionsbereichs erforderlich machen könnte. Der Kohlenstoff-Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz.
Unabhängig von dem vom Fonds angestrebten CO2-Netto-Null- Profil ist der Fonds bestrebt, auf Portfolioebene ein höheres Maß an Diversität zu wahren als der MSCI Europe Index, gemessen an der gewichteten durchschnittlichen Anzahl von Frauen auf Vorstandsebene. Der Anlageberater bezieht Daten zur Geschlechterdiversität in Aufsichtsräten von Drittanbietern, die Daten zur Anzahl von Frauen in Aufsichtsräten auf Emittentenebene bereitstellen. Der Anlageberater sammelt diese Daten für alle Unternehmen in seinem Anlageuniversum, für die Daten verfügbar sind, und berechnet den gewichteten Durchschnitt für den Fonds und den MSCI Europe Index.
Der Fonds wird versuchen, sein Anlageziel hauptsächlich durch Anlage in Aktienwerte, einschließlich Depositary Receipts (wie z.
B. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)) zu erreichen.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Vorzugsaktien, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG- Kriterien des Anlageberaters.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater ist bestrebt, Unternehmen zu identifizieren, die er als führend in den Bereichen Umwelt, Soziales und
Unternehmensführung ansieht, die für die langfristige Wertentwicklung der Gesellschaft von Bedeutung sind. Die Anlagestrategie des Anlageberaters besteht im Wesentlichen aus drei Elementen: 1) Identifizierung von Unternehmen, 2) Optimierung des Portfolios und 3) Einbeziehung des Unternehmens.
Der Anlageberater wendet einen quantitativen und qualitativen ESG-Research-Prozess an, der darauf abzielt, Unternehmen auf der Grundlage des Beitrags ihrer Produkte und Dienstleistungen im Umgang mit ökologischen oder gesellschaftlichen Herausforderungen oder ihres Managements wesentlicher ökologischer und sozialer Nachhaltigkeitsrisiken und -chancen zu differenzieren. Mit Hilfe des quantitativen Prozesses versucht der Anlageberater, Unternehmen zu identifizieren, die in Bezug auf ökologische oder soziale Faktoren, die als finanziell wesentlich für das Unternehmen eingestuft werden, zu den besten 20-40 % ihrer Vergleichsgruppe gehören, aber gleichzeitig bei keinem anderen wesentlichen Umwelt-, Sozial- oder Governance-Thema in die untersten 20-40 % fallen, basierend auf den eigenen Recherchen des Anlageberaters. Die ESG-Bewertungen werden vom Anlageberater auf der Grundlage einer Kombination aus ESG- Daten von Dritten und eigenen Daten unter Berücksichtigung von ESG-Themen wie ökologische Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement sowie verantwortungsvolle Unternehmensführung und transparente Abläufe ermittelt. Die identifizierten Unternehmen werden auch einer qualitativen Prüfung unterzogen.
Sobald ein Universum von im Hinblick auf ESG-Themen führenden Unternehmen festgelegt ist, baut der Anlageberater das Portfolio durch einen Optimierungsprozess auf, der das Portfolio auf Unternehmen mit mehr Geschlechterdiversität und einem geringeren Kohlenstoffrisiko ausrichtet und gleichzeitig die Faktorrisiken im Vergleich zum MSCI Europe Index minimiert.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als die Komponenten des MSCI Europe Index.
Anlagebeschränkungen
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Prozess des Positiv-Screening, die Methodik und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Der Fonds bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den MSCI Europe Index. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater auch den MSCI Europe Index, um den CO2- Fußabdruck des Fonds sowie die Geschlechterdiversität auf Vorstandsebene der Portfoliokomponenten zu vergleichen.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten sowie eigene Research-Daten. Der Anlageberater kann bei der Portfoliozusammenstellung auch auf Daten Dritter zurückgreifen. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder die oben genannten Ausschlüsse möglicherweise nicht ohne Weiteres verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen geschätzt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder
mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für
ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Developed Europe Equity Select Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE DEVELOPED MARKETS EQUITY SELECT FUND
Anlageziel des Calvert Sustainable Developed Markets Equity Select Fund ist die Erzielung eines langfristigen, in USD gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte (wie nachstehend aufgeführt) von Unternehmen in Industrieländern, die an wirtschaftlichen Aktivitäten beteiligt sind, die sich mit globalen ökologischen oder gesellschaftlichen Herausforderungen wie ökologischer Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement und verantwortungsvoller Unternehmensführung sowie transparenten Abläufen befassen oder die führend im Umgang mit finanziell wesentlichen ökologischen oder sozialen Risiken und Chancen, unter anderem dem Management von Kohlenstoffemissionen und Diversität, Gleichberechtigung und Inklusion, sind. Diese Strategie berücksichtigt auch die langfristigen Ziele des Pariser Abkommens zur Kohlenstoffreduzierung.
Der Fonds wird ein Kohlenstoffprofil einhalten, das den Netto- Null-Zielen des Pariser Abkommens entspricht, wie sie sich in der entsprechenden Paris-Aligned Benchmark widerspiegeln, oder in Ermangelung einer anerkannten Paris-Aligned Benchmark einen wesentlich niedrigeren CO2-Fußabdruck beibehalten, der etwa 50 % unter dem der zugrunde liegenden Markt-Benchmark (MSCI World Index) liegt, wobei die langfristigen CO2-Reduktionsziele des Pariser Abkommens berücksichtigt werden, was im Laufe der Zeit eine Änderung des angestrebten Reduktionsbereichs erforderlich machen könnte. Der Kohlenstoff-Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz.
Unabhängig von dem vom Fonds angestrebten CO2-Netto-Null- Profil ist der Fonds bestrebt, auf Portfolioebene ein höheres Maß an Diversität zu wahren als der MSCI World Index, gemessen an der gewichteten durchschnittlichen Anzahl von Frauen auf Vorstandsebene. Der Anlageberater bezieht Daten zur Geschlechterdiversität in Aufsichtsräten von Drittanbietern, die Daten zur Anzahl von Frauen in Aufsichtsräten auf Emittentenebene bereitstellen. Der Anlageberater sammelt diese Daten für alle Unternehmen in seinem Anlageuniversum, für die Daten verfügbar sind, und berechnet den gewichteten Durchschnitt für den Fonds und den MSCI World Index.
Der Fonds wird versuchen, sein Anlageziel hauptsächlich durch Anlage in Aktienwerte, einschließlich Depositary Receipts (wie z.
B. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)) zu erreichen.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken  oder  zum  Zwecke  eines  effizienten
Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Vorzugsaktien, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG- Kriterien des Anlageberaters.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater ist bestrebt, Unternehmen zu identifizieren, die er als führend in den Bereichen Umwelt, Soziales und Unternehmensführung ansieht, die für die langfristige Wertentwicklung der Gesellschaft von Bedeutung sind. Die Anlagestrategie des Anlageberaters besteht im Wesentlichen aus drei Elementen: 1) Identifizierung von Unternehmen, 2) Optimierung des Portfolios und 3) Einbeziehung des Unternehmens.
Der Anlageberater wendet einen quantitativen und qualitativen ESG-Research-Prozess an, der darauf abzielt, Unternehmen auf der Grundlage des Beitrags ihrer Produkte und Dienstleistungen im Umgang mit ökologischen oder gesellschaftlichen Herausforderungen oder ihres Managements wesentlicher ökologischer und sozialer Nachhaltigkeitsrisiken und -chancen zu differenzieren. Mit Hilfe des quantitativen Prozesses versucht der Anlageberater, Unternehmen zu identifizieren, die in Bezug auf ökologische oder soziale Faktoren, die als finanziell wesentlich für das Unternehmen eingestuft werden, zu den besten 20-40 % ihrer Vergleichsgruppe gehören, aber gleichzeitig bei keinem anderen wesentlichen Umwelt-, Sozial- oder Governance-Thema in die untersten 20-40 % fallen, basierend auf den eigenen Recherchen des Anlageberaters. Die ESG-Bewertungen werden vom Anlageberater auf der Grundlage einer Kombination aus ESG- Daten von Dritten und eigenen Daten unter Berücksichtigung von ESG-Themen wie ökologische Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement sowie verantwortungsvolle Unternehmensführung und transparente Abläufe ermittelt. Die identifizierten Unternehmen werden auch einer qualitativen Prüfung unterzogen.
Sobald ein Universum von im Hinblick auf ESG-Themen führenden Unternehmen festgelegt ist, baut der Anlageberater das Portfolio durch einen Optimierungsprozess auf, der das Portfolio auf Unternehmen mit mehr Geschlechterdiversität und einem
geringeren Kohlenstoffrisiko ausrichtet und gleichzeitig die Faktorrisiken im Vergleich zum MSCI World Index minimiert.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als die Komponenten des MSCI World Index.
Anlagebeschränkungen
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Prozess des Positiv-Screening, die Methodik und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der
Anlageberater den MSCI World Index, um den CO2-Fußabdruck des Fonds sowie die Geschlechterdiversität auf Vorstandsebene der Portfoliokomponenten zu vergleichen.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten sowie eigene Research-Daten. Der Anlageberater kann bei der Portfoliozusammenstellung auch auf Daten Dritter zurückgreifen. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder die oben genannten Ausschlüsse möglicherweise nicht ohne Weiteres verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen geschätzt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.

– Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.
Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Developed Markets Equity Select Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE DIVERSITY, EQUITY AND INCLUSION FUND
Anlageziel des Calvert Sustainable Diversity, Equity and Inclusion Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte (wie nachstehend aufgeführt) von global ansässigen Unternehmen, die eine Führungsrolle einnehmen oder bedeutende Verbesserungen in Bezug auf eine diverse Belegschaft und eine gleichberechtigte und inklusive Arbeitskultur aufweisen. Der Anlageberater wählt die Positionen, die der Fonds hält, anhand eines Optimierungsverfahrens aus, das auf einer eigenen Strategie beruht.
Der Fonds wird versuchen, sein Anlageziel zu erreichen hauptsächlich durch Anlage in Aktienwerte, einschließlich Depositary Receipts (wie z. B. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)) zu erreichen.
Der Fonds ist bestrebt, auf Portfolioebene ein höheres Maß an Diversität in der Belegschaft aufrechtzuerhalten als die zugrunde liegende Marktbenchmark (MSCI World Index), gemessen an den verfügbaren Daten in Bezug auf die durchschnittliche Anzahl von Frauen auf Vorstandsebene und die durchschnittliche Anzahl von Vorstandsmitgliedern, die unterrepräsentierte Ethnien vertreten. Der Anlageberater bezieht Daten über die geschlechtsspezifische und ethnische Vielfalt in den Vorständen von Drittanbietern, die Daten über die Anzahl von Frauen und Mitgliedern unterrepräsentierter Ethnien in den Vorständen auf Emittentenebene liefern. Der Anlageberater sammelt diese Daten für alle Unternehmen in seinem Anlageuniversum, für die Daten verfügbar sind, und berechnet für den Fonds und den MSCI World Index den durchschnittlichen Anteil von Frauen und Mitgliedern, die unterrepräsentierte Ethnien in den Vorständen vertreten.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Vorzugsaktien, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG- Kriterien des Anlageberaters.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater wendet einen ESG-Research-Prozess an, der darauf abzielt, Unternehmen zu identifizieren, die eine führende Rolle bei der ausgewogenen Vertretung der Geschlechter auf verschiedenen Ebenen und/oder eine führende Rolle bei der ethnischen Vielfalt von Mitgliedern im Vergleich zur demografischen Zusammensetzung des Landes in bestimmten Ländern einnehmen. Darüber hinaus wird auch die führende Rolle eines Unternehmens bei anderen Aspekten der Diversität unter Vorstandsmitgliedern, insbesondere Alter, kultureller Hintergrund und Fähigkeiten, berücksichtigt. Um Unternehmen zu identifizieren, die eine gleichberechtigte und inklusive Arbeitskultur widerspiegeln, ist der Anlageberater bestrebt, in Unternehmen anzulegen, die über Strategien und Verfahren verfügen, die die Chancengleichheit bei der Einstellung, die gleiche Entlohnung und die faire Beförderung aller Diversitätsgruppen angemessen unterstützen.
Der Anlageberater bezieht auch Unternehmen ein, die eine deutliche Verbesserung ihrer Methoden zur Förderung der Diversität nachweisen können, was durch folgende Faktoren belegt wird: 1) Größere Diversität in der Belegschaft, insbesondere ein ausgewogeneres Verhältnis zwischen den Geschlechtern oder eine größere ethnische Vielfalt; oder 2) nachweisliche Fortschritte nach einer schwerwiegenden Kontroverse im Zusammenhang mit Fragen der Diversität und Inklusion; oder 3) beschlossene Anträge von Anteilinhabern (nur Unternehmen mit Sitz in den USA und Kanada) zu Fragen der Diversität und Inklusion; oder 4) durch den Anlageberater ermittelt als Ziel für ein Engagement in Bezug auf Fragen der Diversität und Inklusion.
Unternehmen werden aus dem Portfolio ausgeschlossen, wenn der Anlageberater feststellt, dass sie keine Verbesserung der Methoden zur Förderung der Diversität aufweisen und sie eines der folgenden Kriterien erfüllen: 1) Mangelnde Diversität unter ihren Vorstandsmitgliedern, insbesondere ein unausgewogenes Verhältnis zwischen den Geschlechtern oder eine unzureichende ethnische Diversität; oder 2) signifikante Risiken im Zusammenhang mit den Personalpraktiken; oder 3) schwerwiegende Kontroversen im Zusammenhang mit Fragen der Diversität und Inklusion.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als die Komponenten des MSCI World Index.
Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen, einschließlich Diversität und Inklusion, einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Prozess des Positiv-Screening, die Methodik und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im
Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den MSCI World Index, um die geschlechtsspezifische und ethnische Diversität auf Vorstandsebene der Portfoliokomponenten zu vergleichen.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten sowie eigene Research-Daten. Der Anlageberater kann bei der Portfoliozusammenstellung auch auf Daten Dritter zurückgreifen. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder die oben genannten Ausschlüsse möglicherweise nicht ohne Weiteres verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen geschätzt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.


– Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.
Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Diversity, Equity and Inclusion Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE EMERGING MARKETS EQUITY SELECT FUND
Anlageziel des Calvert Sustainable Emerging Markets Equity Select Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte (wie nachstehend aufgeführt) von Unternehmen in Schwellenmärkten, die an wirtschaftlichen Aktivitäten beteiligt sind, die sich mit globalen ökologischen oder gesellschaftlichen Herausforderungen wie ökologischer Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement und verantwortungsvoller Unternehmensführung sowie transparenten Abläufen befassen, oder die führend im Umgang mit finanziell wesentlichen ökologischen oder sozialen Risiken und Chancen, unter anderem dem Management von Kohlenstoffemissionen und Diversität, Gleichberechtigung und Inklusion, sind. Diese Strategie berücksichtigt auch die langfristigen Ziele des Pariser Abkommens zur Kohlenstoffreduzierung.
Der Fonds wird ein Kohlenstoffprofil einhalten, das den Netto- Null-Zielen des Pariser Abkommens entspricht, wie sie sich in der entsprechenden Paris-Aligned Benchmark widerspiegeln, oder in Ermangelung einer anerkannten Paris-Aligned Benchmark einen wesentlich niedrigeren CO2-Fußabdruck beibehalten, der etwa 50 % unter dem der zugrunde liegenden Markt-Benchmark (MSCI Emerging Markets Index) liegt, wobei die langfristigen CO2- Reduktionsziele des Pariser Abkommens berücksichtigt werden, was im Laufe der Zeit eine Änderung des angestrebten Reduktionsbereichs erforderlich machen könnte. Der Kohlenstoff- Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz.
Unabhängig von dem vom Fonds angestrebten CO2-Netto-Null- Profil ist der Fonds bestrebt, auf Portfolioebene ein höheres Maß an Diversität zu wahren als der MSCI Emerging Markets Index, gemessen an der gewichteten durchschnittlichen Anzahl von Frauen auf Vorstandsebene. Der Anlageberater bezieht Daten zur Geschlechterdiversität in Aufsichtsräten von Drittanbietern, die Daten zur Anzahl von Frauen in Aufsichtsräten auf Emittentenebene bereitstellen. Der Anlageberater sammelt diese Daten für alle Unternehmen in seinem Anlageuniversum, für die Daten verfügbar sind, und berechnet den gewichteten Durchschnitt für den Fonds und den MSCI Emerging Markets Index.
Der Fonds wird versuchen, sein Anlageziel hauptsächlich durch Anlage in Aktienwerte, einschließlich Depositary Receipts (wie z.
B. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)) zu erreichen.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der
Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Vorzugsaktien, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG- Kriterien des Anlageberaters.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater ist bestrebt, Unternehmen zu identifizieren, die er als führend in den Bereichen Umwelt, Soziales und Unternehmensführung ansieht, die für die langfristige Wertentwicklung der Gesellschaft von Bedeutung sind. Die Anlagestrategie des Anlageberaters besteht im Wesentlichen aus drei Elementen: 1) Identifizierung von Unternehmen, 2) Optimierung des Portfolios und 3) Einbeziehung des Unternehmens.
Der Anlageberater wendet einen quantitativen und qualitativen ESG-Research-Prozess an, der darauf abzielt, Unternehmen auf der Grundlage des Beitrags ihrer Produkte und Dienstleistungen im Umgang mit ökologischen oder gesellschaftlichen Herausforderungen oder ihres Managements wesentlicher ökologischer und sozialer Nachhaltigkeitsrisiken und -chancen zu differenzieren. Mit Hilfe des quantitativen Prozesses versucht der Anlageberater, Unternehmen zu identifizieren, die in Bezug auf ökologische oder soziale Faktoren, die als finanziell wesentlich für das Unternehmen eingestuft werden, zu den besten 20-40 % ihrer Vergleichsgruppe gehören, aber gleichzeitig bei keinem anderen wesentlichen Umwelt-, Sozial- oder Governance-Thema in die untersten 20-40 % fallen, basierend auf den eigenen Recherchen des Anlageberaters. Die ESG-Bewertungen werden vom
Anlageberater auf der Grundlage einer Kombination aus ESG- Daten von Dritten und eigenen Daten unter Berücksichtigung von ESG-Themen wie ökologische Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement sowie verantwortungsvolle Unternehmensführung und transparente Abläufe ermittelt. Die identifizierten Unternehmen werden auch einer qualitativen Prüfung unterzogen.
Sobald ein Universum von im Hinblick auf ESG-Themen führenden Unternehmen festgelegt ist, baut der Anlageberater das Portfolio durch einen Optimierungsprozess auf, der das Portfolio auf Unternehmen mit mehr Geschlechterdiversität und einem geringeren Kohlenstoffrisiko ausrichtet und gleichzeitig die Faktorrisiken im Vergleich zum MSCI Emerging Markets Index minimiert.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als die Komponenten des MSCI Emerging Markets Index.
Anlagebeschränkungen
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht
nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Prozess des Positiv-Screening, die Methodik und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den MSCI Emerging Markets Index, um den CO2- Fußabdruck des Fonds sowie die Geschlechterdiversität auf Vorstandsebene der Portfoliokomponenten zu vergleichen.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten sowie eigene Research-Daten. Der Anlageberater kann bei der Portfoliozusammenstellung auch auf Daten Dritter zurückgreifen. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder die oben genannten Ausschlüsse möglicherweise nicht ohne Weiteres verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen geschätzt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammendenInformationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Emerging Markets Equity Select Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE GLOBAL EQUITY ENGAGEMENT FUND
Das Anlageziel des Calvert Sustainable Global Equity Engagement Fund besteht darin, eine hohe, einem angemessenem Risiko entsprechende, in US-Dollar gemessene Gesamtrendite zu erzielen, hauptsächlich durch Anlage in nachhaltige Geschäftsmodelle, die im Laufe der Zeit Wert schaffen können. Der Fonds sucht Unternehmen, die an wirtschaftlichen Aktivitäten beteiligt sind, die sich mit globalen ökologischen oder gesellschaftlichen Herausforderungen, wie ökologischer Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement und verantwortungsvoller Unternehmensführung sowie transparenten Abläufen befassen, oder die führend im Umgang mit finanziell wesentlichen ökologischen oder sozialen Risiken und Chancen, unter anderem dem Management von Kohlenstoffemissionen und Diversität, Gleichberechtigung und Inklusion, sind. Diese Strategie berücksichtigt auch die langfristigen Ziele des Pariser Abkommens zur Kohlenstoffreduzierung.
Der Fonds wird ein Kohlenstoffprofil einhalten, das den Netto- Null-Zielen des Pariser Abkommens entspricht, wie sie sich in der entsprechenden Paris-Aligned Benchmark widerspiegeln, oder in Ermangelung einer anerkannten Paris-Aligned Benchmark einen wesentlich niedrigeren CO2-Fußabdruck beibehalten, der etwa 50 % unter dem der zugrunde liegenden Markt-Benchmark (MSCI All Country World Index) liegt, wobei die langfristigen CO2- Reduktionsziele des Pariser Abkommens berücksichtigt werden, was im Laufe der Zeit eine Änderung des angestrebten Reduktionsbereichs erforderlich machen könnte. Der Kohlenstoff- Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz.
Unabhängig von dem vom Fonds angestrebten CO2-Netto-Null- Profil ist der Fonds bestrebt, auf Portfolioebene ein höheres Maß an Diversität zu wahren als der MSCI All Country World Index, gemessen an der gewichteten durchschnittlichen Anzahl von Frauen auf Vorstandsebene. Der Anlageberater bezieht Daten zur Geschlechterdiversität in Aufsichtsräten von Drittanbietern, die Daten zur Anzahl von Frauen in Aufsichtsräten auf Emittentenebene bereitstellen. Der Anlageberater sammelt diese Daten für alle Unternehmen in seinem Anlageuniversum, für die Daten verfügbar sind, und berechnet den gewichteten Durchschnitt für den Fonds und den MSCI All Country World Index.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in erster Linie in Aktienwerte von Unternehmen mit Sitz in den entwickelten Märkten der Welt anlegt, einschließlich Hinterlegungsscheinen (einschließlich American Depositary Receipts (ADRs), European Depositary Receipts (EDRs) und Global Depositary Receipts (GDRs)).
Der Fonds nutzt einen quantitativen und qualitativen ESG- Research-Prozess, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass die betreffenden Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG- Themen einbeziehen.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, einschließlich solchen in Schwellenmärkten, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG-Kriterien des Anlageberaters.
Der Anlageberater ist der Ansicht, dass ein auf Nachhaltigkeit, ESG-Integration und strukturiertes Engagement ausgerichteter Anlageansatz am besten geeignet ist, um Risiken zu minimieren und von finanziellen Erfolgen zu profitieren, die seiner Meinung nach im Laufe der Zeit zunehmen. Der Anlageberater ist der Ansicht, dass der wahre Wert einer Aktie in ihrer Fähigkeit liegt, den Cashflow im Laufe der Zeit zu steigern. Aus diesem Grund legt der Anlageberater den Schwerpunkt auf die langfristige Beteiligung an Unternehmen mit nachhaltiger Geschäftstätigkeit.
Der Anlageberater ist bestrebt, Unternehmen mit hoher oder sich verbessernder Qualität zu identifizieren, die säkulare Wachstumsmerkmale, hohe oder sich steigernde Renditen auf das investierte Kapital, nachhaltige Wettbewerbsvorteile, solide Bilanzen und eine starke Kapitalallokation aufweisen und die mit einem Abschlag auf den vom Anlageberater geschätzten inneren
Wert des Wertpapiers gehandelt werden. Große Aufmerksamkeit wird auch den positiven Auswirkungen gewidmet, die das jeweilige Unternehmen auf die Umwelt und die Gesellschaft hat.
Das breite Spektrum der vom Anlageberater durchgeführten Arbeiten in Bezug auf ESG-Themen ist durchgängig in den Anlageprozess des Fonds integriert. Der Anlageberater verfolgt einen vielschichtigen Ansatz zur Integration von ESG in seinen Prozess und ist der festen Überzeugung, dass starke ESG-Merkmale für die Nachhaltigkeit des Geschäftsmodells eines Unternehmens im Laufe der Zeit entscheidend sind. Bei der Bewertung der Nachhaltigkeit eines Geschäftsmodells stellt der Anlageberater ESG-relevante Aspekte auf die gleiche Stufe wie einfließende Faktoren wie z. B. die Rendite des angelegten Kapitals oder die Generierung von Free-Cash-Flows. Jeder Emittent wird im Vergleich zu einer geeigneten Vergleichsgruppe auf der Grundlage der vom Anlageberater ermittelten finanziell wesentlichen ESG- Faktoren bewertet. Die Bewertung der Merkmale eines bestimmten Wertpapiers für eine verantwortungsvolle Anlage umfasst im Allgemeinen sowohl eine quantitative als auch eine qualitative Analyse. Bei der Bewertung von Anlagen konzentriert sich der Anlageberater in der Regel auf die ESG-Faktoren, die für die Geschäftstätigkeit des Emittenten am wichtigsten sind, und ein Emittent kann in erster Linie aufgrund einer solchen Bewertung für eine Anlage in Frage kommen.
Der Anlageberater ist auch bestrebt, die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einzubeziehen, die er im Rahmen seiner Fundamental- und ESG-Research-Prozesse identifiziert. Das Engagement zielt darauf ab, positive Veränderungen voranzutreiben, die Nachhaltigkeit jedes Unternehmens zu verbessern und die langfristige Wertschöpfung zu steigern. Der Engagement-Ansatz kann die aktive Stimmrechtsvertretung, den Dialog mit Führungsteams und Vorständen, die Zusammenarbeit mit anderen Organisationen, die Einreichung von Gesellschafterbeschlüssen und andere Initiativen umfassen.
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend, indem er Daten zu ESG-Konflikten prüft und Informationen verwendet, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden, zusammen mit den Calvert Principles for Responsible Investment, im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
In Bezug auf diesen Fonds bezieht sich die Verwendung von
„Calvert“ im Namen auf Calvert Research and Management („Calvert“), dessen Rolle in Bezug auf diesen Fonds auf die Bereitstellung von Research für den Anlageberater zur Unterstützung des Anlageberaters bei der Verwaltung des Fonds beschränkt ist. Calvert hat keine Befugnis, Anlageentscheidungen im Namen des Fonds zu treffen oder zu empfehlen; eine solche Anlagebefugnis liegt ausschließlich beim Anlageberater.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den MSCI All Country World Index, um den CO2-Fußabdruck des Fonds sowie die Geschlechterdiversität auf Vorstandsebene der Portfoliokomponenten zu vergleichen.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Global Equity Engagement Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CALVERT SUSTAINABLE US EQUITY SELECT FUND
Anlageziel des Calvert Sustainable US Equity Select Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte (wie nachstehend aufgeführt) von US-amerikanischen Unternehmen mit hoher Kapitalisierung, die an wirtschaftlichen Aktivitäten beteiligt sind, die sich mit globalen ökologischen oder gesellschaftlichen Herausforderungen, die eine Gegend betreffen, wie ökologischer Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement und verantwortungsvoller Unternehmensführung sowie transparenten Abläufen befassen, oder die führend im Umgang mit finanziell wesentlichen ökologischen oder sozialen Risiken und Chancen, unter anderem dem Management von Kohlenstoffemissionen und Diversität, Gleichberechtigung und Inklusion, sind. Diese Strategie berücksichtigt auch die langfristigen Ziele des Pariser Abkommens zur Kohlenstoffreduzierung.
Der Fonds wird ein Kohlenstoffprofil einhalten, das den Netto- Null-Zielen des Pariser Abkommens entspricht, wie sie sich in der entsprechenden Paris-Aligned Benchmark widerspiegeln, oder in Ermangelung einer anerkannten Paris-Aligned Benchmark einen wesentlich niedrigeren CO2-Fußabdruck beibehalten, der etwa
50 % unter dem der zugrunde liegenden Markt-Benchmark (Russell 1000 Index) liegt, wobei die langfristigen CO2- Reduktionsziele des Pariser Abkommens berücksichtigt werden, was im Laufe der Zeit eine Änderung des angestrebten Reduktionsbereichs erforderlich machen könnte. Der Kohlenstoff- Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz.
Unabhängig von dem vom Fonds angestrebten CO2-Netto-Null- Profil ist der Fonds bestrebt, auf Portfolioebene ein höheres Maß an Diversität zu wahren als der Russell 1000 Index, gemessen an der gewichteten durchschnittlichen Anzahl von Frauen auf
Vorstandsebene. Der Anlageberater bezieht Daten zur Geschlechterdiversität in Aufsichtsräten von Drittanbietern, die Daten zur Anzahl von Frauen in Aufsichtsräten auf Emittentenebene bereitstellen. Der Anlageberater sammelt diese Daten für alle Unternehmen in seinem Anlageuniversum, für die Daten verfügbar sind, und berechnet den gewichteten Durchschnitt für den Fonds und den Russell 1000 Index.
Der Fonds wird versuchen, sein Anlageziel hauptsächlich durch Anlage in Aktienwerte, einschließlich Depositary Receipts (wie z.
B. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)) zu erreichen.
Der Fonds wendet einen quantitativen und qualitativen ESG- Research-Prozess an, der die Calvert Principles for Responsible Investment anwendet, um das Anlageuniversum zu definieren und gleichzeitig sicherzustellen, dass diese Unternehmen keinem ökologischen oder sozialen Ziel erheblich schaden. Die Calvert Principles for Responsible Investment sind zu finden unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Anlageberater kann die Unternehmensleitung in Bezug auf finanziell wesentliche ESG-Themen einbeziehen, die seiner Meinung nach positive Auswirkungen auf die Gesellschaft oder die Umwelt haben.
Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen (z. B. ein Engagement bei einem Unternehmen bezüglich seiner wesentlichen ESG-Risiken und
-Chancen, wie z. B. Klimawandel, Diversität, Arbeitnehmer- und Menschenrechte und ESG-Offenlegungen, entweder alleine oder als Teil einer Aktionärskoalition, zwecks weitergehender Informationen sei auf „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ verwiesen) oder Anpassungen der Allokationen vornehmen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, Vorzugsaktien, Optionsscheine auf Wertpapiere sowie in andere aktiengebundene Wertpapiere investieren, vorausgesetzt, diese Wertpapiere erfüllen die ESG- Kriterien des Anlageberaters.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater ist bestrebt, Unternehmen zu identifizieren, die er als führend in den Bereichen Umwelt, Soziales und Unternehmensführung ansieht, die für die langfristige Wertentwicklung der Gesellschaft von Bedeutung sind. Die Anlagestrategie des Anlageberaters besteht im Wesentlichen aus drei Elementen: 1) Identifizierung von Unternehmen, 2) Optimierung des Portfolios und 3) Einbeziehung des Unternehmens.
Der Anlageberater wendet einen quantitativen und qualitativen ESG-Research-Prozess an, der darauf abzielt, Unternehmen auf der Grundlage des Beitrags ihrer Produkte und Dienstleistungen im Umgang mit ökologischen oder gesellschaftlichen Herausforderungen oder ihres Managements wesentlicher ökologischer und sozialer Nachhaltigkeitsrisiken und -chancen zu differenzieren. Mit Hilfe des quantitativen Prozesses versucht der Anlageberater, Unternehmen zu identifizieren, die in Bezug auf ökologische oder soziale Faktoren, die als finanziell wesentlich für das Unternehmen eingestuft werden, zu den besten 20-40 % ihrer Vergleichsgruppe gehören, aber gleichzeitig bei keinem anderen wesentlichen Umwelt-, Sozial- oder Governance-Thema in die untersten 20-40 % fallen, basierend auf den eigenen Recherchen des Anlageberaters. Die ESG-Bewertungen werden vom Anlageberater auf der Grundlage einer Kombination aus ESG- Daten von Dritten und eigenen Daten unter Berücksichtigung von ESG-Themen wie ökologische Nachhaltigkeit und Ressourceneffizienz, Diversität, Gleichberechtigung und Inklusion, Achtung der Menschenrechte, Produktverantwortung, Humankapitalmanagement sowie verantwortungsvolle Unternehmensführung und transparente Abläufe ermittelt. Die identifizierten Unternehmen werden auch einer qualitativen Prüfung unterzogen.
Sobald ein Universum von im Hinblick auf ESG-Themen führenden Unternehmen festgelegt ist, baut der Anlageberater das Portfolio durch einen Optimierungsprozess auf, der das Portfolio auf Unternehmen mit mehr Geschlechterdiversität und einem geringeren Kohlenstoffrisiko ausrichtet und gleichzeitig die Faktorrisiken im Vergleich zum Russell 1000 Index minimiert.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums von 20 % oder mehr führen, und das Ziel des Anlageberaters wird sein, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio diesen ESG-Kriterien entsprechen. Das Anlageuniversum für diese Zwecke ist definiert als die Komponenten des Russell 1000 Index.
Anlagebeschränkungen
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten ohne nennenswerte Aussicht auf Beilegung oder Verbesserung in Verbindung gebracht werden;
- mit der Herstellung oder Produktion umstrittener Waffen und ziviler Schusswaffen zu tun haben;
- mit der Herstellung oder Produktion von Tabak zu tun haben; und
- mit Glücksspiel zu tun haben.

Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Der Prozess des Positiv-Screening, die Methodik und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den Russell 1000 Index, um den CO2-Fußabdruck des Fonds sowie die Geschlechterdiversität auf Vorstandsebene der Portfoliokomponenten zu vergleichen.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten sowie eigene Research-Daten. Der Anlageberater kann bei der Portfoliozusammenstellung auch auf Daten Dritter zurückgreifen. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder die oben genannten Ausschlüsse möglicherweise nicht ohne Weiteres verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen geschätzt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable US Equity Select Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

CHINA A-SHARES FUND
Anlageziel des China A-Shares Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums.
Der Fonds wird versuchen, sein Anlageziel hauptsächlich durch Anlage in China A-Shares von Unternehmen, die über Stock Connect an der Shanghai Stock Exchange und/oder der Shenzhen Stock Exchange notiert sind, zu erreichen. Der Fonds kann auch in Emittenten anderer Länder, insbesondere solche, die an der Hong Kong Exchange notiert sind (darunter China H-Shares und Red- Chips) sowie in Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von Emittenten aus jedem beliebigen Land mit Bezug zu chinesischen Unternehmen anlegen.
Im Sinne der Anlagestrategie für den China A-Shares Fund bezeichnet der Begriff „China A-Shares“ Anteile von Unternehmen, die an der Shanghai Stock Exchange und/oder der Shenzhen Stock Exchange notiert sind und auf chinesische Renminbi lauten; dazu gehören: (i) Aktien, (ii) Genussscheine (participatory notes), (iii) Vorzugsaktien und (iv) Optionsscheine.
Ergänzend darf der Fonds auch in Wertpapiere, die nicht der Definition der China A-Shares entsprechen, anlegen; dazu gehören:
(i) Vorzugsaktien (ii) Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, und (iii) andere aktiengebundene Wertpapiere. Der Fonds kann außerdem in beschränktem Umfang in ETFs, Optionsscheine auf Wertpapiere und andere Instrumente anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des China A-Shares Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten.
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

Handelstage für den China A-Shares Fund
Der China A-Shares Fund legt vorwiegend über Stock Connect an. Bei den Handelstagen für den China A-Shares Fund sind daher die Tage zu berücksichtigen, an denen Stock Connect für den Handel und für Abrechnungen geschlossen ist. Wenn in diesem Prospekt von Handelstagen für den China A-Shares Fund die Rede ist, so sind damit alle Tage außer den folgenden gemeint: (a) alle sonstigen Tage, an denen es kommerziellen Banken in Luxemburg, China oder Hongkong durch ein Gesetz oder eine Verordnung gestattet ist, geschlossen zu haben (einschließlich an Samstagen und Sonntagen), und (b) alle Tage, an denen Stock Connect für den Handel geschlossen ist.
CHINA EQUITY FUND
Anlageziel des China Equity Fund ist es, eine in US-Dollar gemessene attraktive, risikobereinigte annualisierte Rendite zu erzielen.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte von in China ansässigen Unternehmen, einschließlich China A-Shares von an der Shanghai Stock Exchange und/oder der Shenzhen Stock Exchange notierten Unternehmen über Stock Connect und in Emittenten anderer Länder, insbesondere solche, die an der Hong Kong Exchange notiert sind (unter anderem China H-Shares und Red Chips) sowie in Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von in China ansässigen Emittenten anlegt. Der Fonds kann als Teil seines primären Anlageuniversums auch in Aktien von Unternehmen anlegen, die ihren Sitz in China haben oder die dort den überwiegenden Teil ihrer geschäftlichen Tätigkeit ausüben, und deren Aktien an einer Börse notiert oder auf OTC-Märkten gehandelt werden (vorbehaltlich der Bestimmungen in Anhang A – „Anlagerichtlinien und Anlagegrenzen“).
Im Sinne der Anlagestrategie für den China Equity Fund bezeichnet der Begriff „China A-Shares“ Anteile von Unternehmen, die an der Shanghai Stock Exchange und/oder der Shenzhen Stock Exchange notiert sind und auf chinesische Renminbi lauten; dazu gehören: (i) Aktien, (ii) Genussscheine (participatory notes), (iii) Vorzugsaktien und (iv) Aktienoptionsscheine.
Der Fonds kann ergänzend in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, anlegen; dazu gehören: (i) Vorzugsaktien, (ii) Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, und (iii) andere aktiengebundene Wertpapiere. Der Fonds kann in beschränktem Umfang auch in Optionsscheine auf Wertpapiere und andere Instrumente, einschließlich offene ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Im Rahmen des Anlageprozesses werden, wenn Anlageentscheidungen getroffen werden, auch Informationen zu ESG-Aspekten berücksichtigt. Dabei achten die Unter-Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die unserer Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des China Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

Handelstage für den China Equity Fund
Der China Equity Fund legt über Stock Connect an. Bei den Handelstagen für den China Equity Fund sind daher die Tage zu berücksichtigen, an denen Stock Connect für den Handel und für Abrechnungen geschlossen ist. In diesem Prospekt enthaltene Bezugnahmen auf Handelstage für den China Equity Fund bezeichnen alle Tage mit Ausnahme: (a) aller sonstigen Tage, an denen es kommerziellen Banken in Luxemburg, China oder Hongkong durch ein Gesetz oder eine Verordnung gestattet ist, geschlossen zu sein (einschließlich an Samstagen und Sonntagen), und (b) alle Tage, an denen Stock Connect für den Handel geschlossen ist.
COUNTERPOINT GLOBAL FUND
Anlageziel des Counterpoint Global Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte, einschließlich Depositary Receipts (einschließlich ADRs und GDRs), von weltweit etablierten und aufstrebenden Unternehmen mit einer Kapitalisierungsrate, die im Bereich der im MSCI All Country World Index, notierten Unternehmen liegt, anlegt.
Anlageprozess
Das Anlageteam verfügt über langjährige Erfahrungen im Management von verschiedenen Anlagestrategien. Die Portfoliomanager innerhalb des Teams werden ständig
zusammenarbeiten und die Vermögenswerte des Fonds entsprechend den sich auf dem Markt bietenden Gelegenheiten über die gesamten zugrunde liegenden und unabhängig gemanagten Anlagestrategien der einzelnen Portfoliomanager verteilen und umverteilen. Der Fonds kann außerhalb dieser zugrunde liegenden und unabhängig gemanagten Anlagestrategien anlegen, wenn solche Anlagen im Rahmen des zulässigen Anlageuniversums des Fonds liegen.
Das Anlageteam verfolgt bei der Auswahl der Aktien einen Bottom- Up-Ansatz und sucht auf der Basis einzelner Unternehmen attraktive Anlagemöglichkeiten. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in Unternehmen, die seiner Ansicht nach einen hohen Bekanntheitsgrad und nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/Ertragsverhältnis aufweisen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, über Stock Connect in China A-Shares, Optionsscheine auf Wertpapiere, Bargeld und Bargeldäquivalente sowie in andere aktiengebundene Wertpapiere anlegen. Der Fonds wird nicht mehr als 15 % seines Nettovermögens über Stock Connect in China A-Shares anlegen. Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine zusätzliche Fundamentalanalyse heranzieht, die den Anlageentscheidungsprozess unterstützen kann. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mitdem Zielzuermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der
Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung des MSCI All Country World Index eingeschränkt. Der Fonds bezieht sich auf den MSCI All Country World Index, um die Kapitalisierungsspanne der Emittenten festzulegen, in die der Fonds anlegen wird.
Die Performance des Fonds wird am MSCI All Country World Index gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung
erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Counterpoint Global Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

DEVELOPING OPPORTUNITY FUND
Anlageziel des Developing Opportunity Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er hauptsächlich in Aktien von Emittenten investiert, die in Entwicklungsländern ansässig sind, einschließlich der Hinterlegungsscheine (u. a. American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs)) und China A-Shares über Stock Connect.
Unter normalen Marktbedingungen wird das Fondsvermögen hauptsächlich in Aktien von Emittenten in sich entwickelnden Ländern, Schwellenländern oder Frontier-Emerging-Markt- Ländern investiert. Ein Land kann auf der Grundlage der Klassifizierung gemäß MSCI Emerging Markets Net Index als sich entwickelnder Markt, Schwellenmarkt oder Frontier-Emerging- Markt klassifiziert werden bzw. laut einer vergleichbaren Klassifizierung einer Organisation wie dem Internationalen Währungsfonds, den Vereinten Nationen oder der Weltbank als sich entwickelnde Volkswirtschaft. Für die Zwecke dieses Fonds werden „sich entwickelnde Märkte”, „Länder mit sich entwickelnden Märkten”, „Schwellenmärkte”, „Länder mit Schwellenmärkten”,
„Frontier-Emerging-Märkte“ und „Länder mit Frontier-Emerging- Märkten“ und ähnliche Begriffe synonym verwendet und beziehen sich auf die gleichen zugrunde liegenden Märkte und Länder.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken  oder  zum  Zwecke  eines  effizienten
Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater verfolgt bei der Auswahl der Aktien einen Bottom-Up-Ansatz und sucht auf der Basis einzelner Unternehmen attraktive Anlagemöglichkeiten. Bei der Auswahl der Wertpapiere sucht der Anlageberater etablierte und aufstrebende Unternehmen mit hohen Qualitätsstandards, die nach seiner Auffassung zum Kaufzeitpunkt zu niedrig bewertet sind. Dabei wählt der Anlageberater in der Regel Unternehmen mit nachhaltigen Wettbewerbsvorteilen aus, die sich durch Wachstum monetarisieren lassen. In den Anlageprozess eingebunden ist eine Nachhaltigkeitsanalyse im Hinblick auf disruptive Änderungen, Finanzkraft, ökologische und soziale Faktoren sowie Aspekte der Corporate Governance (auch als ESG bezeichnet). Der Anlageberater erwägt im Allgemeinen einen Verkauf der Portfoliobestände, wenn er zu dem Schluss kommt, dass die Anteilbestände seine Anlagekriterien nicht länger erfüllen.
Der Anlageberater setzt bei der Bewertung der Unternehmensqualität einen ganzheitlichen ESG-Ansatz ein, indem er potenzielle Auswirkungen auf die Gesundheit, die Umwelt, die Freiheit und die Produktivität der Menschen sowie die Corporate Governance- Praktiken analysiert, um Handlungsfähigkeit, Kultur und Vertrauen zu gewährleisten. Der Anlageberater erachtet die Einbindung ESG- bezogener potenzieller Risiken und Chancen in den Anlageprozess als wichtig, um eine langfristige Verwaltung des Kapitals zu gewährleisten. Über einen längeren Zeithorizont betrachtet, ist der Anlageberater der Ansicht, dass ESG-Risiken mit größerer Wahrscheinlichkeit eintreten und externe Effekte, die nicht vom Beteiligungsunternehmen getragen werden, mit größerer Wahrscheinlichkeit in den Wert der Wertpapiere eingepreist werden. Da sich ESG-Risiken potenziell auf das Risiko- und Ertragsprofil von Anlagemöglichkeiten auswirken können, führt der Anlageberater typischerweise konstruktive Gespräche mit der Unternehmensleitung über eine Reihe von ESG-Themen, die er als wesentlich erachtet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht konzipiert, um eine Benchmark nachzubilden und daher nicht durch die Zusammensetzung des MSCI Emerging Markets Index beschränkt. Der Fonds bezieht sich bei der Festlegung einer geografischen Allokation von Ländern, in die der Fonds anlegen wird, auf den MSCI Emerging Markets Index. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Developing Opportunity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EMERGING LEADERS EQUITY FUND
Das Anlageziel des Emerging Leaders Equity Fund ist eine langfristige, in US Dollar gemessene Kapitalwertsteigerung, indem der Fonds hauptsächlich in ein konzentriertes Portfolio von Aktien, einschließlich American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und China A-Shares über Stock Connect in Schwellen- und Frontier-Ländern anlegt. Bei der Verfolgung seines Anlageziels wird der Anlageberater in Unternehmen mit einer starken Performance und mit im Vergleich zu ihren Konkurrenten branchenführenden Praktiken bei einer oder mehreren ESG-Kennzahlen (wie unten aufgeführt) investieren.
Länder können aufgrund der Einstufung im MSCI Emerging Markets Net Index oder einer ähnlichen Einstufung durch eine Organisation wie den Internationalen Währungsfonds, die Vereinten Nationen oder die Weltbank als Schwellenland oder Frontier-Land gelten, sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41(1) des Gesetzes von 2010 gelten.
Der Fonds kann ergänzend in Barvermögen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, Optionsscheinen und in anderen aktienbezogenen Wertpapieren sowie zu Zwecken eines effizienten Portfoliomanagements (unter anderem zu Absicherungszwecken) in börsengehandelten und an OTC-Märkten gehandelten Optionen, Futures und sonstigen Derivaten anlegen.
Der Fonds kann in Aktien (einschließlich ADRs und GDRs) von Unternehmen anlegen, die in Ländern errichtet wurden und ansässig sind, die nicht zu den Schwellen- oder Frontier-Märkten zählen, bei denen der Wert der Wertpapiere des Unternehmens im Wesentlichen die Bedingungen in einem Schwellen- oder Frontier- Land widerspiegelt oder wenn das Wertpapierhandelsgeschäft vorwiegend in einem Schwellen- oder Frontier-Land betrieben wird oder bei denen 35 % der Erträge, des Umsatzes, des Vermögens, EBITDA oder des Gewinns vor Steuern des Unternehmens aus Gütern, Verkäufen oder Dienstleistungen stammen, die in Schwellen- oder Frontier-Ländern hergestellt,
getätigt bzw. erbracht wurden. Der Fonds kann in Genussscheinen (participatory notes) anlegen, die dazu verwendet werden können, ein Engagement in Wertpapieren und Märkten zu erlangen, das durch eine direkte Anlage nicht effizient erreicht werden kann. Das Engagement in Genussscheinen wird 45 % der tatsächlich investierten Vermögenswerte (Bruttowert der Vermögenswerte nach Abzug von Bargeld und geldnahen Mitteln) nicht übersteigen. Der Fonds kann bis zu 20 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Anlageberater bezieht die Erwägung von ESG-Aspekten in seine Anlageentscheidungen ein.
Der Anlageberater berücksichtigt bei seiner Entscheidungsfindung auch Nachhaltigkeitsrisiken, u. a. bei der Durchführung von Due- Diligence-Prüfungen und Analysen, der Bewertung, der Auswahl von Vermögenswerten, der Portfoliokonstruktion sowie der laufenden Anlageüberwachung und dem Portfoliomanagement. Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können den Wert eines Wertpapiers oder Portfolios negativ beeinträchtigen. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, aktiv in Dialog/Verhandlungen mit der Unternehmensleitung treten oder Anpassungen an den Top- Down-Allokationen in Bezug auf geografische Regionen, Sektoren oder Anlageklassen vornehmen. Bei der Umsetzung seiner Integration von Nachhaltigkeitsrisiken kann der Anlageberater eine Kombination von Informationsquellen nutzen, einschließlich von Unternehmen offengelegter Informationen, nicht von Unternehmen offengelegter Informationen sowie Analysen und Daten Dritter.
Der Anlageberater bezieht die Erwägung von ESG-Aspekten in seine Anlageentscheidungen ein. Der Fonds strebt darüber hinaus eine Ausrichtung an den Zielen des Pariser Abkommens zum Klimawandel an. Der Fonds versucht, einen geringeren CO2- Fußabdruck als der MSCI Emerging Markets Net Index zu erzielen.
Der Anlageberater ist der Ansicht, dass Unternehmen mit vorausschauenden Managementteams, die proaktive Strategien zu diesen Nachhaltigkeits- und ESG-Themen aufstellen, langfristig in geschäftlicher und finanzieller Sicht besser positioniert sein werden als Unternehmen, die diese Themen nicht berücksichtigen.
Neben der Anlage in Unternehmen, die gute Governance-Praktiken anwenden und die im Vergleich zu ihren Konkurrenten ein starkes Management von Nachhaltigkeitsfaktoren aufweisen, kann der Fonds in Unternehmen in Schwellenmärkten anlegen, die skalierbare  und  rentable  Lösungen  für  drängende
Nachhaltigkeitsprobleme wie Klimawandel und Umwelt-/ Ressourcenmanagement anbieten. Der Fonds wird versuchen, bestimmte Unternehmen auszuschließen, die in hohem Maße Nachhaltigkeitsrisiken ausgesetzt sind, indem er diesbezüglich auf die Anlageauswahl sowohl das Konzept des Best-in-class als auch das Konzept der größten Anstrengung anwendet. Das Ziel des Anlageberaters wird es sein sicherzustellen, dass wenigstens 90 % des Portfolios des Fonds der oben beschriebenen Nachhaltigkeitsanalyse unterliegen.
ESG-Kriterien werden vom Anlageberater sowohl während des Anlage- als auch während des Rechercheprozesses berücksichtigt, um die Exponierung gegenüber Nachhaltigkeitsrisiken zu begrenzen. Zu diesen Kriterien können unter anderem Kohlenstoffemissionen, Wasserknappheit, Abfallmanagement, Biodiversität, Arbeitsmanagement, Geschlechtervielfalt, Gesundheit und Sicherheit, Produktsicherheit, Datenschutz und -sicherheit, Vergütung von Führungskräften, Unabhängigkeit des Vorstands und Anteilinhaberrechte gehören. Der Anlageberater konzentriert sich darauf, das Management eines Unternehmens in Bezug auf die seiner Meinung nach wichtigen Governance-, Umwelt- und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einzubeziehen. Die Anwendung der oben genannten ESG-Kriterien sollte zu einer Reduzierung des Anlageuniversums um 20 % oder mehr führen, wie oben in den ersten vier Absätzen beschrieben.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, die an der Herstellung oder Produktion eines der folgenden beteiligt sind:
- Tabak
- 4
- ;
- Unterhaltung für Erwachsene;
- zivile Schusswaffen;
- umstrittenen Waffen;
- Kohle 
- 5
- ;
- Ölsande
- 6
- ;
- Arktisches Erdöl
- 7
- ; und
- Glücksspiel
- 8
- .

4 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze mitaus der HerstellungProduktion von Tabakprodukten oder mitaus der Lieferung von SchlüsselproduktenProdukten, die für die Herstellung von Tabakprodukten notwendigwesentlich sind, wie z. B. Filter, erzielen.
5 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze aus dem Abbau und der Gewinnung von Kraftwerkskohle oder Kohleverstromung erzielen.
6 
Der Fonds investiert nicht in Wertpapiere, die 5 % oder mehr ihrer Umsätze aus der Förderung oder Produktion von Ölsanden erwirtschaften.
7 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze aus der Ölförderung oder Ölproduktion in der Arktis, einschließlich des Arctic National Wildlife Refuge (ANWR), erzielen.
8 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze aus Glücksspielaktivitäten erzielen.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Die Ausschlüsse werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten durch Dritte und Untersuchungen zu Beteiligungen von Unternehmen unterstützt werden. Die Ausschlusskriterien werden auf alle Wertpapieranlagen innerhalb des Fonds angewendet. Die Ausschlusskriterien werden nicht auf Anlagen angewendet, bei denen der Anlageberater keine direkte Kontrolle über die zugrunde liegenden Bestände hat, z. B. bei Organismen für gemeinsame Anlagen oder offenen ETFs. Die Ausschlusskriterien werden in regelmäßigen Abständen überprüft, und alle Änderungen werden im Dokument zur Ausschlusspolitik berücksichtigt. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten, verlässt sich aber bei der Gestaltung des Portfolios nicht auf ESG-Daten von Dritten. Der Anlageberater verlässt sich bei der Wertpapierauswahl und der Portfoliogestaltung auf seine eigenen Analysen und nicht auf die Analysen von Dritten. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen oder Daten Dritter geschätzt.
Der Fonds wird Derivate nur für ein effizientes Portfoliomanagement und zu Absicherungszwecken einsetzen.
Der Fonds wird aktiv verwaltet und verwendet den MSCI Emerging Markets Net Index als Vergleichs-Benchmark, die als repräsentativ für das Aktienuniversum der Schwellenmärkte angesehen wird. Die Benchmark wird ausschließlich zu Vergleichszwecken im Hinblick auf die Performance verwendet und berücksichtigt keine ökologischen oder sozialen Merkmale.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Leaders Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerten anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EUROPE OPPORTUNITY FUND
Anlageziel des Europe Opportunity Fund ist es, eine langfristige, in Euro gemessene Kapitalwertsteigerung zu erzielen.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in erster Linie in Aktienwerte, einschließlich Hinterlegungszertifikate (American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depository Receipts (EDRs)) von in Europa ansässigen Emittenten anlegt.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren. Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater verfolgt bei der Auswahl der Aktien einen Bottom-Up-Ansatz und sucht auf der Basis einzelner Unternehmen attraktive Anlagemöglichkeiten. Bei der Auswahl der Wertpapiere sucht der Anlageberater etablierte und aufstrebende Unternehmen mit hohen Qualitätsstandards, die nach seiner Auffassung zum Kaufzeitpunkt zu niedrig bewertet sind. Dabei wählt der Anlageberater in der Regel Unternehmen mit nachhaltigen Wettbewerbsvorteilen aus, die sich durch Wachstum monetarisieren lassen. In den Anlageprozess eingebunden ist eine Nachhaltigkeitsanalyse im Hinblick auf disruptive Änderungen, Finanzkraft, ökologische und soziale Faktoren sowie Aspekte der
Corporate Governance (auch als ESG bezeichnet). Der Anlageberater erwägt im Allgemeinen einen Verkauf der Portfoliobestände, wenn er zu dem Schluss kommt, dass die Anteilbestände seine Anlagekriterien nicht länger erfüllen.
Der Anlageberater setzt bei der Bewertung der Unternehmensqualität einen ganzheitlichen ESG-Ansatz ein, indem er potenzielle Auswirkungen auf die Gesundheit, die Umwelt, die Freiheit und die Produktivität der Menschen sowie die Corporate Governance- Praktiken analysiert, um Handlungsfähigkeit, Kultur und Vertrauen zu gewährleisten. Der Anlageberater erachtet die Einbindung ESG- bezogener potenzieller Risiken und Chancen in den Anlageprozess als wichtig, um eine langfristige Verwaltung des Kapitals zu gewährleisten. Über längere Zeithorizonte ist der Anlageberater der Ansicht, dass ESG-Risiken mit größerer Wahrscheinlichkeit eintreten und dass externe Effekte, die nicht von der Gesellschaft getragen werden, eher in den Wert der Wertpapiere eingepreist werden. Da sich ESG-Risiken potenziell auf das Risiko- und Ertragsprofil von Anlagemöglichkeiten auswirken können, führt der Anlageberater typischerweise konstruktive Gespräche mit der Unternehmensleitung über eine Reihe von ESG-Themen, die er als wesentlich erachtet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung
unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Europe Opportunity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EUROPEAN PROPERTY FUND
Anlageziel des European Property Fund ist ein langfristiges, in Euro gemessenes Kapitalwachstum durch Anlagen vorwiegend in Aktienwerte von Unternehmen, die im europäischen Immobiliensektor tätig und in Europa ansässig sind. Gesellschaften, die auf dem Immobiliensektor tätig sind, umfassen unter anderem Grundstücksentwicklungsgesellschaften, Gesellschaften, deren primärer Zweck die Entwicklung und/oder das Eigentum an Grundvermögen zur Erzielung von Einkünften ist sowie kollektive Kapitalanlagen mit einem Engagement in Immobilien wie zum Beispiel börsennotierte Grundstücks-Sondervermögen (Property Unit Trusts), geschlossene Immobilienfonds (Real Estate Investment Trusts, „REITs“) sowie Organismen für gemeinsame Anlagen.
Der Fonds kann ergänzend auch Anlagen in Vorzugsaktien, Schuldverschreibungen, die in Stammaktien wandelbar sind,
Optionsscheine sowie andere aktiengebundene Finanzinstrumente vornehmen.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei achtet der Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des European Property Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BRANDS EQUITY INCOME FUND
Anlageziel des Global Brands Equity Income Fund ist es, einen regelmäßigen Ertragsstrom und langfristiges Kapitalwachstum zu erzielen.
Der Fonds versucht, sein Anlageziel zu erreichen, indem er in erster Linie in qualitativ hochwertige und kontinuierlich Dividenden ausschüttende Aktienwerte von Emittenten anlegt, die in entwickelten Märkten weltweit ansässig sind.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken  oder  zum  Zwecke  eines  effizienten
Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktienwerte von in Schwellenmärkten ansässigen Emittenten, darunter über Stock Connect in China A-Shares, und in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, in Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren, um ein Engagement in Emittenten, die in entwickelten Märkten und in Schwellenmärkten ansässig sind, zu erzielen. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds wird die Anlagen seines Portfolios auf Gesellschaften konzentrieren, deren Geschäftserfolg nach Ansicht des Anlageberaters auf immateriellen Anlagewerten basiert (wie zum Beispiel Markennamen, Urheberrechten oder Vertriebstechniken), die Grundlage einer erfolgreichen Geschäftstätigkeit im Bereich des Franchising sind.
Der Fonds wird zu Zwecken der Ertragssteigerung mit Morgan Stanley International Plc derivative Finanzinstrumente abschließen. Diese Strategie wird aller Voraussicht nach ein Engagement in Optionen auf Aktienindizes über einen oder mehrere Swaps (die
„Swaps“) umfassen. Damit soll die Höhe der Erträge durch den Erhalt von Prämien, die im Zusammenhang mit dem Verkauf der zugrunde liegenden Optionen erzielt werden, gesteigert werden. Bei steigenden Kursen kann das Risiko von Kapitalverlusten aus den Swaps, die aus der Ausübung der Optionen entstehen, jedoch durch die Wertsteigerung der Basiswerte verringert werden.
Anlagebeschränkungen:
- Der Fonds wendet klimabezogene Beschränkungen an, um Anlagen in Unternehmen auszuschließen, die nach Ansicht des Anlageberaters:
	- Verbindungen zu fossilen Brennstoffen haben (z. B. Öl, Gas,Kohle); oder

- deren Hauptgeschäftstätigkeit Energie, Baustoffe, Versorgungsunternehmen (ohne erneuerbare Energien und Wasserversorgung), Metalle und Bergbau umfasst.
- Darüber hinaus darf der Fonds nicht wissentlich Unternehmen beinhalten:
- deren Hauptgeschäftstätigkeit Waffen oder zivile Feuerwaffen umfasst; oder
- die aus dem MSCI World ex Controversial Weapons Index ausgeschlossen wurden, weil sie an umstrittenen Waffen, wie in diesem Index definiert, beteiligt waren.

Die oben genannten Beschränkungen werden vom Anlageberater auf 100 % der im Fonds befindlichen Aktienwerte angewendet, können aber nicht auf die Swaps angewendet werden. Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG-bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine der im ersten oder im zweiten Aufzählungspunkt genannten Beschränkungen fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Anlageprozess:
Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln. Er versucht, die Managementteams hierbei einzubinden. Abhängig vom Anlageziel des Fonds liegt es im Ermessen des Anlageberaters, welche Anlagen ausgewählt werden. Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln.
Der Anlageberater überwacht die Geschäftspraktiken fortlaufend anhand von Daten zu ESG-Konflikten und der Überprüfung von Standards, die er von Drittanbietern bezieht, einschließlich Verstößen gegen den Globalen Pakt der Vereinten Nationen (UN Global Compact), sowie anhand eigener Gespräche mit der Unternehmensleitung und eigener Analyse. Der Anlageberater prüft Wertpapiere von Emittenten, bei denen seiner Ansicht nach ein erheblicher Verstoß gegen die oben genannten Standards und Richtlinien stattgefunden hat. Er schließt solche Emittenten in der Regel aus, wenn er nach Durchführung von Nachforschungen und/oder Gesprächen der Ansicht ist, dass der Verstoß für die Nachhaltigkeit der Renditen auf das Betriebskapital wesentlich ist, ein erhebliches Finanz- und Reputationsrisiko darstellt und der
Emittent sich nicht zu angemessenen Abhilfemaßnahmen verpflichtet hat. Derartige Ausschlüsse werden vom Anlageberater nach eigenem Ermessen und nicht aufgrund der Analyse Dritter festgelegt. Die Analyse kann durch die Analyse von ESG-Konflikten durch Dritte und Geschäftsmetriken unterstützt werden.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den MSCI World ex Controversial Weapons Index, um die Unternehmen zu bestimmen, die mit kontroversen Waffen zu tun haben und in die der Fonds nicht anlegt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Brands Equity Income Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BRANDS FUND
Anlageziel des Global Brands Fund ist es, eine langfristige, in US-Dollar gemessene, attraktive Rendite zu erwirtschaften, und zwar hauptsächlich durch Anlagen in Aktienwerte von Unternehmen mit Sitz in den Industrienationen weltweit. Der Fonds wird die Anlagen seines Portfolios auf Gesellschaften konzentrieren, deren Geschäftserfolg nach Ansicht der Gesellschaft auf immateriellen Anlagewerten basiert (wie zum Beispiel Markennamen, Urheberrechten oder Vertriebstechniken), die Grundlage einer erfolgreichen Geschäftstätigkeit im Bereich des Franchising sind.
Der Fonds kann außerdem ergänzend in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien wandelbar sind, oder
in Vorzugsaktien sowie in Optionsscheine auf Wertpapiere und andere aktiengebundene Wertpapiere anlegen, um ein Engagement in Unternehmen in entwickelten Märkten und Schwellenmärkten zu erreichen, sowie in Aktien von Unternehmen aus Schwellenmärkten und über Stock Connect in China A-Shares. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds wird den Einsatz von Derivaten ausschließlich auf Absicherungszwecke beschränken.
Anlagebeschränkungen:
- Der Fonds wendet klimabezogene Beschränkungen an, um Anlagen in Unternehmen auszuschließen, die nach Ansicht des Anlageberaters:
	- Verbindungen zu fossilen Brennstoffen haben (z. B. Öl, Gas,Kohle); oder

- deren Hauptgeschäftstätigkeit Energie, Baustoffe, Versorgungsunternehmen (ohne erneuerbare Energien und Wasserversorgung), Metalle und Bergbau umfasst.
- Darüber hinaus darf der Fonds nicht wissentlich Unternehmen beinhalten:
- deren Hauptgeschäftstätigkeit Waffen oder zivile Feuerwaffen umfasst; oder
- die aus dem MSCI World ex Controversial Weapons Index ausgeschlossen wurden, weil sie an umstrittenen Waffen, wie in diesem Index definiert, beteiligt waren.

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG-bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine der im ersten oder im zweiten Aufzählungspunkt genannten Beschränkungen fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Anlageprozess:
Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das
Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln. Er versucht, die Managementteams hierbei einzubinden. Abhängig vom Anlageziel des Fonds liegt es im Ermessen des Anlageberaters, welche Anlagen ausgewählt werden. Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln.
Der Anlageberater überwacht die Geschäftspraktiken fortlaufend anhand von Daten zu ESG-Konflikten und der Überprüfung von Standards, die er von Drittanbietern bezieht, einschließlich Verstößen gegen den Globalen Pakt der Vereinten Nationen (UN Global Compact), sowie anhand eigener Gespräche mit der Unternehmensleitung und eigener Analyse. Der Anlageberater prüft Wertpapiere von Emittenten, bei denen seiner Ansicht nach ein erheblicher Verstoß gegen die oben genannten Standards und Richtlinien stattgefunden hat. Er schließt solche Emittenten in der Regel aus, wenn er nach Durchführung von Nachforschungen und/oder Gesprächen der Ansicht ist, dass der Verstoß für die Nachhaltigkeit der Renditen auf das Betriebskapital wesentlich ist, ein erhebliches Finanz- und Reputationsrisiko darstellt und der Emittent sich nicht zu angemessenen Abhilfemaßnahmen verpflichtet hat. Derartige Ausschlüsse werden vom Anlageberater nach eigenem Ermessen und nicht aufgrund der Analyse Dritter festgelegt. Die Analyse kann durch die Analyse von ESG-Konflikten durch Dritte und Geschäftsmetriken unterstützt werden.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den MSCI World ex Controversial Weapons Index, um die Unternehmen zu bestimmen, die mit kontroversen Waffen zu tun haben und in die der Fonds nicht anlegt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Brands Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL CORE EQUITY FUND
Anlageziel des Global Core Equity Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums. Der Fonds investiert vorwiegend in von mittelgroßen bis großen Unternehmen ausgegebenen Aktienwerten, einschließlich Depositary Receipts (wie z. B. American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) und geschlossene Real Estate Investment Trusts (REITS), die von weltweit ansässigen Unternehmen ausgegeben werden.
Das Anlageverfahren bedient sich einer Kombination aus quantitativen Modellen zur Bewertung von Markttreibern und einer Fundamentalanalyse einzelner Aktien zur Identifizierung von Unternehmen mit attraktiven Bewertungen, überdurchschnittlichen Ertragsaussichten und einer wettbewerbsfähigen Ausschüttungsquote.
Der Fonds kann ergänzend in Aktienwerten von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, Barmitteln und geldnahen Mitteln, Optionsscheinen und anderen aktienbezogenen Wertpapieren investieren.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß Anhang A) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zu Zwecken eines effizienten Portfoliomanagements (unter anderem zu Absicherungszwecken (Hedging)) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Core Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL ENDURANCE FUND
Anlageziel des Global Endurance Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte, einschließlich Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)), von weltweit etablierten und aufstrebenden Unternehmen mit einer Kapitalisierungsrate, die im Bereich der im MSCI All Country World Index notierten Unternehmen liegt, anlegt.
Der Fonds kann ergänzend in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, über Stock Connect in China A-Shares, in Optionsscheine sowie in andere aktienbezogene Wertpapiere investieren. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive
Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl der Wertpapiere für die Anlagen sucht der Anlageberater nach Unternehmen mit einem starken Wiedererkennungswert des Namens und nachhaltigen Wettbewerbsvorteilen. Der Anlageberater wird normalerweise Unternehmen den Vorzug geben, die steigende Renditen auf das eingesetzte Kapital, überdurchschnittliche Geschäftsaussichten, eine starke Generierung von freiem Cashflow und ein attraktives Verhältnis zwischen Risiken und Chancen zu bieten haben.
Der Fonds wird langfristig weltweit in Unternehmen anlegen, bei denen der Anlageberater der Auffassung ist, dass sie die dauerhaftesten Wettbewerbsvorteile bieten.
Der Fonds kann ebenfalls in Unternehmen mit einem moderateren Wachstum, in Unternehmen mit einer geringeren Ertragsvolatilität und/oder in Unternehmen mit etwas Zyklizität in ihren Endmärkten anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine zusätzliche Fundamentalanalyse heranzieht, die den Anlageentscheidungsprozess unterstützen kann. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mitdem Zielzuermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oderMunition erzielen) und Streumunition und Antipersonenminen (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung des MSCI All Country World Index eingeschränkt. Der Fonds bezieht sich auf den MSCI All Country World Index, um die Kapitalisierungsspanne der Emittenten festzulegen, in die der Fonds anlegen wird. Die Performance des Fonds wird am MSCI All Country World Index gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Endurance Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL FOCUS PROPERTY FUND
Anlageziel des Global Focus Property Fund ist die Erzielung einer langfristigen, in US-Dollar gemessenen Kapitalwertsteigerung durch Investition hauptsächlich in ein konzentriertes Portfolio von Aktien, einschließlich Depositary Receipts (darunter American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von Unternehmen, die weltweit im Immobiliensektor tätig oder eng mit dem Immobiliensektor verbunden sind, die nach Ansicht des Anlageberaters ein im Vergleich zu anderen Anlagemöglichkeiten innerhalb der oben erwähnten Anlageklassen höheres prognostiziertes Gesamtrenditepotenzial bieten.
Unternehmen im Immobiliensektor oder Unternehmen, die eng mit dem Immobiliensektor verbunden sind, können Gesellschaften, deren primärer Zweck auf die Entwicklung und/oder den Besitz von Ertrag erzielenden Immobilien ausgerichtet ist, Gesellschaften, die Immobilien betreiben, errichten, finanzieren oder verkaufen, Gesellschaften mit wesentlichen immobilienbezogenen Beteiligungen und/oder Dienstleistungen im Zusammenhang mit dem Immobiliensektor, insbesondere Immobilienmanagement, Makler und Bauprodukte, sowie Organismen für gemeinsame Anlagen mit einem Engagement in Immobilien, wie börsennotierte Immobilienfonds (publicly quoted property unit trusts), alle Arten von geschlossenen Immobilienfonds (REITS) und Organismen für gemeinsame Anlagen umfassen.
Der Fonds wird hauptsächlich in Unternehmen mit Sitz in den Industrieländern Nordamerikas, Europas und Asiens investieren, kann aber auch in Unternehmen mit Sitz in Schwellenländern anlegen.
Der Fonds kann ergänzend in Aktienwerte investieren, die nicht die Kriterien der Hauptanlagen des Fonds erfüllen, sowie in Vorzugsaktien und wandelbare Vorzugspapiere, in in Stammaktien wandelbare Schuldtitel, Rechte und Optionsscheine zum Erwerb von Aktienwerten, Aktien von Investmentgesellschaften, über Stock Connect in China A-Shares, Anteile an Limited Partnerships und andere aktiengebundene Instrumente. Der Fonds kann bis zu
10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen. In Übereinstimmung mit den Bestimmungen von Anhang A „Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem US-Dollar wieder in US-Dollar abgesichert werden. Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken  oder  zum  Zwecke  eines  effizienten
Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Anlageberater verwaltet den Fonds aktiv nach einer disziplinierten, fundamental gelenkten Bottom-up-Anlagemethode mit hoher Überzeugungskraft. Der Fonds setzt sich aus solchen Wertpapieren zusammen, die nach Ansicht des Anlageberaters auf der Grundlage der Bewertung im Vergleich zu anderen Anlagemöglichkeiten im Anlageuniversum ein höheres prognostiziertes Gesamtrenditepotenzial bieten. Der Anlageberater wird in seiner Fundamentalanalyse immobilienspezifische Faktoren, umfassendere Aktienfaktoren sowie ESG-Faktoren bewerten, um angemessene Bewertungskennzahlen zu berechnen. Top-down- Überlegungen fließen in den Portfoliokonstruktionsprozess ein und zielen darauf ab, ein Engagement in verschiedenen Regionen, Ländern und/oder Sektoren zu erreichen und prognostizierte fundamentale Veränderungen, makroökonomische Überlegungen, geopolitische und länderspezifische Risikobewertungen sowie andere Faktoren zu berücksichtigen. Der Anlageberater wählt aktiv Positionen in einer begrenzten Anzahl von Aktienwerten aus.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei können der Anlageberater und die Unter-Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die ihrer Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Focus Property Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL INFRASTRUCTURE FUND
Anlageziel des Global Infrastructure Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte von Unternehmen, die weltweit im Infrastruktursektor tätig sind, einschließlich geschlossene Real Estate Investment Trusts (REITS). Unternehmen im Infrastruktursektor können unter anderem in der Stromübertragung und -versorgung, der Speicherung und dem Transport von bzw. der Versorgung mit Rohstoffen, wie z. B. Erdgas zur Energiegewinnung, dem Bau, Betrieb und der Unterhaltung von Straßen, gebührenpflichtigen Straßen, Tunnels, Brücken und Parkhäusern, dem Bau, Betrieb und der Unterhaltung von Flughäfen und Häfen, des Schienen- und Nahverkehrs, von Telekommunikation, der Wasseraufbereitung und -versorgung, der Abfallwirtschaft, der Erzeugung erneuerbarer Energien und sonstigen wachsenden Infrastruktursektoren tätig sein.
Der Fonds kann ergänzend in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Optionsscheine und in andere aktienbezogene Wertpapiere von im Infrastruktursektor tätigen Unternehmen anlegen.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei achten die Unter- Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die ihrer Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Infrastructure Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL INFRASTRUCTURE UNCONSTRAINED FUND
Anlageziel des Global Infrastructure Unconstrained Fund ist es, eine in US-Dollar gemessene attraktive annualisierte Rendite durch indexagnostische Anlage vorwiegend in Aktienwerte, unter anderem in geschlossene Real Estate Investment Trusts (REITS), die von weltweit – sowohl in entwickelten als auch in aufstrebenden Märkten – ansässigen Infrastrukturunternehmen ausgegeben werden, zu erzielen. Zwar stellt Diversifizierung einen wesentlichen Aspekt bei der Zusammenstellung und Verwaltung des Fonds dar, jedoch erfolgt bei der Auswahl der Wertpapiere keine Ausrichtung an Regionen, Ländern, Branchen oder der Marktkapitalisierung. Unternehmen im Infrastruktursektor können unter anderem in der Stromübertragung und -versorgung, der Speicherung und dem Transport von bzw. der Versorgung mit Rohstoffen, wie z. B. Erdgas zur Energiegewinnung, dem Bau, Betrieb und der Unterhaltung von Straßen, gebührenpflichtigen Straßen, Tunnels, Brücken und Parkhäusern, dem Bau, Betrieb und der Unterhaltung von Flughäfen und Häfen, des Schienen- und Nahverkehrs, von Telekommunikation, der Wasseraufbereitung und -versorgung, der Abfallwirtschaft, der Erzeugung erneuerbarer Energien und sonstigen wachsenden Infrastruktursektoren tätig sein. Gemäß Anhang A „Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem US-Dollar wieder teilweise oder vollständig in Dollar abgesichert werden.
Der Fonds kann ergänzend in Vorzugsaktien, festverzinsliche Wertpapiere, Optionsscheine und andere aktienbezogene Wertpapiere anlegen, die von Infrastrukturunternehmen ausgegeben werden.
Der Fonds wird höchstens 10 % seines Vermögens in andere Organismen für gemeinsame Anlagen anlegen.
Der Fonds wird nicht in Asset Backed Securities, Mortgage Backed Securities oder Contingent Convertible Instruments anlegen.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei achten die Unter- Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die ihrer Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Infrastructure Unconstrained Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL INSIGHT FUND
Das Anlageziel des Global Insight Fund besteht darin, ein langfristiges, in US-Dollar gemessenes Kapitalwachstum zu erzielen, indem er hauptsächlich Anlagen in Wertpapieren von Unternehmen weltweit tätigt. Unter normalen Marktbedingungen wird das Anlageziel des Fonds hauptsächlich durch die Anlage in Aktienwerte von etablierten und aufstrebenden Unternehmen verfolgt. Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in einzigartige Unternehmen, die seiner Ansicht nach nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/ Ertragsverhältnis aufweisen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktien von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, über Stock Connect in China A-Shares, in Depositary Receipts (darunter American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)), Vorzugsaktien, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel und andere aktiengebundene Wertpapiere investieren. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine zusätzliche Fundamentalanalyse heranzieht, die den Anlageentscheidungsprozess unterstützen kann. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mitdem Zielzuermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen(Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Insight Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL OPPORTUNITY FUND
Anlageziel des Global Opportunity Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums. Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in erster Linie in Aktienwerten, einschließlich Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von in beliebigen Ländern ansässigen Emittenten anlegt.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, über Stock Connect in China A-Shares, Optionsscheine auf Wertpapiere, Bargeld und geldnahe Mittel und andere aktiengebundene Wertpapiere investieren. Der Fonds kann bis zu 20 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater verfolgt bei der Auswahl der Aktien einen Bottom-Up-Ansatz und sucht auf der Basis einzelner Unternehmen attraktive Anlagemöglichkeiten. Bei der Auswahl der Wertpapiere sucht der Anlageberater etablierte und aufstrebende Unternehmen mit hohen Qualitätsstandards, die nach seiner Auffassung zum Kaufzeitpunkt zu niedrig bewertet sind. Dabei wählt der Anlageberater in der Regel Unternehmen mit nachhaltigen Wettbewerbsvorteilen aus, die sich durch Wachstum monetarisieren lassen. In den Anlageprozess eingebunden ist eine Nachhaltigkeitsanalyse im Hinblick auf disruptive Änderungen, Finanzkraft, ökologische und soziale Faktoren sowie Aspekte der Corporate Governance (auch als ESG bezeichnet). Der Anlageberater erwägt im Allgemeinen einen Verkauf der Portfoliobestände, wenn er zu dem Schluss kommt, dass die Anteilbestände seine Anlagekriterien nicht länger erfüllen.
Der Anlageberater setzt bei der Bewertung der Unternehmensqualität einen ganzheitlichen ESG-Ansatz ein, indem er potenzielle Auswirkungen auf die Gesundheit, die Umwelt, die Freiheit und die Produktivität der Menschen sowie die Corporate Governance- Praktiken analysiert, um Handlungsfähigkeit, Kultur und Vertrauen zu gewährleisten. Der Anlageberater erachtet die Einbindung ESG- bezogener potenzieller Risiken und Chancen in den Anlageprozess als wichtig, um eine langfristige Verwaltung des Kapitals zu
gewährleisten. Über einen längeren Zeithorizont betrachtet, ist der Anlageberater der Ansicht, dass ESG-Risiken mit größerer Wahrscheinlichkeit eintreten und externe Effekte, die nicht vom Beteiligungsunternehmen getragen werden, mit größerer Wahrscheinlichkeit in den Wert der Wertpapiere eingepreist werden. Da sich ESG-Risiken potenziell auf das Risiko- und Ertragsprofil von Anlagemöglichkeiten auswirken können, führt der Anlageberater typischerweise konstruktive Gespräche mit der Unternehmensleitung über eine Reihe von ESG-Themen, die er als wesentlich erachtet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Opportunity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL PERMANENCE FUND
Anlageziel des Global Permanence Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalzuwachses.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte, einschließlich Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)), von weltweit etablierten Unternehmen mit einer Kapitalisierungsrate, die im Bereich der im MSCI All Country World Index notierten Unternehmen liegt, anlegt.
Der Fonds kann ergänzend in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, über Stock Connect in China A-Shares, in Optionsscheine sowie in andere aktienbezogene Wertpapiere investieren. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken  oder  zum  Zwecke  eines  effizienten
Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in Unternehmen, die seiner Ansicht nach einen hohen Bekanntheitsgrad und nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/ Ertragsverhältnis aufweisen.
Der Fonds wird langfristig in Unternehmen weltweit anlegen, bei denen der Anlageberater der Auffassung ist, dass sie auf lange Sicht die dauerhaftesten Wettbewerbsvorteile bieten. Der Fonds kann ebenfalls in Unternehmen mit einem moderateren Wachstum, in Unternehmen mit einer geringeren Ertragsvolatilität und/oder in Unternehmen mit etwas Zyklizität in ihren Endmärkten anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine zusätzliche Fundamentalanalyse heranzieht, die den Anlageentscheidungsprozess unterstützen kann. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mitdem Zielzuermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung des MSCI All Country World Index eingeschränkt. Der Fonds bezieht sich auf den MSCI All Country World Index, um die Kapitalisierungsspanne der Emittenten festzulegen, in die der Fonds anlegen wird. Die Performance des Fonds wird am MSCI All Country World Index gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht seines Anlageziels ist der Global Permanence Fund für Anleger geeignet,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL PROPERTY FUND
Anlageziel des Global Property Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte von Unternehmen, die weltweit im Immobiliensektor tätig sind. Unternehmen, die auf dem Immobiliensektor tätig sind, umfassen unter anderem Gesellschaften, deren primärer Zweck auf die Entwicklung und/ oder den Besitz Ertrag erzielender Immobilien ausgerichtet ist, kollektive Kapitalanlagen mit einem Engagement in Immobilien wie zum Beispiel börsennotierte Grundstücks-Sondervermögen (Property Unit Trusts), geschlossene Immobilienfonds (Real Estate Investment Trusts, „REITs“) sowie Organismen für gemeinsame Anlagen. Die Gesellschaft kann ergänzend auch Anlagen in Vorzugsaktien, Schuldverschreibungen, die in Stammaktien wandelbar sind, Optionsscheine sowie andere aktiengebundene Finanzinstrumente vornehmen.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei achtet der Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Property Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL QUALITY FUND
Anlageziel des Global Quality Fund ist es, eine langfristige, in US-Dollar gemessene, attraktive Rendite zu erwirtschaften, und zwar vorwiegend durch Anlagen in Aktienwerte von Unternehmen mit Sitz in den Industrienationen weltweit. Die Strategie sieht vor, in ein konzentriertes Portfolio von Qualitätsunternehmen mit einem starken Management, die zyklenübergreifend hohe Renditen auf das eingesetzte Kapital generieren können, anzulegen. Der Anlageberater ist der Auffassung, dass langfristige Renditen am besten durch eine gute Mischung und Schutz vor Kursverlusten erzielt werden können, und dass Qualitätsunternehmen langfristig für ihre Eigentümer höhere Renditen erwirtschaften können. Die Suche nach Qualitätsunternehmen wird sich auf Unternehmen mit einer starken Marktposition, die meist durch schwer nachzubildende immaterielle Vermögenswerte untermauert ist, konzentrieren. Zu solchen Merkmalen gehören zum Beispiel eine belastbare Ertragslage, Preisgestaltungsmacht, eine meist niedrige Kapitalintensität und das Potenzial für ein organisches Wachstum. Der Anlageberater möchte solche Aktien zu attraktiven Bewertungen im Verhältnis zu ihren, auf den Cash-Flows basierenden fundamentalen Werten erwerben.
Der Fonds kann ergänzend auch in Aktienwerte von Unternehmen aus Schwellenmärkten, einschließlich über Stock Connect in China A-Shares, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien wandelbar sind, oder in Vorzugsaktien sowie in Optionsscheine auf Wertpapiere und andere aktiengebundene Wertpapiere anlegen. Der Fonds wird den Einsatz von Derivaten ausschließlich auf Absicherungszwecke beschränken. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Anlagebeschränkungen:
- Der Fonds wendet klimabezogene Beschränkungen an, um Anlagen in Unternehmen auszuschließen, die nach Ansicht des Anlageberaters:
	- Verbindungen zu fossilen Brennstoffen haben (z. B. Öl, Gas,Kohle); oder

- deren Hauptgeschäftstätigkeit Energie, Baustoffe, Versorgungsunternehmen (ohne erneuerbare Energien und Wasserversorgung), Metalle und Bergbau umfasst.
- Darüber hinaus darf der Fonds nicht wissentlich Unternehmen beinhalten:
- deren Hauptgeschäftstätigkeit Waffen oder zivile Feuerwaffen umfasst; oder
- die aus dem MSCI World ex Controversial Weapons Index ausgeschlossen wurden, weil sie an umstrittenen Waffen, wie in diesem Index definiert, beteiligt waren.

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG-bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine der im ersten oder im zweiten Aufzählungspunkt genannten Beschränkungen fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Anlageprozess:
Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln. Er versucht, die Managementteams hierbei einzubinden. Abhängig vom Anlageziel des Fonds liegt es im Ermessen des Anlageberaters, welche Anlagen ausgewählt werden. Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln.
Der Anlageberater überwacht die Geschäftspraktiken fortlaufend anhand von Daten zu ESG-Konflikten und der Überprüfung von Standards, die er von Drittanbietern bezieht, einschließlich Verstößen gegen den Globalen Pakt der Vereinten Nationen (UN Global Compact), sowie anhand eigener Gespräche mit der Unternehmensleitung und eigener Analyse. Der Anlageberater prüft Wertpapiere von Emittenten, bei denen seiner Ansicht nach ein erheblicher Verstoß gegen die oben genannten Standards und Richtlinien stattgefunden hat. Er schließt solche Emittenten in der Regel aus, wenn er nach Durchführung von Nachforschungen und/oder Gesprächen der Ansicht ist, dass der Verstoß für die Nachhaltigkeit der Renditen auf das Betriebskapital wesentlich ist,
ein erhebliches Finanz- und Reputationsrisiko darstellt und der Emittent sich nicht zu angemessenen Abhilfemaßnahmen verpflichtet hat. Derartige Ausschlüsse werden vom Anlageberater nach eigenem Ermessen und nicht aufgrund der Analyse Dritter festgelegt. Die Analyse kann durch die Analyse von ESG-Konflikten durch Dritte und Geschäftsmetriken unterstützt werden.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater den MSCI World ex Controversial Weapons Index, um die Unternehmen zu bestimmen, die mit kontroversen Waffen zu tun haben und in die der Fonds nicht anlegt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Quality Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL SUSTAIN FUND
Anlageziel des Global Sustain Fund ist die Erzielung einer in US-Dollar gemessenen, attraktiven langfristigen Rendite. Der Anlageberater wird auch ESG-Kriterien anwenden, die darauf abzielen, eine Treibhausgas („THG“)-Emissionsintensität für den Fonds zu erreichen, die deutlich unter der des Referenzuniversums liegt (das nur zum Zweck des Vergleichs der THG- Emissionsintensität als Unternehmen innerhalb des MSCI AC World Index definiert ist). Für die Zwecke dieses Fonds entspricht der Begriff THG der Definition des THG-Protokolls und umfasst Kohlendioxid (CO2), Methan (CH4), Distickstoffmonoxid (N2O),  Fluorkohlenwasserstoffe  (HFCs),  perfluorierte
Kohlenwasserstoffe (PFCs) und Schwefelhexafluorid (SF6) in metrischen Tonnen und in Tonnen CO2-Äquivalent.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in erster Linie in Aktienwerte, einschließlich Depositary Receipts, von Emittenten aus beliebigen Ländern anlegt. Der Fonds kann ergänzend in Aktienwerten von Unternehmen, die in Schwellenmärkten ansässig sind, unter anderem über Stock Connect in China A-Shares, sowie in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, sowie in Optionsscheinen auf Wertpapiere und anderen aktiengebundenen Wertpapieren anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Um das Kriterium der niedrigen THG-Emissionsintensität zu erfüllen:
- wird der Fonds zunächst Anlagen in Unternehmen ausschließen, für die der Anlageberater zu dem Schluss kommt, dass
- sie mit fossilen Brennstoffen in Verbindung stehen (wie z. B. Öl, Gas und Kohle),
- sie ein Unternehmen darstellen, dessen Hauptgeschäftstätigkeit Energie, Baumaterialien, Versorgungsunternehmen (außer erneuerbare Strom- und Wasserversorgungsunternehmen),Metalle und Bergbau umfasst, oder
- Schätzungen der THG-Emissionsintensität nicht verfügbar sind und/oder nach dem Ermessen des Anlageberaters nicht eingeschätzt werden können; und
- die verbleibenden Emittenten werden dann nach ihrer geschätzten THG-Emissionsintensität gereiht, und diejenigen mit der höchsten Intensität werden aus dem Referenzuniversum ausgeschlossen.

Die auf THG-Emissionen basierenden Anlagekriterien sollten zusammengenommen zu einer Reduzierung des Referenzuniversums um mindestens 20 % führen, und der Anlageberater wird sicherstellen, dass mindestens 90 % der Emittenten im Portfolio anhand dieser Kriterien bewertet werden.
Anlagebeschränkungen
- Zusätzlich zu den oben genannten THG-bezogenen Ausschlüssen dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Tabak;
- Alkohol;
- Unterhaltung für Erwachsene;
- Glücksspiele;
- zivile Schusswaffen; oder
- Waffen.
- Der Fonds wird nicht in Unternehmen anlegen, die aus dem MSCI World ex Controversial Weapons Index ausgeschlossen wurden, weil sie mit kontroversen Waffen, wie in diesem Index definiert, zu tun haben.
- Der Fonds darf nicht mehr als 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG-bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine der im ersten oder im zweiten Aufzählungspunkt genannten Beschränkungen fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Anlageprozess
Der Anlageberater versucht, in ein konzentriertes Portfolio aus hochwertigen, marktbeherrschenden Lizenzen, die sich durch nachhaltige und hohe Renditen aus dem Betriebsvermögen auszeichnen, sowie aus leistungsstarken immateriellen Vermögenswerten, einschließlich Marken, Netzwerken, Lizenzen und Patenten mit Preisbildungsmacht, anlegen. Der Anlageberater versucht, fähige Managementteams zu finden, die in der Lage sind, das Kapital in effektiver Weise zu streuen, um die Anzahl der Lizenzen zu erhöhen und die Rendite aus dem Betriebsvermögen zu erhalten und/oder zu steigern.
Der Anlageprozess des Fonds konzentriert sich auf qualitativ hochwertige Unternehmen mit nachhaltig hohen Renditen auf das Betriebskapital. Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige und nachhaltig hohe Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln. Er versucht, die Managementteams hierbei einzubinden. Abhängig vom Anlageziel des Fonds und den oben beschriebenen Anlagebeschränkungen liegt es im Ermessen des Anlageberaters, welche Anlagen ausgewählt werden. In Ausübung dieses Ermessens sind ESG-Faktoren nicht der alleinige ausschlaggebende Faktor dafür, ob eine Anlage getätigt werden oder eine Beteiligung im Portfolio des Fonds verbleiben kann, sondern der Anlageberater berücksichtigt gravierende Risiken oder Chancen in den ESG- Bereichen, die die hohen Renditen auf das Betriebskapital eines Unternehmens bedrohen oder verstärken könnten.
Der Anlageberater überwacht die Geschäftspraktiken fortlaufend anhand von Daten zu ESG-Konflikten und der Überprüfung von Standards, die er von Drittanbietern bezieht, einschließlich Verstößen gegen den Globalen Pakt der Vereinten Nationen (UN Global Compact), sowie anhand eigener Gespräche mit der Unternehmensleitung und eigener Analyse. Der Anlageberater prüft Wertpapiere von Emittenten, bei denen seiner Ansicht nach ein erheblicher Verstoß gegen die oben genannten Standards und Richtlinien stattgefunden hat. Er schließt solche Emittenten in der Regel aus, wenn er nach Durchführung von Nachforschungen und/oder Gesprächen der Ansicht ist, dass der Verstoß für die Nachhaltigkeit der Renditen auf das Betriebskapital wesentlich ist, ein erhebliches Finanz- und Reputationsrisiko darstellt und der Emittent sich nicht zu angemessenen Abhilfemaßnahmen verpflichtet hat. Derartige Ausschlüsse werden vom Anlageberater nach eigenem Ermessen und nicht aufgrund der Analyse Dritter festgelegt. Die Analyse kann durch die Analyse von ESG-Konflikten durch Dritte und Geschäftsmetriken unterstützt werden.
Wie oben erwähnt, strebt der Fonds eine THG-Emissionsintensität an, die deutlich unter der seines Referenzuniversums liegt, indem er Emittenten auf der Grundlage ihrer relativen THG- Emissionsintensitätsschätzungen ausschließt. Der Anlageberater verwendet Daten von Drittanbietern, um die THG- Emissionsintensität bestimmter Emittenten zu ermitteln, und in einigen Fällen sind Daten zu bestimmten Emittenten möglicherweise nicht verfügbar oder werden von einem alternativen Drittanbieter oder dem Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können variieren, und wenn der bevorzugte Datenanbieter seine Methodik ändert, können sich auch die Schätzungen der THG-Emissionsintensität für einen oder mehrere Emittenten signifikant ändern. Der Anlageberater wird sich auch nach besten Kräften bemühen, Unternehmen auszuschließen, bei denen der Anlageberater eine Verbindung zu fossilen Brennstoffen feststellt (z. B.
Eigentumsvorbehalte, damit verbundene Einnahmen und Energieerzeugung), aber in einigen Fällen sind die Daten möglicherweise nicht verfügbar oder nicht vollständig repräsentativ für die Aktivitäten des Emittenten.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird am MSCI World Index wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater (i) den MSCI World ex Controversial Weapons Index, um die Unternehmen zu bestimmen, die mit umstrittenen Waffen zu tun haben, in die der Fonds nicht anlegen wird, und (ii) den MSCI AC World Index, um die THG- Emissionsintensität des Fonds zu vergleichen.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, der in Übereinstimmung mit Artikel 8 der SFDR ökologische Merkmale bewirbt und teilweise in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtungdes Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.


– Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.
Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Sustain Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

INDIAN EQUITY FUND
Anlageziel des Indian Equity Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums durch direkt oder indirekt getätigte Anlagen hauptsächlich in Aktienwerte von in Indien ansässigen Unternehmen bzw. von Unternehmen, die den überwiegenden Teil ihrer wirtschaftlichen Aktivitäten in Indien ausüben. Der Fonds kann sein Vermögen darüber hinaus entweder direkt oder indirekt ergänzend in Aktien von in Indien börsennotierten Unternehmen anlegen, die außerhalb Indiens ihren Sitz haben bzw. die den überwiegenden Teil ihrer wirtschaftlichen Aktivitäten außerhalb Indiens ausüben, sowie in Depositary Receipts (einschließlich American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und European Depositary Receipts (EDRs)), in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, Schuldverschreibungen, Optionsscheine auf Wertpapiere und
andere aktiengebundene Wertpapiere, einschließlich Genussscheine (participatory notes). Der Fonds wird entweder direkt oder indirekt in ein konzentriertes Portfolio von Unternehmen anlegen.
Im Rahmen des Anlageprozesses werden, wenn Anlageentscheidungen getroffen werden, auch Informationen zu ESG-Aspekten berücksichtigt. Dabei achtet der Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen ökologischen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Indian Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

Handelstage für den Indian Equity Fund
Bei den Handelstagen für den Indian Equity Fund sind die Tage, an denen die Bombay Stock Exchange (BSE) und die National Stock Exchange of India (NSE) für Handel und Abwicklung geschlossen sind, zu berücksichtigen. In diesem Prospekt enthaltene Bezugnahmen auf Handelstage für den Indian Equity Fund bezeichnen alle Tage mit Ausnahme: (a) aller sonstigen Tage, an denen es kommerziellen Banken in Luxemburg oder Indien durch ein Gesetz oder eine Verordnung gestattet ist, geschlossen zu sein (einschließlich an Samstagen und Sonntagen), und (b) aller Tage, an denen die BSE und die NSE für den Handel geschlossen sind.
INTERNATIONAL EQUITY (EX US) FUND
Anlageziel des International Equity (ex US) Fund ist die Erzielung einer attraktiven langfristigen, in US-Dollar gemessenen Rendite.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte, einschließlich Hinterlegungszertifikate (Depositary Receipts) (unter anderem American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)), von Unternehmen anlegt, die in entwickelten Industrieländern, mit Ausnahme der Vereinigten Staaten von Amerika, weltweit ansässig sind. Der Fonds wird in ein diversifiziertes Portfolio von Unternehmen anlegen und dabei einen fundierten Bottom-Up- Ansatz bei der Unternehmensrecherche verfolgen. Der Anlageprozess stützt sich dabei auf einen disziplinierten wertorientierten Ansatz zur Auswahl von Unternehmen mit einer kompetenten Unternehmensführung, dominanten Marktpositionen und dem Potenzial, stabile konstante Renditen zu erzielen. Der Anlageberater versucht, solche Unternehmen zu attraktiven Bewertungen im Verhältnis zu ihren, auf Cashflows basierenden fundamentalen Werten zu erwerben.
Ein wesentlicher und integrierter Teil des Anlageprozesses besteht für den Anlageberater darin, die relevanten Faktoren, die für langfristige Renditen auf das Betriebskapital sehr wichtig sind, darunter ESG-Faktoren, zu ermitteln. Er versucht, die Managementteams hierbei einzubinden. Abhängig vom Anlageziel des Fonds liegt es im Ermessen des Anlageberaters, welche Anlagen ausgewählt werden. Während ESG-Erwägungen einen integralen und fundamentalen Teil des Anlageprozesses ausmachen, sind ESG-Faktoren nicht der alleinige ausschlaggebende Faktor dafür, ob eine Anlage getätigt werden oder eine Beteiligung im Portfolio des Fonds verbleiben kann, sondern der Anlageberater berücksichtigt gravierende Risiken oder Chancen in den ESG-Bereichen, die die langfristige Nachhaltigkeit oder Richtung der Renditen eines Unternehmens bedrohen oder verstärken könnten.
Der Fonds kann ergänzend auch in Aktienwerte von Unternehmen, die in Schwellenmärkten ansässig sind, einschließlich über Stock Connect in China A-Shares, oder die infolge einer Kapitalmaßnahme in den Vereinigten Staaten von Amerika ansässig sind, in Vorzugsaktien, in Schuldverschreibungen, die in Stammaktien oder Vorzugsaktien wandelbar sind, sowie in Optionsscheine auf Wertpapiere und andere aktiengebundene Wertpapiere anlegen. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds wird den Einsatz von Derivaten auf Devisentermingeschäfte ausschließlich zu Hedging-Zwecken beschränken.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des International Equity (ex US) Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

JAPANESE EQUITY FUND
Anlageziel des Japanese Equity Fund ist die Erzielung eines langfristigen, in Yen gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte von Unternehmen, die die ESG- Kriterien des Anlageberaters erfüllen und gleichzeitig ESG- Merkmale integrieren, indem sie höhere Nachhaltigkeitsbewertungen erzielen als der MSCI Japan Index. Der Fonds wird in erster Linie in Unternehmen anlegen, die ihren Sitz in Japan haben oder die dort den überwiegenden Teil ihrer geschäftlichen Aktivitäten abwickeln, und deren Aktien an einer Börse notiert oder auf OTC- Märkten gehandelt werden (vorbehaltlich der Bestimmungen in Anhang A – „Anlagerichtlinien und Anlagegrenzen“). Der Fonds kann außerdem ergänzend in Schuldverschreibungen, die in Stammaktien wandelbar sind, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente anlegen.
Der Anlageberater bezieht die Erwägung von ESG-Aspekten in seine Anlageentscheidungen ein.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden auf die Aktienwerte an, in die der Fonds anlegen kann. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Kontakten mit Unternehmen eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Bewertung eines Wertpapiers oder Portfolios zu bestimmen. Diese Kriterien können unter anderem ESG-Themen wie Klimawandel, Menschenrechte und Vielfalt, Gesundheit und Sicherheit, Unternehmensführung und Offenlegung umfassen, die der Anlageberater als „Wesentliche ESG-Themen“ betrachtet. Der Anlageberater konzentriert sich darauf, die Unternehmensleitung in Bezug auf Gesundheit und Sicherheit, Humanressourcen, Fehlverhalten und andere Faktoren einzubeziehen, vorbehaltlich der spezifischen Einbindung jedes Unternehmens, basierend auf
wesentlichen ESG-Themen. Die Bewertung der Unternehmen basiert auf der Erwartung von Verbesserungen und darauf, wie die ESG-Aktivitäten des Unternehmens den Unternehmenswert steigern können.
Der Anlageberater überwacht die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und StandardScreening, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial ausschließen, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht.
Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern, um den Beitrag der Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden einmal jährlich gemessen und bewertet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, die an der Herstellung oder Produktion eines der Folgenden beteiligt sind:
- Tabak
- 9
- ;
- Glücksspiel
- 10
- ;
- Unterhaltung für Erwachsene
- 11
- ;
- umstrittene Waffen
- 12
- ; und
- Kraftwerkskohle
- 13
- .

Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Die Ausschlüsse werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten durch Dritte und Untersuchungen zu Beteiligungen von Unternehmen unterstützt werden. Die Ausschlusskriterien werden auf alle Wertpapieranlagen innerhalb des Fonds angewendet. Die Ausschlusskriterien werden in regelmäßigen Abständen überprüft, und alle Änderungen werden
9 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze mit Tabakprodukten oder dazugehörigen Materialien wie z. B. Filtern erzielen.
10 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze mit Glücksspielen erzielen.
11 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze mit der Herstellung von Unterhaltung für Erwachsene erzielen.
12 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die komplette umstrittene Waffensysteme einschließlich der für den Einsatz vorgesehenen Komponenten herstellen.
13 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit dem Abbau von Kraftwerkskohle und/oder 10 % oder mehr ihrer Umsätze mit der Kohleverstromung erzielen.
im Dokument zur Ausschlusspolitik berücksichtigt. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten, verlässt sich aber bei der Gestaltung des Portfolios nicht auf ESG-Daten von Dritten. Der Anlageberater verlässt sich bei der Wertpapierauswahl und der Portfoliogestaltung auf seine eigenen Analysen und nicht auf die Analysen von Dritten. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen oder Daten Dritter geschätzt.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Japanese Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

Handelstage für den Japanese Equity Fund
Handelstage für den Japanese Equity Fund berücksichtigen Tage,
(i) an denen die Märkte der Japan Exchange Group für den Handel und die Abwicklung geschlossen sind, oder (ii) die der Verwaltungsrat in Absprache mit dem Anlageberater nach eigenem Ermessen festgelegt hat. In diesem Prospekt enthaltene Bezugnahmen auf Handelstage für den Japanese Equity Fund bezeichnen alle Tage mit Ausnahme: (a) Tage, die der Verwaltungsrat
in Absprache mit dem Anlageberater nach eigenem Ermessen festgelegt hat, und (b) Tage, an denen es Märkten der Japan Exchange Group und kommerziellen Banken in Luxemburg oder Japan durch ein Gesetz oder eine Verordnung gestattet ist, geschlossen zu haben (einschließlich an Samstagen und Sonntagen) und diese für den Handel geschlossen sind. Die Liste der erwarteten
„Nicht-Handelstage“ wird auf der Website der Gesellschaft verfügbar sein (www.morganstanleyinvestmentfunds.com) und im Voraus, mindestens halbjährlich, aktualisiert werden. Die Liste kann jedoch gelegentlich bei Vorliegen außergewöhnlicher Umstände weiter aktualisiert werden, wenn der Verwaltungsrat der Ansicht ist, dass dies im besten Interesse der Anteilinhaber des Fonds ist.
JAPANESE SMALL CAP EQUITY FUND
Anlageziel des Japanese Small Cap Equity Fund ist die Erzielung eines langfristigen, in Yen gemessenen Kapitalwachstums hauptsächlich durch Anlage in Aktienwerte von Small-Cap- Unternehmen, die ihren Sitz in Japan haben und deren Aktien an einer Börse notiert oder auf OTC-Märkten gehandelt werden (vorbehaltlich der Bestimmungen in Anhang A – „Anlagerichtlinien und Anlagegrenzen“). Der Fonds kann außerdem ergänzend auch in Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren.
Für die Zwecke dieses Fonds sind Small-Cap-Unternehmen Unternehmen mit einer Kapitalisierungsrate, die im Bereich der im MSCI Japan Small Cap Index notierten Unternehmen liegt. Der MSCI Japan Small Cap Index dient der Messung der Performance des Small Cap-Segments des japanischen Marktes. Mit über 900 Komponenten repräsentiert der Index etwa 14 % der um den Streubesitz bereinigten Marktkapitalisierung des japanischen Aktienuniversums. Die durchschnittliche Marktkapitalisierung eines Unternehmens im MSCI Japan Small Cap Index beträgt ca. 100 Milliarden JPY mit einem Median von ca. 60-70 Milliarden JPY (diese Zahlen können schwanken). Die neuesten Informationen über diesen Index sind zu finden unter www.msci.com.
Der Anlageberater verwendet einen Bottom-up-Anlageansatz. Der Anlageberater ist bestrebt, Marktineffizienzen bei Wertpapieren mit geringer Marktkapitalisierung auszunutzen, die häufig nur von der Verkaufsseite abgedeckt werden, und gleichzeitig die damit verbundene Volatilität zu steuern. Der Fonds setzt sich aus Wertpapieren zusammen, die nach Ansicht des Anlageberaters auf der Grundlage der Bewertung im Vergleich zu anderen Chancen ein höheres prognostiziertes Gesamtrenditepotenzial bieten.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung des MSCI Japan Small Cap Index eingeschränkt. Der Fonds bezieht sich auf den MSCI Japan Small Cap Index, um die
Kapitalisierungsspanne der Emittenten festzulegen, in die der Fonds anlegen wird. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Japanese Small Cap Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

Handelstage für den Japanese Small Cap Equity Fund Handelstage für den Japanese Small Cap Equity Fund berücksichtigen Tage, an denen die Märkte der Japan Exchange Group für den Handel und die Abwicklung geschlossen sind. In diesem Prospekt enthaltene Bezugnahmen auf Handelstage für den Japanese Small Cap Equity Fund bezeichnen alle Tage mit Ausnahme von Tagen, an denen es Märkten der Japan Exchange Group und kommerziellen Banken in Luxemburg oder Japan durch ein Gesetz oder eine Verordnung gestattet ist, geschlossen zu haben (einschließlich an Samstagen und Sonntagen) und diese für den Handel geschlossen sind. Die Liste der erwarteten „Nicht- Handelstage“ wird auf der Website der Gesellschaft verfügbar sein (www.morganstanleyinvestmentfunds.com) und im Voraus, mindestens halbjährlich, aktualisiert werden. Der Verwaltungsrat kann jedoch beschließen, dass der Tag vor einem Tag, an dem es Märkten der Japan Exchange Group und kommerziellen Banken in Luxemburg oder Japan durch ein Gesetz oder eine Verordnung gestattet ist, geschlossen zu haben und diese für den Handel geschlossen sind, ebenfalls „Nicht-Handelstage“ sind, wenn dies im Interesse der Anteilinhaber ist.
LATIN AMERICAN EQUITY FUND
Der Latin American Equity Fund zielt darauf ab, eine maximale, in US-Dollar gemessene Rendite hauptsächlich durch Anlagen in Aktien und aktienbezogene Wertpapiere von Unternehmen, die ihren Sitz in lateinamerikanischen Ländern haben bzw. die den überwiegenden Teil ihrer wirtschaftlichen Tätigkeit in lateinamerikanischen Ländern ausüben, zu erzielen.
Zu diesen lateinamerikanischen Ländern zählen Argentinien, Bolivien, Brasilien, Chile, Kolumbien, Costa Rica, die Dominikanische Republik, Ecuador, El Salvador, Guatemala, Honduras, Mexiko, Nicaragua, Panama, Paraguay, Peru, Uruguay und Venezuela, vorausgesetzt, dass es sich bei den Märkten in diesen Ländern um anerkannte Börsen („anerkannte Börsen“) im Sinne von Artikel 41 (1) des Gesetzes von 2010 handelt. Soweit sich Märkte in anderen Ländern entwickeln, plant der Fonds, seine Tätigkeit auszuweiten und die lateinamerikanischen Märkte, in denen er investiert, weiter zu diversifizieren. Zeitweise können die Anlagen des Fonds in einer begrenzten Anzahl von Ländern konzentriert sein. Vermögensanlagen in börsennotierten Wertpapieren, die nicht an einer anerkannten Börse notiert sind, werden als Anlagen in nichtbörsennotierten Wertpapieren behandelt (siehe „Anhang A“ – „Anlagerichtlinien und Anlagegrenzen“), bis diese Börsen als anerkannte Börsen angesehen werden.
Der Fonds kann als Teil seines primären Anlageuniversums auch in Vorzugsaktien, Optionsscheine und andere aktienbezogene Wertpapiere, einschließlich Depositary Receipts (wie z. B. American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) sowie in Schuldverschreibungen, die in Stammaktien wandelbar sind, die von Unternehmen begeben werden, die ihren Sitz in lateinamerikanischen Ländern haben oder die dort den überwiegenden Teil ihrer geschäftlichen Tätigkeit ausüben, anlegen.
Derivative Finanzinstrumente können zum Zwecke eines effizienten Portfoliomanagements (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen), zur Erzielung eines Engagements in bestimmten Märkten zu niedrigeren Kosten oder zur Risikoverringerung genutzt werden. Der Fonds investiert nicht in großem Umfang oder vorwiegend in derivative Finanzinstrumente zu Anlagezwecken.
Der Fonds kann sein Vermögen zusätzlich in Wertpapieren von Unternehmen mit Organisation und Sitz außerhalb Lateinamerikas anlegen, wenn der Wert der Wertpapiere dieser Unternehmen im Wesentlichen die Bedingungen eines lateinamerikanischen Landes widerspiegelt oder wenn die Wertpapiere dieses Unternehmens hauptsächlich in einem Markt eines lateinamerikanischen Landes gehandelt werden oder wenn 50 % der Einkünfte dieses Unternehmens allein oder auf konsolidierter Basis durch die Produktion und den Verkauf von Gütern oder die Erbringung von Dienstleistungen in Lateinamerika erzielt werden.
Im Rahmen des Anlageprozesses werden, wenn Anlageentscheidungen getroffen werden, auch Informationen zu ESG-Aspekten berücksichtigt. Dabei achtet der Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Latin American Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

NEXTGEN EMERGING MARKETS FUND
Das Anlageziel des NextGen Emerging Markets Fund ist ein langfristiges, in Euro gemessenes Kapitalwachstum, und zwar hauptsächlich durch Anlage in Aktienwerte von „NextGen“- Emittenten, einschließlich Depositary Receipts (einschließlich American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs)), wobei „NextGen“-Emittenten definiert sind als 1) Emittenten mit Sitz in Schwellenmarktländern, einschließlich Frontier-Market-Ländern, die auf der Grundlage der Klassifizierung im MSCI Emerging Markets Net Index oder MSCI Frontier Emerging Markets Index bestimmt werden oder 2) Emittenten, die in  aufstrebenden  Entwicklungsmärkten  außerhalb  der
„Mainstream“-Schwellenmärkte ansässig sind, deren Kapitalmärkte üblicherweise von ausländischen Anlegern übersehen wurden oder sich in einem frühen Stadium der Kapitalmarkt- und/oder Wirtschaftsentwicklung befinden. Dabei handelt es sich um Länder, die nicht zum MSCI Emerging Markets Net Index oder MSCI Frontier Emerging Markets Index gehören und die der Internationale Währungsfonds, die Vereinten Nationen oder die Weltbank im Allgemeinen als wirtschaftlich weniger reif als die Industrienationen ansehen. Der Fonds kann in die unter 2) genannten Länder anlegen, sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41
(1) des Gesetzes von 2010 angesehen werden.
Zu den Ländern, die unter 1) oder 2) der obigen Definition von
„NextGen“-Emittenten fallen, zählen unter anderem Albanien,
Algerien, Argentinien, Bahrain, Bangladesch, Bolivien, Botswana, Brasilien, Bulgarien, Chile, Kolumbien, Costa Rica, Elfenbeinküste, Kroatien, Tschechische Republik, Dominikanische Republik, Ecuador, Ägypten, Estland, Äthiopien, Georgien, Ghana, Griechenland, Guatemala, Guinea, Haiti, Honduras, Ungarn, Island, Indien, Indonesien, Jamaika, Jordanien, Kasachstan, Kenia, Kuwait, Laos, Lettland, Libanon, Litauen, Malaysia, Mauritius, Mexiko, Mongolei, Marokko, Mosambik, Namibia, Nigeria, Oman, Pakistan, Panama, Paraguay, Peru, Polen, Philippinen, Katar, Rumänien, Russland, Ruanda, Saudi-Arabien, Serbien, Senegal, Slowenien, Slowakei, Südafrika, Sri Lanka, Tansania, Trinidad und Tobago, Thailand, Türkei, Turkmenistan, Ukraine, Vereinigte Arabische Emirate, Uganda, Uruguay, Usbekistan, Vietnam und Sambia. Die Länder innerhalb des Anlageuniversums können sich gelegentlich ändern.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren. Der Fonds kann bis zu 20 % seines Nettovermögens in China A-Shares über Stock Connect anlegen. Anlagen in Wertpapiere, die nicht an Anerkannten Börsen notiert sind, werden bis zu dem Zeitpunkt, ab dem diese Märkte als Anerkannte Börsen gelten, als Anlagen in nicht börsennotierte Wertpapiere (vorbehaltlich der Bestimmungen in Anhang A des Prospektes – „Anlagerichtlinien und Anlagegrenzen“) behandelt.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Anlageberater integriert die Berücksichtigung von ESG- Kriterien in seine Anlageentscheidungen, u. a. bei der Durchführung von Due-Diligence-Prüfungen und Analysen, der Anlagebewertung, der Auswahl von Vermögenswerten, der Portfoliokonstruktion sowie der laufenden Anlageüberwachung und dem Portfoliomanagement. Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um
diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen oder Anpassungen der Top- Down-Allokationen auf Geografien, Sektoren oder Anlageklassen vornehmen. Beim Einbezug von Nachhaltigkeitsrisiken kann der Anlageberater eine Kombination von Informationsquellen nutzen, einschließlich von Unternehmen offengelegte Informationen, nicht von Unternehmen offengelegte Informationen sowie Analysen und Daten Dritter.
ESG-Kriterien werden vom Anlageberater sowohl während des Anlage- als auch während des Rechercheprozesses berücksichtigt, um Anlagen auszuwählen, die die Exponierung gegenüber Nachhaltigkeitsrisiken begrenzen. Diese Kriterien können unter anderem Kohlenstoffemissionen, Ressourcenmanagement, biologische Vielfalt, Arbeitsmanagement, Vielfalt (z. B. Vielfalt im Vorstand), Gesundheit und Sicherheit, Produktsicherheit, Datenschutz und -sicherheit, Vergütung von Führungskräften, Unabhängigkeit des Vorstands und Anlegerrechte beinhalten. Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten, verlässt sich aber bei der Gestaltung des Portfolios nicht auf ESG-Daten von Dritten.
Der Anlageberater ist der Ansicht, dass Unternehmen mit vorausschauenden Managementteams, die proaktive Strategien zu ESG-Themen aufstellen, langfristig in geschäftlicher und finanzieller Sicht besser positioniert sein werden als Unternehmen, die diese Themen nicht berücksichtigen. Der Fonds wird in Unternehmen anlegen, die gute Governance-Praktiken anwenden und die im Vergleich zu ihren Konkurrenten ein starkes Management der wesentlichen ökologischen und sozialen Faktoren aufweisen. Der Fonds wird versuchen, bestimmte Unternehmen auszuschließen, die in hohem Maße Nachhaltigkeitsrisiken ausgesetzt sind, indem er diesbezüglich auf die Anlageauswahl sowohl das Konzept des Best-in-class als auch das Konzept der größten Anstrengung anwendet. Bei der Anwendung eines Best-in- class Konzepts wird Unternehmen der Vorrang gegeben, die aus nicht-finanziellem Blickwinkel am besten in ihrer Branche positioniert sind, ohne dabei einen Sektor bezüglich des Börsenindex, der als Ausgangsbasis verwendet wurde, zu bevorzugen oder auszuschließen. Bei der Anwendung eines Ansatzes der bestmöglichen Bemühungen wird Emittenten der Vorzug gegeben, die im Laufe der Zeit eine Verbesserung ihrer ESG-Praktiken und –Ergebnisse oder gute Aussichten darauf darlegen.
Der Anlageberater konzentriert sich darauf, das Management eines Unternehmens in Bezug auf die seiner Meinung nach wichtigen Governance-, Umwelt- und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einzubeziehen. Die Anwendung der oben genannten ESG-Kriterien wird zu einer Reduzierung des Anlageuniversums um 20 % oder mehr führen, wie in den ersten drei Absätzen erläutert. Das Ziel des Anlageberaters wird es sein,
sicherzustellen, dass mindestens 90 % des Portfolios des Fonds der oben beschriebenen Analyse der ESG-Kriterien unterzogen werden.
Darüber hinaus versucht der Fonds, einen geringeren CO2- Fußabdruck zu erzielen als der MSCI Frontier Emerging Markets Index (basierend auf verfügbaren Daten Dritter).
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Kerngeschäft nach der Methodik des Anlageberaters eines der folgenden gehört:
- Kraftwerkskohleabbau;
- Ölsande;
- Arktisches Erdöl und Gas;
- Tabak;
- Unterhaltung für Erwachsene;
- Glücksspiel; und
- Rüstungsgüter: zivile Schusswaffen, Streumunition, Waffen und Landminen.

Für die Zwecke aller oben genannten Anlagebeschränkungen gilt als Kerngeschäft eine Tätigkeit, die mehr als 10 % der von MSCI klassifizierten Umsätze des betreffenden Unternehmens ausmacht, mit Ausnahme von Ölsanden, arktischem Erdöl und Erdgas sowie Glücksspiel, für die eine Umsatzschwelle von 5 % gilt, und Rüstungsgüter, für die eine Umsatzschwelle von 0 % gilt.
Der Anlageberater kann nach eigenem Ermessen im Laufe der Zeit zusätzliche ESG-Anlagebeschränkungen anwenden, einschließlich Unternehmen, die die oben genannten Ausschlusskriterien nicht erfüllen, die seiner Ansicht nach mit seinem Anlageziel vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung im Dokument zur Ausschlusspolitik offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Die Ausschlüsse werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten durch Dritte und Untersuchungen zu Beteiligungen von Unternehmen unterstützt werden. Die Ausschlusskriterien werden auf alle Wertpapieranlagen innerhalb des Fonds angewendet. Die Ausschlusskriterien werden nicht auf Anlagen angewendet, bei denen der Anlageberater keine direkte Kontrolle über die zugrunde liegenden Bestände hat, z. B. bei Organismen für gemeinsame Anlagen oder offenen ETFs. Die Ausschlusskriterien werden in regelmäßigen Abständen überprüft, und alle Änderungen werden im Dokument zur Ausschlusspolitik berücksichtigt. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums
stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet und bezieht sich bei der teilweisen Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen kann, auf den MSCI Emerging Markets Net Index oder den MSCI Frontier Emerging Markets Index. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds überwiegend Vermögenswerte innerhalb der Länder halten wird, die im MSCI Emerging Markets Net Index oder im MSCI Frontier Emerging Markets Index genannt werden, kann er in solche Wertpapiere aus diesen Ländern in unterschiedlich hohen Anteilen investieren, und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im MSCI Emerging Markets Net Index oder im MSCI Frontier Emerging Markets Index genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von dem MSCI Emerging Markets Net Index oder dem MSCI Frontier Emerging Markets Index abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des NextGen Emerging Markets Fund kann dieser für Anleger geeignet sein:
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

PARAMETRIC EMERGING MARKETS FUND
Das Anlageziel des Parametric Emerging Markets Fund ist ein langfristiges Kapitalwachstum, hauptsächlich durch Anlage in ein diversifiziertes Portfolio von Aktienwerten von Unternehmen mit Sitz in Schwellenländern. Schwellenländer sind im Allgemeinen Länder, die nicht zu den Industrieländern zählen und daher nicht im MSCI World Index enthalten sind. Der Fonds beabsichtigt, in erster Linie in Wertpapiere von Unternehmen aus Ländern zu investieren, die im MSCI Emerging Markets Index oder im MSCI Frontier Markets Index enthalten sind.
Die vorrangigen Anlagen des Fonds beschränken sich auf Depositary Receipts (einschließlich American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) und Non-Voting Depositary Receipts (NVDRS)) sowie auf Stamm- und Vorzugsaktien.
Der Fonds kann ergänzend auch in Aktienwerte, die nicht zum primären Anlageuniversum des Fonds gehören, festverzinsliche Wertpapiere, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere aktiengebundene Wertpapiere investieren.
Im Rahmen der Integration von Umwelt-, Sozial- und Governance- Faktoren („
ESG
“) und des Nachhaltigkeitsrisikos in seinen Anlageprozess sowie als Reaktion auf europäische Rechtsentwicklungen und Anlegerpräferenzen in Bezug auf Investitionen in Unternehmen, die direkt an der Entwicklung, Produktion, Wartung oder dem Handel mit sogenannten
„umstrittenen Waffen“ beteiligt sind, sieht die Politik des Fonds vor, solche Investitionen aus seinem Portfolio auszuschließen. Darüber hinaus wird der Fonds, obwohl er keine bestimmten Umwelt-, Sozial- oder Governance-Ziele verfolgt, Investitionen auf der Grundlage von Kriterien ausschließen, die mit dem UN Global Compact und der Ausschlussliste der Norges Bank übereinstimmen. Eine öffentlich zugängliche Liste der Unternehmen, die auf der Ausschlussliste der Norges Bank stehen, ist auf der folgenden Website zu finden: https://www.nbim.no/en/responsibility/exclusion-of-companies/. Bei der Entscheidung, welche Unternehmen ausgeschlossen werden, berücksichtigt der Fonds die Schwere des Verhaltens des Unternehmens, die Verbreitung innerhalb des Unternehmens und/oder die Bedeutung für das Unternehmen sowie die Reaktion der Unternehmensleitung auf die Probleme.
Um als „Aktienfonds“ im Sinne von Paragraf 2 Abschnitt 6 des deutschen Investmentsteuergesetzes zu gelten, werden mindestens 51 % des Nettoinventarwerts des Fonds laufend in Beteiligungen an Aktienwerten angelegt, die zum amtlichen Handel an einer Börse zugelassen oder in einen organisierten Markt einbezogen sind.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der
Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den MSCI Emerging Markets Index bzw. den MSCI Frontier Markets Index. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im MSCI Emerging Markets Index oder im MSCI Frontier Markets Index genannt werden, kann er in solche Wertpapiere aus Ländern mit unterschiedlichen Anteilen investieren und er kann Vermögenswerte halten, die nicht in Ländern engagiert sind, die im MSCI Emerging Markets Index oder im MSCI Frontier Markets Index genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des MSCI Emerging Markets Index oder des MSCI Frontier Markets Index abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Parametric Emerging Markets Fund kann dieser für Anleger geeignet sein:
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

PARAMETRIC GLOBAL DEFENSIVE EQUITY FUND
Das Anlageziel des Parametric Global Defensive Equity Fund ist ein defensives Aktienengagement, von dem eine günstige risikobereinigte Performance im Vergleich zum MSCI All Country World Index in USD Net (Basis) erwartet wird. Der Fonds erwirtschaftet Renditen durch den Erhalt von Optionsprämien sowie Erträge aus den gehaltenen Aktienindexpositionen und den gehaltenen geldnahen Mitteln. In dieser Hinsicht wird der Fonds Aktienindex-Call-Optionen in Bezug auf für OGAWs zulässige Aktienindizes verkaufen, die kumulativ ein Engagement in den Märkten bieten, die den im MSCI All Country World Index in USD Net (Basis) enthaltenen Märkten ähneln, und er wird Aktienindex-Put-Optionen in Bezug auf für OGAWs zulässige Aktienindizes verkaufen, die kumulativ ein Engagement in den Märkten bieten, die den im MSCI All Country World Index in USD Net (Basis) enthaltenen Märkten ähneln. Die Anlagepolitik des Fonds ist daher darauf ausgerichtet, von der Volatilitätsrisikoprämie zu profitieren.
Der Fonds wird in ein Basisportfolio investieren, das in der Regel Folgendes umfasst: (i) Aktienindexpositionen, die normalerweise aus regulierten OGAW-ETFs für Aktienindizes bestehen, und (ii) geldnahe Positionen, die in erster Linie aus festverzinslichen Wertpapieren mit einer maximalen Restlaufzeit von einem Jahr bestehen werden. Der Fonds wird im Allgemeinen zu gleichen Teilen in (i) und (ii) investiert sein (d. h. 50 % des Nettoinventarwerts des Fonds sollen jeweils in (i) und (ii) angelegt werden). Das Basisportfolio wird jedoch in regelmäßigen Abständen neu gewichtet, wenn das Engagement von dem oben genannten beabsichtigten Engagement um mehr als 5 % abweicht (d. h. wenn das Engagement in (i) oder (ii) unter 45 % des Nettoinventarwerts des Fonds fällt oder über 55 % des Nettoinventarwerts des Fonds steigt).
Diese ETFs oder Geldmärkte erheben keine jährlichen Verwaltungsgebühren von mehr als 3 % ihres Nettoinventarwerts und haben ihren Sitz im EWR, im Vereinigten Königreich, in den Vereinigten Staaten, auf Guernsey, Jersey oder der Isle of Man.
Der Fonds kann ergänzend in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in festverzinsliche Wertpapiere, in Optionsscheine auf Wertpapiere, in Barmittel sowie in regulierte Aktienindex-ETFs, die alternative Investmentfonds („AIFs“) darstellen, aber für OGAWs infrage kommen, und in börsengehandelte Aktienindex-Terminkontrakte investieren.
Um als „Aktienfonds“ im Sinne von Paragraf 2 Abschnitt 6 des deutschen Investmentsteuergesetzes zu gelten, werden mindestens 25 % des Nettoinventarwerts des Fonds laufend in Beteiligungen an Aktienwerten angelegt, die zum amtlichen Handel an einer Börse zugelassen oder in einen organisierten Markt einbezogen sind.
Zur Renditesteigerung und/oder im Rahmen der Anlagen darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Anlageberater bezieht Nachhaltigkeitsrisiken nicht in seine Anlageentscheidungen ein, da sie im Rahmen der Anlagestrategie des Fonds nicht relevant sind. Weitere Informationen über die Integration von Nachhaltigkeitsrisiken in Bezug auf die Gesellschaft sind im Abschnitt „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ des Prospekts enthalten.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgerichtet, den MSCI All Country World Index in USD Net (Basis) nachzubilden, außer in dem Maße, in dem die ETFs, in die der Fonds anlegt, so ausgewählt werden, dass sie ein ähnliches Engagement an den Märkten bieten wie die im MSCI All Country World Index in USD Net (Basis) enthaltenen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Parametric Global Defensive Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SAUDI EQUITY FUND
Anlageziel des Saudi Equity Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalzuwachses und Wachstums.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in erster Linie in Aktienwerte von Emittenten anlegt, die am Hauptmarkt der saudischen Börse, der Tadawul, notiert sind und dort gehandelt werden, sowie von Emittenten, die sich im Prozess eines Börsengangs (IPO) befinden (einschließlich Bezugsrechtsemissionen und vorbehaltlich der unten genannten Einschränkungen). Die Investitionen des Fonds in börsennotierte Aktien können auch Investitionen in börsennotierte Aktien
kleinerer Unternehmen (d. h. solche, die einen Marktwert von weniger als 1 Milliarde SAR haben) umfassen.
Darüber hinaus kann der Fonds bis zu 20 % seines Nettovermögens in einen oder mehrere zulässige geschlossene Real Estate Investment Trusts (REITs) anlegen, die an der Tadawul notiert sind, sowie in Anteile zulässiger geschlossener REITs, die im Zuge eines Börsengangs angeboten werden und die zu gegebener Zeit an der Tadawul notiert werden.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend in Aktienwerten von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, Barmitteln und geldnahen Mitteln, Optionsscheinen und anderen aktienbezogenen Wertpapieren investieren.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Saudi Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten.
- die auf langfristige Sicht Kapitalwachstum erzielen möchten.
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

Handelstage und Abwicklung für den Saudi Equity Fund.
Die Handelstage für den Saudi Equity Fund berücksichtigen sowohl den saudi-arabischen als auch den luxemburgischen Handelskalender. In diesem Prospekt bedeuten Bezugnahmen auf den Handelstag in Bezug auf den Saudi Equity Fund jeden Montag, Dienstag, Mittwoch oder Donnerstag, an dem sowohl die luxemburgischen als auch die saudi-arabischen Finanzmärkte für den Handel geöffnet sind. Der Saudi Equity Fund steht am Handelstag unmittelbar vor speziellen saudischen Feiertagen, z. B.
dem Fastenbrechen, nicht zum Handel zur Verfügung. Darüber hinaus findet freitags keine Abwicklung von Zeichnungen und Rücknahmen für den Saudi Equity Fund statt, und bei der Abwicklung von Zeichnungen und Rücknahmen werden die US-Dollar und Saudi Riyal Bankfeiertage berücksichtigt. Die Liste der erwarteten „Nicht-Handelstage“ und Abwicklungsfeiertage wird auf der Website der Gesellschaft verfügbar sein (www.morganstanleyinvestmentfunds.com) und im Voraus, mindestens halbjährlich, aktualisiert werden. Die Liste kann jedoch gelegentlich bei Vorliegen außergewöhnlicher Umstände weiter aktualisiert werden, wenn der Verwaltungsrat der Ansicht ist, dass dies im besten Interesse der Anteilinhaber des Fonds ist.
SUSTAINABLE ASIA EQUITY FUND
Anlageziel des Sustainable Asia Equity Fund ist es, ein langfristiges, in US-Dollar gemessenes Kapitalwachstum zu erzielen, indem vorwiegend Anlagen in Aktienwerte von Unternehmen getätigt werden, die ihren Sitz in Asien (ausgenommen Japan) haben oder die dort den überwiegenden Teil ihrer geschäftlichen Aktivitäten ausüben, um so die dynamischen Wirtschaftswachstumsperspektiven zu nutzen, die diese Region bietet. Bei der Verfolgung dieses Anlageziels wird der Anlageberater ESG-Kriterien (wie unten erläutert) berücksichtigen, um in Unternehmen zu investieren, die im Vergleich zu anderen Unternehmen in einem oder mehreren Nachhaltigkeitsthemen einen Vorsprung aufweisen und so positioniert sind, dass sie von der nachhaltigen Entwicklung der Länder, in denen sie tätig sind, profitieren oder zu dieser beitragen, basierend auf den ESG-Kriterien des Anlageberaters. Die Anwendung dieser ESG-Kriterien sollte zu einer Reduzierung des Anlageuniversums um 20 % oder mehr führen.
Der Fondskanndarüberhinausergänzendin Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, Schuldverschreibungen, Genussscheinen (participatory notes), Optionsscheinen, und in beschränktem Umfang in Organismen für gemeinsame Anlagen, einschließlich geschlossene Fonds und die Fonds der Gesellschaft, ETFs und wenig gehandelte Wertpapiere anlegen.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater Erwägungen zu Nachhaltigkeitsthemen und ESG- Themen in seine Anlageentscheidungen einbezieht. Der Fonds wird in Unternehmen aus asiatischen Märkten mit Ausnahme von Japan investieren, die zu einem oder mehreren Nachhaltigkeitsthemen, einschließlich, aber nicht beschränkt auf Klimawandel, Naturkapital, Humankapital, Zugänglichkeit und Bezahlbarkeit und Innovation/Infrastruktur einen positiven Beitrag leisten und/oder sie adressieren. Der Fonds strebt darüber hinaus eine Ausrichtung an den Zielen des Pariser Abkommens zum Klimawandel an. Der Fonds strebt die Erzielung eines geringeren CO2-Fußabdrucks als der MSCI Asia ex Japan Net Index an.
Der Anlageberater ist der Ansicht, dass Unternehmen mit vorausschauenden Managementteams, die proaktive Strategien zu diesen Nachhaltigkeits- und ESG-Themen aufstellen, langfristig in geschäftlicher und finanzieller Sicht besser positioniert sein werden als Unternehmen, die diese Themen nicht berücksichtigen. Der Fonds strebt an, in Unternehmen zu investieren, deren Produkterlöse, Richtlinien, Initiativen, Branchenführerschaft und/ oder festgelegte Ziele eines oder mehrere der obigen Nachhaltigkeitsthemen proaktiv verfolgt. Der Anlageberater unterstützt den Prozess der Aktienauswahl mit Recherche und Analyse, einschließlich direkten Einbezugs des Unternehmens und Daten Dritter.
Der Fonds wird nicht nur in Unternehmen investieren, die gute Governance-Praktiken anwenden und im Vergleich zu anderen Unternehmen in überzeugender Weise Wert auf Nachhaltigkeit legen, sondern auch in Unternehmen in Asien (ausschließlich Japan), die skalierbare und rentable Lösungen für drängende Nachhaltigkeitsprobleme wie Klimawandel und Umwelt-/ Ressourcenmanagement anbieten. Der Fonds wird sich auf Unternehmen konzentrieren, die einen positiven Beitrag zur nachhaltigen Entwicklung von Ländern in Asien, ausschließlich Japan, leisten, und wird versuchen, bestimmte Unternehmen auszuschließen, die in hohem Maße Nachhaltigkeitsrisiken ausgesetzt sind. Bis zu 10 % des Portfolios des Fonds können aus Vermögenswerten bestehen, die nicht der oben beschriebenen Nachhaltigkeitsanalyse unterliegen.
Der Anlageberater verfolgt einen Top-Down-Ansatz, um Anlagemöglichkeiten im gesamten zulässigen Anlageuniversum zu identifizieren, und wählt Unternehmen unter Verwendung des fundamentalen Bottom-Up-Wertpapierauswahlprozesses des Anlageberaters aus. ESG-Kriterien werden vom Anlageberater sowohl während des Anlage- als auch während des Rechercheprozesses berücksichtigt, um die Exponierung gegenüber Nachhaltigkeitsrisiken zu begrenzen und Anlagemöglichkeiten zu ermitteln, die mit den oben genannten Nachhaltigkeitsthemen in Einklang stehen. Diese Kriterien können unter anderem Kohlenstoffemissionen, Wasserknappheit, Abfallmanagement, Biodiversität, Arbeitsmanagement, Geschlechtervielfalt, Gesundheit und Sicherheit, Produktsicherheit, Datenschutz und -sicherheit, Vergütung von Führungskräften, Unabhängigkeit des Vorstands und Anteilinhaberrechte beinhalten. Dabei achtet der Anlageberater insbesondere auf die Einhaltung der Corporate Governance- Praktiken und die seiner Auffassung nach wesentlichen ökologischen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, die an der Herstellung oder Produktion eines der Folgenden beteiligt sind:
- Tabak
- 14
- ;
- Unterhaltung für Erwachsene;
- zivile Schusswaffen;
- umstrittenen Waffen;
- Kohle
- 15
- ;
- Ölsande
- 16
- ;
- Arktisches Erdöl
- 17 
- ; und
- Glücksspiel
- 18
- .

Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Die Ausschlüsse werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten und Untersuchungen zu Beteiligungen von Unternehmen unterstützt werden. Die Ausschlusskriterien werden auf alle Wertpapieranlagen innerhalb des Fonds angewendet. Die Ausschlusskriterien werden nicht auf Anlagen angewendet, bei denen der Anlageberater keine direkte Kontrolle über die zugrunde liegenden Bestände hat, z. B. bei Organismen für gemeinsame Anlagen oder offenen ETFs. Die Ausschlusskriterien werden in regelmäßigen Abständen überprüft, und alle Änderungen werden im Dokument zur Ausschlusspolitik berücksichtigt. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten, verlässt sich aber bei der Gestaltung des Portfolios nicht auf ESG-Daten von Dritten. Der Anlageberater verlässt sich bei der Wertpapierauswahl und der Portfoliogestaltung
14 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze aus der Produktion von Tabakprodukten oder aus der Lieferung von Produkten, die für die Herstellung von Tabakprodukten wesentlich sind, wie z. B. Filter, erzielen.
15 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mitaus dem Abbau und der Gewinnung von Kraftwerkskohle oder mit der Kohleverstromung erzielen.
16 
Der Fonds investiert nicht in Wertpapiere, die 5 % oder mehr ihrer Umsätze mit dem Abbauaus der Förderung oder der Produktion von Ölsand erzielenÖlsanden erwirtschaften.
17 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze mitaus der Ölförderung oder –produktionÖlproduktion in der arktischen RegionArktis, einschließlich imdes Arctic National Wildlife Refuge (ANWR), erzielen.
18 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze mit Glücksspielenaus Glücksspielaktivitäten erzielen.
auf seine eigenen Analysen und nicht auf die Analysen von Dritten. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen oder Daten Dritter geschätzt.
Der Anlageberater berücksichtigt bei seiner Entscheidungsfindung auch Nachhaltigkeitsrisiken, u. a. bei der Durchführung von Due- Diligence-Prüfungen und Analysen, der Bewertung, der Auswahl von Vermögenswerten, der Portfoliokonstruktion sowie der laufenden Anlageüberwachung und dem Portfoliomanagement. Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können den Wert eines Wertpapiers oder Portfolios negativ beeinträchtigen. Um diese Risiken zu mindern, kann der Anlageberater ein Wertpapier verkaufen oder untergewichten, aktiv in Dialog/Verhandlungen mit der Unternehmensleitung treten oder Anpassungen an den Top- Down-Allokationen in Bezug auf geografische Regionen, Sektoren oder Anlageklassen vornehmen. Beim Einbezug von Nachhaltigkeitsrisiken kann der Anlageberater eine Kombination von Informationsquellen nutzen, einschließlich von Unternehmen offengelegte Informationen, nicht von Unternehmen offengelegte Informationen sowie Analysen und Daten Dritter.
Zur Klarstellung: Aktienwerte umfassen Depositary Receipts (einschließlich American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), International Depository Receipts (IDRs) und European Depositary Receipts (EDRs)) sowie geschlossene Real Estate Investment Trusts (REITS). Der Fonds investiert in asiatische Märkte (ausschließlich Japan), d.h. beispielsweise China, Hongkong, Indien, Malaysia, Singapur, Südkorea, Taiwan, Indonesien und Thailand. Wenn die Vorschriften es zulassen, werden darüber hinaus weitere Möglichkeiten in den Schwellenmärkten und Frontier-Märkten in Asien gesucht, einschließlich China A-Shares über Stock Connect. Der Fonds kann bis zu 20 % seines Nettovermögens in China A-Shares über Stock Connect anlegen.
Der Fonds verwendet den MSCI Asia ex Japan als Vergleichsbenchmark, der repräsentativ für das Aktienuniversum Asien ex Japan ist. Die Benchmark wird nur zu Vergleichszwecken der Performance verwendet und beinhaltet keine ökologischen oder sozialen Merkmale.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, der in Übereinstimmung mit Artikel 8 der SFDR ökologische Merkmale bewirbt und teilweise in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten,
Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version dieses Prospekts aufgenommen.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable Asia Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE EMERGING MARKETS EQUITY FUND
Das Anlageziel des Sustainable Emerging Markets Equity Fund ist die Maximierung eines in US-Dollar gemessenen Gesamtertrages durch die Anlage hauptsächlich in Aktienwerte von Unternehmen aus Schwellenmarktländern. Der Fonds wird vorrangig in solche Schwellenmarktländer (wie unten definiert) investieren, deren Volkswirtschaften sich nach Meinung der Gesellschaft stark entwickeln und deren Marktstrukturen komplexer werden.
„Schwellenmarkt“-Länder bezeichnet für die Zwecke dieses Fonds die in dem MSCI Emerging Markets Net Index enthaltenen Länder sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41 (1) des Gesetzes von 2010 angesehen werden. Um sein Hauptanlageziel in Schwellenmarktländern zu erreichen, kann der Fonds in Wertpapiere von Unternehmen, die in Schwellenmarktländern gemäß den dortigen Gesetzen errichtet wurden, und, dort ansässig sind oder dort einen Hauptverwaltungssitz unterhalten, und ebenso in Wertpapiere von Unternehmen, die in Ländern mit entwickelten Märkten gemäß den dortigen Gesetzen errichtet wurden und, dort ansässig sind oder einen Hauptveraltungssitz unterhalten (wobei dies für die Zwecke dieses Fonds die in dem MSCI World Index enthaltenen Länder sind) anlegen, wenn das Wertpapierhandelsgeschäft des Unternehmens vorwiegend in einem Schwellenmarktland betrieben wird, oder wenn zum Zeitpunkt des Kaufs 50 % der Erträge des Unternehmens allein oder auf konsolidierter Basis aus Gütern, Verkäufen oder Dienstleistungen stammen, die in einem oder mehreren Schwellenmarktländern hergestellt, getätigt bzw. erbracht wurden, oder wenn das Unternehmen mindestens 50 % seiner Vermögenswerte, seines Kerngeschäfts und/oder seiner Mitarbeiter in Schwellenmarktländern hat, oder der Fonds kann in andere aktiengebundene Finanzinstrumente aus entwickelten Märkten, bei denen jedoch ein Engagement in Schwellenmärkten besteht (zum Beispiel Depositary Receipts) („EM Exposed Securities“) anlegen.
Der Fonds kann ergänzend in zulässige Aktien aus Frontier- Märkten (d.h. solche Länder, die weder entwickelte Märkte noch Schwellenmärkte in dem für die Zwecke dieses Fonds oben
definierten Sinne sind) anlegen, oder in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen. Der Fonds kann ergänzend auch in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und geschlossener Fonds, über Stock Connect in China A-Shares, festverzinsliche Wertpapiere, Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, Genussscheinen (participatory notes) und Optionsscheinen anlegen, um dadurch jeweils ein Engagement in Schwellenmärkten oder Frontier-Märkten zu erlangen. Der Fonds kann bis zu 20 % seines Nettovermögens über Stock Connect in China A-Shares anlegen. Für vorübergehende defensive Zwecke kann der Fonds in Zeiten, in denen die Gesellschaft dies aufgrund veränderter wirtschaftlicher, finanzieller oder politischer Bedingungen für ratsam hält, seine Anlagen in Aktienwerte aus Schwellenmarktländern auf unter 50 % seines Gesamtvermögens reduzieren und sein Vermögen in Aktienwerte aus Ländern mit entwickelten Märkten (entweder EM Exposed Securities oder keine EM Exposed Securities) oder festverzinsliche Wertpapiere (mit Engagement in Schwellenmärkten oder entwickelten Märkten) anlegen.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater die Erwägung von ESG-Kriterien und Themen der Nachhaltigkeit in seine Anlageentscheidungen einbezieht.
Bei der Verfolgung seines Anlageziels wird der Anlageberater ESG- Kriterien (wie nachstehend beschrieben) berücksichtigen, um in Unternehmen anzulegen, die (i) bei einem oder mehreren Nachhaltigkeitsthemen (wie nachstehend beschrieben) besser abschneiden als ihre Konkurrenten; und (ii) so positioniert sind, dass sie von der nachhaltigen Entwicklung der Länder, in denen sie tätig sind, profitieren und/oder zu dieser beitragen, basierend auf den ESG-Kriterien des Anlageberaters. Die Anwendung dieser ESG-Kriterien sollte zu einer Reduzierung des Anlageuniversums um 20 % oder mehr führen, wie in den beiden ersten Absätzen oben beschrieben. Das Ziel des Anlageberaters wird es sein sicherzustellen, dass wenigstens 90 % des Portfolios des Fonds der oben beschriebenen Nachhaltigkeitsanalyse unterliegen.
ESG-Kriterien können unter anderem Kohlenstoffemissionen, Ressourcensteuerung, Abfallwirtschaft, Artenvielfalt, arbeitsmarktpolitische Maßnahmen, Geschlechterdiversität, Gesundheit & Sicherheit, Produktsicherheit, Datenschutz & Datensicherheit, Vergütung von Führungskräften, Unabhängigkeit der Leitungsorgane und Anteilinhaberrechte beinhalten. Nachhaltigkeitsthemen können unter anderem Klimawandel, Naturkapital, Humankapital, Zugänglichkeit und Bezahlbarkeit sowie Innovation/Infrastruktur beinhalten. Der Fonds versucht, insgesamt auf der Portfolio-Ebene einen geringeren CO2- Fußabdruck als der MSCI Emerging Markets Net Index zu erzielen. Mit einem gesteigerten Anlage-Fokus auf Unternehmen, die einen positiven Beitrag dazu leisten und/oder ein oder mehrere
Nachhaltigkeitsthemen adressieren einschließlich des Klimawandels strebt der Fonds eine Ausrichtung an den Zielen des Pariser Abkommens an.
Hinsichtlich der Anlage in Unternehmen, die im Vergleich zu ihren Konkurrenten bei einem oder mehreren ESG-Themen besser abschneiden, ist der Anlageberater der Ansicht, dass Unternehmen mit vorausschauenden Managementteams, die proaktive Strategien zu den Nachhaltigkeits- und ESG-Themen aufstellen, wie in dieser Anlagepolitik beschrieben, langfristig in geschäftlicher und finanzieller Sicht besser positioniert sein werden als Unternehmen, die diese Themen nicht berücksichtigen. Der Fond legt daher bevorzugt in Unternehmen an, deren Produkterlöse, Richtlinien, Initiativen, Branchenführerschaft und/oder festgelegte Ziele eines oder mehrere der oben genannten Nachhaltigkeitsthemen proaktiv verfolgen. Der Anlageberater wird diesen Auswahlprozess durch Nachforschung und Analyse unterstützen, u.a. durch direkten Einbezug des Unternehmens und Daten Dritter.
Neben der Anlage in Unternehmen, die gute Governance-Praktiken anwenden und die im Vergleich zu ihren Konkurrenten ein starkes Management von Nachhaltigkeitsfaktoren aufweisen, wird der Fonds in Unternehmen aus Schwellenmarktländern anlegen, die skalierbare und rentable Lösungen für drängende Nachhaltigkeitsprobleme wie Klimawandel und Umwelt-/ Ressourcenmanagement anbieten. In diesem Zusammenhang wird sich der Fonds auf Unternehmen konzentrieren, die einen positiven Beitrag zur nachhaltigen Entwicklung von Schwellenmarktländern leisten, indem er diesbezüglich auf die Anlageauswahl sowohl das Konzept des Best-in-class als auch das Konzept der größten Anstrengung anwendet. Bei der Anwendung eines Best-in-class Konzepts wird Unternehmen der Vorrang gegeben, die aus nicht- finanziellem Blickwinkel am besten in ihrer Branche positioniert sind, ohne dabei einen Sektor bezüglich des Börsenindex, der als Ausgangsbasis verwendet wurde, zu bevorzugen oder auszuschließen. Bei der Anwendung eines Ansatzes der größten Anstrengung wird Emittenten der Vorzug gegeben, die im Laufe der Zeit eine Verbesserung ihrer ESG-Praktiken und –Ergebnisse oder gute Aussichten darauf darlegen. Der Fonds ist auch bestrebt Unternehmen auszuschließen, die in hohem Maße Nachhaltigkeitsrisiken ausgesetzt sind.
Der Anlageberater verfolgt einen Top-Down-Ansatz, um Anlagemöglichkeiten im gesamten zulässigen Anlageuniversum zu identifizieren, und wählt Unternehmen unter Verwendung des fundamentalen Bottom-Up-Wertpapierauswahlprozesses des Anlageberaters aus. ESG-Kriterien werden vom Anlageberater sowohl während des Anlage- als auch während des Rechercheprozesses berücksichtigt, um die Exponierung gegenüber Nachhaltigkeitsrisiken zu begrenzen und Anlagemöglichkeiten zu ermitteln, die im Einklang mit den oben erläuterten Nachhaltigkeitsthemen stehen. Dabei achtet der Anlageberater insbesondere auf den Einbezug der Unternehmensführung in die
seiner Auffassung nach wesentlichen ökologischen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, sowie auch rund um die Praktiken der Unternehmensführung.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, die an der Herstellung oder Produktion eines der folgenden beteiligt sind:
- Tabak
- 19
- ;
- Unterhaltung für Erwachsene;
- zivile Schusswaffen;
- umstrittene Waffen;
- Kohle
- 20
- ;
- Ölsande
- 21
- ;
- Arktisches Erdöl
- 22
- ; und
- Glücksspiel
- 23
- .

Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung im Dokument zur Ausschlusspolitik offengelegt, das unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im verfügbar ist. Die gegenwärtigen Ausschlüsse (und alle weiteren Beschränkungen, die im Laufe der Zeit angewendet werden) werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten durch Dritte und Untersuchungen zu Beteiligungen von Unternehmen unterstützt werden. Die Ausschlüsse werden auf alle Wertpapieranlagen innerhalb des Fonds angewendet. Die Ausschlüsse werden nicht auf Anlagen angewendet, bei denen der Anlageberater keine direkte Kontrolle über die zugrunde liegenden Bestände hat, z. B. bei Organismen für gemeinsame Anlagen oder offenen ETFs. Die Ausschlüsse werden in regelmäßigen Abständen überprüft, und alle Änderungen werden im Dokument zur Ausschlusspolitik berücksichtigt. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater
19 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze aus der Produktion von Tabakprodukten oder aus der Lieferung von Produkten, die für die Herstellung von Tabakprodukten wesentlich sind, wie z. B. Filter, erzielen.
20 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze aus dem Abbau und der Gewinnung von Kraftwerkskohle oder Kohleverstromung erzielen.
21 
Der Fonds investiert nicht in Wertpapiere, die 5 % oder mehr ihrer Umsätze aus der Förderung oder Produktion von Ölsanden erwirtschaften.
22 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze aus der Ölförderung oder Ölproduktion in der Arktis, einschließlich des Arctic National Wildlife Refuge (ANWR), erzielen.
23 
Der Fonds investiert nicht in Wertpapiere von Emittenten, die 5 % oder mehr ihrer Umsätze aus Glücksspielaktivitäten erzielen.
unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds bezieht sich während des Wertpapier-Research-Prozesses auf ESG-Daten von Dritten, verlässt sich aber bei der Gestaltung des Portfolios nicht auf ESG-Daten von Dritten. Der Anlageberater verlässt sich bei der Wertpapierauswahl und der Portfoliogestaltung auf seine eigenen Analysen und nicht auf die Analysen von Dritten. In einigen Fällen sind jedoch Daten zu bestimmten Emittenten oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand angemessener Schätzungen oder Daten Dritter geschätzt.
Der Anlageberater berücksichtigt bei seiner Entscheidungsfindung auch Nachhaltigkeitsrisiken, u. a. bei der Durchführung von Due- Diligence-Prüfungen und Analysen, der Bewertung, der Auswahl von Vermögenswerten, der Portfoliokonstruktion sowie der laufenden Anlageüberwachung und dem Portfoliomanagement. Dabei berücksichtigt der Anlageberater die Relevanz und potenzielle Wesentlichkeit von Nachhaltigkeitsrisiken für eine bestimmte Anlagemöglichkeit oder für das Portfolio als Ganzes im Kontext des Anlageziels und des beabsichtigten Zeithorizonts für das Halten eines bestimmten Wertpapiers in angemessener Weise. Nachhaltigkeitsrisiken können sich negativ auf den Wert eines Wertpapiers oder Portfolios auswirken. Um die Nachhaltigkeitsrisiken zu mindern, kann der Anlageberater ein Wertpapier, das diesen Risiken ausgesetzt ist, verkaufen oder untergewichten, einen aktiven Dialog/Kontakt mit der Unternehmensleitung aufnehmen oder Anpassungen der Top- Down-Allokationen auf Geografien, Sektoren oder Anlageklassen vornehmen. Bei der Umsetzung seiner Integration von Nachhaltigkeitsrisiken kann der Anlageberater eine Kombination von Informationsquellen nutzen, einschließlich von Unternehmen offengelegter Informationen, nicht von Unternehmen offengelegter Informationen sowie Analysen und Daten Dritter.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den MSCI Emerging Markets Net Index. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im MSCI Emerging Markets Net Index genannt werden, kann er in solche Wertpapiere aus Ländern mit unterschiedlichen Anteilen als ihrer Allokation im Rahmen des MSCI Emerging Markets Net Index investieren und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im MSCI Emerging Markets Net Index genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des MSCI Emerging Markets Net Index abweichen kann. Der MSCI Emerging Markets Net Index wird ausschließlich zu Vergleichszwecken der Performance verwendet und berücksichtigt keine ökologischen oder sozialen Merkmale.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, der in Übereinstimmung mit Artikel 8 der SFDR ökologische Merkmale bewirbt und teilweise in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung
gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version dieses Prospekts aufgenommen.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable Emerging Markets Equity Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerten anlegen möchten,
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US ADVANTAGE FUND
Das Anlageziel des US Advantage Fund besteht darin, ein langfristiges, in US-Dollar gemessenes Kapitalwachstum zu erzielen, indem er hauptsächlich Anlagen in Wertpapieren von in den USA ansässigen Unternehmen und ergänzend in Wertpapieren von nicht in den USA ansässigen Unternehmen tätigt. Ein Emittent gilt als in einem bestimmten Land (beispielsweise in den USA) oder in einer geografischen Region ansässig, wenn er (i) sein Wertpapierhandelsgeschäft hauptsächlich in diesem Land oder in dieser geografischen Region betreibt, (ii) allein oder auf konsolidierter Ebene mindestens 50 % seiner jährlichen Einkünfte aus Gütern, Verkäufen oder Dienstleistungen, die in diesem Land oder in dieser geografischen Region produziert, getätigt oder erbracht wurden, erzielt, oder (iii) nach dem Recht dieses Landes oder dieser geografischen Region errichtet wurde oder dort seinen Hauptsitz hat. Gemäß diesen Kriterien könnte ein bestimmter Emittent als in mehr als nur einem Land oder einer geografischen Region ansässig gelten. Unter normalen Marktbedingungen wird das Anlageziel des Fonds hauptsächlich durch die Anlage in Aktienwerte von etablierten Gesellschaften mit großer Kapitalisierung verfolgt. Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in Unternehmen, die seiner Ansicht nach einen hohen Bekanntheitsgrad und nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital
zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/Ertragsverhältnis aufweisen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktien von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs), Vorzugsaktien, Optionsscheine auf Wertpapiere, über Stock Connect in China A-Shares, Barmittel und geldnahe Mittel und andere aktiengebundene Wertpapiere investieren. Der Fonds kann bis zu
10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine ergänzende Fundamentalanalyse heranzieht, die im Anlageentscheidungsprozess berücksichtigt werden können. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mit dem Ziel zu ermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Advantage Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US CORE EQUITY FUND
Anlageziel des US Core Equity Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums. Der Fonds investiert vorwiegend in von mittelgroßen bis großen Unternehmen ausgegebenen Aktienwerten, einschließlich Depositary Receipts (wie z. B. American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) und geschlossene Real Estate Investment Trusts (REITS), die von in den USA ansässigen Unternehmen ausgegeben werden.
Das Anlageverfahren bedient sich einer Kombination aus quantitativen Modellen zur Bewertung von Markttreibern und einer Fundamentalanalyse einzelner Aktien zur Identifizierung von Unternehmen mit attraktiven Bewertungen, überdurchschnittlichen Ertragsaussichten und einer wettbewerbsfähigen Ausschüttungsquote.
Der Fonds kann ergänzend in Aktienwerten von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, Barmitteln und geldnahen Mitteln, Optionsscheinen und anderen aktienbezogenen Wertpapieren investieren.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß Anhang A) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zu Zwecken eines effizienten Portfoliomanagements (unter anderem zu Absicherungszwecken (Hedging)) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht seines Anlageziels ist der US Core Equity Fund für Anleger geeignet,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US FOCUS PROPERTY FUND
Anlageziel des US Focus Property Fund ist die Erzielung einer langfristigen, in US-Dollar gemessenen Kapitalwertsteigerung durch Investition hauptsächlich in ein konzentriertes Portfolio von Aktien, einschließlich Depositary Receipts (darunter American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von Unternehmen, die im Immobiliensektor tätig oder eng mit dem Immobiliensektor verbunden und in den Vereinigten Staaten von Amerika ansässig sind, die nach Ansicht des Anlageberaters ein im Vergleich zu anderen Anlagemöglichkeiten innerhalb der oben erwähnten Anlageklassen höheres prognostiziertes Gesamtrenditepotenzial bieten.
Unternehmen im Immobiliensektor oder Unternehmen, die eng mit dem Immobiliensektor verbunden sind, können Gesellschaften, deren primärer Zweck auf die Entwicklung und/oder den Besitz von Ertrag erzielenden Immobilien ausgerichtet ist, Gesellschaften, die Immobilien betreiben, errichten, finanzieren oder verkaufen, Gesellschaften mit wesentlichen immobilienbezogenen Beteiligungen und/oder Dienstleistungen im Zusammenhang mit dem Immobiliensektor, insbesondere Immobilienmanagement, Makler und Bauprodukte, sowie Organismen für gemeinsame Anlagen mit einem Engagement in Immobilien, wie börsennotierte Immobilienfonds (publicly quoted property unit trusts), alle Arten von geschlossenen Immobilienfonds (REITS) und Organismen für gemeinsame Anlagen umfassen.
Der Fonds kann auch ergänzend in Aktienwerte investieren, die nicht die Kriterien der Hauptanlagen des Fonds erfüllen, sowie in Vorzugsaktien und wandelbare Vorzugspapiere, in in Stammaktien wandelbare Schuldtitel, Rechte und Optionsscheine zum Erwerb von Aktienwerten, Aktien von Investmentgesellschaften, Anteile an Limited Partnerships und andere aktiengebundene Instrumente.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Anlageberater verwaltet den Fonds aktiv nach einer disziplinierten, fundamental gelenkten Bottom-up-Anlagemethode mit hoher Überzeugungskraft. Der Fonds setzt sich aus solchen Wertpapieren zusammen, die nach Ansicht des Anlageberaters auf der Grundlage der Bewertung im Vergleich zu anderen Anlagemöglichkeiten im Anlageuniversum ein höheres prognostiziertes Gesamtrenditepotenzial bieten. Der Anlageberater wird in seiner Fundamentalanalyse immobilienspezifische Faktoren, umfassendere Aktienfaktoren sowie ESG-Faktoren bewerten, um angemessene Bewertungskennzahlen zu berechnen. Top-down- Überlegungen fließen in den Portfoliokonstruktionsprozess ein und zielen darauf ab, ein Engagement in verschiedenen Sektoren zu erreichen und prognostizierte fundamentale Veränderungen und makroökonomische Überlegungen sowie andere Faktoren zu berücksichtigen. Der Anlageberater wählt aktiv Positionen in einer begrenzten Anzahl von Aktienwerten aus.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei können der Anlageberater und die Unter-Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die ihrer Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Focus Property Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US GROWTH FUND
Das Anlageziel des US Growth Fund besteht darin, ein langfristiges, in US-Dollar gemessenes Kapitalwachstum zu erzielen, indem er hauptsächlich Anlagen in Wertpapieren von in den USA ansässigen Unternehmen und ergänzend in Wertpapieren von nicht in den USA ansässigen Unternehmen tätigt. Ein Emittent gilt als in einem bestimmten Land (beispielsweise in den USA) oder in einer geografischen Region ansässig, wenn er (i) sein Wertpapierhandelsgeschäft hauptsächlich in diesem Land oder in dieser geografischen Region betreibt, (ii) allein oder auf konsolidierter Ebene mindestens 50 % seiner jährlichen Einkünfte aus Gütern, Verkäufen oder Dienstleistungen, die in diesem Land oder in dieser geografischen Region produziert, getätigt oder erbracht wurden, erzielt, oder (iii) nach dem Recht dieses Landes oder dieser geografischen Region errichtet wurde oder dort seinen Hauptsitz hat. Gemäß diesen Kriterien könnte ein bestimmter Emittent als in mehr als nur einem Land oder einer geografischen Region ansässig gelten. Unter normalen Marktbedingungen wird das Anlageziel des Fonds hauptsächlich durch die Anlage in Aktienwerte von erstklassigen, wachstumsorientierten Unternehmen verfolgt. Bei diesem Anlageverfahren wird nach einem Bottom-Up- Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in einzigartige Unternehmen, die seiner Ansicht nach nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/ Ertragsverhältnis aufweisen. Die individuelle Auswahl der Wertpapiere wird hervorgehoben.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktien von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs), Vorzugsaktien, Optionsscheine auf Wertpapiere, über Stock Connect in China A-Shares, Barmittel und geldnahe Mittel und andere aktiengebundene Wertpapiere investieren. Der Fonds kann bis zu
10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als
Anhaltspunkte für eine ergänzende Fundamentalanalyse heranzieht, die im Anlageentscheidungsprozess berücksichtigt werden können. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung und/oder Anpassung an säkulare Wachstumstrends zur Wertschöpfung beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen zusammen, um deren ESG-Praktiken zu erörtern. Dabei soll ermittelt werden, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die auf lange Sicht entscheidend für den Wert des Wertpapiers sein können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Growth Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US INSIGHT FUND
Das Anlageziel des US Insight Fund besteht darin, ein langfristiges, in US-Dollar gemessenes Kapitalwachstum zu erzielen, indem er hauptsächlich Anlagen in Wertpapieren von in den USA ansässigen Unternehmen und ergänzend in Wertpapieren von nicht in den USA ansässigen Unternehmen tätigt. Ein Emittent gilt als in einem bestimmten Land (beispielsweise in den USA) oder in einer geografischen Region ansässig, wenn er (i) sein Wertpapierhandelsgeschäft hauptsächlich in diesem Land oder in dieser geografischen Region betreibt, (ii) allein oder auf konsolidierter Ebene mindestens 50 % seiner jährlichen Einkünfte aus Gütern, Verkäufen oder Dienstleistungen, die in diesem Land oder in dieser geografischen Region produziert, getätigt oder erbracht wurden, erzielt, oder (iii) nach dem Recht dieses Landes oder dieser geografischen Region errichtet wurde oder dort seinen Hauptsitz hat. Gemäß diesen Kriterien könnte ein bestimmter Emittent als in mehr als nur einem Land oder einer geografischen Region ansässig gelten.
Unter normalen Marktbedingungen verfolgt der Fonds sein Anlageziel, indem er vorwiegend in Aktienwerten etablierter und aufstrebender Unternehmen anlegt. Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis
einzelner Unternehmen gesucht werden. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in einzigartige Unternehmen, die seiner Ansicht nach nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/ Ertragsverhältnis aufweisen. Die individuelle Auswahl der Wertpapiere wird hervorgehoben.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in Aktien von Unternehmen, die die oben genannten Anforderungen nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs), Vorzugsaktien, Optionsscheine auf Wertpapiere, über Stock Connect in China A-Shares, Barmittel und geldnahe Mittel und andere aktiengebundene Wertpapiere investieren. Der Fonds kann bis zu
10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine ergänzende Fundamentalanalyse heranzieht, die im Anlageentscheidungsprozess berücksichtigt werden können. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mit dem Ziel zu ermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuftsind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Insight Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US PERMANENCE FUND
Anlageziel des US Permanence Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalzuwachses.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte, einschließlich Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)), von in den USA gegründeten Unternehmen mit einer Kapitalisierungsrate, die im Bereich der im S&P 500 Index notierten Unternehmen liegt, anlegt.
Der Fonds kann ergänzend in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, in Vorzugsaktien, über Stock Connect in China A-Shares, in Optionsscheine sowie in andere aktienbezogene Wertpapiere investieren. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl von Wertpapieren für die Anlage investiert der Anlageberater in der Regel in Unternehmen, die seiner Ansicht nach einen hohen Bekanntheitsgrad und nachhaltige Wettbewerbsvorteile mit überdurchschnittlichen Geschäftsaussichten, die Fähigkeit, Kapital zu hohen Renditen einzusetzen, starke Bilanzen und ein attraktives Risiko-/ Ertragsverhältnis aufweisen.
Der Fonds wird langfristig in Unternehmen anlegen, bei denen der Anlageberater der Auffassung ist, dass sie dauerhafte Qualitäten im
Hinblick auf die Wertentwicklung aufweisen, einschließlich dauerhafter langfristiger Wettbewerbsvorteile. Der Fonds kann auch in Unternehmen mit einem eher moderateren Wachstum, in Unternehmen mit einer geringeren Ertragsvolatilität und/oder in Unternehmen mit etwas Zyklizität in ihren Endmärkten anlegen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine zusätzliche Fundamentalanalyse heranzieht, die den Anlageentscheidungsprozess unterstützen kann, ohne das Portfolio des Fonds einzuschränken. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mit dem Ziel zu ermitteln, inwiefern Nachhaltigkeitsthemen Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance- Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak 
- (Wertpapiere von Emittenten, die als Global Industry Classification Standard („
- GICS
- “) Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen);
- Kohlebergbau 
- (Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen); oder
- Waffen, einschließlich 
- ziviler Feuerwaffen 
- (Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen) und 
- Streumunition und Antipersonenminen 
- (Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben).

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw.
www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung der S&P 500 Index eingeschränkt. Der Fonds bezieht sich auf den S&P 500 Index, um die Kapitalisierungsspanne der Emittenten festzulegen, in die der Fonds anlegen wird. Die Performance des Fonds wird am S&P 500 Index gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Permanence Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US PROPERTY FUND
Anlageziel des US Property Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalzuwachses. Hierzu wird der Fonds vorwiegend in Aktienwerte von Unternehmen anlegen, die im US-amerikanischen Immobiliensektor tätig und in den USA ansässig sind. Der Fonds beabsichtigt, das Fondsvermögen in geschlossene Real Estate Investment Trusts – („REITs“) und vergleichbare Immobilienverwaltungsgesellschaften (Real Estate Operating Companies – „REOCs“) anzulegen. REITs und REOCs sind Unternehmen, die zu langfristigen Investitionszwecken Grundbesitz erwerben und/oder entwickeln. Sie legen einen Großteil ihres Vermögens direkt in Grundvermögen an und beziehen ihre Einkünfte hauptsächlich aus Mieteinnahmen.
In dem Anlageprozess können bei der Auswahl der Aktien, bei der ein Bottom-Up-Ansatz verfolgt wird, auch Informationen zu ESG- Aspekten in Betracht gezogen werden, bevor die Anlageentscheidungen getroffen werden. Dabei achtet der Unter- Anlageberater insbesondere auf die Einhaltung der Corporate Governance-Praktiken und die nach Auffassung des Unter- Anlageberaters wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist.
Der Fonds kann sein Vermögen darüber hinaus ergänzend in Vorzugsaktien, Schuldverschreibungen, die in Stammaktien wandelbar sind, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Property Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US VALUE FUND
Das Anlageziel des US Value Fund ist ein langfristiges Kapitalwachstum durch Anlagen in eine breit gestreute Auswahl von übertragbaren Aktienwerten, wobei der Schwerpunkt auf Stammaktien führender Unternehmen liegt, die nach Ansicht des Anlageberaters vom Markt systematisch falsch bewertet werden. Value-Aktien sind Stammaktien, die der Anlageberater im Verhältnis zu seinen Schätzungen des Substanzwerts des Unternehmens für günstig hält.
Der Fonds wird in erster Linie in Aktienwerten, einschließlich Depositary Receipts (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von in den USA ansässigen Emittenten anlegen.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, festverzinsliche Wertpapiere, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere aktiengebundene Wertpapiere investieren.
Der Anlageberater des Fonds verfolgt einen research- und wertorientierten Bottom-up-Ansatz, der auf die Ermittlung von Preisanomalien abzielt, die auf fundamentale Faktoren zurückzuführen sind und als vorübergehend und nicht dauerhaft angesehen werden. Bei der Auswahl der Wertpapiere konzentriert sich der Fonds hauptsächlich auf US-Emittenten mit attraktiven Bewertungen und soliden geschäftlichen Fundamentaldaten. Der Anlageberater berücksichtigt auch, wie sich die Konstruktion des Portfolios und der Kauf oder Verkauf einer Anlage auf das allgemeine Risikoprofil des Portfolios auswirkt (z. B. das Beta des Portfolios im Vergleich zu seiner Benchmark und jedem Wirtschaftssektor, seine Standardabweichung der Rendite, sein aktiver Anteil und Tracking Error sowie die Zusammensetzung seines Tracking Error auf Branchen- und Aktienebene).
Zusätzlich zu den oben genannten Punkten wird der Anlageberater bei seinen Anlageentscheidungen ESG-Kriterien berücksichtigen. Der Anlageberater nutzt die umfangreiche Nachhaltigkeitsanalyse, die von seiner Tochtergesellschaft Calvert erstellt wird, um Anlagen zu bewerten. Der Anlageberater kann im Rahmen des Wertpapierauswahlverfahrens des Fonds finanziell wesentliche ESG-Faktoren in Erwägung ziehen. Solche finanziell wesentlichen Faktoren umfassen Nachhaltigkeitsrisiken oder -chancen, die die finanzielle Lage oder die Wertentwicklung des Emittenten über einen langfristigen Anlagehorizont hinweg beeinflussen können, und können unter anderem Geschäftsethik, Energienutzung, Energieeffizienz und erneuerbare Energien, Vielfalt am Arbeitsplatz, Klimawandel, Datensicherheit und Sicherheit am Arbeitsplatz umfassen.
Der Anlageberater ist der Ansicht, dass die Corporate Governance- Praktiken der Emittenten einen direkten Einfluss auf die Geschäftsentwicklung und die von diesen Emittenten erzielten Ergebnisse haben und dass die Einbeziehung des ESG-Verhaltens der Unternehmen in die Anlageentscheidungen einen umfassenderen, ganzheitlichen Ansatz für die Anlage bietet, der nach Ansicht des Anlageberaters sowohl die Aktienauswahl als auch die risikobereinigten Renditen langfristig verbessern kann.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Value Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerte anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

VITALITY FUND
Anlageziel des Vitality Fund ist die Erzielung eines langfristigen, in US-Dollar gemessenen Kapitalwachstums.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in Aktienwerte, einschließlich Hinterlegungszertifikate (einschließlich American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von Unternehmen mit Sitz in den USA anlegt, die sich hauptsächlich mit der Entdeckung, Entwicklung, Herstellung oder dem Vertrieb von Produkten oder Dienstleistungen im Zusammenhang mit Fortschritten im Gesundheitswesen befassen. Dazu gehören unter anderem Unternehmen aus den Bereichen Biotechnologie, Pharmazeutika, medizinische Geräte und Zubehör, Gesundheitstechnologie, Gesundheitsdienstleister und -dienstleistungen sowie biowissenschaftliche Instrumente und Dienstleistungen.
Im Zusammenhang mit diesem Fonds bedeutet Vitality die Fähigkeit, zu bestehen und zu wachsen. Dies spiegelt die Ausrichtung des Fonds auf den Gesundheitssektor und die Ansicht des Anlageberaters wider, dass dieser Sektor überdurchschnittliche Chancen für einen langfristigen Kapitalzuwachs bietet.
Der Fonds kann auch in Branchen investieren, die mit der Gesundheitsbranche in Verbindung stehen, aber nicht in erster Linie mit dem wissenschaftlichen Fortschritt im Gesundheitswesen befasst sind. Die Allokation innerhalb dieser Bereiche hängt von dem relativen Potenzial ab, das der Anlageberater in jedem Bereich sieht, sowie von den Aussichten für den Gesundheitssektor insgesamt.
Der Fonds kann ergänzend auch in Aktienwerte, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind,
Vorzugsaktien, Optionsscheine sowie in andere aktiengebundene Finanzinstrumente investieren.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Bei diesem Anlageverfahren wird nach einem Bottom-Up-Ansatz in der Auswahl der Aktien vorgegangen, bei dem attraktive Anlagemöglichkeiten auf der Basis einzelner Unternehmen gesucht werden. Bei der Auswahl der Wertpapiere für die Anlagen legt der Anlageberater in der Regel in einzigartige Unternehmen an, die seiner Meinung nach über nachhaltige Wettbewerbsvorteile, eine starke Forschung und Entwicklung und einen produktiven Fluss neuer Produkte, finanzielle Stärke und ein attraktives Risiko- Ertrags-Profil verfügen. Der Fonds legt im Allgemeinen bevorzugt in Unternehmen an, die neue und wirksame Arzneimittel entwickeln, die neuartige und effizientere Forschungs- und Entwicklungsbemühungen ermöglichen, sowie in Unternehmen, deren Geschäftsmodelle die Kosten senken oder die Qualität der Gesundheitssysteme verbessern.
Der Fonds wird langfristig in Unternehmen anlegen, bei denen der Anlageberater der Auffassung ist, dass sie auf lange Sicht die dauerhaftesten Wettbewerbsvorteile bieten. Der Fonds kann ebenfalls in Unternehmen mit einem moderateren Wachstum, in Unternehmen mit einer geringeren Ertragsvolatilität und/oder in Unternehmen mit etwas Zyklizität in ihren Endmärkten anlegen. Der Anlageberater erwägt im Allgemeinen einen Verkauf der Portfoliobestände, wenn er zu dem Schluss kommt, dass die Anteilbestände seine Anlagekriterien nicht länger erfüllen.
Der Faktor Nachhaltigkeit wird vom Anlageberater aktiv in den Anlageprozess mit einbezogen, indem er ESG-Faktoren als Anhaltspunkte für eine zusätzliche Fundamentalanalyse heranzieht, die den Anlageentscheidungsprozess unterstützen kann. Der Anlageberater versucht zu verstehen, wie ökologische und soziale Initiativen innerhalb der Unternehmen durch Stärkung dauerhafter Wettbewerbsvorteile, Generierung von Wachstumsmöglichkeiten, Rentabilitätssteigerung, und/oder Anpassung an säkulare Wachstumstrends zum Unternehmenswert beitragen können. Der Anlageberater setzt sich in der Regel mit den Managementteams der Unternehmen in Verbindung, um deren ESG-Praktiken zu erörtern, mitdem Zielzuermitteln, inwiefern Nachhaltigkeitsthemen
Chancen und Risiken darstellen, die sich langfristig auf den Wert des Wertpapiers auswirken können. Zu den weiteren Aspekten des Anlageprozesses zählen eine eigene systematische Bewertung der Governance-Grundsätze, wobei der Schwerpunkt insbesondere darauf liegt, die Vergütung auf langfristige Wertschöpfung auszurichten.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren primärer Geschäftstätigkeit Folgendes zählt:
- Tabak
- ; Wertpapiere von Emittenten, die als GICS-Teilsektor Tabak eingestuft sind oder 5 % oder mehr der Umsätze mit der Herstellung von Tabakprodukten erzielen;
- Kohlebergbau
- ; Wertpapiere von Emittenten, die dem GICS- Teilsektor Kohle und Brennstoffe zugeordnet sind oder mindestens 10 % ihrer Umsätze mit dem Abbau und der Förderung von Kraftwerkskohle erzielen; oder
- Waffen, einschließlich 
- ziviler Feuerwaffen
- ; Wertpapiere von Emittenten, die 10 % oder mehr ihrer Umsätze mit der Herstellung oder Produktion von zivilen Feuerwaffen oder Munition erzielen; und 
- Streumunition und Antipersonenminen
- ; Wertpapiere von Emittenten, die Streumunition oder Antipersonenminen herstellen, produzieren oder vertreiben.

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im. Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird aktiv verwaltet, ist nicht darauf ausgelegt, einer Benchmark zu folgen, und daher nicht durch die Zusammensetzung einer Benchmark eingeschränkt. Die Performance des Fonds wird an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen (Key Investor Information Document) des Fonds beschrieben.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen
nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Vitality Fund kann dieser für Anleger geeignet sein,
- die in Aktienwerten anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

RENTENFONDS
Die verschiedenen Rentenfonds haben folgende Anlageziele:
CALVERT SUSTAINABLE GLOBAL GREEN BOND FUND
Das Anlageziel des Calvert Sustainable Global Green Bond Fund ist es, ein attraktives Level des in US-Dollar gemessenen Gesamtertrags (Total Return) durch die Anlage in internationale festverzinsliche Wertpapiere zu erzielen, die die ESG- und Impact- Kriterien des Anlageberaters (wie nachstehend näher beschrieben) erfüllen und als nachhaltige Anlagen im Sinne der SFDR gelten, mit dem Ziel, positive ökologische und soziale Auswirkungen und Ergebnisse zu unterstützen. Der Fonds wird versuchen, das Anlageziel durch die Allokation auf festverzinsliche Anlageklassen sowie durch die gezielte Auswahl von Märkten und Finanzinstrumenten zu erreichen.
Der Fonds wird vorwiegend in Grüne Anleihen (wie nachstehend bestimmt), einschließlich der internationalen Wertpapiere von Unternehmen, Regierungen und staatsnahen Emittenten, innerhalb eines Spektrums von festverzinslichen Anlageklassen, einschließlich Anleihen von Anlagequalität, High-Yield-Anleihen, Mortgage- Backed Securities, forderungsbesicherte Wertpapiere (Asset-Backed Securities), Wandelanleihen und Währungen und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in sonstige forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, anlegen. High-Yield-Anleihen sind von Unternehmen emittierte festverzinsliche Wertpapiere, die von S&P ein Rating unterhalb „BBB-„ oder von Moody’s ein Rating unterhalb „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Diese Anlagen können auch in Schwellenmärkten begebene festverzinsliche Wertpapiere umfassen.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie nachstehend erläutert. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) vornehmen. Der Anlageberater kann sich mit der Unternehmensleitung über die Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen ökologischen und/ oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, auseinandersetzen. Außerdem strebt er positive ökologische und soziale Auswirkungen und Ergebnisse an, unter Berücksichtigung von Nachhaltigkeitsthemen wie Dekarbonisierung und Klimarisiko, Kreislaufwirtschaft und Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit und resiliente Arbeitsplätze.
Für die Zwecke dieses Fonds umfassen „Grüne Anleihen“ die folgenden Instrumente, sind aber nicht darauf beschränkt:
- Green Use of Proceeds Bonds, bei denen die Erlöse für umweltfreundliche Projekte verwendet werden (mit oder ohne externes Green-Bond-Siegel);
- Nachhaltige Anleihen, bei denen ein Teil der Erlöse in umweltfreundliche Projekte fließt;
- Übergangsanleihen, deren Erlöse für die Umstellung auf umweltfreundlichere Geschäftsmodelle bestimmt sind;
- Anleihen mit Nachhaltigkeitsbezug mit umweltbezogenen Leistungsindikatoren und Zielvorgaben; und
- Anleihen von Emittenten, die sich um ökologische Lösungen bemühen oder eine Vorreiterrolle im Bereich der ökologischen Nachhaltigkeit einnehmen.

Der Anlageberater setzt einen eigenen Bewertungsrahmen für Grüne Anleihen ein (der gegebenenfalls anerkannte Richtlinien für Grüne Anleihen wie die Green Bonds Principles der International Capital Market Association berücksichtigt), mit dem die Robustheit, die erwarteten Auswirkungen und die Transparenz aller derartigen Instrumente im Fonds bewertet werden. Der Anlageberater nutzt Daten von Dritten und ESG-Research als Teil seiner Analyse. Wenn keine Daten verfügbar sind, greift der Anlageberater auf interne Methoden oder angemessene Schätzungen zurück. Die von verschiedenen Datenanbietern verwendeten Methoden können sich unterscheiden und zu unterschiedlichen Bewertungen führen. Einzelheiten der Bewertungsmethode und die Calvert Principles for Responsible Investment sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds kann ergänzend in Wertpapiere investieren, die vom Anlageberater nicht als Grüne Anleihen eingestuft werden, sofern der Anlageberater festgestellt hat, dass der Emittent und/oder das
Wertpapier entweder durch die Produkte und Dienstleistungen des Emittenten oder durch seine Praktiken oder durch die spezifischen Projekte oder Investitionen, die durch die Anleiheemission finanziert werden, einen wesentlichen Beitrag zu positiven sozialen Auswirkungen oder Ergebnissen leistet, und vorausgesetzt, der Anlageberater hat festgestellt, dass die Tätigkeiten des Emittenten oder die mit der Anleiheemission verbundenen Projekte nicht zu negativen ökologischen oder sozialen Auswirkungen führen oder erhebliche Beeinträchtigungen im Sinne der Anforderungen der SFDR für nachhaltige Anlagen verursachen. Solche Anlagen können sogenannte Soziale Anleihen umfassen, deren Erlöse in Projekte fließen, die auf positive soziale Ergebnisse und/oder Zielgruppen ausgerichtet sind, oder Anleihen mit Nachhaltigkeitsbezug mit sozialen Leistungsindikatoren und Zielen. Derartige Anleihen unterliegen ebenfalls dem eigenen Bewertungsrahmen des Anlageberaters, wie oben beschrieben. Die Bezeichnungen  „Grün“,  „Sozial“,  „Nachhaltigkeit“  und
„Nachhaltigkeitsbezogen“, die den Anleihen von ihren Emittenten
verliehen werden, bedeuten, dass ihre Rahmenbedingungen in den meisten Fällen, wenn auch nicht ausschließlich, mit den Grundsätzen der International Capital Market Association (ICMA) für Grüne/Soziale/Nachhaltigkeitsbezogene Anleihen oder den Leitlinien für Nachhaltigkeitsanleihen bzw. den in anderen Ländern festgelegten Grundsätzen/Leitlinien übereinstimmen.
Das Ziel des Anlageberaters besteht darin, sicherzustellen, dass mindestens 90 % der Wertpapiere im Portfolio im Hinblick auf die oben beschriebenen Nachhaltigkeitsthemen und ESG-Fragen bewertet werden.
In Bezug auf diesen Fonds bezieht sich die Verwendung von
„Calvert“ im Namen auf Calvert Research and Management („Calvert“), dessen Rolle in Bezug auf diesen Fonds auf die Bereitstellung von Research für den Anlageberater zur Unterstützung des Anlageberaters bei der Verwaltung des Fonds beschränkt ist. Calvert hat keine Befugnis, Anlageentscheidungen im Namen des Fonds zu treffen oder zu empfehlen; eine solche Anlagebefugnis liegt ausschließlich beim Anlageberater.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) derivative Instrumente wie Index-Futures, Differenzkontrakte (CFDs), TRS, strukturierte Anleihen (einschließlich Genussscheine), Wandelanleihen, wandelbare Vorzugsaktien, Optionen, Devisenoptionen, Devisenterminkontrakte und Terminkontrakte und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
- umstrittenen Waffen;
- Herstellung oder Produktion von zivilen Schusswaffen;
- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt;
- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet; und
- Unterhaltung für Erwachsene, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.

Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Anlagen, die vom Fonds gehalten werden, aber nach Erwerb für den Fonds aufgrund der oben genannten ESG-Kriterien anschließend einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Es ist nicht zu erwarten, dass der Fonds insgesamt mehr als 50 % seines Nettovermögens in verbriefte Instrumente anlegen wird. Es ist nicht zu erwarten, dass der Fonds mehr als 20 % seines Nettovermögens in ein und dieselbe Art von verbrieften Instrumenten (z. B. forderungsbesicherte Wertpapiere (ABS), durch gewerbliche Hypotheken besicherte Wertpapiere (CMBS), durch Wohnhypotheken besicherte Wertpapiere (RMBS), durch Hypotheken besicherte Wertpapiere (MBS)) anlegen wird.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Calvert Sustainable Global Green Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EMERGING MARKETS CORPORATE DEBT FUND
Das Anlageziel des Emerging Markets Corporate Debt Fund besteht in der Maximierung einer in US-Dollar gemessenen Gesamtertrages, indem er in erster Linie in ein breites Spektrum von, von Unternehmen ausgegebenen festverzinslichen Wertpapieren sowie in festverzinsliche Wertpapiere von Regierungen und anderen staatsnahen Emittenten jeweils aus Schwellenmarktländern anlegt. Der Fonds beabsichtigt, seine Vermögensgegenstände in festverzinsliche Wertpapiere, die in Schwellenmarktländern begeben werden, anzulegen, die ein hohes Maß an laufenden Erträgen und gleichzeitig Kapitalwachstumspotenzial bieten.
„Schwellenmarkt“-Länder bezeichnet für die Zwecke dieses Fonds die in dem JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified enthaltenen Länder, sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41(1) des Gesetzes von 2010 angesehen werden. Sofern sich Märkte in weiteren Ländern entwickeln, erwartet der Fonds, dass er seine Vermögensanlagen in Schwellenmärkten, in denen er überwiegend investiert ist, ausweiten und weiter diversifizieren wird, wenn solche Märkte in diesen Index aufgenommen werden. Um sein Hauptanlageziel in Schwellenmarktländern zu erreichen, kann der Fonds in festverzinsliche Wertpapiere von Unternehmen, die in Schwellenmarktländern errichtet wurden und ansässig sind, und ebenso in festverzinsliche Wertpapiere von Unternehmen, die in Ländern mit entwickelten Märkten errichtet wurden und ansässig sind, (wobei dies für die Zwecke dieses Fonds die im JP Morgan Government Bond Index enthaltenen Länder sind) anlegen, wenn der Wert der Wertpapiere des Unternehmens im Wesentlichen die
Bedingungen in einem Schwellenmarktland widerspiegelt oder wenn das Wertpapierhandelsgeschäft vorwiegend in einem Schwellenmarktland betrieben wird oder wenn 50 % der Erträge des Unternehmens allein oder auf konsolidierter Basis aus Gütern, Verkäufen oder Dienstleistungen stammen, die in Schwellenmarktländern hergestellt, getätigt bzw. erbracht wurden („EM Exposed Securities“). Festverzinsliche Wertpapiere, die von dem Fonds gehalten werden, haben die Form von mittel- und langfristigen Anleihen, Wechseln und ähnlichen Formen möglicherweise unbesicherter, umlauffähiger Schuldtitel, Wandelschuldverschreibungen, Bankschuldverschreibungen, kurzfristigen Wertpapieren, hypothekenbesicherten Wertpapieren sowie, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, durch andere Vermögenswerte besicherten Wertpapieren, Kreditbeteiligungen und abgetretenen Kreditforderungen, vorausgesetzt, dass diese Instrumente wertpapiermäßig verbrieft sind.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist,
und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der Folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG-
bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann ergänzend auch in die oben genannten festverzinslichen Wertpapiere anlegen, wenn diese Wertpapiere von Emittenten, die (1) weder in Ländern mit entwickelten Märkten noch in Schwellenmarktländern errichtet wurden oder ansässig sind, begeben wurden, oder wenn diese Wertpapiere von Emittenten, die (2) in Ländern mit entwickelten Märkten errichtet wurden und ansässig sind, begeben wurden, jedoch keine EM Exposed Securities darstellen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. In solche Wertpapiere dürfen höchstens 20 % des Fondsvermögens angelegt werden.
Der Fonds kann in beschränktem Umfang in offene ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen. Der Fonds kann ergänzend in anderen festverzinslichen Wertpapieren aus Schwellenmärkten sowie in festverzinslichen Wertpapieren aus Schwellenmärkten, die auf eine andere Währung als US-Dollar lauten, anlegen.
Der Fonds kann außerdem in beschränktem Umfang in von Emittenten in Schwellenmärkten begebene Optionsscheine auf übertragbare Wertpapiere anlegen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified genannt werden, kann er in solche Wertpapiere aus Ländern zu unterschiedlichen Anteilen investieren, und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des JP Morgan Corporate Emerging Markets Bond Index – Broad Diversified abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Markets Corporate Debt Fund kann dieser für Anleger geeignet sein:
- die an Schwellenmärkten in festverzinslichen Wertpapieren anlegen möchten;
- die auf mittelfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EMERGING MARKETS DEBT FUND
Das Anlageziel des Emerging Markets Debt Fund besteht in der Maximierung eines in US-Dollar gemessenen Gesamtertrages, indem er vorwiegend in festverzinsliche Wertpapiere von Regierungen und anderen staatsnahen Emittenten aus
Schwellenmarktländern (wie unten definiert) (einschließlich Beteiligungen an Krediten zwischen Regierungen und Finanzinstituten, sofern diese wertpapiermäßig verbrieft sind) und in festverzinsliche Wertpapiere von Unternehmen, die ihren Sitz in Schwellenmarktländern haben, nach deren Recht errichtet wurden oder dort einen Hauptverwaltungssitz unterhalten, anlegt. Der Fonds beabsichtigt, seine Vermögenswerte in Schwellenmarktländern begebene festverzinsliche Wertpapiere anzulegen, die ein hohes Maß an laufenden Erträgen und gleichzeitig Kapitalwertsteigerungspotenzial bieten.
„Schwellenmarkt“-Länder bezeichnet für die Zwecke dieses Fonds die in dem JP Morgan Emerging Market Bond Index Global Diversified enthaltenen Länder, sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41
(1) des Gesetzes von 2010 angesehen werden. Sofern sich Märkte in weiteren Ländern entwickeln, erwartet der Fonds, dass er seine Vermögensanlagen in Schwellenmärkten, in denen er überwiegend investiert ist, ausweiten und weiter diversifizieren wird, wenn bzw. bevor solche Märkte in den JP Morgan Emerging Market Bond Index Global Diversified aufgenommen werden. Festverzinsliche Wertpapiere, die von dem Fonds gehalten werden, haben die Form von mittel- und langfristigen Anleihen, Wechseln und ähnlichen Formen möglicherweise unbesicherter, umlauffähiger Schuldtitel, Wandelschuldverschreibungen, Bankschuldverschreibungen, kurzfristigen Wertpapieren, hypothekenbesicherten Wertpapieren sowie, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, durch andere Vermögenswerte besicherten Wertpapieren, Kreditbeteiligungen und abgetretenen Kreditforderungen (vorausgesetzt, dass diese Instrumente wertpapiermäßig verbrieft sind) und Schuldtitel, die von Unternehmen begeben werden, die zum Zwecke der Restrukturierung der Anlagemerkmale von Instrumenten, die von Emittenten aus Schwellenmärkten begeben werden, gegründet und betrieben werden.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf staatlichen Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up- Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Kohlenstoffemissionen, Klimaanfälligkeit, Waldschutz, Lebenserwartung & Gesundheit, Bildung, Lebensstandards, Mitsprache & Rechenschaftspflicht, politische Stabilität, effektive Regierung, Qualität der Regulierung, Rechtsstaatlichkeit, Korruption und Gewalt/Terrorismus umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die
wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG-Bewertungen von Drittanbietern, um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt zudem einen eigenen Bewertungsrahmen für als nachhaltig gelabelte Anleihen ein, durch den die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet wird.
Der Anlageberater setzt sich für gute Governance-Praktiken und gutes Sozialverhalten innerhalb der Staaten ein. Daher wird der Anlageberater keine neuen Anlagen in Ländern vornehmen, in denen es Belege für Sozialverstöße gibt. Bestehende Anlagen in diesen Ländern müssen jedoch nicht zwangsläufig verkauft werden, und Länder, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Der Anlageberater legt die Methodik zur Bewertung erheblicher Sozialverstöße auf www.morganstanleyinvestmentfunds.com und auf www.morganstanley.com/im offen.
Um sein Hauptanlageziel in Schwellenmarktländern zu erreichen, kann der Fonds in festverzinslichen Wertpapieren von Unternehmen, die in Schwellenmarktländern nach deren Recht errichtet wurden, dort ansässig sind oder dort einen Hauptverwaltungssitz unterhalten, und ebenfalls in festverzinslichen Wertpapieren von Unternehmen, die in Ländern mit entwickelten Märkten nach deren Recht errichtet wurden, dort ansässig sind oder dort einen Hauptverwaltungssitz unterhalten (wobei dies für die Zwecke dieses Fonds die in dem JP Morgan Government Bond Index enthaltenen Länder sind) anlegen, wenn der Handel mit festverzinslichen Wertpapieren vorwiegend in einem Schwellenland betrieben wird oder wenn 50 % der Erträge des Unternehmens allein oder auf konsolidierter Basis aus Gütern, Verkäufen oder Dienstleistungen stammen, die in Schwellenmarktländern hergestellt, getätigt bzw. erbracht wurden („EM Exposed Securities“).
Speziell im Hinblick auf solche Unternehmen dürfen Anlagen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen
nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon besteht darin, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente,  nicht  geprüfte  Anlagen  zu
Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann ergänzend auch in die oben genannten Klassen von festverzinslichen Wertpapieren anlegen, wenn diese festverzinslichen Wertpapiere von Emittenten, die (1) weder in Ländern mit entwickelten Märkten noch in Schwellenmarktländern nach deren Recht errichtet wurden oder ansässig sind, noch (2) in Ländern mit entwickelten Märkten nach deren Recht errichtet wurden oder ansässig sind, begeben wurden, wo diese festverzinslichen Wertpapiere jedoch keine EM Exposed Securities darstellen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. In solche Wertpapiere dürfen höchstens 20 % des Fondsvermögens angelegt werden.
Der Fonds kann in beschränktem Umfang in von Emittenten in Schwellenmärkten begebenen Optionsscheinen anlegen, sowie in offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den JP Morgan Emerging Market Bond Index Global Diversified. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im JP Morgan Emerging Market Bond Index Global Diversified genannt werden, kann er in solche Wertpapiere aus Ländern zu unterschiedlichen Anteilen als ihrer Allokation im Rahmen des JP Morgan Emerging Market Bond Index Global Diversified investieren, und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im JP Morgan Emerging Market Bond Index Global Diversified genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des JP Morgan Emerging Market Bond Index Global Diversified abweichen kann. Der JP Morgan Emerging Market Bond Index Global Diversified wird ausschließlich zu Vergleichszwecken im Hinblick auf die Performance verwendet und berücksichtigt keine ökologischen oder sozialen Merkmale.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Markets Debt Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere aus Schwellenmärkten anlegen möchten,
- die auf mittelfristige Sicht Kapitalwertsteigerung erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EMERGING MARKETS DEBT OPPORTUNITIES FUND
Das Anlageziel des Emerging Markets Debt Opportunities Fund besteht in der Erzielung einer Gesamtrendite (Total Return), die als Ertrag plus Kapitalzuwachs definiert ist, durch den Aufbau von Long- und Short-Engagements in einem gemischten Pool aus Emerging-Markets-Schuldtiteln (wie nachstehend definiert) über Währungen, lokale Zinspapiere sowie Staats- und Unternehmenskredite, wobei er hauptsächlich in (i) festverzinsliche Wertpapiere von Unternehmen, Staaten und staatsnahen Emittenten mit Sitz in Schwellenmärkten und/oder (ii) derivative Instrumente, die auf Währungen, Zinssätze oder Emittenten von Schwellenmärkten lauten oder darauf basieren, anlegt. Die festverzinslichen Wertpapiere können Nullkuponanleihen, Vorzugsaktien, Anleihen mit Zinsaufschub sowie Anleihen und Schuldverschreibungen umfassen, bei denen die Zinsen in Form von zusätzlichen zulässigen Aktien, Anleihen oder Schuldverschreibungen derselben Art zu zahlen sind (Payment-in- Kind (PIK)-Wertpapiere).
„Schwellenmärkte“ sind für die Zwecke dieses Fonds alle Länder, die der Anlageberater unter Berücksichtigung von Faktoren wie der politischen und wirtschaftlichen Stabilität des Landes und der Entwicklung seiner Finanz- und Kapitalmärkte als Schwellenländer einstuft. Zu den Schwellenländern gehören auch die sogenannten
Frontier-Market-Länder. Frontier-Märkte sind eine Unterkategorie der Schwellenländer und werden vom Anlageberater im Allgemeinen als Länder betrachtet, die keine Industrieländer sind und (i) nicht im J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/ Local Currency 50-50 Index enthalten sind; oder (ii) 2 % oder weniger des J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index ausmachen, vorausgesetzt, dass die Märkte dieser Länder in jedem Fall als anerkannte Börsen im Sinne von Artikel 41(1) des Gesetzes von 2010 gelten. Der Fonds legt nicht in Industrieländern an, es sei denn zu Absicherungszwecken, um ein Engagement in festverzinslichen Wertpapieren zu erreichen, die auf Währungen von Schwellenländern lauten, und um (auch über derivative Instrumente) in US-Treasuries, US-Staatsanleihen und Agency- Wertpapieren sowie Agency Mortgage Backed Securities anzulegen.
Der Fonds kann in erheblichem Umfang in eine geografische Region oder ein Land investieren, und vorbehaltlich der vorstehenden Ausführungen in diesem Absatz gibt es keine Begrenzung des Engagements des Fonds in einer geografischen Region oder einem Land. Es ist nicht vorgesehen, dass der Fonds auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet wird.
Festverzinsliche Wertpapiere, die von dem Fonds gehalten werden, haben die Form von Staatsanleihen und Schuldverschreibungen, hypothekarischgesicherten Wertpapierenundforderungsbesicherten Wertpapieren, wandelbaren Schuldtiteln (in die Derivate eingebettet sein können), bedingten Wandelschuldverschreibungen, Kommunalobligationen,   Unternehmensanleihen   und
-schuldverschreibungen, festverzinslichen und variabel verzinslichen Schuldtiteln, Kreditbeteiligungen und Kreditabtretungen, soweit diese Instrumente verbrieft sind, sowie Participation Notes.
Der Fonds kann in Instrumente jeglicher Krediteinstufung investieren, einschließlich solcher mit einem Rating unterhalb von Investment Grade (unter BBB von Standard & Poor’s Ratings Services oder Fitch Ratings oder unter Baa von Moody’s Investors Service, Inc.), oder in nicht bewertete Instrumente, die der Anlageberater als von vergleichbarer Qualität ansieht.
Darüber hinaus bezieht der Anlageberater im Rahmen der Bewertung von festverzinslichen Wertpapieren, die von Unternehmen aus Schwellenländern begeben werden, und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads, Währung und Duration/lokale Zinsen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Kohlenstoffemissionen, Klimaanfälligkeit, Waldschutz, Lebenserwartung und Gesundheit,
Bildung, Lebensstandards, Mitsprache und Rechenschaftspflicht, politische Stabilität, effektive Regierung, Qualität der Regulierung, Rechtsstaatlichkeit, Korruption und Gewalt/Terrorismus umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG-Bewertungen von Drittanbietern, um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater setzt sich für gute Governance-Praktiken und gutes Sozialverhalten bei Unternehmensemittenten ein. Daher wird der Anlageberater keine neuen Anlagen in Emittenten vornehmen, bei denen es Belege dafür gibt, dass der betreffende Emittent erhebliche Sozialverstöße begangen hat (d. h. Aktivitäten, die die Rechte einer Einzelperson oder einer Gruppe erheblich verletzen). Bestehende Anlagen in diesen Emittenten müssen jedoch nicht zwangsläufig verkauft werden, und Emittenten, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Die vom Anlageberater angewandte Methodik zur Bewertung erheblicher Sozialverstöße wird auf den folgenden Websites offengelegt: www.morganstanleyinvestmentfunds.com und www.morganstanley.com/im.
In Bezug auf Anlagen in festverzinslichen Wertpapieren, die von Unternehmen ausgegeben werden, dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen
kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken von Emittenten laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Der Anlageberater setzt sich zudem für gute Governance-Praktiken und gutes Sozialverhalten seitens staatlicher Emittenten ein. Daher wird der Anlageberater keine neuen Anlagen in Ländern vornehmen, in denen es Belege für erhebliche Sozialverstöße gibt (erhebliche Versäumnisse der Regierung bei der Gewährleistung des Schutzes der sozialen Rechte einer Einzelperson oder einer Gruppe) Bestehende Anlagen in diesen Ländern müssen jedoch nicht zwangsläufig verkauft werden, und Länder, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Der Anlageberater legt die Methodik zur Bewertung erheblicher Sozialverstöße auf seiner Website offen.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit den Anlagezielen des Fonds vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der von dem Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Der Fonds kann sich bei Emittenten engagieren, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch den Fonds gefördert werden, wie
z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Der Anlageberater ist der Ansicht, dass die Integration von Nachhaltigkeitsrisiken, wie oben beschrieben, dazu beitragen kann, die Rendite des Fonds langfristig zu steigern, da Nachhaltigkeitsaspekte Quellen langfristiger Risiken und Erträge sind. Weitere Informationen über die Integration von Nachhaltigkeitsrisiken in Bezug auf die Gesellschaft sind im Abschnitt „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ des Prospekts enthalten.
Bei der Verwaltung des Fonds führt der Anlageberater makroökonomische und politische Untersuchungen und Analysen zu einzelnen Ländern durch. Er betrachtet unter anderem Faktoren wie das politische System und Umfeld eines Landes, die Steuerpolitik, die Geldpolitik, die Einkommenspolitik (d. h. Regierungspolitik, die sich auf die Gewinne von Unternehmen oder Einzelpersonen in dem jeweiligen Land auswirkt, z. B. Steuerpolitik, Subventionen in bestimmten Wirtschaftszweigen, Mindestlohngesetze oder Branchenvorschriften) und die Handelspolitik. Auf der Grundlage dieser Untersuchungen und Analysen versucht der Anlageberater, Länder und Währungen zu identifizieren, die seiner Einschätzung nach das Potenzial aufweisen, Anlagen in anderen Ländern und Währungen zu übertreffen, und zu diesem Zweck Veränderungen in globalen Volkswirtschaften, Märkten, politischen Bedingungen und anderen Faktoren zu antizipieren. Der Anlageberater wählt Anlagen aus und passt sie an, um von unterschiedlichen Bewertungen von Währungen, Zinssätzen und Kreditspreads von Ländern zu profitieren. Zur Umsetzung von Anlageentscheidungen wählt der Anlageberater eine Anlageklasse und ein spezifisches Instrument aus, das die Einschätzung des Anlageberaters zu dem jeweiligen Land am besten und effizientesten zum Ausdruck bringt. Der Anlageberater berücksichtigt die relativen Risiko-Rendite-Merkmale potenzieller Anlagen bei der Bestimmung der effizientesten Mittel zur Erreichung des gewünschten Engagements.
Der Fonds kann ergänzend auch in festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, Aktienwerte, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere aktiengebundene Wertpapiere investieren.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
In Erwartung möglicher künftiger Erträge oder Kapitalzuwächse darf der Fonds nicht mehr als 20 % seiner Vermögenswerte in Schuldtitel investieren, die keine laufenden Erträge ausschütten und die nicht bewertet sind oder als Schuldtitel mit dem niedrigsten Rating eingestuft werden (C-Rating von Moody’s oder D-Rating von S&P).
Der Fonds darf höchstens 10 % seiner Vermögenswerte in Participation Notes anlegen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds darf insgesamt höchstens 20 % seiner Vermögenswerte in forderungsbesicherte Wertpapiere (Asset-Backed Securities, ABS) und/oder hypothekarisch besicherte Wertpapiere (Mortgage- Backed Securities, MBS) anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, und bei der Überwachung der Abweichung gegenüber der Benchmark auf den J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index genannt werden, kann er in solche Wertpapiere aus Ländern zu unterschiedlichen Anteilen als ihrer Allokation im Rahmen des
J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/ Local Currency 50-50 Index investieren, und er kann Vermögenswerte halten, die nicht in Ländern engagiert sind, die im
J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/ Local Currency 50-50 Index genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des J.P. Morgan Emerging Markets Bond (JEMB) Hard Currency/Local Currency 50-50 Index abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Markets Debt Opportunities Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EMERGING MARKETS DOMESTIC DEBT FUND
Das Anlageziel des Emerging Markets Domestic Debt Fund ist die Maximierung des in US-Dollar gemessenen Gesamtertrages durch die Anlage hauptsächlich in ein Portfolio aus Anleihen und sonstigen festverzinslichen Wertpapieren aus Schwellenmärkten (wie unten definiert) in der Ausgabewährung des jeweiligen Landes. Der Fonds beabsichtigt, seine Vermögenswerte in Schwellenländern begebene festverzinsliche Wertpapiere anzulegen, die ein hohes Maß an laufenden Erträgen und gleichzeitig Kapitalwertsteigerungspotenzial bieten.
„Schwellenmarkt“-Länder bezeichnet für die Zwecke dieses Fonds die in dem JP Morgan Government Bond Index – Emerging Markets Global Diversified enthaltenen Länder, sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41 (1) des Gesetzes von 2010 angesehen werden. Sofern sich Schwellenmärkte in weiteren Ländern entwickeln, erwartet der Fonds, dass er seine Vermögensanlagen in Schwellenmärkten, in denen er überwiegend investiert ist, ausweiten und weiter diversifizieren wird, wenn bzw. bevor solche Märkte in den JP Morgan Government Bond Index – Emerging Markets Global Diversified aufgenommen werden.
Um sein Hauptanlageziel in Schwellenmarktländern zu erreichen, kann der Fonds Vermögen in festverzinslichen Wertpapieren von Regierungen und anderen staatsnahen Emittenten aus Schwellenmarktländern (einschließlich, sofern diese Wertpapiere verbrieft sind, Beteiligungen an Krediten zwischen Regierungen und Finanzinstituten) sowie festverzinslichen Wertpapieren von Unternehmen, die in Schwellenmarktländern ansässig sind, nach
deren Recht errichtet wurden oder dort einen Hauptverwaltungssitz unterhalten, und die auf die Ausgabewährung des jeweiligen Landes lauten, anlegen („EM Exposed Securities“).
Der Fonds kann in festverzinsliche Wertpapiere von Einheiten investieren, die aufgebaut wurden, um ausstehende Schulden von Emittenten aus Schwellenmärkten umzustrukturieren.
Festverzinsliche Wertpapiere, die von dem Fonds gehalten werden, haben die Form von mittel- und langfristigen Anleihen, Wechseln und ähnlichen Formen möglicherweise unbesicherter, umlauffähiger Schuldtitel, Wandelschuldverschreibungen, Bankschuldverschreibungen, kurzfristigen Wertpapieren, hypothekenbesicherten Wertpapieren sowie, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, durch andere Vermögenswerte besicherten Wertpapieren, Kreditbeteiligungen und abgetretenen Kreditforderungen, vorausgesetzt, dass diese Instrumente wertpapiermäßig verbrieft sind.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf staatlichen Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up- Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Kohlenstoffemissionen, Klimaanfälligkeit, Waldschutz, Lebenserwartung & Gesundheit, Bildung, Lebensstandards, Mitsprache & Rechenschaftspflicht, politische Stabilität, effektive Regierung, Qualität der Regulierung, Rechtsstaatlichkeit, Korruption und Gewalt/Terrorismus umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG-Bewertungen von Drittanbietern, um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt zudem einen eigenen Bewertungsrahmen für als nachhaltig gelabelte Anleihen ein, durch den die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet wird.
Der Anlageberater setzt sich für gute Governance-Praktiken und gutes Sozialverhalten innerhalb der Staaten ein. Daher wird der Anlageberater keine neuen Anlagen in Ländern vornehmen, in denen es Belege für Sozialverstöße gibt. Bestehende Anlagen in
diesen Ländern müssen jedoch nicht zwangsläufig verkauft werden, und Länder, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Der Anlageberater legt die Methodik zur Bewertung erheblicher Sozialverstöße auf www.morganstanleyinvestmentfunds.com und auf www.morganstanley.com/im offen.
Speziell im Hinblick auf Unternehmensemittenten dürfen Anlagen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon besteht darin, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen
Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann ergänzend auch in die oben genannten Klassen von festverzinslichen Wertpapiere anlegen, wenn diese festverzinslichen Wertpapiere von Emittenten, die (1) weder in Ländern mit entwickelten Märkten (für die Zwecke dieses Fonds wie durch den JP Morgan Government Bond Index – Emerging Markets Global Diversified definiert) noch in Schwellenmarktländern nach deren Recht errichtet wurden oder ansässig sind, oder (2) in Ländern mit entwickelten Märkten nach deren Recht errichtet wurden oder ansässig sind, begeben wurden, wo diese festverzinslichen Wertpapiere jedoch keine EM Exposed Securities darstellen.
Ferner kann der Fonds ergänzend in nicht auf die Ausgabewährung des jeweiligen Landes lautenden festverzinslichen Wertpapieren anlegen, mit der Maßgabe, dass der Fonds für vorübergehende defensive Zwecke in Zeiten, in denen die Gesellschaft dies aufgrund veränderter wirtschaftlicher, finanzieller oder politischer Bedingungen für ratsam hält, seine Anlagen in auf die Ausgabewährung des jeweiligen Schwellenmarktes lautenden Schuldverschreibungen auf unter 50 % seines Gesamtvermögens
reduzieren, und sein Vermögen in zulässige, auf die Währungen von Ländern mit entwickelten Märkten lautende festverzinslichen Wertpapieren anlegen.
Der Fonds kann auch in beschränktem Umfang in von Emittenten in Schwellenmärkten begebenen Optionsscheinen auf übertragbare Wertpapiere anlegen, sowie in offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere, die auf dem chinesischen Interbankenmarkt für Anleihen erworben wurden, anlegen. In solche Wertpapiere dürfen höchstens 20 % des Fondsvermögens angelegt werden.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den JP Morgan Government Bond Index – Emerging Markets Global Diversified. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im JP Morgan Government Bond Index – Emerging Markets Global Diversified genannt werden, kann er in solche Wertpapiere aus Ländern zu unterschiedlichen Anteilen als ihrer Allokation im Rahmen des JP Morgan Government Bond Index – Emerging Markets Global Diversified investieren und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im JP Morgan Government Bond Index – Emerging Markets Global Diversified genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des JP Morgan Government Bond Index – Emerging Markets Global Diversified abweichen kann. Der JP Morgan Government Bond Index – Emerging Markets Global Diversified wird ausschließlich zu Vergleichszwecken im Hinblick auf die Performance verwendet und berücksichtigt keine ökologischen oder sozialen Merkmale.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Markets Domestic Debt Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere aus Schwellenmärkten anlegen möchten,
- die auf mittelfristige Sicht Kapitalwertsteigerung erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen, insbesondere die mit Schwellenländern und besonders mit festverzinslichen Wertpapieren, die auf die Währung dieser Anlageländer lauten, verbundenen Risiken.

EMERGING MARKETS FIXED INCOME OPPORTUNITIES FUND
Das Anlageziel des Emerging Markets Fixed Income Opportunities Fund ist die Maximierung eines in US-Dollar gemessenen Gesamtertrags durch die Anlage vorwiegend in festverzinsliche Wertpapiere von Unternehmen aus Schwellenmarktländern oder in auf die Währungen von Schwellenmarktländern lautende Wertpapiere. Der Fonds beabsichtigt, seine Vermögensgegenstände in festverzinsliche Wertpapiere, die in Schwellenmarktländern begeben werden, anzulegen, die ein hohes Maß an laufenden Erträgen und gleichzeitig Kapitalwachstumspotenzial bieten.
„Schwellenmarkt“-Länder bezeichnet für die Zwecke dieses Fonds die im JP Morgan Emerging Markets Blended Index – Equally Weighted, ein gleichgewichteter Index wie der im JP Morgan Emerging Market Bond Index Global Diversified, JP Morgan Corporate Emerging Market Bond Index – Broad Diversified und JP Morgan Government Bond Index –Emerging Markets Global Diversified Index abgebildeten Länder, sofern die Märkte dieser Länder als anerkannte Börsen („Anerkannte Börsen“) im Sinne von Artikel 41(1) des Gesetzes von 2010 angesehen werden. Es sei vorsorglich darauf hingewiesen, dass eine Anlage in ein Wertpapier, das in diesem Index abgebildet ist, eine Anlage im Rahmen der vorrangigen Anlagestrategie des Fonds darstellt. Sofern sich Märkte in weiteren Ländern entwickeln, erwartet der Fonds, dass er seine Vermögensanlagen in Schwellenmärkten, in denen er überwiegend investiert ist, ausweiten und weiter diversifizieren wird, wenn solche Märkte in diesen Index aufgenommen werden.
Um sein Hauptanlageziel in Schwellenmarktländern zu erreichen, kann der Fonds auch in festverzinsliche Wertpapiere von Unternehmen, die in Ländern mit entwickelten Märkten (für die Zwecke dieses Fonds, wie im JP Morgan Government Bond Index definiert) errichtet wurden und ansässig sind, anlegen, wenn der Wert der Wertpapiere des Unternehmens im Wesentlichen die
Bedingungen eines Schwellenmarktlandes widerspiegelt oder wenn das Wertpapierhandelsgeschäft vorwiegend in einem Schwellenmarktland betrieben wird oder wenn 50 % der Erträge des Unternehmens allein oder auf konsolidierter Basis aus Gütern, Verkäufen oder Dienstleistungen stammen, die in Schwellenmarktländern hergestellt, getätigt bzw. erbracht wurden („EM Exposed Securities“).
Der Fonds kann in festverzinsliche Wertpapiere von Emittenten anlegen, deren Aufgabe die Restrukturierung von ausstehenden Verbindlichkeiten von Emittenten aus Schwellenmarktländern ist.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der Folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann ergänzend in festverzinsliche Wertpapiere anlegen, die von Emittenten begeben werden, die (1) weder in Ländern mit entwickelten Märkten noch in Schwellenmarktländern errichtet wurden und ansässig sind, oder (2) in Ländern mit entwickelten Märkten errichtet wurden und ansässig sind, jedoch keine EM Exposed Securities darstellen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. In solche Wertpapiere dürfen höchstens 20 % des Fondsvermögens angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den JP Morgan Emerging Markets Blended Index – Equally Weighted. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im JP Morgan Emerging Markets Blended Index – Equally Weighted genannt werden, kann er in solche Wertpapiere aus Ländern zu unterschiedlichen Anteilen investieren, und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im JP Morgan Emerging Markets
Blended Index – Equally Weighted genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des JP Morgan Emerging Markets Blended Index – Equally Weighted abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Markets Fixed Income Opportunities Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EMERGING MARKETS LOCAL INCOME FUND
Das Anlageziel des Emerging Markets Local Income Fund besteht in der Erzielung einer Gesamtrendite (Total Return), die als Ertrag plus Kapitalzuwachs definiert ist, durch den Aufbau eines auf lokale Währungen lautenden Pools von Schuldtiteln aus Schwellenländern (wie nachstehend definiert) über Währungen und Zinspapiere, wobei er hauptsächlich in (i) festverzinsliche Wertpapiere von Unternehmen, Staaten und staatsnahen Emittenten mit Sitz in Schwellenmärkten und/oder (ii) derivative Instrumente, die auf Währungen, Zinssätze oder Emittenten von Schwellenmärkten lauten oder darauf basieren, anlegt.
Für die Zwecke dieses Fonds gelten alle Länder als „Schwellenländer“, die nicht vor 1975 Mitglied der OECD geworden sind, sowie die Türkei. Zu den Schwellenländern gehören die sogenannten Frontier-Market-Länder, bei denen es sich nach Ansicht des Anlageberaters im Allgemeinen um weniger entwickelte Länder handelt, die: (i) nicht im J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified enthalten sind; oder (ii) höchstens 2 % des J.P. Morgan Government Bond
Index: Emerging Market (JPM GBI-EM) Global Diversified ausmachen.
Der Fonds kann in erheblichem Umfang in eine geografische Region oder ein Land investieren. Es ist nicht vorgesehen, dass der Fonds auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet wird.
Die vom Fonds gehaltenen festverzinslichen Wertpapiere werden in Form von Staatsanleihen und Schuldverschreibungen, hypothekarischgesicherten Wertpapierenundforderungsbesicherten Wertpapieren, wandelbaren Schuldverschreibungen, Kommunalobligationen,   Unternehmensanleihen   und
-schuldverschreibungen, festverzinslichen und variabel verzinslichen Schuldverschreibungen und in begrenztem Umfang in Form von Participation Notes gehalten. Die festverzinslichen Wertpapiere können Nullkuponanleihen, Vorzugsaktien, Anleihen mit Zinsaufschub sowie Anleihen und Schuldverschreibungen umfassen, bei denen die Zinsen in Form von zusätzlichen zulässigen Aktien, Anleihen oder Schuldverschreibungen derselben Art zu zahlen sind (Payment-in-Kind (PIK)-Wertpapiere).
Der Fonds kann in Instrumente jeglicher Krediteinstufung investieren, einschließlich solcher mit einem Rating unterhalb von Investment Grade (unter BBB von Standard & Poor’s Ratings Services oder Fitch Ratings oder unter Baa von Moody’s Investors Service, Inc.), oder in nicht bewertete Instrumente, die der Anlageberater als von vergleichbarer Qualität ansieht.
Im Rahmen des Anlageprozesses und der Anlagestrategie wird angestrebt, lokale Schwellenmärkte und deren Währungen zu bestimmen, die auf einer relativen Basis eine bessere Performance als andere vergleichbare Schwellenmärkte und deren Währungen aufweisen werden. Die wichtigsten Risikofaktoren bei der Analyse von Schwellenländeranleihen sind Kredit-, Durations-, Devisen- und Nachhaltigkeitsrisiko. Einzelne oder alle diese Faktoren können zur Outperformance beitragen. Daher geht der Anlageverwalter in einigen Fällen davon aus, dass die Währung eines Landes an Wert gewinnen wird, und versucht, durch die oben genannten derivativen Instrumente oder durch die Anlage in auf diese Währung lautende Wertpapiere ein Engagement in dieser Währung zu erzielen.
Darüber hinaus bezieht der Anlageberater im Rahmen der Bewertung von festverzinslichen Wertpapieren, die von Unternehmen aus Schwellenländern begeben werden, und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads, Währung und Duration/lokale Zinsen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen.
Diese Kriterien können Umwelt-, Sozial- und Governance-Themen („
ESG
“) wie Kohlenstoffemissionen, Klimaanfälligkeit, Waldschutz, Lebenserwartung & Gesundheit, Bildung, Lebensstandards, Mitsprache & Rechenschaftspflicht, politische Stabilität, effektive Regierung, Qualität der Regulierung, Rechtsstaatlichkeit, Korruption und Gewalt/Terrorismus umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG- Bewertungen von Drittanbietern, um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater setzt sich für gute Governance-Praktiken und gutes Sozialverhalten bei Unternehmensemittenten ein. Daher wird der Anlageberater keine neuen Anlagen in Emittenten vornehmen, bei denen es Belege dafür gibt, dass der betreffende Emittent erhebliche Sozialverstöße begangen hat (d. h. Aktivitäten, die die Rechte einer Einzelperson oder einer Gruppe erheblich verletzen). Bestehende Anlagen in diesen Emittenten müssen jedoch nicht zwangsläufig verkauft werden, und Emittenten, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Die vom Anlageberater angewandte Methodik zur Bewertung erheblicher Sozialverstöße wird auf den folgenden Websites offengelegt: www.morganstanleyinvestmentfunds.com und www.morganstanley.com/im.
In Bezug auf Anlagen in festverzinslichen Wertpapieren, die von Unternehmen ausgegeben werden, dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken von Emittenten laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Der Anlageberater setzt sich zudem für gute Governance-Praktiken und gutes Sozialverhalten seitens staatlicher Emittenten ein. Daher wird der Anlageberater keine neuen Anlagen in Ländern vornehmen, in denen es Belege für erhebliche Sozialverstöße gibt (erhebliche Versäumnisse der Regierung bei der Gewährleistung des Schutzes der sozialen Rechte einer Einzelperson oder einer Gruppe) Bestehende Anlagen in diesen Ländern müssen jedoch nicht zwangsläufig verkauft werden, und Länder, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Der Anlageberater legt die Methodik zur Bewertung erheblicher Sozialverstöße auf seiner Website offen.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit den Anlagezielen des Fonds vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der von dem Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen
Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Der Fonds kann sich bei Emittenten engagieren, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch den Fonds gefördert werden, wie
z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Der Anlageberater ist der Ansicht, dass die Integration von Nachhaltigkeitsrisiken, wie oben beschrieben, dazu beitragen kann, die Rendite des Fonds langfristig zu steigern, da Nachhaltigkeitsaspekte Quellen langfristiger Risiken und Erträge sind. Weitere Informationen über die Integration von Nachhaltigkeitsrisiken in Bezug auf die Gesellschaft sind im Abschnitt „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ des Prospekts enthalten.
Bei der Verwaltung des Fonds führt der Anlageberater makroökonomische und politische Untersuchungen und Analysen zu einzelnen Ländern durch. Er betrachtet unter anderem Faktoren wie das politische System und Umfeld eines Landes, die Steuerpolitik, die Geldpolitik, die Einkommenspolitik (d. h. Regierungspolitik, die sich auf die Gewinne von Unternehmen oder Einzelpersonen in dem jeweiligen Land auswirkt, z. B. Steuerpolitik, Subventionen in bestimmten Wirtschaftszweigen, Mindestlohngesetze oder Branchenvorschriften) und die Handelspolitik. Auf der Grundlage dieser Untersuchungen und Analysen versucht der Anlageberater, Länder und Währungen zu identifizieren, die seiner Einschätzung nach das Potenzial aufweisen, Anlagen in anderen Ländern und Währungen zu übertreffen, und zu diesem Zweck Veränderungen in globalen Volkswirtschaften, Märkten, politischen Bedingungen und anderen Faktoren zu antizipieren. Der Anlageberater wählt Anlagen aus und passt sie an, um von unterschiedlichen Bewertungen von Währungen, Zinssätzen und Kreditspreads von Ländern zu profitieren. Zur Umsetzung von Anlageentscheidungen wählt der Anlageberater eine Anlageklasse und ein spezifisches Instrument aus, das die Einschätzung des Anlageberaters zu dem jeweiligen Land am besten und effizientesten zum Ausdruck bringt. Der Anlageberater berücksichtigt die relativen Risiko-Rendite-Merkmale potenzieller Anlagen bei der Bestimmung der effizientesten Mittel zur Erreichung des gewünschten Engagements.
In Erwartung möglicher künftiger Erträge oder Kapitalzuwächse darf der Fonds nicht mehr als 20 % seiner Vermögenswerte in Schuldtitel investieren, die keine laufenden Erträge ausschütten und die nicht bewertet sind oder als Schuldtitel mit dem niedrigsten Rating eingestuft werden (C-Rating von Moody’s oder D-Rating von S&P).
Der Fonds darf insgesamt höchstens 20 % seiner Vermögenswerte in forderungsbesicherte Wertpapiere (Asset-Backed Securities, ABS) und/oder hypothekarisch gesicherte Wertpapiere (Mortgage- Backed Securities, MBS) anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds kann ergänzend auch in festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, Aktienwerte, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere aktiengebundene Wertpapiere investieren.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, und bei der Überwachung der Abweichung gegenüber der Benchmark auf den JP Morgan Government Bond Index – Emerging Market (JPM GBI-EM) Global Diversified. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified genannt werden, kann er in solche Wertpapiere aus Ländern zu unterschiedlichen Anteilen als ihrer Allokation im Rahmen des J.P. Morgan Government Bond Index: Emerging Market (JPM GBI- EM) Global Diversified investieren und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des J.P. Morgan Government Bond Index: Emerging Market (JPM GBI-EM) Global Diversified abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds
angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Emerging Markets Local Income Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EURO BOND FUND
Anlageziel des Euro Bond Fund ist die Erzielung einer attraktiven, in Euro gemessenen relativen Rendite.
Der Fonds wird vorwiegend in auf Euro lautende festverzinsliche, von Unternehmen, Staaten oder staatlich garantieren Emittenten begebene Wertpapiere investieren. Zur Renditesteigerung und/ oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren.
Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in beschränktem Umfang in offene ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Euro Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EURO CORPORATE BOND FUND
Anlageziel des Euro Corporate Bond Fund ist die Erzielung einer attraktiven, in Euro gemessenen relativen Rendite.
Der Fonds wird vorwiegend in auf Euro lautende festverzinsliche Wertpapiere, die von Unternehmen und anderen nicht-staatlichen Stellen begeben werden („Unternehmensanleihen“), investieren. Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter
BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums
stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann ergänzend auch Anlagen tätigen in:
- Nicht auf Euro lautende festverzinsliche Wertpapiere. In Übereinstimmung mit den Bestimmungen von Anhang A„Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem Euro wieder in Euro abgesichert werden.
- Festverzinsliche Wertpapiere, bei denen es sich nicht um Unternehmensanleihen handelt.

Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Euro Corporate Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EURO CORPORATE BOND – DURATION HEDGED FUND
Anlageziel des Euro Corporate Bond – Duration Hedged Fund ist, eine attraktive, in Euro gemessene Rendite zu erzielen und gleichzeitig das Exposure gegenüber Änderungen der Marktzinssätze zu verringern.
Duration misst die Kurssensitivität eines Schuldtitels in Bezug auf Zinsänderungen. Durationsrisiko bezeichnet das Risiko, dass sich der Wert einer Anlage aufgrund von Zinsänderungen ändert. Im Allgemeinen steigt der Wert von Schuldtiteln bei fallenden Zinsen und fällt bei steigenden Zinssätzen. Der Fonds versucht, sein Exposure gegenüber Änderungen der Marktzinssätze zu verringern, indem er die Laufzeit des Fonds absichert.
Der Fonds wird vorwiegend in erstklassige, auf Euro lautende festverzinsliche Wertpapiere, die von Unternehmen oder anderen nicht-staatlichen Emittenten begeben werden („Unternehmensanleihen“), anlegen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen
durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Als erstklassig gelten Wertpapiere, wenn sie zum Zeitpunkt ihres Erwerbs von S&P ein Rating von mindestens „BBB-„ bzw. von Moody’s ein Rating von mindestens „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Der Fonds darf Wertpapiere, die nach dem Erwerb herabgestuft wurden, weiter im Bestand halten, er wird jedoch keine besicherten Anleihen im Bestand halten, die nach dem Erwerb von S&P ein Rating von unter „BBB-„ bzw. von Moody’s von unter „Baa3“ erhalten haben und/oder keine anderen Wertpapiere, die ein Rating von S&P von unter „B-„ oder von Moody’s von unter „B3“ bzw. jeweils von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Der Fonds darf keine zusätzlichen Käufe herabgestufter Wertpapiere tätigen.
Der Fonds kann ergänzend Anlagen tätigen in:
- Unternehmensanleihen, die zum Zeitpunkt ihres Erwerbs von S&P ein Rating unterhalb von „BBB-“ bzw. von Moody’s ein Rating unterhalb von „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind.
- Nicht auf Euro lautende festverzinsliche Wertpapiere. In Übereinstimmung mit den Bestimmungen von Anhang A„Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem Euro wieder in Euro abgesichert werden.
- Festverzinsliche Wertpapiere, bei denen es sich nicht um Unternehmensanleihen handelt.

Der Fonds darf höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in Mortgage-Backed Securities oder Asset-Backed Securities anlegen.
Der Fonds kann in festverzinsliche Wertpapiere, die auf dem chinesischen Interbankenmarkt für Anleihen erworben wurden, anlegen. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Euro Corporate Bond – Duration Hedged Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EURO STRATEGIC BOND FUND
Anlageziel des Euro Strategic Bond Fund ist die Erzielung einer attraktiven, in Euro gemessenen relativen Rendite.
Der Fonds wird vorwiegend in auf Euro lautende, festverzinsliche Wertpapiere, die von Unternehmen, Staaten oder staatlich garantierten Emittenten begeben wurden, und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, investieren.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann ergänzend Anlagen in nicht auf Euro lautende, festverzinsliche Wertpapiere tätigen. In Übereinstimmung mit den Bestimmungen von Anhang A „Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem Euro wieder in Euro abgesichert werden.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instrumenten anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Euro Strategic Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EUROPEAN FIXED INCOME OPPORTUNITIES FUND
Anlageziel des European Fixed Income Opportunities Fund ist es, einen in Euro gemessenen attraktiven Gesamtertrag (total return) durch die Auswahl von auf Euro lautenden festverzinslichen Wertpapieren zu erzielen. Der Fonds wird versuchen, das Anlageziel durch die Allokation auf festverzinsliche Anlageklassen sowie durch die gezielte Auswahl von Märkten und Finanzinstrumenten zu erreichen.
Der Fonds wird vorwiegend in auf Euro lautende Wertpapiere von Unternehmen, Regierungen und staatsnahen Emittenten aus einem Spektrum festverzinslicher Anlageklassen, einschließlich High- Yield-Anleihen, Anleihen mit Anlagequalität, Mortgage-Backed Securities, Wandelanleihen und Währungen und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in andere forderungsbesicherte Wertpapiere (Asset-Backed Securities) sowie Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, anlegen. High-Yield-Anleihen sind von Unternehmen emittierte festverzinsliche Wertpapiere, die von S&P ein Rating unterhalb „BBB-“ oder von Moody’s ein Rating unterhalb „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Der Anlageberater kann in jede beliebige Kombination aus zwei oder mehreren der vorgenannten Anlageklassen anlegen.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder
ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann außerdem ergänzend in festverzinslichen Wertpapieren, die nicht auf Euro lauten, festverzinslichen Wertpapieren aus Schwellenmärkten und in zusätzlichen Wertpapieren, insbesondere Schuldverschreibungen, die in Stammaktien wandelbar sind, Barvermögen, Aktienwerten oder sonstigen aktiengebundenen Wertpapieren anlegen.
Der Fonds darf in festverzinsliche Wertpapiere investieren, die am China Interbank Bond Market erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des European Fixed Income Opportunities Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

EUROPEAN HIGH YIELD BOND FUND
Anlageziel des European High Yield Bond Fund ist die Erzielung einer attraktiven, in Euro gemessenen Rendite durch die globale Anlage vorwiegend in niedrig bewertete oder nicht mit einem Rating versehene festverzinsliche Wertpapiere, die von Regierungen, staatlichen Stellen und Unternehmen begeben wurden und eine Rendite erzielen, die über der allgemein auf festverzinsliche Wertpapiere mit europäischer Währung zu erzielenden Rendite in den vier höchsten Rating-Kategorien von S&P oder Moody’s liegt. Diese Anlagen können auch in festverzinsliche Wertpapiere von nichteuropäischen Emittenten und von Emittenten in Emerging Markets und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, erfolgen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den
Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann ergänzend in nicht auf eine europäische Währung lautende festverzinsliche Wertpapiere investieren. Um die Anlage in auf europäische Währungen lautende Wertpapiere zu optimieren, kann das Engagement in anderen Währungen als dem Euro gegenüber dem Euro abgesichert werden, und der Fonds kann ergänzend Derivatekontrakte eingehen, um synthetische auf europäische Währungen lautende, festverzinsliche Wertpapiere im hochverzinslichen Bereich zu schaffen, wobei die in „Anhang A“ („Anlagerichtlinien und Anlagegrenzen“) beschriebenen Grenzen gelten.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des European High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

FRONTIER MARKETS LOCAL DEBT FUND
Das Anlageziel des Frontier Markets Local Debt Fund besteht in der Erzielung einer Gesamtrendite (Total Return), die als Ertrag plus Kapitalzuwachs definiert ist, wobei er hauptsächlich in (i) festverzinsliche Wertpapiere von Unternehmen, Staaten und staatsnahen Emittenten, die in Frontier-Market-Ländern ansässig sind oder auf Währungen von Frontier-Market-Ländern lauten, und/oder (ii) derivative Instrumente, die auf Währungen, Zinssätze oder Emissionen von Frontier-Market-Ländern lauten oder darauf basieren, anlegt.
Für die Zwecke dieses Fonds sind „Frontier-Märkte“ eine Unterkategorie der Schwellenländer und werden vom Anlageberater im Allgemeinen als Länder betrachtet, die keine Industrieländer sind und (i) nicht im JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) enthalten sind; oder (ii) 2 % oder weniger des JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) ausmachen, vorausgesetzt, dass die Märkte dieser Länder in jedem Fall als anerkannte Börsen im Sinne von Artikel 41(1) des Gesetzes von 2010 gelten. Große Schwellenländer, die nicht im JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) enthalten sind, wie z. B. Korea, Taiwan, Hongkong, Singapur, Israel und Indien, gelten nicht als Frontier-Market- Länder, und der Fonds wird in diesen Ländern nicht engagiert sein.
Der Fonds kann in erheblichem Umfang in eine geografische Region oder ein Land investieren. Es ist nicht vorgesehen, dass der Fonds auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet wird.
Die vom Fonds gehaltenen festverzinslichen Wertpapiere werden in Form von Staatsanleihen und Schuldverschreibungen, Unternehmensanleihen und -schuldverschreibungen, festverzinslichen und variabel verzinslichen Schuldverschreibungen und in begrenztem Umfang in Form von Participation Notes gehalten. Die festverzinslichen Wertpapiere können des Weiteren Nullkuponanleihen, Vorzugsaktien, Anleihen mit Zinsaufschub sowie Anleihen und Schuldverschreibungen umfassen, bei denen die Zinsen in Form von zusätzlichen zulässigen Aktien, Anleihen oder Schuldverschreibungen derselben Art zu zahlen sind („Payment-in-Kind (PIK)-Wertpapiere“).
Der Fonds kann bis zu 100 % seiner Vermögenswerte in Instrumente investieren, die zum Zeitpunkt der Anlage ein Rating von mindestens B- von Standard & Poor’s Ratings Services oder Fitch Ratings oder B3 von Moody’s Investors Service, Inc. oder ein gleichwertiges Rating einer anderen Ratingagentur oder ein gleichwertiges internes Rating des Anlageberaters aufweisen.
Darüber hinaus bezieht der Anlageberater im Rahmen der Bewertung von festverzinslichen Wertpapieren, die von Unternehmen aus Frontier-Markets-Ländern begeben werden, und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads, Währung und Duration/lokale Zinsen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können Umwelt-, Sozial- und Governance-Themen („
ESG
“) wie Kohlenstoffemissionen, Klimaanfälligkeit, Waldschutz, Lebenserwartung & Gesundheit, Bildung, Lebensstandards, Mitsprache & Rechenschaftspflicht, politische Stabilität, effektive
Regierung, Qualität der Regulierung, Rechtsstaatlichkeit, Korruption und Gewalt/Terrorismus umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG- Bewertungen von Drittanbietern, um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden. Der eigene Bewertungsrahmen ist Teil der Screening-Politik des Fonds, die auf den folgenden Websites zur Verfügung steht: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Anlageberater setzt sich für gute Governance-Praktiken und gutes Sozialverhalten bei Unternehmensemittenten ein. Daher wird der Anlageberater keine neuen Anlagen in Emittenten vornehmen, bei denen es Belege dafür gibt, dass der betreffende Emittent erhebliche Sozialverstöße begangen hat (d. h. Aktivitäten, die die Rechte einer Einzelperson oder einer Gruppe erheblich verletzen) Bestehende Anlagen in diesen Emittenten müssen jedoch nicht zwangsläufig verkauft werden, und Emittenten, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Die vom Anlageberater angewandte Methodik zur Bewertung erheblicher Sozialverstöße wird auf den folgenden Websites offengelegt: www.morganstanleyinvestmentfunds.com und www.morganstanley.com/im.
In Bezug auf Anlagen in festverzinslichen Wertpapieren, die von Unternehmen ausgegeben werden, dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken von Emittenten laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Der Anlageberater setzt sich zudem für gute Governance-Praktiken und gutes Sozialverhalten seitens staatlicher Frontier-Markets- Emittenten ein. Daher wird der Anlageberater keine neuen Anlagen in Ländern vornehmen, in denen es Belege für erhebliche Sozialverstöße gibt (erhebliche Versäumnisse der Regierung bei der Gewährleistung des Schutzes der sozialen Rechte einer Einzelperson oder einer Gruppe) Bestehende Anlagen in diesen Ländern müssen jedoch nicht zwangsläufig verkauft werden, und Länder, die eine positive Dynamik in Bezug auf solche Verstöße aufweisen, unterliegen nicht der Kaufbeschränkung. Der Anlageberater legt die Methodik zur Bewertung erheblicher Sozialverstöße auf seiner Website offen.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit den Anlagezielen des Fonds vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der von dem Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder
angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen. Der Fonds kann sich bei Emittenten engagieren, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch den Fonds gefördert werden, wie
z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Der Anlageberater ist der Ansicht, dass die Integration von Nachhaltigkeitsrisiken, wie oben beschrieben, dazu beitragen kann, die Rendite des Fonds langfristig zu steigern, da Nachhaltigkeitsaspekte Quellen langfristiger Risiken und Erträge sind. Weitere Informationen über die Integration von Nachhaltigkeitsrisiken in Bezug auf die Gesellschaft sind im Abschnitt „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ des Prospekts enthalten.
Bei der Verwaltung des Fonds führt der Anlageberater makroökonomische und politische Untersuchungen und Analysen zu einzelnen Ländern durch. Er betrachtet unter anderem das politische System und Umfeld eines Landes, die Steuerpolitik, die Geldpolitik, die Kreditzinsen, die Höhe der Staatsverschuldung, die Einkommenspolitik (d. h. Regierungspolitik, die sich auf die Gewinne von Unternehmen oder Einzelpersonen in dem jeweiligen Land auswirkt, z. B. Steuerpolitik, Subventionen in bestimmten Wirtschaftszweigen, Mindestlohngesetze oder Branchenvorschriften) und die Handelspolitik. Auf der Grundlage dieser Untersuchungen und Analysen versucht der Anlageberater, Länder und Währungen zu identifizieren, die seiner Einschätzung nach das Potenzial aufweisen, Anlagen in anderen Ländern und Währungen zu übertreffen, und zu diesem Zweck Veränderungen in globalen Volkswirtschaften, Märkten, politischen Bedingungen und anderen Faktoren zu antizipieren. Der Anlageberater wählt Anlagen aus und passt sie an, um von unterschiedlichen Bewertungen von Währungen, Zinssätzen und Kreditspreads von Ländern zu profitieren. Zur Umsetzung von Anlageentscheidungen, die auf den vom Anlageberater durchgeführten Untersuchungen beruhen, wählt der Anlageberater Wertpapiere aus, in denen der Fonds ein Engagement eingeht, das dem Fonds nach Ansicht des Anlageberaters ein möglichst optimales und effizientes Engagement in dem betreffenden Land ermöglicht. Der Anlageberater berücksichtigt die relativen Risiko-Rendite-Merkmale potenzieller Anlagen bei der Bestimmung der effizientesten Mittel zur Erreichung des gewünschten Engagements.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds kann ergänzend auch in festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, Aktienwerte, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere aktiengebundene Wertpapiere investieren.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und bezieht sich bei der Festlegung einer geografischen Allokation der Länder, in die der Fonds anlegen wird, auf den JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM). Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in der Regel Vermögenswerte innerhalb der Länder halten wird, die im JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) genannt werden, kann er in solche Wertpapiere zu unterschiedlichen Anteilen als ihrer Allokation im Rahmen des JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) investieren und er kann Vermögenswerte halten, die nicht in Ländern angelegt sind, die im JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) genannt werden. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des JP Morgan Government Bond Index – Emerging Markets Global Diversified (GBI-EM) abweichen kann.
Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Frontier Markets Local Debt Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL ASSET BACKED SECURITIES FUND
Anlageziel des Global Asset Backed Securities Fund ist es, eine attraktive, in US-Dollar gemessene Gesamtrendite zu erzielen.
Der Fonds investiert vorwiegend in festverzinsliche Wertpapiere, bei denen es sich um Mortgage-Backed Securities, Commercial Mortgage-Backed Securities, Collaterized Mortgage Obligations und Covered Bonds, die durch Hypotheken, einschließlich einheitlicher Mortgage-Backed Securities („Mortgage-Backed Securities“) gedeckt sind, handelt. Mindestens 50 % der Vermögenswerte des Fonds werden in Wertpapieren angelegt werden, die von einer international anerkannten Ratingagentur als Wertpapiere „mit Anlagequalität“ (investment grade) bewertet wurden, in Wertpapieren, die vom Anlageberater als ähnlich kreditwürdig eingestuft wurden, oder in Wertpapieren, die von den Vereinigten Staaten von Amerika besichert sind.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental- Research-Prozesses und bei seinen Geschäften mit Emittenten, Kreditgebern und Servicern eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Fonds fördert nachhaltige und verantwortungsvolle Geschäftspraktiken von Emittenten von Verbriefungen. Um dies zu erreichen, darf der Fonds nicht wissentlich eine Verbriefung kaufen, bei der der Anlageberater einen der folgenden Punkte festgestellt hat, die in direktem Zusammenhang mit dem Emittenten einer Verbriefung stehen:
- wucherische Kreditvergabepraktiken
- Verstöße gegen die Standards des Consumer Financial Protection Bureau (CFPB);
- schwerwiegende Verfehlungen bei Zahlungseinzugsverfahren und Zwangsvollstreckungspraktiken; und
- betrügerisches Verhalten.

Der Anlageberater verwendet Daten von Drittanbietern. In einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen nach bestem Wissen und Gewissen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A ausgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures, Swaps, Optionen auf Swaps (Swaptions) und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann ergänzend in festverzinsliche Wertpapiere anlegen, bei denen es sich nicht um Mortgage-Backed Securities handelt.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Asset Backed Securities Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BOND FUND
Anlageziel des Global Bond Fund ist es, eine attraktive, in US-Dollar gemessene Rendite durch Auswahl der Märkte, Finanzinstrumente und Währungen zu erwirtschaften. Der Fonds wird hauptsächlich in inländischen und internationalen festverzinslichen Wertpapieren sowie solchen aus Schwellenmärkten und Euromarket festverzinslichen Wertpapieren mit unterschiedlichen Laufzeiten anlegen, die in US-Dollar und anderen Währungen denominiert sind, einschließlich Asset-Backed Securities (einschließlich Mortgage-Backed Securities), Kreditbeteiligungen und abgetretenen Kreditforderungen, insofern diese Instrumente wertpapiermäßig verbrieft sind.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in Anleihen von Unternehmen angelegt ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist erstens, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Zweitens kann der Fonds in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen
durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Als geeignet für die Anlage im Sinne dieser Anlagestrategie gelten Wertpapiere, wenn sie zum Zeitpunkt ihres Erwerbs von S&P ein Rating von mindestens „BBB-„ bzw. von Moody’s ein Rating von mindestens „Baa3“ oder ein vergleichbares Rating von einer anderen international anerkannten Ratingagentur erhalten haben, oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Der Fonds kann auch dann noch Anlagen in derartigen Wertpapieren halten, wenn deren Rating nach dem Erwerb herabgestuft wird. Darüber hinaus kann der Fonds bis zu 10 % seines Nettoinventarwerts auch in Wertpapiere anlegen, die zum Zeitpunkt ihres Erwerbs von S&P ein Rating unterhalb von
„BBB-“ bzw. von Moody’s ein Rating unterhalb von „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere, die auf dem Chinesischen Interbankenmarkt für Anleihen erworben wurden, anlegen. In solche festverzinsliche Wertpapiere dürfen höchstens 10 % des Fondsvermögens angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern alle diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL CONVERTIBLE BOND FUND
Anlageziel des Global Convertible Bond Fund ist ein langfristiges, in US-Dollar gemessenes Kapitalwachstum, und zwar hauptsächlich durch Anlage in wandelbare Anleihen von Unternehmen, die in Industrienationen oder Schwellenmärkten gegründet wurden oder dort tätig sind, wobei die Anlagen auf eine beliebige Währung lauten können.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften
Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in Anleihen von Unternehmen angelegt ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG- Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist erstens, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Zweitens kann der Fonds in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden und die aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am
OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann ergänzend in andere festverzinsliche Wertpapiere sowie auch in eine Kombination aus Aktien und Optionsscheinen auf übertragbare Wertpapiere investieren, wobei diese Anlage aus der Ausübung des in den Wandelanleihen enthaltenen Wandlungsrechts oder aus der Alternativanlage zu Wandelanleihen bestehen kann, wenn ihm dies geeignet erscheint.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in beschränktem Umfang in offene ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Convertible Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- in festverzinsliche Wertpapiere anlegen möchten;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL FIXED INCOME OPPORTUNITIES FUND
Anlageziel des Global Fixed Income Opportunities Fund ist es, ein attraktives Level des in US-Dollar gemessenen Gesamtertrags (Total Return) durch die Anlage in internationale festverzinsliche Wertpapiere zu erzielen. Der Fonds wird versuchen, das Anlageziel
durch die Allokation auf festverzinsliche Anlageklassen sowie durch die gezielte Auswahl von Märkten und Finanzinstrumenten zu erreichen.
Der Fonds wird vorwiegend in internationalen Wertpapieren von Unternehmen, Regierungen und staatsnahen Emittenten innerhalb eines Spektrums von festverzinslichen Anlageklassen, einschließlich High-Yield-Anleihen, Anleihen von Anlagequalität, Mortgage- Backed Securities, Wandelanleihen und Währungen und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, anlegen. High-Yield-Anleihen sind von Unternehmen emittierte festverzinsliche Wertpapiere, die von S&P ein Rating unterhalb „BBB-“ oder von Moody’s ein Rating unterhalb „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Diese Anlagen können auch in Schwellenmärkten begebene festverzinsliche Wertpapiere umfassen. Der Anlageberater kann in jede beliebige Kombination aus zwei oder mehreren der vorgenannten Anlageklassen anlegen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand
dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die
IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann außerdem ergänzend in zusätzliche Wertpapiere, insbesondere Barvermögen, Aktienwerte oder sonstige aktiengebundene Wertpapiere anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Fixed Income Opportunities Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL HIGH YIELD BOND FUND
Der Global High Yield Bond Fund ist darauf ausgerichtet, eine attraktive, in US-Dollar gemessene Rendite zu erzielen, indem er in erster Linie in festverzinsliche Wertpapiere anlegt, die von Unternehmen weltweit begeben werden und die von S&P mit
„BBB-“ oder darunter oder von Moody’s mit „Baa3“ oder darunter bewertet wurden oder die von einer anderen international anerkannten Ratingagentur ein entsprechendes Rating erhalten haben bzw. vom Anlageberater als ähnlich kreditwürdig eingestuft wurden. Diese Anlagen können auch in Schwellenmärkten begebene festverzinsliche Wertpapiere und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, umfassen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko,
Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des
Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds darf ergänzend in andere festverzinsliche Wertpapiere (einschließlich von Regierungen und Regierungsstellen begebene Wertpapiere sowie Wertpapiere, die von S&P mit „BBB-“ oder höher oder von Moody’s mit „Baa3“ oder höher bewertet wurden
oder die von einer anderen international anerkannten Ratingagentur ein entsprechendes Rating erhalten haben bzw. vom Anlageberater als ähnlich kreditwürdig eingestuft wurden) anlegen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL MACRO FUND
Das Anlageziel des Global Macro Fund ist die Erzielung einer positiven absoluten Rendite unter allen Marktbedingungen in Form von Erträgen und Kapitalzuwachs über einen rollierenden Dreijahreszeitraum durch ein Engagement in Währungen, US-amerikanischen und nicht US-amerikanischen Zinssätzen und Emittenten.
Zur Umsetzung seines Anlageziels legt der Fonds vorwiegend in ein Portfolio aus übertragbaren Wertpapieren und festverzinslichen Wertpapieren weltweit an und setzt zudem derivative Finanzinstrumente ein.
Das primäre Anlageuniversum des Fonds umfasst festverzinsliche Wertpapiere (die von staatlichen und staatsnahen Emittenten sowie von Unternehmensemittenten mit Sitz sowohl in Industrie- als auch in Schwellenländern begeben werden, einschließlich, jedoch ohne Beschränkung auf Mortgage-Backed Securities und sonstige Asset-Backed Securities, inflationsgebundene Anleihen von staatlichen, staatsnahen und Unternehmensemittenten, Schuldtitel von Unternehmen (unter anderem wandelbare Wertpapiere und Commercial Papers von Unternehmen)), Anteile an offenen und geschlossenen Organismen für gemeinsame Anlagen, strukturierte Produkte, Einlagen und in begrenztem Umfang auch Participation Notes.
Der Fonds wird nicht auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet. Die Anlagen des Fonds können sich stark auf eine geografische Region oder ein Land konzentrieren und es gibt keine Begrenzung des Engagements des Fonds in einer geografischen Region oder einem Land. Der Fonds kann bis zu 100 % seines Nettovermögens in die Wertpapiere von Emittenten in Schwellenländern anlegen (für die Zwecke dieses Fonds alle Länder, die nicht vor 1975 Mitglied der OECD geworden sind, sowie die Türkei).
Der Anlageberater passt Anlagen an, um von Unterschieden bei Wertpapieren, Ländern, Währungen und Krediten zu profitieren, und zwar auf der Grundlage seiner Einschätzung verschiedener Faktoren, einschließlich der günstigsten Märkte, Zinssätze und Emittenten, des relativen Rendite- und Wertsteigerungspotenzials von Wertpapieren eines bestimmten Landes und des Verhältnisses der Währung eines Landes zum USD. Der Anlageberater ermittelt Länder und Währungen, in denen sich die Anlagen des Fonds besser entwickeln werden als vergleichbare Anlagen in anderen Ländern und Währungen, und strebt in vielen Fällen danach, Veränderungen in Volkswirtschaften, Märkten, politischen Bedingungen und anderen Faktoren vorherzusagen.
Bei der Bewertung der von Regierungen, staatlichen Stellen und staatlich geförderten Unternehmen ausgegebenen Schuldtitel, in die der Fonds investieren kann, berücksichtigt der Anlageberater Umwelt-, Sozial- und Governance-Kriterien („ESG“). Im Rahmen seines Research- und Anlageauswahlverfahrens für Schuldtitel beachtet der Anlageberater die ESG-Aspekte jedes Landes und führt eine qualitative Analyse jedes Landes durch, wobei er die ESG-Faktoren für jedes Land auf der Grundlage von Informationen bewertet, die von den Research-Mitarbeitern des Anlageberaters, des Unterberaters (falls zutreffend) und/oder ihrer verbundenen Unternehmen sowie von Quellen Dritter erfasst wurden. Diese qualitative Analyse wird durch quantitative ESG-Bewertungen
ergänzt, die der Anlageberater jedem Land zuweist, wobei die ESG- Bewertungen einen länderübergreifenden Vergleich ermöglichen. Im Zuge der Analyse des Anlageberaters kann der Anlageberater ESG-Faktoren Rechnung tragen, die Nachhaltigkeitsrisiken oder
-chancen umfassen und die sich langfristig auf die finanzielle Lage oder die Wertentwicklung des Landes auswirken können, einschließlich, aber nicht beschränkt auf Verschmutzung/Umwelt/ Gesundheit des Ökosystems, Risiko sozialer Unruhen, menschliche Entwicklung, Demokratie sowie Rechte und Freiheiten.
Der Anlageberater ist der Ansicht, dass die Integration von Nachhaltigkeitsrisiken, wie oben beschrieben, dazu beitragen kann, die Rendite des Fonds langfristig zu steigern, da Nachhaltigkeitsaspekte Quellen langfristiger Risiken und Erträge sind.
Der Fonds darf insgesamt höchstens 20 % seiner Vermögenswerte in forderungsbesicherte Wertpapiere (Asset-Backed Securities, ABS) und/oder hypothekarisch gesicherte Wertpapiere (Mortgage- Backed Securities, MBS) anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds kann außerdem ergänzend in Optionsscheine anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Macro Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SHORT DURATION US GOVERNMENT INCOME FUND
Das Anlageziel des Short Duration US Government Income Fund besteht in der Erzielung einer Gesamtrendite (Total Return), die als Ertrag plus Kapitalzuwachs definiert ist, wobei er wenigstens 90 % seines Nettovermögens in festverzinsliche Wertpapiere anlegt, die von der US-Regierung oder ihren Stellen oder Einrichtungen begeben, besichert oder anderweitig garantiert werden. Die in Dollar gewichtete durchschnittliche Duration des Fonds beträgt normalerweise weniger als 3 Jahre, kann aber unter bestimmten Marktbedingungen höher sein. In der Regel gilt: Je länger die durchschnittliche Duration des Portfolios, desto größer ist das Zinsrisiko und desto stärker kann der Wert des Fonds schwanken. Aufgrund der relativ kurzen Duration des Fonds ist es wahrscheinlich, dass der Fonds verhältnismäßig stabile Renditen erzielt und dass der Wert des Fonds relativ geringen Schwankungen unterliegt. Die Rendite des Fonds wird vornehmlich durch Ertragszahlungen aus den zugrunde liegenden Anlagen und nicht durch Kapitalzuwachs des Portfolios erwirtschaftet.
Der Fonds kann Termingeschäfte zum Kauf von hypothekarisch gesicherten Wertpapieren („
MBS
“) eingehen, die von Ginnie Mae, Fannie Mae und Freddie Mac begeben werden (To-Be-Announced- Transaktionen bzw. „TBAs“). Solche Termingeschäfte können zum Zwecke der Hebelung von Anlagen eingegangen werden.
Der Anlageberater des Fonds nutzt bei seinen Anlageentscheidungen die von den Research-Mitarbeitern des Anlageberaters, des Unterberaters (falls zutreffend) und/oder ihrer verbundenen Unternehmen bereitgestellten Informationen und deren Fachkenntnisse. Bei der Auswahl der Wertpapiere, in die angelegt werden soll, achtet der Anlageberater auf die Ermittlung der Wertpapiere, die seiner Ansicht nach den besten relativen Wert in Bezug auf Preis, Rendite und erwartete Gesamtrendite im Vergleich zu anderen verfügbaren Instrumenten aufweisen. Wertpapiere werden anhand verschiedener Modelle für vorzeitige Rückzahlungen (d. h. Modelle, die die erwartete Höhe der vorzeitigen Rückzahlungen eines Portfolios von Vermögenswerten analysieren) und Szenarien, die Eigentum des Anlageberaters sind, analysiert und im Vergleich zum Gesamtmarkt auf Risiko-Rendite-Basis bewertet. Wertpapiere werden zudem im Zusammenhang mit dem Gesamtportfolio des Fonds geprüft, um festzustellen, ob das Wertpapier in das Portfolio passt, sowie um sicherzustellen, dass die Allokation nicht zu einer Übergewichtung des Portfolios gegenüber einem bestimmten Risikofaktor führt. Im Rahmen des Auswahlverfahrens analysiert der Anlageberater eine Reihe von
Faktoren in Bezug auf jedes Wertpapier, einschließlich (i) der zugrunde liegenden Sicherheitseigenschaften des Wertpapiers, (ii) der Vorauszahlungserwartungen für die Sicherheit und (iii) der Vereinbarkeit der Struktur des Wertpapiers mit diesen Erwartungen bezüglich Vorauszahlungen. Die Sicherheitenanalyse beinhaltet eine eingehende Untersuchung der Kreditnehmermerkmale, die die Wahrscheinlichkeit einer vorzeitigen Rückzahlung eines Wertpapiers beeinflussen können, und umfasst Faktoren wie die Agentur, die geografische Streuung der Kreditnehmer, die Zusammensetzung der Hypothekenverwalter, den Kreditumfang usw. Zur Auswahl der Wertpapierstruktur gehört die Identifizierung von Strukturen, von denen angenommen wird, dass sie durch die vom Anlageberater erwarteten Vorauszahlungen verbessert werden. Der Anlageberater trifft seine Anlageentscheidungen überwiegend auf der Grundlage von Fundamentalanalysen, einschließlich der oben genannten Faktoren, und des relativen Werts und kann ein Wertpapier verkaufen, wenn es seiner Einschätzung nach basierend auf der Fundamentalanalyse nicht mehr den besten relativen Wert darstellt. Gestützt auf die vom Anlageberater durchgeführten Analysen und Untersuchungen, zu denen auch die relativen Risiko- Rendite-Merkmale jeder potenziellen Anlage zählen, wählt der Anlageberater Wertpapiere aus, die dem Fonds seiner Ansicht nach den besten relativen Wert bieten.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Zusätzlich zu den oben aufgeführten Punkten kann der Anlageberater bei seinen Anlageentscheidungen Umwelt-, Sozial- und Governance-Kriterien („
ESG
“) einbeziehen. Der Anlageberater kann bei der Bewertung von Anlagen auf das umfangreiche ESG- Research seiner Tochtergesellschaft Calvert Research and Management sowie auf sein eigenes ESG-Research zurückgreifen. In Anbetracht des Anlageschwerpunkts des Fonds auf Schuldtiteln, die von der US-Regierung oder ihren Regierungsstellen oder Einrichtungen begeben, besichert oder anderweitig garantiert werden, wird im Allgemeinen nicht erwartet, dass ESG-Erwägungen ein wesentlicher Faktor bei den Anlageentscheidungen des Fonds sein werden. Der Anlageberater ist der Ansicht, dass die Integration von Nachhaltigkeitsrisiken, wie oben beschrieben, dazu beitragen kann, die Rendite des Fonds langfristig zu steigern, da Nachhaltigkeitsaspekte Quellen langfristiger Risiken und Erträge sind.
Der Fonds darf insgesamt mehr als 20 % seiner Vermögenswerte in forderungsbesicherte Wertpapiere (Asset-Backed Securities, ABS) und/oder hypothekarisch gesicherte Wertpapiere (Mortgage- Backed Securities, MBS) anlegen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds kann darüber hinaus in begrenztem Umfang in festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie in andere aktienbezogene Wertpapiere investieren.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Short Duration US Government Income Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SHORT MATURITY EURO BOND FUND
Anlageziel des Short Maturity Euro Bond Fund ist die Erzielung einer attraktiven, in Euro gemessenen relativen Rendite.
Der Fonds wird vorwiegend in auf Euro lautende, festverzinsliche Wertpapiere, die von Unternehmen, Staaten oder staatlich garantierten Emittenten begeben wurden, investieren. Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds wird vorwiegend in einzelne Wertpapiere investieren, die eine nicht abgelaufene Laufzeit von maximal fünf Jahren haben, um dadurch die Volatilität zu verringern.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Short Maturity Euro Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf kurzfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE EURO CORPORATE BOND FUND
Anlageziel des Sustainable Euro Corporate Bond Fund ist es, eine attraktive, in Euro gemessene relative Rendite zu erzielen Dabei werden gleichzeitig ESG-Merkmale integriert, indem Sektoren und Emittenten mit niedrigen Bewertungen der Gesamtnachhaltigkeit aussortiert und unter Berücksichtigung der langfristigen Erwärmungsziele des Pariser Abkommens, wie nachstehend näher beschrieben, ein geringerer Kohlenstoff-Fußabdruck beibehalten wird, als die Unternehmensanleihenkomponente des Bloomberg European Corporate Index (siehe unten) vorsieht.
Der Fonds wird vorwiegend in auf Euro lautende festverzinsliche Wertpapiere, die von Unternehmen und anderen nicht-staatlichen Stellen begeben werden („Unternehmensanleihen“), investieren.
In Bezug auf diesen Fonds bedeutet „nachhaltig”, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie weiter unten erläutert. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) einbeziehen und das Management eines Unternehmens in Bezug auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, miteinbeziehen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt.  Der  Anlageberater  wird  die  wichtigsten
Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance-Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden einmal jährlich gemessen und bewertet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
- umstrittenen Waffen;
- Herstellung oder Produktion von zivilen Schusswaffen;
- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt; und
- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe dürfen Investitionen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Die Ausnahme zu oben Genanntem besteht darin, dass der Fonds in gelabelte nachhaltige Anleihen (siehe unten) oder andere Schuldtitel investieren kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte von Emittenten ausgegeben werden, die andernfalls unter die oben genannten Ausschlüsse für fossile Brennstoffe fallen würden. Hierbei muss der Anlageberater vorher feststellen, dass die Ziele solcher Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Der Fonds wird nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft, einschließlich Fälle im Sinne der OECD-Leitlinien für multinationale Unternehmen, und er der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden.
Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird nur in die besten 80 % der ESG-bewerteten Unternehmen in jedem Teilsektor des Bloomberg Barclays European Corporate Index investieren. Die ESG-Bewertungen werden vom Anlageberater auf Grundlage von ESG-Daten Dritter und unter Berücksichtigung von ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, Diversität & Inklusion in der Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze ermittelt. Die vorgenannten ESG-Kriterien sollten zu einer Reduzierung des Anlageuniversums von Unternehmen um mindestens 20 % führen, und der Anlageberater wird sich nach besten Kräften bemühen, sicherzustellen, dass mindestens 90 % der Unternehmen im Portfolio seiner ESG-Bewertungsmethodik unterzogen werden. Der Prozess und die Methodik des Positiv-Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden, aber nach Erwerb für den Fonds aufgrund der oben genannten ESG-Kriterien anschließend einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Für den Anteil des Fonds, der in Anleihen von Unternehmen investiert ist, wird der Fonds unter Berücksichtigung der langfristigen Erwärmungsziele des Pariser Abkommens einen geringeren Kohlenstoff-Fußabdruck beibehalten als die Unternehmensanleihenkomponente des Bloomberg European Corporate Index vorsieht, wobei die langfristigen Klimaschutzziele des Pariser Abkommens berücksichtigt werden. Der Kohlenstoff- Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete
durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen mit klimabezogenen Zielen können einen anderen Kohlenstoff-Fußabdruck aufweisen als die Emittenten der Anleihen. In solchen Fällen legt der Anlageberater seine Methodik zur Bestimmung des entsprechenden Kohlenstoff-Fußabdrucks solcher Instrumente offen.
Im Rahmen seiner Strategie kann der Anlageberater einen Teil des Fonds in nachhaltige Anleihen investieren, die als gelabelte nachhaltige Anleihen definiert sind und bei denen sich der Emittent verpflichtet hat, bestimmte ökologische und/oder soziale Ziele zu finanzieren oder zu erreichen, einschließlich, aber nicht beschränkt auf die unten aufgeführten Anleihen, die auf den wichtigsten Labels der bisher ausgegebenen Anleihen basieren, einschließlich der von der International Capital Market Association (ICMA) anerkannten Anleihen:
- grüne Anleihen;
- soziale Anleihen;
- nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) derivative Instrumente wie Index-Futures, Differenzkontrakte (CFDs), TRS, strukturierte Anleihen (einschließlich Genussscheine), Wandelanleihen, wandelbare Vorzugsaktien, Optionen, Devisenoptionen, Devisenterminkontrakte und Terminkontrakte und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter
B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Fonds kann ergänzend Anlagen tätigen in:
- Nicht auf Euro lautende festverzinsliche Wertpapiere. In Übereinstimmung mit den Bestimmungen von Anhang A„Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem Euro wieder in Euro abgesichert werden.
- Festverzinsliche Wertpapiere, bei denen es sich nicht um Unternehmensanleihen handelt.

Der Fonds darf höchstens 20 % seiner Vermögenswerte in Asset- Backed Securities anlegen.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instrumenten anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und bezieht sich zum Zwecke der Definition des Anlageuniversums auf den Bloomberg European Corporate Index. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in erster Linie in Wertpapiere anlegen wird, die im Bloomberg European Corporate Index enthalten sind, kann er in solche Komponenten mit einer anderen Gewichtung als die des Bloomberg European Corporate Index investieren und Wertpapiere halten, die nicht im Bloomberg European Corporate Index enthalten sind. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des Bloomberg European Corporate Index abweichen kann.
Die Performance des Fonds wird an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater die Unternehmensanleihenkomponente des Bloomberg European Corporate Index, um den Kohlenstoff- Fußabdruck des Fonds zu vergleichen.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable Euro Corporate Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE EURO STRATEGIC BOND FUND
Das Anlageziel des Sustainable Euro Strategic Bond Fund besteht darin, eine attraktive, in Euro gemessene relative Rendite zu erzielen, und zwar durch die Investition in Wertpapiere, die den ESG-Kriterien des Anlageberaters für festverzinsliche Wertpapiere entsprechen. Dabei werden gleichzeitig ESG-Merkmale integriert, indem Sektoren und Emittenten mit niedrigen Bewertungen der Gesamtnachhaltigkeit gefiltert werden und unter Berücksichtigung der langfristigen Erwärmungsziele des Pariser Abkommens, wie nachstehend näher beschrieben, ein geringerer Kohlenstoff-Fußabdruck beibehalten wird, als die Unternehmensanleihenkomponente des Bloomberg Euro Aggregate Index (siehe unten) vorsieht.
Der Fonds wird vorwiegend in auf Euro lautende, festverzinsliche Wertpapiere, unabhängig davon, ob sie von Unternehmen, staatlichen oder staatlich garantierten Emittenten begeben wurden, sowie, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, höchstens 20 % seiner Vermögenswerte in Asset-Backed Securities anlegen, vorausgesetzt, dass diese Instrumente verbrieft sind.
In Bezug auf diesen Fonds bedeutet „nachhaltig”, dass der Anlageberater Erwägungen zu Nachhaltigkeitsthemen und ESG- Themen in seine Anlageentscheidungen wie unten erläutert
einbezieht. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) einbeziehen und das Management des Unternehmens in Bezug auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, miteinbeziehen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance-Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden einmal jährlich gemessen und bewertet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
- umstrittenen Waffen;
- Herstellung oder Produktion von zivilen Schusswaffen;
- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt; und
- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe dürfen Investitionen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Die Ausnahme zu oben Genanntem besteht darin, dass der Fonds in gelabelte nachhaltige Anleihen (siehe unten) oder andere Schuldtitel investieren kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte von Emittenten ausgegeben werden, die andernfalls unter die oben genannten Ausschlüsse für fossile Brennstoffe fallen würden. Hierbei muss der Anlageberater vorher feststellen, dass die Ziele solcher Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Der Fonds wird nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft, einschließlich Fälle im Sinne der OECD-Leitlinien für multinationale Unternehmen, und er der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden. Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Für seine Anlagen in festverzinsliche Wertpapiere, die von Unternehmen ausgegeben werden, wird der Fonds nur in die besten 80 % der ESG-bewerteten Unternehmen in jedem Teilsektor des Bloomberg Euro Aggregate Index anlegen. Die ESG- Bewertungen werden vom Anlageberater auf Grundlage von ESG- Daten Dritter und unter Berücksichtigung von ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, Diversität & Inklusion in der Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze ermittelt. Bei den Anlagen des Fonds in festverzinsliche Wertpapiere, die von Staaten ausgegeben werden, wird der Fonds nur in Staaten investieren, die zu den besten 80 % der von uns beurteilten Staaten mit ESG-Bewertung gehören, es sei denn, der Anlageberater ist der Ansicht, dass ein Staat, der zu den unteren 20 % gehört, eine positive Nachhaltigkeitsdynamik aufweist und/oder eine nachhaltige Anleihe ausgibt (siehe unten). Der Fonds wird nicht in Anleihen von Staaten investieren, die wir nicht bewertet haben. Die vorgenannten ESG-Kriterien sollten zu einer Reduzierung des Anlageuniversums von Unternehmen und Staaten um mindestens 20 % führen, und der Anlageberater wird sich nach besten Kräften bemühen, sicherzustellen, dass mindestens 90 % der Unternehmen im Portfolio seiner ESG-Bewertungsmethodik unterzogen werden. Der Prozess und die Methodik des Positiv-Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden, aber nach Erwerb für den Fonds aufgrund der oben genannten ESG-Kriterien anschließend einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Für den Anteil des Fonds, der in Anleihen von Unternehmen investiert ist, wird der Fonds unter Berücksichtigung der langfristigen Erwärmungsziele des Pariser Abkommens einen geringeren CO2-Fußabdruck beibehalten, als die Unternehmensanleihenkomponente des Bloomberg Euro Aggregate Index vorsieht. Der Kohlenstoff-Fußabdruck bzw. CO2- Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen mit klimabezogenen Zielen können einen anderen Kohlenstoff- Fußabdruck aufweisen als die Emittenten der Anleihen. In solchen Fällen legt der Anlageberater seine Methodik zur Bestimmung des entsprechenden Kohlenstoff-Fußabdrucks solcher Instrumente offen.
Im Rahmen seiner Strategie kann der Anlageberater einen Teil des Fonds in nachhaltige Anleihen investieren, die als gelabelte nachhaltige Anleihen definiert sind und bei denen sich der Emittent verpflichtet hat, bestimmte ökologische und/oder soziale Ziele zu finanzieren oder zu erreichen, einschließlich, aber nicht
beschränkt auf die unten aufgeführten Anleihen, die auf den wichtigsten Labels der bisher ausgegebenen Anleihen basieren, einschließlich der von der International Capital Market Association (ICMA) anerkannten Anleihen:
- grüne Anleihen;
- soziale Anleihen;
- nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) derivative Instrumente wie Index-Futures, Differenzkontrakte (CFDs), TRS, strukturierte Anleihen (einschließlich Genussscheine), Wandelanleihen, wandelbare Vorzugsaktien, Optionen, Devisenoptionen, Devisenterminkontrakte und Terminkontrakte und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann ergänzend Anlagen in nicht auf Euro lautende, festverzinsliche Wertpapiere tätigen. In Übereinstimmung mit den Bestimmungen von Anhang A „Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem Euro wieder in Euro abgesichert werden.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instrumenten anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und bezieht sich zum Zwecke der Definition des Anlageuniversums auf den Bloomberg Euro Aggregate Index. Der Anlageberater hat volle Entscheidungsfreiheit über die Zusammensetzung des Fondsvermögens. Während der Fonds in erster Linie in Wertpapiere anlegen wird, die im Bloomberg Euro Aggregate Index enthalten sind, kann er in solche Komponenten mit einer anderen Gewichtung als die des Bloomberg Euro Aggregate Index investieren und Wertpapiere halten, die nicht im Bloomberg Euro Aggregate Index enthalten sind. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des Bloomberg Euro Aggregate Index abweichen kann.
Darüber hinaus wird die Performance des Fonds an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater die Unternehmensanleihenkomponente des Bloomberg Euro Aggregate Index, um den Kohlenstoff-Fußabdruck des Fonds zu vergleichen.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable Euro Strategic Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE EUROPEAN HIGH YIELD BOND FUND
Das Anlageziel des Sustainable European High Yield Bond Fund ist die Erwirtschaftung von laufenden Erträgen und einer Gesamtrendite (Total Return). Dabei werden gleichzeitig ESG- Merkmale integriert, indem Sektoren und Emittenten mit niedrigen Bewertungen der Gesamtnachhaltigkeit ausgeschlossen werden, um die langfristigen globalen Erwärmungsziele des Pariser Abkommens
zu erreichen, das gemäß dem Rahmenübereinkommen der Vereinten Nationen über Klimaänderungen (das „
Pariser Abkommen
“) verabschiedet wurde, wie weiter unten beschrieben.
Der Fonds legt in erster Linie in einem breit gefächerten Portfolio aus festverzinslichen Wertpapieren von Emittenten mit Sitz in Europa an, zu denen Nullkuponanleihen, Anleihen mit Zinsaufschub und Anleihen, deren Zinsen in Form weiterer zulässiger Anleihen derselben Art zahlbar sind (Payment-in-Kind (PIK)-Anleihen), gehören können.
Der Fonds investiert in festverzinsliche Wertpapiere, die zum Zeitpunkt der Anlage von Moody’s Investors Service, Inc. („Moody’s“) mit Baa3 oder niedriger, von Standard & Poor’s Ratings Group („S&P“) mit BBB- oder niedriger, von Fitch’s Investors Service, Inc. mit BBB oder niedriger oder mit einem gleichwertigen Rating einer anderen Rating-Agentur oder einem gleichwertigen internen Rating des Anlageberaters bewertet werden.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie weiter unten erläutert. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) vornehmen und das Management eines Unternehmens in Bezug auf Corporate-Governance-Praktiken sowie auf die seiner Ansicht nach wesentlichen ökologischen und/oder sozialen Themen eines Unternehmens einbeziehen.
Der Anlageberater greift bei der Bewertung von Anlagen auf einen Screening-Prozess, das umfangreiche ESG-Research seiner Tochtergesellschaft Calvert Research and Management sowie auf sein eigenes ESG-Research und Daten von Dritten zurück. Der Anlageberater wendet eigene Bewertungs- und Scoring-Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up- Fundamental-Research-Prozesses und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG- Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks
(gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet. Diese Bewertung berücksichtigt ESG-Themen wie Dekarbonisierung und Klimarisiko, Kreislaufwirtschaft und Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit und resiliente Arbeitsplätze.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
	- umstrittenen Waffen;
	- Herstellung oder Produktion von zivilen Schusswaffen;
	- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt; und
	- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.


Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe dürfen Investitionen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Die Ausnahme zu oben Genanntem besteht darin, dass der Fonds in gelabelte nachhaltige Anleihen (wie unten beschrieben) oder andere Schuldtitel investieren kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte von Emittenten ausgegeben werden, die andernfalls unter die oben genannten Ausschlüsse für fossile Brennstoffe fallen würden. Hierbei muss der Anlageberater vorher feststellen, dass die Ziele solcher Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend
anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Der Fonds wird nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft und der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden. Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Darüber hinaus wendet der Anlageberater in seinem Anlageprozess auch Positiv-Screenings an, die seiner Meinung nach mit seinen Zielen vereinbar sind. Der Prozess und die Methodik des Positiv- Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com und www.morganstanley.com/im.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums um wenigstens 20 % führen, und der Anlageberater wird sicherstellen, dass mindestens 90 % des Nettoinventarwerts des Fonds seinem ESG-Research unterzogen werden. Das Anlageuniversum für diese Zwecke ist definiert als der Index. Der Anlageberater wird ferner die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (für den Anteil des Fonds, der in festverzinslichen Schuldtiteln von Unternehmen angelegt ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Das Anlageuniversum wird laufend überprüft. Die ESG-Kriterien werden in Bezug auf jedes einzelne Unternehmen mindestens einmal jährlich überprüft, dies kann jedoch auch häufiger geschehen. Der Anlageberater nimmt bei Bedarf Anpassungen und Änderungen an der Methodik vor. Die oben genannten Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine Beschränkung eines der oben erläuterten ESG-Kriterien fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird einen geringeren CO2-Fußabdruck als der ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index einhalten, wobei die langfristigen Ziele des Pariser Abkommens zur globalen Erwärmung berücksichtigt werden. Der Kohlenstoff-Fußabdruck bzw. CO2- Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen mit klimabezogenen Zielen können einen anderen Kohlenstoff- Fußabdruck aufweisen als die Emittenten der Anleihen. In solchen Fällen legt der Anlageberater seine Methodik zur Bestimmung des entsprechenden Kohlenstoff-Fußabdrucks solcher Instrumente offen.
Im Rahmen seiner Strategie kann der Anlageberater einen Teil des Fonds in nachhaltige Anleihen investieren, die als gelabelte
„
Nachhaltige Anleihen
“ definiert sind und bei denen sich der Emittent verpflichtet hat, bestimmte ökologische und/oder soziale Ziele zu finanzieren oder zu erreichen, einschließlich, aber nicht beschränkt auf die unten aufgeführten Anleihen, die auf den wichtigsten Labels der bisher ausgegebenen Anleihen basieren, einschließlich der von der International Capital Market Association (ICMA) anerkannten Anleihen:
- Grüne Anleihen;
- Soziale Anleihen;
- Nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Der Fonds wird nicht auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet und die Anlagen des Fonds in einer Branche sollen in der Regel 25 % seines Nettovermögens nicht überschreiten, können aber von Zeit zu Zeit darüber hinausgehen.
In Erwartung möglicher künftiger Erträge oder Kapitalzuwächse darf der Fonds nicht mehr als 20 % seiner Vermögenswerte in Schuldtitel investieren, die keine laufenden Erträge ausschütten und die nicht bewertet sind oder als Schuldtitel mit dem niedrigsten Rating eingestuft werden (C-Rating von Moody’s oder D-Rating von S&P).
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds kann ergänzend auch in Aktienwerte oder festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere gebundene Wertpapiere investieren.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Die Performance des Fonds wird an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben. Diese Benchmark wird auch als ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index bezeichnet und zur Überwachung der Abweichung gegenüber der Benchmark verwendet. Während der Fonds im Allgemeinen Vermögenswerte im ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index halten wird, kann er in solchen Wertpapieren in anderen Anteilen als denjenigen im ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index anlegen, und er kann Vermögenswerte halten, die nicht im ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index enthalten sind. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des ICE BofA European Currency Developed Markets High Yield excluding Subordinated Financials Constrained Index abweichen kann.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen
über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde
liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable European High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE GLOBAL CREDIT FUND
Das Anlageziel des Sustainable Global Credit Fund besteht darin, eine attraktive, in USD gemessene relative Rendite zu erzielen und gleichzeitig ESG-Merkmale zu integrieren, indem Sektoren und Emittenten mit niedrigen Gesamtnachhaltigkeitsbewertungen ausgesondert werden und ein geringerer CO2-Fußabdruck als die Unternehmensanleihenkomponente des Bloomberg Global Aggregate Corporate Index eingehalten wird, wobei die langfristigen Klimaschutzziele des Pariser Abkommens, wie weiter unten beschrieben, berücksichtigt werden.
Der Fonds wird vorwiegend in auf globale Währungen lautende festverzinsliche Wertpapiere anlegen, die von Unternehmen und anderen nicht-staatlichen Emittenten, die sowohl in entwickelten Märkten und Schwellenmärkten errichtet oder tätig sind („Unternehmensanleihen“) begeben werden.
In Bezug auf diesen Fonds bedeutet „nachhaltig”, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie weiter unten erläutert. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) vornehmen und das Management eines Unternehmens in Bezug auf Corporate-Governance-Praktiken sowie auf die seiner Ansicht nach wesentlichen ökologischen und/oder sozialen Themen eines Unternehmens einbeziehen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den
Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG- Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Diese Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
	- umstrittenen Waffen;
	- Herstellung oder Produktion von zivilen Schusswaffen;
	- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt; und
	- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.


Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe dürfen Investitionen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Die Ausnahme zu oben Genanntem besteht darin, dass der Fonds in gelabelte nachhaltige Anleihen (wie unten beschrieben) oder andere Schuldtitel investieren kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte von Emittenten ausgegeben werden, die andernfalls unter die oben genannten
Ausschlüsse für fossile Brennstoffe fallen würden. Hierbei muss der Anlageberater vorher feststellen, dass die Ziele solcher Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Der Fonds wird nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft, einschließlich Fälle im Sinne der OECD-Leitlinien für multinationale Unternehmen, und er der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden. Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird nur in die besten 80 % der ESG-bewerteten Unternehmen in jedem Teilsektor des Bloomberg Global Aggregate Corporate Index investieren. Die ESG-Bewertungen werden vom Anlageberater auf Grundlage von ESG-Daten Dritter und unter Berücksichtigung von ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze ermittelt. Die vorgenannten ESG-Kriterien sollten zu einer Reduzierung des Anlageuniversums um 20 % führen, und der Anlageberater wird sich nach besten Kräften bemühen, sicherzustellen, dass mindestens
90 % der Unternehmen im Portfolio seiner ESG- Bewertungsmethodik unterzogen werden. Der Prozess und die Methodik des Positiv-Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine Beschränkung eines der oben erläuterten ESG-Kriterien fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Fonds wird einen geringeren CO2-Fußabdruck als die Unternehmensanleihenkomponente des Bloomberg Global Aggregate Corporate Index einhalten, wobei die langfristigen Klimaschutzziele des Pariser Abkommens berücksichtigt werden. Der Kohlenstoff-Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen mit klimabezogenen Zielen können einen anderen Kohlenstoff-Fußabdruck aufweisen als die Emittenten der Anleihen. In solchen Fällen legt der Anlageberater seine Methodik zur Bestimmung des entsprechenden Kohlenstoff-Fußabdrucks solcher Instrumente offen.
Im Rahmen seiner Strategie kann der Anlageberater einen Teil des Fonds in nachhaltige Anleihen investieren, die als gelabelte
„
Nachhaltige Anleihen
“ definiert sind und bei denen sich der Emittent verpflichtet hat, bestimmte ökologische und/oder soziale Ziele zu finanzieren oder zu erreichen, einschließlich, aber nicht beschränkt auf die unten aufgeführten Anleihen, die auf den wichtigsten Labels der bisher ausgegebenen Anleihen basieren, einschließlich der von der International Capital Market Association (ICMA) anerkannten Anleihen:
- Grüne Anleihen;
- Soziale Anleihen;
- Nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Fonds kann ergänzend Anlagen tätigen in festverzinsliche Wertpapiere, bei denen es sich nicht um Unternehmensanleihen handelt.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Performance des Fonds wird an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben. Diese Benchmark wird auch als Bloomberg Global Aggregate Corporate Index bezeichnet.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Credit Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE GLOBAL FIXED INCOME OPPORTUNITIES FUND
Das Anlageziel des Sustainable Global Fixed Income Opportunities Fund besteht darin, durch Anlage in globale festverzinsliche Wertpapiere, die die ESG-Kriterien des Anlageberaters erfüllen, eine attraktive, in USD gemessene Gesamtrendite (Total Return) zu erzielen und gleichzeitig ESG-Merkmale zu integrieren, indem Sektoren und Emittenten mit niedrigen Gesamtnachhaltigkeitsbewertungen ausgesondert werden und ein geringerer	CO2- Fußabdruck	als	die Unternehmensanleihenkomponente des Bloomberg Global Aggregate Index eingehalten wird, wobei die langfristigen Klimaschutzziele des Pariser Abkommens, wie weiter unten beschrieben, berücksichtigt werden. Der Fonds wird versuchen, das Anlageziel durch die Allokation auf festverzinsliche Anlageklassen sowie durch die gezielte Auswahl von Märkten und Finanzinstrumenten zu erreichen.
Der Fonds wird vorwiegend in internationalen Wertpapieren von Unternehmen, Regierungen und staatsnahen Emittenten innerhalb eines Spektrums von festverzinslichen Anlageklassen, einschließlich High-Yield-Anleihen, Anleihen von Anlagequalität, Mortgage- Backed Securities, Wandelanleihen und Währungen und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, anlegen. High-Yield-Anleihen sind von Unternehmen emittierte festverzinsliche Wertpapiere, die von S&P ein Rating unterhalb „BBB-“ oder von Moody’s ein Rating unterhalb „Baa3“ oder von einer anderen international anerkannten Ratingagentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft worden sind. Diese Anlagen können auch in Schwellenmärkten begebene festverzinsliche Wertpapiere umfassen.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie unten erläutert. Darüber hinaus kann der
Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) einbeziehen und das Management eines Unternehmens in Bezug auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wichtigen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, miteinbeziehen.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft und Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit und resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance-Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
	- umstrittenen Waffen;
	- Herstellung oder Produktion von zivilen Schusswaffen;
	- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt;

- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet; und
- Unterhaltung für Erwachsene, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe dürfen Investitionen wissentlich keine Unternehmen umfassen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Der Fonds wird nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft und der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden. Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt
unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Der Fonds wird in die besten 80 % der ESG-bewerteten Unternehmen in jedem Teilsektor des Bloomberg Global Aggregate Corporate Index, des Bloomberg Global High Yield Corporate Index und des J.P. Morgan CEMBI Broad Diversified Index investieren. Wenn Unternehmen sowohl im (A) J.P. Morgan CEMBI Broad Diversified Index als auch im (B) Bloomberg Global Aggregate Corporate Index oder im Bloomberg Global High Yield Corporate Index enthalten sind, wird die ESG-Bewertung für diese Unternehmen nur unter Bezugnahme auf den J.P. Morgan CEMBI Broad Diversified Index vorgenommen. Die ESG-Bewertungen werden vom Anlageberater auf Grundlage von ESG-Daten Dritter und unter Berücksichtigung von ESG-Themen wie Dekarbonisierung und Klimarisiko, Kreislaufwirtschaft und Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit und resiliente Arbeitsplätze ermittelt.
Bei den Anlagen des Fonds in festverzinsliche Wertpapiere, die von Staaten ausgegeben werden, wird der Fonds nur in Staaten investieren, die zu den besten 80 % der vom Anlageberater beurteilten Staaten mit ESG-Bewertung gehören, es sei denn, der Anlageberater ist der Ansicht, dass ein Staat, der zu den unteren 20 % gehört, eine positive Nachhaltigkeitsdynamik aufweist und/ oder eine nachhaltige Anleihe ausgibt (siehe unten). Der Fonds wird nicht in Anleihen von Staaten investieren, die der Anlageberater nicht bewertet hat.
Die vorgenannten ESG-Kriterien zielen auf eine Auswahl von Unternehmen und Staaten ab, die besser bewertet sind als die anderen Unternehmen und Staaten des Anlageuniversums (die Unternehmenskomponente ist definiert als Unternehmen, die in einem oder mehreren der Indizes Bloomberg Global Aggregate Corporate Index, Bloomberg Global High Yield Corporate Index und J.P. Morgan CEMBI Broad Diversified Index enthalten sind, wobei maximal 10 % des Fondsportfolios in Unternehmen investiert werden dürfen, die nicht in diesen Indizes enthalten sind). In dieser Hinsicht sollte die ESG-Bewertung von Unternehmen zu einer Reduzierung der Unternehmenskomponente des Anlageuniversums des Fonds um mindestens 20 % führen. Das Ziel des Anlageberaters wird es sein, sicherzustellen, dass mindestens
90 % der Unternehmensemittenten im Portfolio seiner ESG-
Bewertungsmethodik unterzogen werden. Der Prozess und die Methodik des Positiv-Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Bei den Anlagen des Fonds in festverzinslichen Wertpapieren, die nicht von Unternehmen oder Staaten ausgegeben werden, berücksichtigt der Anlageberater während des Research- und Anlageprozesses ESG-Kriterien, um die Exponierung gegenüber
Nachhaltigkeitsrisiken zu begrenzen und Anlagemöglichkeiten zu bewerten.
Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine Beschränkung eines der oben erläuterten ESG-Kriterien fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Für den Anteil des Fonds, der in Anleihen von Unternehmen investiert ist, wird der Fonds unter Berücksichtigung der langfristigen Erwärmungsziele des Pariser Abkommens einen geringeren CO2-Fußabdruck einhalten, als die Unternehmensanleihenkomponente des Bloomberg Global Aggregate Index vorsieht. Der Kohlenstoff-Fußabdruck bzw. CO2- Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen mit klimabezogenen Zielen können einen anderen Kohlenstoff- Fußabdruck aufweisen als die Emittenten der Anleihen. In solchen Fällen legt der Anlageberater seine Methodik zur Bestimmung des entsprechenden Kohlenstoff-Fußabdrucks solcher Instrumente offen.
Im Rahmen seiner Strategie kann der Anlageberater einen Teil des Fonds in nachhaltige Anleihen investieren, die als gelabelte nachhaltige Anleihen definiert sind und bei denen sich der Emittent verpflichtet hat, bestimmte ökologische und/oder soziale Ziele zu finanzieren oder zu erreichen, einschließlich, aber nicht beschränkt auf die unten aufgeführten Anleihen, die auf den wichtigsten Labels der bisher ausgegebenen Anleihen basieren, einschließlich der von der International Capital Market Association (ICMA) anerkannten Anleihen:
- Grüne Anleihen;
- Soziale Anleihen;
- Nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Der Anlageberater verwendet Daten und ESG-Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in festverzinsliche Wertpapiere, die die oben genannten Anforderungen nicht erfüllen, Barmittel und geldnahe Mittel, Aktienwerte oder andere aktiengebundene Wertpapiere investieren.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Es ist nicht zu erwarten, dass der Fonds insgesamt mehr als 50 % seines Nettovermögens in verbriefte Instrumente anlegen wird. Es ist nicht zu erwarten, dass der Fonds mehr als 20 % seines Nettovermögens in ein und dieselbe Art von verbrieften Instrumenten (z. B. forderungsbesicherte Wertpapiere (ABS), durch gewerbliche Hypotheken besicherte Wertpapiere (CMBS), durch Wohnhypotheken besicherte Wertpapiere (RMBS), durch Hypotheken besicherte Wertpapiere (MBS)) anlegen wird.
Der Fonds kann in festverzinsliche Wertpapiere anlegen, die am chinesischen Interbankenmarkt für Anleihen erworben wurden. Es dürfen nicht mehr als 10 % des Fondsvermögens in solche Wertpapiere angelegt werden.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgerichtet, eine Benchmark nachzubilden, weshalb die Zusammensetzung der Portfoliobestände nicht durch eine Benchmark eingeschränkt ist. Im Rahmen der ESG-Integration des Fonds verwendet der Anlageberater (i) die Unternehmensanleihenkomponente des Bloomberg Global Aggregate Index, um den Kohlenstoff- Fußabdruck des Fonds zu vergleichen, und (ii) die Untersektoren des Bloomberg Global Aggregate Corporate Index, des Bloomberg Global High Yield Corporate Index und des J.P. Morgan CEMBI Broad Diversified Index, um die am besten bewerteten ESG- Unternehmen zu definieren, in die der Fonds investieren wird.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen
über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
	- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
	- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.


Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde
liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable Global Fixed Income Opportunities Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE GLOBAL HIGH YIELD BOND FUND
Das Anlageziel des Sustainable Global High Yield Bond Fund ist die Erwirtschaftung von laufenden Erträgen und einer Gesamtrendite (Total Return). Dabei werden gleichzeitig ESG- Merkmale integriert, indem Sektoren und Emittenten mit niedrigen Bewertungen der Gesamtnachhaltigkeit ausgeschlossen werden, um die langfristigen globalen Erwärmungsziele des Pariser Abkommens zu erreichen, das gemäß dem Rahmenübereinkommen der Vereinten Nationen über Klimaänderungen (das „
Pariser Abkommen
“) verabschiedet wurde, wie weiter unten beschrieben.
Der Fonds wird vorwiegend in ein breit gefächertes Portfolio von hochrentierlichen, festverzinslichen Wertpapieren anlegen, die von Unternehmen und anderen nicht-staatlichen Emittenten, die sowohl in entwickelten Märkten und Schwellenmärkten errichtet oder tätig sind, begeben werden („
Unternehmensanleihen
“) und auf globale Währungen lauten. Diese können Nullkuponanleihen, Vorzugsaktien, Anleihen mit Zinsaufschub sowie Anleihen und Schuldverschreibungen umfassen, bei denen die Zinsen in Form von zusätzlichen zulässigen Aktien, Anleihen oder Schuldverschreibungen derselben Art zu zahlen sind (Payment-in- Kind (PIK)-Wertpapiere).
Der Fonds investiert in Wertpapiere, die zum Zeitpunkt der Anlage von Moody’s mit Baa3 oder niedriger, von Standard & Poor’s mit BBB- oder niedriger, von Fitch’s mit BBB oder niedriger oder mit einem gleichwertigen Rating einer anderen international anerkannten Rating-Agentur bewertet oder vom Anlageberater als ähnlich kreditwürdig eingestuft werden.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie weiter unten erläutert. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals)
vornehmen und das Management eines Unternehmens in Bezug auf Corporate-Governance-Praktiken sowie auf die seiner Ansicht nach wesentlichen ökologischen und/oder sozialen Themen eines Unternehmens einbeziehen. Der Fonds wird einen geringeren CO2-Fußabdruck als der ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index einhalten, wobei die langfristigen Ziele des Pariser Abkommens zur globalen Erwärmung verfolgt werden. Der Kohlenstoff-Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität (Weighted Average Carbon Intensity bzw. WACI) gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen (wie nachstehend definiert) mit klimabezogenen Zielen können einen anderen Kohlenstoff-Fußabdruck aufweisen als die Emittenten der Anleihen, z. B. wenn die Anleihe als Teil der Klimaschutzstrategie eines Emittenten begeben wird.
Der Anlageberater greift bei der Bewertung von Anlagen auf einen Screening-Prozess, das umfangreiche ESG-Research seiner Tochtergesellschaft Calvert Research and Management sowie auf sein eigenes ESG-Research und Daten von Dritten zurück. Der Anlageberater wendet zudem eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Bewertung berücksichtigt ESG-Themen wie Dekarbonisierung und Klimarisiko, Kreislaufwirtschaft und Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit und resiliente Arbeitsplätze.
Darüber hinaus wendet der Anlageberater in seinem Anlageprozess auch Positiv-Screenings an, die seiner Meinung nach mit seinen Zielen vereinbar sind. Der Prozess und die Methodik des Positiv- Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com und www.morganstanley.com/im.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums um wenigstens 20 % führen, und der Anlageberater wird sicherstellen, dass mindestens 90 % des Nettoinventarwerts des Fonds seinem ESG-Research unterzogen werden. Das Anlageuniversum für diese Zwecke ist definiert als der Index. Der Anlageberater wird ferner die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG-
Bewertungen von Drittanbietern und des CO2-Fußabdrucks (für den Anteil des Fonds, der in festverzinslichen Schuldtiteln von Unternehmen angelegt ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Das Anlageuniversum wird laufend überprüft. Die ESG-Kriterien werden in Bezug auf jedes einzelne Unternehmen mindestens einmal jährlich überprüft, dies kann jedoch auch häufiger geschehen. Der Anlageberater nimmt bei Bedarf Anpassungen und Änderungen an der Methodik vor. Die oben genannten Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Im Rahmen des Investitions- und Screening-Prozesses darf der Fonds nicht wissentlich in Unternehmen investieren, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
	- umstrittenen Waffen;
	- Herstellung oder Produktion von zivilen Schusswaffen;
	- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt; und
	- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.


Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe darf der Fonds außerdem nicht wissentlich in Unternehmen anlegen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Die Ausnahme zum Ausschluss fossiler Brennstoffe im vorangegangenen Absatz besteht darin, dass der Fonds in gelabelte nachhaltige Anleihen oder andere festverzinsliche Wertpapiere investieren kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte von Emittenten ausgegeben werden („
Nachhaltige Anleihen
“), die andernfalls unter die oben genannten Ausschlüsse für fossile Brennstoffe fallen würden. Hierbei muss der Anlageberater vorher feststellen, dass die Ziele solcher Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des
Anlageberaters. Nachhaltige Anleihen umfassen die folgenden Instrumente, sind aber nicht darauf beschränkt:
- Grüne Anleihen;
- Soziale Anleihen;
- Nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Vor der Anlage in nachhaltige Anleihen setzt der Anlageberater auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Neben den oben genannten Ausschlüssen wird der Fonds nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft und der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden. Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine Beschränkung eines der oben erläuterten ESG-Kriterien fallen, werden verkauft.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Weitere Informationen über die Integration von Nachhaltigkeitsrisiken in Bezug auf die Gesellschaft sind im Abschnitt „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ des Prospekts enthalten.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend auch in festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, wie z. B. festverzinsliche Wertpapiere, die keine Unternehmensanleihen sind, Aktienwerte, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere aktiengebundene Wertpapiere investieren. Der Fonds beabsichtigt im Allgemeinen, nicht mehr als 5 % seines Nettovermögens in Schwellenländern anzulegen, jedoch können Anlagen in Schwellenländern bis zu 20 % des Nettovermögens des Fonds ausmachen.
Zusätzlich zum Engagement in nachhaltigen Anlagen wird davon ausgegangen, dass alle vom Fonds getätigten Anlagen nach Einschätzung des Anlageberaters zu keiner erheblichen Beeinträchtigung von ökologischen oder sozialen Faktoren führen. Der Anlageberater bewertet dies nach einer internen Methodik (die von Zeit zu Zeit geändert wird), die eine repräsentative Teilmenge der wichtigsten negativen Nachhaltigkeitsindikatoren berücksichtigt.
Der Fonds wird nicht auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet und die Anlagen des Fonds in einer Branche sollen in der Regel 25 % seines Nettovermögens nicht überschreiten, können aber von Zeit zu Zeit darüber hinausgehen.
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offener ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds darf höchstens 20 % seiner Vermögenswerte in nicht bewerteten oder am niedrigsten bewerteten Schuldtiteln (mit einem C-Rating von Moody’s oder einem D-Rating von S&P) anlegen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Die Performance des Fonds wird an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben. Diese Benchmark wird auch als ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index bezeichnet und zur Überwachung der Abweichung gegenüber der Benchmark verwendet. Während der Fonds im Allgemeinen Vermögenswerte im ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index halten wird, kann er in solchen Wertpapieren in anderen Anteilen als denjenigen im ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index anlegen, und er kann Vermögenswerte halten, die nicht im ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index enthalten sind. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des ICE BofA Developed Markets High Yield Index Excluding Subordinated Financial Index abweichen kann.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
	- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.

- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable Global High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

SUSTAINABLE US HIGH YIELD BOND FUND
Das Anlageziel des Sustainable US High Yield Bond Fund ist die Erwirtschaftung von laufenden Erträgen und einer Gesamtrendite (Total Return). Dabei werden gleichzeitig ESG-Merkmale integriert, indem Sektoren und Emittenten mit niedrigen Bewertungen der Gesamtnachhaltigkeit ausgeschlossen werden, um die langfristigen globalen Erwärmungsziele des Pariser Abkommens zu erreichen, das gemäß dem Rahmenübereinkommen der Vereinten Nationen über Klimaänderungen (das „
Pariser Abkommen
“) verabschiedet wurde, wie weiter unten beschrieben.
Der Fonds legt in erster Linie in einem breit gefächerten Portfolio aus festverzinslichen Wertpapieren von Emittenten mit Sitz in den USA an, zu denen Nullkuponanleihen, Anleihen mit Zinsaufschub und Anleihen, deren Zinsen in Form weiterer zulässiger Anleihen derselben Art zahlbar sind (Payment-in-Kind (PIK)-Anleihen), gehören können.
Der Fonds investiert in festverzinsliche Wertpapiere, die zum Zeitpunkt der Anlage von Moody’s Investors Service, Inc. („Moody’s“) mit Baa oder niedriger, von Standard & Poor’s Ratings Group („S&P“) mit BBB oder niedriger, von Fitch’s Investors Service, Inc. mit BBB oder niedriger oder mit einem gleichwertigen Rating einer anderen Rating-Agentur oder einem gleichwertigen internen Rating des Anlageberaters bewertet werden.
In Bezug auf diesen Fonds bedeutet „nachhaltig“, dass der Anlageberater nach eigenem Ermessen Erwägungen zu Themen der Nachhaltigkeit und ESG-Erwägungen in seine Anlageentscheidungen einbezieht, wie weiter unten erläutert. Darüber hinaus kann der Anlageberater eine Bewertung positiver und negativer Beiträge zu den UN-Nachhaltigkeitszielen (Sustainable Development Goals) vornehmen und das Management eines Unternehmens in Bezug auf Corporate-Governance-Praktiken sowie auf die seiner Ansicht nach wesentlichen ökologischen und/oder sozialen Themen eines Unternehmens einbeziehen. Der Fonds wird einen geringeren CO2-Fußabdruck als der ICE BofA U.S. High Yield Index einhalten, wobei die langfristigen Ziele des Pariser Abkommens zur globalen Erwärmung verfolgt werden. Der Kohlenstoff-Fußabdruck bzw. CO2-Fußabdruck wird als gewichtete durchschnittliche Kohlenstoffintensität (Weighted Average Carbon Intensity bzw. WACI) gemessen, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz. Nachhaltige Anleihen (wie nachstehend definiert) mit klimabezogenen Zielen können einen anderen Kohlenstoff-Fußabdruck aufweisen als die Emittenten der Anleihen, z. B. wenn die Anleihe als Teil der Klimaschutzstrategie eines Emittenten begeben wird.
Der Anlageberater greift bei der Bewertung von Anlagen auf einen Screening-Prozess, das umfangreiche ESG-Research seiner Tochtergesellschaft Calvert Research and Management sowie auf sein eigenes ESG-Research und Daten von Dritten zurück. Der Anlageberater wendet zudem eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Kontakten mit Emittenten eine Bewertung nachhaltigkeitsbezogener Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditgrundlagen, die Auswirkungen auf die Bewertung und die Spreads sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere
auswirken können, zu bestimmen. Diese Bewertung berücksichtigt ESG-Themen wie Dekarbonisierung und Klimarisiko, Kreislaufwirtschaft und Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit und resiliente Arbeitsplätze.
Darüber hinaus wendet der Anlageberater in seinem Anlageprozess auch Positiv-Screenings an, die seiner Meinung nach mit seinen Zielen vereinbar sind. Der Prozess und die Methodik des Positiv- Screenings sind auf den folgenden Websites abrufbar: www.morganstanleyinvestmentfunds.com und www.morganstanley.com/im.
Die vorgenannten ESG-Kriterien werden zu einer Reduzierung des Anlageuniversums um wenigstens 20 % führen, und der Anlageberater wird sicherstellen, dass mindestens 90 % des Nettoinventarwerts des Fonds seinem ESG-Research unterzogen werden. Das Anlageuniversum für diese Zwecke ist definiert als der Index. Der Anlageberater wird ferner die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der ESG- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (für den Anteil des Fonds, der in festverzinslichen Schuldtiteln von Unternehmen angelegt ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Das Anlageuniversum wird laufend überprüft. Die ESG-Kriterien werden in Bezug auf jedes einzelne Unternehmen mindestens einmal jährlich überprüft, dies kann jedoch auch häufiger geschehen. Der Anlageberater nimmt bei Bedarf Anpassungen und Änderungen an der Methodik vor. Die oben genannten Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Im Rahmen des Investitions- und Screening-Prozesses darf der Fonds nicht wissentlich in Unternehmen investieren, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion von:
	- umstrittenen Waffen;
	- Herstellung oder Produktion von zivilen Schusswaffen;
	- Herstellung oder Produktion von Tabak, oder wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dem Vertrieb oder Einzelhandel mit Tabak erzielt; und
	- Glücksspiele, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus solchen Aktivitäten erwirtschaftet.


Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe darf der Fonds außerdem nicht wissentlich in Unternehmen anlegen, deren Geschäftstätigkeit Folgendes beinhaltet:
- Abbau und der Gewinnung von Kraftwerkskohle;
- Kohleverstromung, wenn das Unternehmen 10 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt;
- Gewinnung oder Produktion von Ölsanden, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt; und
- Gewinnung oder Produktion von Öl oder Gas in der Arktis, wenn das Unternehmen 5 % oder mehr seiner Umsätze aus dieser Geschäftstätigkeit erzielt.

Die Ausnahme zum Ausschluss fossiler Brennstoffe im vorangegangenen Absatz besteht darin, dass der Fonds in gelabelte nachhaltige Anleihen oder andere festverzinsliche Wertpapiere investieren kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte von Emittenten ausgegeben werden („
Nachhaltige Anleihen
“), die andernfalls unter die oben genannten Ausschlüsse für fossile Brennstoffe fallen würden. Hierbei muss der Anlageberater vorher feststellen, dass die Ziele solcher Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Nachhaltige Anleihen umfassen die folgenden Instrumente, sind aber nicht darauf beschränkt:
- Grüne Anleihen;
- Soziale Anleihen;
- Nachhaltige Anleihen;
- Übergangsanleihen; und
- Anleihen mit Nachhaltigkeitsbezug.

Vor der Anlage in Nachhaltige Anleihen setzt der Anlageberater auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden.
Neben den oben genannten Ausschlüssen wird der Fonds nicht in Wertpapiere von Emittenten mit kontroversen Fällen investieren, wenn der Anlageberater diese aufgrund von Bewertungen durch einschlägige ESG-Datenanbieter als sehr schwerwiegend einstuft und der Ansicht ist, dass keine angemessenen Abhilfemaßnahmen ergriffen wurden. Der Fonds wird auch nicht in Wertpapiere von Emittenten investieren, die den UN Global Compact oder die Grundprinzipien der IAO nicht einhalten und die nach Ansicht des Anlageberaters keine angemessenen Abhilfemaßnahmen ergriffen haben.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eine Beschränkung eines der oben erläuterten ESG-Kriterien fallen, werden verkauft.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Weitere Informationen über die Integration von Nachhaltigkeitsrisiken in Bezug auf die Gesellschaft sind im Abschnitt „Allgemeine Informationen über die Integration von Nachhaltigkeitsrisiken“ des Prospekts enthalten.
Der Fonds wird nicht auf einen bestimmten Sektor oder eine bestimmte Branche ausgerichtet.
Der Fonds kann ergänzend auch in Aktienwerte oder festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, Optionsscheine auf Wertpapiere, Barmittel und geldnahe Mittel sowie andere gebundene Wertpapiere investieren.
In Erwartung möglicher künftiger Erträge oder Kapitalzuwächse darf der Fonds nicht mehr als 10 % seiner Vermögenswerte in Schuldtitel investieren, die keine laufenden Erträge ausschütten und die nicht bewertet sind oder als Schuldtitel mit dem niedrigsten Rating eingestuft werden (C-Rating von Moody’s oder D-Rating von S&P).
Der Fonds kann in beschränktem Umfang in Anteile von anderen Organismen für gemeinsame Anlagen, einschließlich der Fonds der Gesellschaft und offenen ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken  oder  zum  Zwecke  eines  effizienten
Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Zusätzlich zum Engagement in nachhaltigen Anlagen wird davon ausgegangen, dass alle vom Fonds getätigten Anlagen nach Einschätzung des Anlageberaters zu keiner erheblichen Beeinträchtigung von ökologischen oder sozialen Faktoren führen. Der Anlageberater bewertet dies nach einer internen Methodik (die von Zeit zu Zeit geändert wird), die eine repräsentative Teilmenge der wichtigsten negativen Nachhaltigkeitsindikatoren berücksichtigt.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Die Performance des Fonds wird an einer Benchmark gemessen, wie in den Wesentlichen Anlegerinformationen des Fonds beschrieben. Diese Benchmark wird auch als ICE BofA U.S. High Yield Index bezeichnet und zur Überwachung der Abweichung gegenüber der Benchmark verwendet. Während der Fonds im Allgemeinen Vermögenswerte im ICE BofA U.S. High Yield Index halten wird, kann er in solchen Wertpapieren in anderen Anteilen als denjenigen im ICE BofA U.S. High Yield Index anlegen, und er kann Vermögenswerte halten, die nicht im ICE BofA U.S. High Yield Index enthalten sind. Daher gibt es keine Einschränkungen hinsichtlich des Ausmaßes, in dem die Performance des Fonds von der des ICE BofA U.S. High Yield Index abweichen kann.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination aus einigen oder allen von Unternehmen stammendenInformationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Sustainable US High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf langfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US DOLLAR CORPORATE BOND FUND
Anlageziel des US Dollar Corporate Bond Fund ist es, eine attraktive, in US-Dollar gemessene relative Rendite zu erzielen.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er hauptsächlich in auf US-Dollar lautende festverzinsliche Wertpapiere, die von Unternehmen und nicht-staatlichen Emittenten begeben werden („Unternehmensanleihen“), anlegt.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, diverses & inklusives Wirtschaften sowie menschenwürdige Arbeit & widerstandsfähige Arbeitsplätze beinhalten, sind aber nicht darauf beschränkt. Der Anlageberater wird die wichtigsten Nachhaltigkeitsindikatoren überwachen, einschließlich der Umwelt-, Sozial- und Governance- Bewertungen von Drittanbietern und des CO2-Fußabdrucks (gemessen anhand der CO2-Intensität, definiert als Tonnen CO2 pro 1 Million US-Dollar Umsatz für den Anteil des Fonds, der in von Unternehmen begebene Anleihen investiert ist), um den Beitrag der festverzinslichen Wertpapiere zu den oben beschriebenen ESG-Themen zu messen und zu bewerten. Die Indikatoren werden mindestens einmal jährlich gemessen und bewertet.
Der Anlageberater setzt auch einen eigenen Bewertungsrahmen für gekennzeichnete thematisch nachhaltige Anleihen ein, anhand dessen die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet werden.
Der Anlageberater fördert den Übergang zu einer kohlenstoffarmen Wirtschaft durch den Ausschluss von Unternehmensemittenten, für die die Förderung von Kraftwerkskohle ein Kerngeschäft ist, und fördert die Lebensqualität der Menschen durch den Ausschluss von Produkten, die der Gesundheit und dem Wohlbefinden abträglich sind, insbesondere Tabak, umstrittene Waffen und die Herstellung ziviler Schusswaffen. Entsprechend dürfen Anlagen nicht wissentlich in Unternehmen getätigt werden, zu deren Kerngeschäft eines der folgenden gehört:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters. Der Fonds kann in Emittenten anlegen, die möglicherweise selbst nicht zu den spezifischen ökologischen oder sozialen Merkmalen beitragen, die durch das Finanzprodukt gefördert werden, wie z. B. Absicherungsinstrumente, nicht geprüfte Anlagen zu Diversifizierungszwecken, Anlagen, für die keine Daten vorliegen, oder Barmittel, die als zusätzliche Liquidität gehalten werden.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums
stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methoden können ebenfalls variieren und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds wird nicht in Wertpapieren anlegen, die zum Zeitpunkt der Anlage von Standard & Poor’s Corporation („S&P“) mit unter B- (bzw. – im Falle von Asset Backed Securities, einschließlich Mortgage Backed Securities – unter BBB-) bewertet wurden oder ein gleichwertiges Rating einer anderen Ratingagentur bzw. ein gleichwertiges internes Rating des Anlageberaters erhalten haben. In dem Fall, dass von dem Fonds gehaltene Wertpapiere zu einem späteren Zeitpunkt auf ein Rating von unter B- (bzw. von unter BBB- im Falle von Asset Backed Securities einschl. Mortgage Backed Securities) herabgestuft werden, kann der Anlageberater ein maximales Gesamtexposure von bis zu 3 % des Nettoinventarwertes des Fonds in diesen herabgestuften Wertpapieren beibehalten, wird jedoch die Wertpapiere veräußern, die nicht innerhalb von sechs Monaten ab ihrer Herabstufung wieder auf mindestens B- heraufgestuft werden.
Der Fonds kann ergänzend Anlagen tätigen in:
- nicht auf US-Dollar lautende festverzinsliche Wertpapiere. In Übereinstimmung mit den Bestimmungen von Anhang A„Anlagerichtlinien und Anlagegrenzen“ kann das Engagement in anderen Währungen als dem US-Dollar wieder in US-Dollar abgesichert werden;
- festverzinsliche Wertpapiere, bei denen es sich nicht um Unternehmensanleihen handelt.

Der Fonds darf höchstens 20 % seiner Vermögenswerte in Asset- Backed Securities und in Mortgage-Backed Securities anlegen.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Dollar Corporate Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US DOLLAR HIGH YIELD BOND FUND
Das Anlageziel des US Dollar High Yield Bond Fund besteht darin, eine attraktive, in US-Dollar gemessene Gesamtrendite zu erzielen. Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in hochrentierliche und auf US-Dollar lautende festverzinsliche Wertpapiere ohne Rating, insbesondere solche von Staaten, Behörden und Unternehmen, die in Schwellenmärkten ansässig sind, und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, anlegt.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen
Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater setzt zudem einen eigenen Bewertungsrahmen für als nachhaltig gelabelte Anleihen ein, durch den die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet wird.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG-
bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Eine festverzinsliche High-Yield-Anleihe bezeichnet ein festverzinsliches Wertpapier mit einem Rating von unter „BBB-“ von S&P bzw. unter „Baa3“ von Moody’s oder einem vergleichbaren Rating von einer anderen international anerkannten Rating- Agentur oder einer ähnlichen Einstufung der Kreditwürdigkeit seitens des Anlageberaters.
Der Fonds kann ergänzend in festverzinsliche Wertpapiere mit einem höheren Rating und in nicht auf USD lautende festverzinsliche Wertpapiere anlegen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Dollar High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US DOLLAR SHORT DURATION BOND FUND
Das Anlageziel des US Dollar Short Duration Bond Fund besteht darin, eine attraktive, in US-Dollar gemessene Rendite zu erzielen. Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in erstklassige, auf USD lautende, festverzinsliche Wertpapiere, einschließlich Asset-Backed Securities (einschließlich Mortgage-Backed Securities), anlegt. Die gewichtete durchschnittliche Laufzeit des Fonds beträgt in der Regel weniger als 1 Jahr, wenngleich dieser Zeitraum unter bestimmten Marktbedingungen länger sein kann.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere, in die der Fonds anlegen kann, zugeschnitten sind und sich auf Emissionen von Unternehmen, Staaten und Verbriefungen konzentrieren. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater setzt zudem einen eigenen Bewertungsrahmen für als nachhaltig gelabelte Anleihen ein, durch
den die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet wird.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die vom Fonds gehalten werden aber aufgrund der Anwendung der oben genannten ESG-Kriterien eingeschränkt werden, nachdem sie für den Fonds erworben wurden, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Wertpapiere gelten als erstklassig, wenn sie zum Zeitpunkt ihres Erwerbs von Standard & Poor’s Corporation („S&P“) ein Rating von „BBB-“ oder darüber oder von Moody’s Investors Service, Inc. („Moody’s“) ein Rating von „Baa3“ oder darüber oder von einer anderen international anerkannten Rating-Agentur ein vergleichbares Rating erhalten haben oder vom Anlageberater als ähnlich kreditwürdig eingestuft wurden. Der Fonds darf in Wertpapieren, die nach dem Kauf herabgestuft werden, weiterhin investiert bleiben. Es ist dem Fonds jedoch untersagt, zusätzliche Käufe solcher Wertpapiere zu tätigen.
Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Dollar Short Duration Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf kurzfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

US DOLLAR SHORT DURATION HIGH YIELD BOND FUND
Das Anlageziel des US Dollar Short Duration High Yield Bond Fund besteht darin, eine attraktive, in US-Dollar gemessene Gesamtrendite zu erzielen. Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in hochrentierliche, auf USD lautende festverzinsliche High Yield Anleihen ohne Rating, insbesondere solche von Staaten, Behörden und Unternehmen, die in Schwellenmärkten ansässig sind, und, vorbehaltlich der anwendbaren gesetzlichen Bestimmungen, in forderungsbesicherte Wertpapiere, Kreditbeteiligungen und abgetretene Kreditforderungen, sofern diese wertpapiermäßig verbrieft sind, anlegt.
Der Anlageberater wendet eigene Bewertungs- und Scoring- Methoden an, die auf die festverzinslichen Wertpapiere zugeschnitten sind, in die der Fonds anlegen kann, wobei der Schwerpunkt auf Unternehmens-, Staats- und verbrieften Emissionen liegt. Darüber hinaus bezieht der Anlageberater im Rahmen seines Bottom-up-Fundamental-Research-Prozesses und bei seinen Geschäften mit Emittenten eine Bewertung der mit der Nachhaltigkeit verbundenen Risiken und Chancen in den Bewertungsprozess ein, um die Auswirkungen auf die Kreditfundamentaldaten, die Auswirkungen auf die Bewertung und die Handelsmargen sowie alle wesentlichen Aspekte, die sich auf die handelstechnischen Aspekte der festverzinslichen Wertpapiere auswirken können, zu bestimmen. Diese Kriterien können ESG-Themen wie Dekarbonisierung & Klimarisiko, Kreislaufwirtschaft & Abfallvermeidung, eine von Vielfalt und Chancengleichheit geprägte Wirtschaft sowie menschenwürdige Arbeit & resiliente Arbeitsplätze umfassen, sind aber nicht darauf beschränkt. Der Anlageberater setzt zudem einen eigenen Bewertungsrahmen für als nachhaltig gelabelte Anleihen ein, durch den die Robustheit, Wirkung und Transparenz solcher Instrumente bewertet wird.
Anlagen dürfen wissentlich nicht in Unternehmen getätigt werden, zu deren Geschäftstätigkeit Folgendes zählt:
- Herstellung oder Produktion umstrittener Waffen;
- Herstellung oder Produktion ziviler Schusswaffen; und
- Herstellung oder Produktion von Tabak.

Speziell im Hinblick auf Aktivitäten im Bereich fossiler Brennstoffe kann der Anlageberater die Unternehmensleitung in die Themen Dekarbonisierung und Klimarisiko sowie zu Corporate- Governance-Praktiken und zu anderen seiner Meinung nach wichtigen ökologischen und/oder sozialen Themen, mit denen ein Unternehmen konfrontiert ist, einbinden. Die Anlagen dürfen nicht wissentlich Unternehmen umfassen, deren Geschäftstätigkeit den Abbau und die Gewinnung von Kraftwerkskohle umfasst, wenn das Unternehmen 5 % oder mehr der Umsätze aus dieser Geschäftstätigkeit erzielt.
Eine Ausnahme hiervon ist, dass der Fonds in gekennzeichnete thematisch nachhaltige Anleihen oder andere Schuldtitel anlegen kann, die zur Kapitalbeschaffung speziell für klima- oder umweltbezogene Projekte ausgegeben werden und die von Emittenten begeben werden, die ansonsten unter diesen Ausschluss für fossile Brennstoffe fallen würden, solange festgestellt wurde, dass die Ziele dieser Instrumente mit einer Reduzierung der Kohlenstoffemissionen des Emittenten vereinbar sind. Die Anlage in solche Instrumente unterliegt der Sorgfaltspflicht des Anlageberaters.
Zusätzlich zu den oben genannten sektorspezifischen Ausschlüssen überwacht der Anlageberater die Geschäftspraktiken laufend anhand von Daten zu ESG-Konflikten und Standardscreenings, die von Drittanbietern bezogen werden. Der Anlageberater wird Fälle mit Konfliktpotenzial, die er auf der Grundlage von Bewertungen durch relevante ESG-Datenanbieter als sehr schwerwiegend ansieht, sowie Verstöße gegen den UN Global Compact oder die IAO-Grundprinzipien untersuchen, wobei solche Vorfälle jedoch nicht automatisch zu einem Ausschluss aus dem Portfolio führen werden.
Darüber hinaus kann sich der Anlageberater nach eigenem Ermessen dafür entscheiden, im Laufe der Zeit zusätzliche ESG- bezogene Anlagebeschränkungen anzuwenden, die seiner Ansicht nach mit seinen Anlagezielen vereinbar sind. Solche zusätzlichen Beschränkungen werden im Zuge ihrer Umsetzung offengelegt unter www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im.
Anlagen, die von dem Fonds gehalten werden, die jedoch nach dem Zeitpunkt des Erwerbs für den Fonds unter eines der oben erläuterten ESG-Kriterien fallen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist. Der Anlageberater verwendet Daten von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen
möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methoden oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Die gewichtete durchschnittliche Laufzeit des Fonds beträgt in der Regel weniger als 3 Jahre, wenngleich dieser Zeitraum unter bestimmten Marktbedingungen länger sein kann.
Eine festverzinsliche High-Yield-Anleihe bezeichnet ein festverzinsliches Wertpapier mit einem Rating von unter „BBB-“ von S&P bzw. unter „Baa3“ von Moody’s oder einem vergleichbaren Rating von einer anderen international anerkannten Rating- Agentur oder einer ähnlichen Einstufung der Kreditwürdigkeit seitens des Anlageberaters.
Der Fonds darf ergänzend in:
- festverzinsliche Wertpapiere mit einer höheren Anlagequalität als festverzinsliche High-Yield-Anleihen; und
- nicht auf USD lautende, festverzinsliche Wertpapiere anlegen.

Der Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETFs, sofern diese ETFs als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds wird aktiv verwaltet und ist nicht darauf ausgelegt, einer Benchmark zu folgen. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des US Dollar Short Duration High Yield Bond Fund kann dieser für Anleger geeignet sein,
- die in festverzinsliche Wertpapiere anlegen möchten;
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

MISCHFONDS (ASSET ALLOCATION FUNDS)
Die nachstehenden Mischfonds haben die folgenden Anlageziele:
GLOBAL BALANCED DEFENSIVE FUND
Das Anlageziel des Global Balanced Defensive Fund ist es, einen in Euro gemessenen attraktiven Gesamtertrag (total return) durch die Anlage vorwiegend in ein Portfolio bestehend aus übertragbaren Wertpapieren und Geldmarktinstrumenten weltweit und den Einsatz derivativer Finanzinstrumente zu erzielen. Der Fonds wird innerhalb eines klar definierten, risikokontrollierten Rahmens verwaltet, wobei das Gesamtportfoliorisiko aktiv gemanagt wird, indem das Volatilitätsniveau des Portfolios in Übereinstimmung mit einer vorab festgelegten Zielvolatilität unterhalb der des Global Balanced Fund gesteuert wird. Der Anlageberater passt die Portfoliopositionierung in einer ausgewogenen Mischung aus Aktien, festverzinslichen Wertpapieren, Barmitteln und rohstoffgebundenen Wertpapieren dynamisch an, um ein stabiles Risikoprofil auf der Grundlage eines Ex-ante-Ansatzes zu erhalten.
Der Fonds verfolgt einen taktischen Top-Down-Ansatz im Hinblick auf globale Anlageklassen, wie z. B. (1) Aktien, unter anderem geschlossene Real Estate Investment Trusts (REITS), (2) festverzinsliche Wertpapiere sowie (3) Barmittel und Geldmarktinstrumente.
Die Umsetzung des taktischen Ansatzes des Anlageberaters erfolgt durch Zugang zu dem folgenden Anlageuniversum:
- Primäre Anlagen: Aktienwerte, einschließlich geschlossene Real Estate Investment Trusts (REITS), festverzinsliche Wertpapiere, einschließlich solche mit Anlagequalität, ohne Anlagequalität und ohne Rating, Geldmarktinstrumente und Barmittel. Die Anlage kann direkt oder über Derivate erfolgen. Der Fonds kann zur Erreichung seines Anlageziels in derivative Finanzinstrumente anlegen. Derivate können sowohl zu Anlage- als auch zu Absicherungszwecken eingesetzt werden. Diese Derivate können Futures, Optionen, Optionsscheine, Differenzkontrakte, Termingeschäfte auf Finanzinstrumente und Optionen auf solche Kontrakte, Credit Linked Instrumentsund Swapkontrakte, unabhängig davon, ob diese an einer Börse oder außerhalb einer Börse gehandelt werden, umfassen.
- Ergänzende Anlagen: andere übertragbare Wertpapiere oder in beschränktem Umfang OGAs, einschließlich die Fonds der Gesellschaft und ETFs, sowie – über Stock Connect – China A-Shares. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.

Der Anlageberater geht davon aus, dass er vorwiegend die folgenden Anlagenstrategien einsetzen wird:
- Globale Vermögensaufteilung: Anlage in Wertpapieren in Übereinstimmung mit einzelnen Anlageklassen-Indizes. Der Anlageberater wählt die Indizes aus, die zur Umsetzung des taktischen Ansatzes weltweit im Hinblick auf (1) Aktienwerte, einschließlich Real Estate Investment Trusts (REITS), (2) festverzinsliche Wertpapiere sowie (3) Barmittel und Geldmarktinstrumente eingesetzt werden. Der Anlageberater kann an der Börse oder außerbörslich gehandelte Derivate, wiez. B. Futures oder Swaps, einsetzen, um ein diversifiziertes und/ oder effizienteres Engagement an bestimmten globalen Märkten in den Fällen zu erreichen, in denen aufgrund des geplanten Allokationsumfangs oder aufgrund von Ineffizienzen beim direkten Handel mit den zugrunde liegenden Wertpapieren die Anlage über Derivate nach Ansicht des Anlageberaters die bevorzugte Anlageoption ist.
- ESG-Screening: Der Anlageberater kann außerdem sogenannte ESG-Faktoren auf Grundlage des Bottom-Up-Ansatzes berücksichtigen. Der Anlageberater kann bei der direkten Anlage in übertragbaren Wertpapieren das relative Ranking von Emittenten im Hinblick auf ESG-Faktoren im Rahmen der Bewertung des Renditepotenzials und der Steuerung des Gesamtportfoliorisikos berücksichtigen.

Der Anlageberater kann zusätzliche Anlagestrategien einsetzen, wie
z. B.:
- Auf Rohstoffe bezogene Anlagen: Der Fonds kann (gemäß den in Anhang A genannten Anlagerichtlinien und Anlagegrenzen) taktische Ansätze in Bezug auf Rohstoffe über börsengehandelte Rohstoffe (ETCs) und/oder Commodity Linked Notes verfolgen.
- Einsatz von Barmitteln und Derivaten für ein effizientes Portfoliomanagement: Der Fonds kann ferner in Barmitteln und geldnahen Mitteln, Optionsscheinen, börsengehandelten sowie am OTC-Markt gehandelten Optionen und sonstigen Derivaten für ein effizientes Portfoliomanagement (einschließlich zu Absicherungszwecken) sowie zu den vorstehend genannten Anlagezwecken anlegen.

Die Anlagen des Fonds können in einem Engagement in Schwellenmärkten und ertragsstärkeren Wertpapieren resultieren.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Balanced Defensive Fund kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die eine ausgewogene Anlage suchen, die sich auf solche Anlageklassen konzentriert, die der Anlageberater in taktischer Hinsicht als am attraktivsten erachtet;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BALANCED FUND
Das Anlageziel des Global Balanced Fund ist es, einen in Euro gemessenen attraktiven Gesamtertrag durch die Anlage in einen breiten und ausgewogenen Anlagenmix aus Aktien und festverzinslichen Wertpapieren unter Berücksichtigung von ESG- Erwägungen zu erzielen. Der Fonds wird innerhalb eines klar definierten, risikokontrollierten Rahmens verwaltet, wobei das Gesamtportfoliorisiko aktiv gemanagt wird, indem das Volatilitätsniveau des Portfolios in Übereinstimmung mit einer vorab festgelegten Zielvolatilität gesteuert wird. Der Anlageberater passt die Portfoliopositionierung in einer ausgewogenen Mischung aus Aktien, festverzinslichen Wertpapieren, Barmitteln und rohstoffgebundenen Wertpapieren dynamisch an, um ein stabiles Risikoprofil auf der Grundlage eines Ex-ante-Ansatzes zu erhalten.
Der Anlageberater wird einen flexiblen, Top-down-orientierten Ansatz verfolgen, um Anlagemöglichkeiten im gesamten zulässigen Anlageuniversum zu identifizieren.
Nachhaltigkeitsfaktoren werden vom Anlageberater sowohl während des Anlage- als auch während des Rechercheprozesses berücksichtigt, um die Exponierung gegenüber Nachhaltigkeitsrisiken zu begrenzen und Anlagemöglichkeiten zu ermitteln. Zu diesen Kriterien können unter anderem Klimawandel, Kohlenstoffemissionen, Wasserknappheit, Abfallmanagement, Biodiversität, Arbeitsmanagement, Geschlechtervielfalt, Gesundheit und Sicherheit, Produktsicherheit, Datenschutz und -sicherheit, Vergütung von Führungskräften, Unabhängigkeit des Vorstands, Anteilinhaberrechte sowie Bestechung und Korruption gehören.
In Bezug auf diesen Fonds bedeutet „nachhaltig”, dass der Anlageberater nach eigenem Ermessen ESG-Erwägungen, wie nachstehend näher erläutert, in seine Anlageentscheidungen
einbezieht. Dabei kann der Anlageberater auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen und/oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, achten, um sicherzustellen, dass die Zielunternehmen gute Governance-Praktiken anwenden.
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten in Verbindung gebracht werden;
- mit umstrittenen Waffen zu tun haben (einschließlich zivile Schusswaffen);
- mit Glücksspiel zu tun haben;
- Bezug zu Tabak haben; und
- Umsätze aus Kraftwerkskohle und Ölsanden erzielen.

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Die Ausschlüsse (die u.a. die oben genannten Ausschlüsse beinhalten) werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten und Untersuchungen zu Einbindungen von Unternehmen unterstützt werden. Die Ausschlusskriterien werden auf alle Direktanlagen innerhalb des Fonds angewendet. Die Ausschlusskriterien werden nicht auf Anlagen angewendet, bei denen der Anlageberater keine direkte Kontrolle über die zugrunde liegenden Bestände hat, z. B. bei Organismen für gemeinsame Anlagen oder offenen ETFs. Die Ausschlusskriterien werden in regelmäßigen Abständen überprüft, und alle Änderungen werden im Dokument zur Ausschlusspolitik berücksichtigt.
Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Anlageberater integriert ESG-Daten wie Ratings und Scores von Dritten bei der Erstellung von Wertpapierkörben, um Auffassungen zu Anlageklassen zu implementieren, vorbehaltlich eines Tracking-Fehlers und anderer Einschränkungen. Der Anlageberater verwendet Daten und ESG-Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten
Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Der Anlageberater richtet das Portfolio des Fonds auf Aktien mit hoher ESG-Performance aus und zielt darauf ab, die aggregierte ESG-Performance des Fonds gegenüber dem zugrunde liegenden Aktienindex zu verbessern. Zusätzlich zu den ESG-Faktoren berücksichtigt der Anlageberater den Klimawandel als eigenen Faktor und bringt bei der Ausrichtung des Portfolios eine zusätzliche Bewertung des Klimawandels zur Anwendung.
Der Anlageberater erstellt – für alle 11 GICS-Sektoren innerhalb jedes regionalen Aktienmarktes – individuelle Körbe, die auf das Top Quartile der führenden Unternehmen in den Bereichen ESG und kohlenstoffarme Transformation ausgerichtet sind.
Das primäre Aktienuniversum des Fonds umfasst Aktienwerte, einschließlich zulässige geschlossene Real Estate Investment Trusts (REITS), festverzinsliche Wertpapiere (einschließlich solche mit Anlagequalität, ohne Anlagequalität und ohne Rating), Geldmarktinstrumente und Barmittel. Die Anlage kann direkt oder über Derivate erfolgen. Der Fonds kann sowohl zu Anlage- auch als zu Absicherungszwecken in derivative Finanzinstrumente anlegen. Diese Derivate können Futures, Optionen, Optionsscheine, Differenzkontrakte, Termingeschäfte auf Finanzinstrumente und Optionen auf solche Kontrakte, Credit Linked Instruments und Swapkontrakte, unabhängig davon, ob diese an einer Börse oder außerhalb einer Börse gehandelt werden, umfassen.
Das ergänzende Anlagenuniversums des Fonds kann in beschränktem Umfang auch in Anteile/Aktien anderer kollektiver Kapitalanlagen investieren, einschließlich in die Fonds der Gesellschaft und offene ETFs, vorausgesetzt, dass alle ETFs zulässige Anlagen für OGAW-Fonds sind. Der Fonds kann bis zu
10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Anlageberater kann zusätzliche Anlagestrategien einsetzen, wie
z. B. auf Rohstoffe bezogene Anlagen, die gemäß Artikel 1(34) des Gesetzes von 2010 und Artikel 2 der Großherzoglichen Verordnung vom 8. Februar 2008 als übertragbare Wertpapiere gelten. Der Fonds kann (gemäß den in Anhang A genannten Anlagerichtlinien und Anlagegrenzen) taktische Ansätze in Bezug auf Rohstoffe über börsengehandelte Rohstoffe (ETCs) und/oder Commodity Linked Notes verfolgen.
Der Fonds kann ferner in Barmitteln und geldnahen Mitteln, Optionsscheinen, börsengehandelten sowie am OTC-Markt gehandelten Optionen und sonstigen Derivaten für ein effizientes Portfoliomanagement (einschließlich zu Absicherungszwecken) sowie zu den vorstehend genannten Anlagezwecken anlegen.
Die Anlagen des Fonds können in einem Engagement in Schwellenmärkten und ertragsstärkeren Wertpapieren resultieren.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Vor dem Hintergrund der Taxonomie-Verordnung werden die Anleger darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen auf keine der Anlagen des Fonds angewandt wird, da die dem Fonds zugrunde liegenden Anlagen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten im Sinne der Taxonomie-Verordnung berücksichtigen.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Balanced Fund kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die eine ausgewogene Anlage suchen, die sich auf solche Anlageklassen konzentriert, die der Anlageberater in taktischer Hinsicht als am attraktivsten erachtet;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BALANCED INCOME FUND
Das Anlageziel des Global Balanced Income Fund ist es, regelmäßige Erträge und Kapitalzuwachs, gemessen in Euro, durch die Anlage vorwiegend in ein Portfolio bestehend aus übertragbaren Wertpapieren und Geldmarktinstrumenten weltweit und den Einsatz derivativer Finanzinstrumente zu erzielen. Der Fonds wird innerhalb eines klar definierten, risikokontrollierten Rahmens verwaltet, wobei das Gesamtportfoliorisiko aktiv gemanagt wird, indem das Volatilitätsniveau des Portfolios in Übereinstimmung mit einer vorab festgelegten Zielvolatilität gesteuert wird. Der Anlageberater passt die Portfoliopositionierung in einer ausgewogenen Mischung aus Aktien, festverzinslichen Wertpapieren, Barmitteln und rohstoffgebundenen Wertpapieren dynamisch an, um ein stabiles Risikoprofil auf der Grundlage eines Ex-ante-Ansatzes zu erhalten.
Der Fonds verfolgt einen taktischen Top-Down-Ansatz im Hinblick auf globale Anlageklassen, wie z. B. (1) Aktien, unter anderem geschlossene Real Estate Investment Trusts (REITS), (2) festverzinsliche Wertpapiere sowie (3) Barmittel und Geldmarktinstrumente. Die Umsetzung des taktischen Ansatzes des Anlageberaters erfolgt durch Zugang zu dem folgenden Anlageuniversum:
- Primäre Anlagen: Aktienwerte, einschließlich geschlossene Real Estate Investment Trusts (REITS), festverzinsliche Wertpapiere,einschließlich solche mit Anlagequalität, ohne Anlagequalität und ohne Rating, Geldmarktinstrumente und Barmittel. Die Anlage kann direkt oder über Derivate erfolgen. Der Fonds kann zur Erreichung seines Anlageziels in derivative Finanzinstrumente anlegen. Derivate können sowohl zu Anlage- als auch zu Absicherungszwecken eingesetzt werden. Diese Derivate können Futures, Optionen, Optionsscheine, Differenzkontrakte, Termingeschäfte auf Finanzinstrumente und Optionen auf solche Kontrakte, Credit Linked Instruments und Swapkontrakte, unabhängig davon, ob diese an einer Börse oder außerhalb einer Börse gehandelt werden, umfassen.
- Ergänzende Anlagen: andere übertragbare Wertpapiere oder in beschränktem Umfang OGAs, einschließlich die Fonds der Gesellschaft und ETFs, sowie – über Stock Connect – China A-Shares. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.

Die Anlagen in Aktienwerte dürfen nicht weniger als 10 % des Nettoinventarwerts des Fonds, und nicht mehr als 90 % des Nettoinventarwerts des Fonds ausmachen.
Die Anlagen in Anleihen unter Anlagequalität (non- investment grade) dürfen 30 % des Nettoinventarwerts des Fonds nicht überschreiten.
Der Anlageberater geht davon aus, dass er vorwiegend die folgenden Anlagenstrategien einsetzen wird:
- Globale Vermögensaufteilung: Anlage in Wertpapieren in Übereinstimmung mit einzelnen Anlageklassen-Indizes. Der Anlageberater wählt die Indizes aus, die zur Umsetzung des taktischen Ansatzes weltweit im Hinblick auf (1) Aktienwerte, einschließlich Real Estate Investment Trusts (REITS), (2) festverzinsliche Wertpapiere sowie (3) Barmittel und Geldmarktinstrumente eingesetzt werden. Der Anlageberater kann an der Börse oder außerbörslich gehandelte Derivate, wiez. B. Futures oder Swaps, einsetzen, um ein diversifiziertes und/ oder effizienteres Engagement an bestimmten globalen Märkten in den Fällen zu erreichen, in denen aufgrund des geplanten Allokationsumfangs oder aufgrund von Ineffizienzen beim direkten Handel mit den zugrunde liegenden Wertpapieren die Anlage über Derivate nach Ansicht des Anlageberaters die bevorzugte Anlageoption ist.
- Ertragsgenerierung: Neben dem Kauf von ertragsgenerierenden übertragbaren Wertpapieren erfolgt die Generierung zusätzlicher Erträge durch den Erhalt von Prämien aus dem Verkauf von, an der Börse oder außerhalb der Börse gehandelten Optionen auf Indizes, einzelne Wertpapiere oder Währungen.

Der Anlageberater kann zusätzliche Anlagestrategien einsetzen, wie
z. B.:
- Auf Rohstoffe bezogene Anlagen: Der Fonds kann (gemäß den in Anhang A genannten Anlagerichtlinien und Anlagegrenzen) taktische Ansätze in Bezug auf Rohstoffe über börsengehandelte Rohstoffe (ETCs) und/oder Commodity Linked Notes verfolgen.
- Einsatz von Barmitteln und Derivaten für ein effizientes Portfoliomanagement: Der Fonds kann ferner in Barmittel, Optionsscheine, börsengehandelte sowie am OTC-Markt gehandelte Optionen und sonstige Derivate für ein effizientes Portfoliomanagement (einschließlich zur Risikoabsicherung (Hedging)) sowie zu den vorstehend genannten Anlagezwecken anlegen.
- Einsatz von offenen und geschlossenen OGAs, einschließlich der Fonds der Gesellschaft und ETFs; der Anlageberater würde OGAs und ETFs vorwiegend einsetzen, um ein diversifiziertes und/oder effizienteres Engagement an bestimmten globalen Märkten in den Fällen zu erreichen, in denen aufgrund des geplanten Allokationsumfangs oder aufgrund von Ineffizienzen beim direkten Handel mit den zugrunde liegenden Wertpapieren ein OGA oder ETF nach Ansicht des Anlageberaters die bevorzugte Anlageoption ist.

Die Anlagen des Fonds können in einem Engagement in Schwellenmärkten und ertragsstärkeren Wertpapieren resultieren.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Balanced Income Fund kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BALANCED RISK CONTROL FUND OF FUNDS
Anlageziel des Global Balanced Risk Control Fund of Funds ist es, in Anteile anderer Organismen für gemeinsame Anlagen anzulegen, um ein attraktives Level des Gesamtertrags (total return), gemessen in Euro, bei aktiver Steuerung des Gesamtportfoliorisikos zu erzielen. Der Fonds wird innerhalb eines klar definierten, risikokontrollierten Rahmens verwaltet, wobei das Volatilitätsniveau des Portfolios in Übereinstimmung mit einer vorab festgelegten Zielvolatilität gesteuert wird. Der Anlageberater passt die Portfoliopositionierung in einer ausgewogenen Mischung aus Aktien, festverzinslichen Wertpapieren, Barmitteln und rohstoffgebundenen Wertpapieren an, um ein stabiles Risikoprofil auf der Grundlage eines Ex-ante-Ansatzes zu erhalten. Der Fonds wird taktische Ansätze im Hinblick auf internationale festverzinsliche Wertpapiere und Aktien verfolgen, indem er vorwiegend in Organismen für gemeinsame Anlagen („OGA“), einschließlich des Fonds der Gesellschaft, ETFs, Futures, Investmentfonds, die der Anlageberater oder seine verbundenen Unternehmen verwalten, und sonstiger Fonds anlegt.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) ergänzend taktische Ansätze im Hinblick auf Rohstoffe über börsengehandelte Rohstoffe (Exchange Traded Commodities, ETCs) und/oder Commodity Linked Notes verfolgen und auch in Barvermögen, Optionsscheine, börsengehandelte sowie am OTC-Markt gehandelte Optionen und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) anlegen.
Der Fonds darf ergänzend auch in Aktienwerte, einschließlich zulässige geschlossene Real Estate Investment Trusts (REITS), festverzinsliche Wertpapiere (einschließlich solche mit Anlagequalität, ohne Anlagequalität und ohne Rating), sowie – über Stock Connect – in China A-Shares anlegen. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Die Anlagen des Fonds können in einem Engagement in Schwellenmärkten und in höher verzinslichen Wertpapieren resultieren.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Balanced Risk Control Fund of Funds kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten,
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL BALANCED SUSTAINABLE FUND
Das Anlageziel des Global Balanced Sustainable Fund ist es, einen in Euro gemessenen attraktiven Gesamtertrag durch die Anlage in einen breiten und ausgewogenen Anlagenmix aus Aktien und festverzinslichen Wertpapieren unter Berücksichtigung von ESG- Erwägungen und der langfristigen Erwärmungsziele des Pariser Abkommens zu erzielen. Der Fonds wird innerhalb eines klar definierten, risikokontrollierten Rahmens verwaltet, wobei das Volatilitätsniveau des Portfolios in Übereinstimmung mit einer vorab festgelegten Zielvolatilität gesteuert wird. Die Verwalter passen die Portfoliopositionierung in einer ausgewogenen Mischung aus Aktien, festverzinslichen Wertpapieren, Barmitteln und rohstoffgebundenen Wertpapieren an, um ein stabiles Risikoprofil auf der Grundlage eines Ex-ante-Ansatzes zu erhalten.
Der Anlageberater wird einen flexiblen, Top-down-orientierten Ansatz verfolgen, um Anlagemöglichkeiten im gesamten zulässigen Anlageuniversum zu identifizieren.
Nachhaltigkeitsfaktoren werden vom Anlageberater sowohl während des Anlage- als auch während des Rechercheprozesses berücksichtigt, um die Exponierung gegenüber Nachhaltigkeitsrisiken zu begrenzen und Anlagemöglichkeiten zu ermitteln. Zu diesen Kriterien können unter anderem Klimawandel, Kohlenstoffemissionen, Wasserknappheit, Abfallmanagement, Biodiversität, Arbeitsmanagement, Geschlechtervielfalt, Gesundheit und Sicherheit, Produktsicherheit, Datenschutz und -sicherheit, Vergütung von Führungskräften, Unabhängigkeit des Vorstands, Anteilinhaberrechte sowie Bestechung und Korruption gehören.
In Bezug auf diesen Fonds bedeutet „nachhaltig”, dass der Anlageberater nach eigenem Ermessen ESG-Erwägungen, wie nachstehend näher erläutert, in seine Anlageentscheidungen einbezieht. Dabei kann der Anlageberater auf die Einhaltung der Corporate Governance-Praktiken und die seiner Auffassung nach wesentlichen umweltrechtlichen oder sozialen Belange, mit denen ein Unternehmen konfrontiert ist, achten, um sicherzustellen, dass die Zielunternehmen gute Governance-Praktiken anwenden.
Der Anlageberater darf wissentlich keine Unternehmen in das Anlageuniversum aufnehmen, die:
- mit schwerwiegenden ESG-Konflikten in Verbindung gebracht werden;
- mit umstrittenen Waffen zu tun haben (einschließlich zivile Schusswaffen);
- mit Glückspiel zu tun haben;
- Bezug zu Tabak haben;
- Umsätze aus Kraftwerkskohle und Ölsanden erzielen.

Die Einzelheiten zu den oben genannten Ausschlüssen finden Sie in der Ausschlusspolitik des Fonds, die auf der Website des Unternehmens verfügbar ist (www.morganstanleyinvestmentfunds.com bzw. www.morganstanley.com/im). Die Ausschlüsse (die u.a. die oben genannten Ausschlüsse beinhalten) werden durch die eigene Analyse des Anlageberaters bestimmt und beruhen nicht auf der Analyse Dritter. Die Analyse kann jedoch durch unabhängige Analysen von ESG-Konflikten und Untersuchungen zu Einbindungen von Unternehmen unterstützt werden. Die Ausschlusskriterien werden auf alle Direktanlagen innerhalb des Fonds angewendet. Die Ausschlusskriterien werden nicht auf Anlagen angewendet, bei denen der Anlageberater keine direkte Kontrolle über die zugrunde liegenden Bestände hat, z. B. bei Organismen für gemeinsame Anlagen oder offenen ETFs. Die Ausschlusskriterien werden in regelmäßigen Abständen überprüft, und alle Änderungen werden im Dokument zur Ausschlusspolitik berücksichtigt.
Anlagen, die von dem Fonds gehalten werden, aber nach dem Erwerb für den Fonds einer Beschränkung unterliegen, werden verkauft. Solche Verkäufe werden innerhalb des Zeitraums stattfinden, der vom Anlageberater unter Berücksichtigung der Interessen der Anteilinhaber des Fonds zu bestimmen ist.
Der Anlageberater integriert ESG-Bewertungsdaten von Dritten bei der Erstellung von Wertpapierkörben, um Auffassungen zu Anlageklassen zu implementieren, vorbehaltlich eines Tracking- Fehlers und anderer Einschränkungen. Der Anlageberater richtet das Portfolio des Fonds auf Aktien mit hoher ESG-Performance aus und zielt darauf ab, die aggregierte ESG-Performance des Fonds gegenüber dem zugrunde liegenden Aktienindex zu verbessern. Zusätzlich zu den ESG-Faktoren berücksichtigt der Anlageberater den Klimawandel als eigenen Faktor und bringt bei der Ausrichtung des Portfolios eine zusätzliche Bewertung des Klimawandels zur Anwendung.
Der Fonds wird die langfristigen globalen Erwärmungsziele des Pariser Abkommens berücksichtigen. Um dieses ökologische Ziel zu erreichen, hat der ESG-Integrationsprozess des Anlageberaters
zwei unterschiedliche Klimaausrichtungen: 1) aktienspezifisch und
2) sektorspezifisch.
Für die aktienspezifische Ausrichtung erstellt der Anlageberater – für alle 11 GICS-Sektoren innerhalb jedes regionalen Aktienmarktes – individuelle Körbe, die auf das Top Quartile der führenden Unternehmen in den Bereichen ESG und kohlenstoffarme Transformation ausgerichtet sind. Für die sektorspezifische Ausrichtung aggregiert der Anlageberater die Sektorkörbe gemäß einem Gesamtkohlenstoffbudget, das an einer wissenschaftlich fundierten Klimakurve ausgerichtet ist, die einem Tracking-Fehler unterliegt.
Der Anlageberater wird darüber hinaus 5 % bis 30 % des Fonds für Anlagen in Vermögenswerte mit messbaren positiven sozialen oder ökologischen Auswirkungen (auf der Grundlage der Methodik des Anlageberaters) sowie eine wettbewerbsfähige langfristige finanzielle Rendite bereitstellen. Diese Anlagen können direkt über Aktien oder festverzinsliche Wertpapiere oder indirekt über Organismen für gemeinsame Anlagen gehalten werden.
Die vorgenannten ESG-Kriterien sollten zu einer Reduzierung des Anlageuniversums (wie unten beschrieben) in deutlichem Umfang führen, und der Anlageberater wird sich nach besten Kräften bemühen, sicherzustellen, dass mindestens 90 % der Emittenten im Portfolio anhand dieser ESG-Erwägungen bewertet werden.
Wie oben erwähnt, verwendet der Anlageberater Daten und ESG- Bewertungen von Drittanbietern, und in einigen Fällen sind Daten zu bestimmten Emittenten, ESG-Themen oder den oben genannten Ausschlüssen möglicherweise nicht verfügbar und/oder werden vom Anlageberater anhand interner Methodiken oder angemessener Schätzungen bewertet. Die von verschiedenen Datenanbietern verwendeten Methodiken können sich zudem unterscheiden und zu unterschiedlichen Bewertungen führen.
Zum primären Anlageuniversum des Fonds gehören Aktienwerte, einschließlich zulässiger geschlossener Real Estate Investment Trusts (REITS), festverzinsliche Wertpapiere (einschließlich solche mit Anlagequalität, ohne Anlagequalität und ohne Rating), Geldmarktinstrumente und Barmittel. Die Anlage kann direkt oder über Derivate erfolgen. Der Fonds kann sowohl zu Anlage- als auch zu Absicherungszwecken in derivative Finanzinstrumente anlegen, einschließlich derivativer Instrumente, die möglicherweise die oben genannten ESG-Kriterien nicht erfüllen. Diese Derivate können Futures, Optionen, Optionsscheine, Differenzkontrakte, Termingeschäfte auf Finanzinstrumente und Optionen auf solche Kontrakte, Credit Linked Instruments und Swapkontrakte, unabhängig davon, ob diese an einer Börse oder außerhalb einer Börse gehandelt werden, umfassen.
Das weitere Anlageuniversum des Fonds kann in beschränktem Umfang in Anteile anderer Organismen für gemeinsame Anlagen, einschließlich den Fonds der Gesellschaft und offenen ETF, sofern diese ETF als zulässige Anlagen für OGAW gelten, anlegen. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.
Der Anlageberater kann zusätzliche Anlagestrategien verfolgen, wie
z. B. rohstoffgebundene Anlagen, die gemäß Artikel 1(34) des Gesetzes von 2010 und Artikel 2 der Vorschrift des Großherzogtums vom 8. Februar 2008 als übertragbare Wertpapiere gelten. Der Fonds kann (gemäß den in Anhang A genannten Anlagerichtlinien und Anlagegrenzen) taktische Ansätze in Bezug auf Rohstoffe über börsengehandelte Rohstoffe (ETCs) und/oder rohstoffbezogene Notes verfolgen.
Der Fonds kann ferner in Barmitteln und geldnahen Mitteln, Optionsscheinen, börsengehandelten sowie am OTC-Markt gehandelten Optionen und sonstigen Derivaten für ein effizientes Portfoliomanagement (einschließlich zu Absicherungszwecken) sowie zu den vorstehend genannten Anlagezwecken anlegen.
Die Anlagen des Fonds können in einem Engagement in Schwellenmärkten und ertragsstärkeren Wertpapieren resultieren.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Gemäß der Taxonomie-Verordnung muss der Fonds, da er in Wirtschaftstätigkeiten anlegt, die einen Beitrag zu einem oder mehreren Umweltzielen leisten und er den Anforderungen an die Offenlegung gemäß Artikel 9 der SFDR unterliegt, Informationen über die getätigten ökologisch nachhaltigen Investitionen offenlegen.
Nur für den Teil des Portfolios, der in Wirtschaftstätigkeiten investiert, die einen Beitrag zu einem oder mehreren Umweltzielen leisten, gilt:
- Der Fonds kann zu einem oder mehreren der folgenden in Artikel 9 der Taxonomie-Verordnung genannten Umweltziele beitragen: (a) Abschwächung des Klimawandels; (b) Anpassung an den Klimawandel; (c) nachhaltige Nutzung und Schutz von Wasser- und Meeresressourcen; (d) Übergang zu einer Kreislaufwirtschaft; (e) Vermeidung und Verminderung der Umweltverschmutzung; (f) Schutz und Wiederherstellung der biologischen Vielfalt und der Ökosysteme.
- Im Einklang mit dem aktuellen Stand der SFDR und der Taxonomie-Verordnung stellt der Anlageberater derzeit sicher, dass solche Anlagen des Fonds zu den oben genannten Zielen beitragen und gleichzeitig andere nachhaltige Ziele nicht wesentlich beeinträchtigen, indem er eine Kombination auseinigen oder allen von Unternehmen stammenden Informationen, Daten von Dritten und seinen eigenen Recherchen und Analysen verwendet.
- Wenn Unternehmen Informationen über die taxonomische Ausrichtung ihrer Tätigkeiten zur Verfügung stellen, stellt dies die bevorzugte Informationsquelle des Fonds dar.
- Für den Fall, dass Unternehmensinformationen nicht direkt verfügbar sind, hat der Anlageberater eigene Datenanalysetools entwickelt, die Daten Dritter zur Taxonomie-Ausrichtung nutzen, um den Gesamtgrad der Taxonomie-Ausrichtung des Fonds zu bestimmen, einschließlich der Beurteilung der Indikatoren für die wichtigsten nachteiligen Nachhaltigkeitsauswirkungen und der Bewertung des Grundsatzes der Vermeidung erheblicher Beeinträchtigungen.
- Informationen von Unternehmen und/oder auf Daten Dritter gestützte Analysen können durch eigene Recherchen des Anlageberaters und direkte Kontakte mit Unternehmen ergänzt werden.

Es wird erwartet, dass die Berechnung der Ausrichtung des Fonds an die Taxonomie-Verordnung den Anlegern zur Verfügung gestellt wird, sobald die Daten verfügbar sind. Diese Daten werden daher in eine künftige Version des Prospekts aufgenommen. Wir möchten darauf aufmerksam machen, dass der tatsächliche Grad der Taxonomie-Ausrichtung beschränkt sein könnte.
Die Anleger werden darauf hingewiesen, dass der Grundsatz der Vermeidung erheblicher Beeinträchtigungen nur für die dem Fonds zugrunde liegenden Anlagen gilt, die den EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten Rechnung tragen. Bei den Anlagen, die dem verbleibenden Teil des Fonds zugrunde liegen, werden die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten nicht berücksichtigt.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Balanced Sustainable Fund kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Kapitalwachstum erzielen möchten;
- die eine ausgewogene Anlage suchen, die sich auf solche Anlageklassen konzentriert, die der Anlageberater in taktischer Hinsicht als am attraktivsten erachtet;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

GLOBAL MULTI-ASSET OPPORTUNITIES FUND
Anlageziel des Global Multi-Asset Opportunities Fund ist es, eine absolute Rendite, gemessen in Euro, bei aktiver Steuerung des Gesamtportfoliorisikos zu erzielen. Der Anlageberater bemüht sich
darum, das Kursverlustrisiko und die Ziele so zu steuern, dass sie unterhalb der Marktvolatilität liegen.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er in einen Korb von Aktien, ETFs, Anleihen und Derivaten anlegt.
Der Fonds kann sowohl Long- als auch Short-Positionen, entweder direkt oder (insbesondere bei Short-Positionen) durch den Einsatz von Derivaten, wie nachstehend beschrieben, in einem diversifizierten Spektrum von Aktienwerten und aktiengebundenen Wertpapieren mit einer beliebigen Marktkapitalisierung, festverzinslichen Wertpapieren, Währungen und Rohstoffen eingehen. Der Fonds wird nur indirekt in Rohstoffen investiert sein, indem er in erwerbbaren strukturierten Produkten, wie z. B. Commodity-Linked Notes, deren Basiswerte Rohstoffindizes und/ oder Sub-Indizes sind, und/oder Derivaten, die auf einen oder mehrere Rohstoffindizes, die als Finanzindizes nach Maßgabe der OGAW-Vorschriften eingestuft werden, Bezug nehmen, anlegt. Bei der Verwendung solcher Indizes muss der Fonds die in den OGAW-Vorschriften genannten Diversifizierungsvoraussetzungen erfüllen, d.h. der Wert einer einzelnen Komponente eines Finanzindex darf maximal 20 % des Indexwertes bzw. in außergewöhnlichen Marktsituationen maximal 35 % des Indexwertes betragen.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Termingeschäfte (Futures), Swaps und andere Derivate für Anlagezwecke oder für die Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Darüber hinaus kann der Fonds auch die folgenden Anlagen tätigen und die folgenden Finanzinstrumente einsetzen:
- Devisenkassageschäfte, Devisentermingeschäfte, Non- Deliverable-Currency-Forwards (NDFs) und Geldmarktfonds, deren Vermögen vom Anlageberater oder von einem mit ihm verbundenen oder nahestehenden Unternehmen verwaltet werden kann; und/oder
- Einlagen, Instrumente mit festem oder variablem Zinssatz (einschließlich Commercial Paper), variabel verzinsliche Schuldtitel, Hinterlegungszertifikate (Depositary Receipts), Schuldverschreibungen, forderungsbesicherte Wertpapiere (Asset Backed Securities – ABS) sowie Staats- oder Unternehmensanleihen, Bargeld und geldnahe Mittel; und/oder
- Festverzinsliche Wertpapiere, die am China Interbank Bond Market erworben wurden, die nicht mehr als 20 % des Nettofondsvermögens ausmachen; und/oder
- China A-Shares über Stock Connect, die nicht mehr als 10 % des Nettofondsvermögens ausmachen; und/oder
- bis zu 10 % des Fonds können gemäß Ziffer 2.2. von Anhang A angelegt werden.

Der Anlageberater verfolgt einen globalen, makroökonomischen und thematischen Top-Down-Ansatz, der sich im Gegensatz zur Einzeltitelauswahl auf die Anlageklassen-, Branchen-, Regionen- und Länderauswahl konzentriert. Die Assetallokation des Fonds erfolgt auf Grundlage der Bewertungen und Analysen des Anlageberaters unter Berücksichtigung seines fundamentalen Investment-Research, das im Wesentlichen auf quantitativen makroökonomischen Daten und Marktdaten beruht.
Anlageentscheidungen erfolgen – vorbehaltlich Anhang A – ohne Beachtung bestimmter Grenzen in Bezug auf geografische Herkunft, Branche, Rating, Fälligkeit, Währung der Anlagen oder Marktkapitalisierung. Der Fonds kann in jedem beliebigen Land, einschließlich in Ländern mit sich entwickelnden Märkten oder Schwellenmärkten anlegen. Die Anlagen des Fonds können auf Euro oder auf eine andere Währung als den Euro lauten.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Global Multi-Asset Opportunities Fund kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Rendite erzielen möchten;
- die eine ausgewogene Anlage suchen, die sich auf solche Anlageklassen konzentriert, die der Anlageberater in taktischer Hinsicht als am attraktivsten erachtet;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

MULTI-ASSET RISK CONTROL FUND
Das Anlageziel des Multi-Asset Risk Control Fund ist es, einen in US-Dollar gemessenen attraktiven Gesamtertrag (total return) durch die Anlage vorwiegend in ein Portfolio bestehend aus übertragbaren Wertpapieren und Geldmarktinstrumenten weltweit und den Einsatz derivativer Finanzinstrumente zu erzielen.
Der Fonds verfolgt einen taktischen Top-Down-Ansatz im Hinblick auf globale Anlageklassen, wie z. B. (1) Aktien, unter anderem geschlossene Real Estate Investment Trusts (REITS), (2) festverzinsliche Wertpapiere sowie (3) Barmittel und Geldmarktinstrumente.
Die Umsetzung des taktischen Ansatzes des Anlageberaters erfolgt durch Zugang zu dem folgenden Anlageuniversum:
- Primäre Anlagen: Aktienwerte, einschließlich geschlossene Real Estate Investment Trusts (REITS), die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten; festverzinsliche Wertpapiere (einschließlich solche mit Anlagequalität, ohne Anlagequalität und ohne Rating), Geldmarktinstrumente und Barmittel. Die Anlage kann direkt oder über Derivate erfolgen. Der Fonds kann zur Erreichung seines Anlageziels in derivative Finanzinstrumente anlegen. Derivate können sowohl zu Anlage- als auch zu Absicherungszwecken eingesetzt werden. Diese Derivate können Futures, Optionen, Optionsscheine, Differenzkontrakte, Termingeschäfte auf Finanzinstrumente und Optionen auf solche Kontrakte, und Swapkontrakte, unabhängig davon, ob diese an einer Börse oder außerhalb einer Börse gehandelt werden, umfassen.
- Ergänzende Anlagen: andere übertragbare Wertpapiere oder in beschränktem Umfang OGAs, einschließlich die Fonds der Gesellschaft und offene ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, und über Stock Connect in China A-Shares. Der Fonds kann bis zu 10 % seines Nettovermögens über Stock Connect in China A-Shares anlegen.

Der Anlageberater geht davon aus, dass er vorwiegend die folgenden Anlagenstrategien einsetzen wird:
- Globale Vermögensaufteilung: Anlage in Wertpapieren in Übereinstimmung mit einzelnen Anlageklassen-Indizes. Der Anlageberater wählt die Indizes aus, die zur Umsetzung des taktischen Ansatzes weltweit im Hinblick auf (1) Aktienwerte, einschließlich Real Estate Investment Trusts (REITS), (2) festverzinsliche Wertpapiere sowie (3) Barmittel und Geldmarktinstrumente eingesetzt werden. Der Anlageberater kann an der Börse oder außerbörslich gehandelte Derivate, wiez. B. Futures oder Swaps, einsetzen, um ein diversifiziertes und/ oder effizienteres Engagement an bestimmten globalen Märkten in den Fällen zu erreichen, in denen aufgrund des geplanten Allokationsumfangs oder aufgrund von Ineffizienzen beim direkten Handel mit den zugrunde liegenden Wertpapieren die Anlage über Derivate nach Ansicht des Anlageberaters die bevorzugte Anlageoption ist.
- ESG-Screening: Der Anlageberater kann außerdem sogenannte ESG-Faktoren auf Grundlage des Bottom-Up-Ansatzes berücksichtigen. Der Anlageberater kann bei der direkten Anlage in übertragbaren Wertpapieren das relative Ranking von Emittenten im Hinblick auf ESG-Faktoren im Rahmen der Bewertung des Renditepotenzials und der Steuerung des Gesamtportfoliorisikos berücksichtigen.

Der Anlageberater kann zusätzliche Anlagestrategien einsetzen, wie
z. B.:
- Auf Rohstoffe bezogene Anlagen: Der Fonds kann (gemäß den in Anhang A genannten Anlagerichtlinien und Anlagegrenzen) taktische Ansätze in Bezug auf Rohstoffe über börsengehandelte Rohstoffe (ETCs), die gemäß Artikel 1(34) des Gesetzes von 2010 und Artikel 2 der Vorschrift des Großherzogtums vom 8. Februar 2008 als übertragbare Wertpapiere gelten, verfolgen.
- Einsatz von Barmitteln und Derivaten für ein effizientes Portfoliomanagement: Der Fonds kann ferner in Barmitteln und geldnahen Mitteln, Optionsscheinen, börsengehandelten sowie am OTC-Markt gehandelten Optionen und sonstigen Derivaten für ein effizientes Portfoliomanagement (einschließlich zu Absicherungszwecken) sowie zu den vorstehend genannten Anlagezwecken anlegen.

Die Anlagen des Fonds können in einem Engagement in Schwellenmärkten und ertragsstärkeren Wertpapieren resultieren. Zur Steuerung des Gesamtportfoliorisikos verwaltet der Fonds den Volatilitätsgrad des Portfolios.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Multi-Asset Risk Control Fund kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht Kapitalzuwachs erzielen möchten;
- die eine ausgewogene Anlage suchen, die sich auf solche Anlageklassen konzentriert, die der Anlageberater in taktischer Hinsicht als am attraktivsten erachtet;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

REAL ASSETS FUND
Anlageziel des Real Assets Fund ist es, durch Kapitalzuwachs und Ertrag eine Gesamtrendite, die über der Inflationsrate liegen soll, zu erzielen.
Der Fonds wird versuchen, sein Anlageziel zu erreichen, indem er vorwiegend in übertragbare Wertpapiere weltweit, die ein Engagement in Immobilienwerten bieten und/oder Schutz vor Inflation bieten können, anlegt.
Diese können festverzinsliche Wertpapiere und/oder Aktienwerte, einschließlich Depositary Receipts (wie z. B. American Depositary Receipts (ADRs) und Global Depositary Receipts (GDRs)) von weltweit ansässigen Unternehmen, die in den Bereichen Infrastruktur, Immobilien, natürliche Rohstoffe, Waren und/oder Edelmetalle tätig sind, Anteile an geschlossenen Organismen für gemeinsame Anlagen, einschließlich börsennotierte Grundstücks- Sondervermögen (Property Unit Trusts), Master Limited Partnerships (MLPs), geschlossene Real Estate Investment Trusts (REITS), die ein Engagement in diesem Vermögensklassen vorsehen, umfassen; andere zulässige OGAW, die ein Engagement in diesen Anlageklassen vorsehen oder mit ihnen verbunden sind; andere Aktienwerte, insbesondere inflationssensitive Kapitalbeteiligungen; und festverzinsliche Wertpapiere, insbesondere inflationsgeschützte US-Staatsanleihen (TIPS), globale inflationsbezogene festverzinsliche Wertpapiere und andere inflationssensitive festverzinsliche Wertpapiere. In allen diesen Fällen geht der Fonds durch Instrumente, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, ein Engagement in diese Vermögensklassen ein.
Der Fonds kann in Wertpapiere von Unternehmen oder Emittenten mit einer beliebigen Marktkapitalisierung investieren. Unternehmen, die im Infrastruktur- und Immobiliensektor tätig sind, umfassen unter anderem Gesellschaften, deren primärer Zweck auf die Entwicklung und/oder den Besitz Ertrag erzielender Immobilien ausgerichtet ist.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A aufgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung) einsetzen.
Der Fonds kann ergänzend in Aktienwerte und festverzinsliche Wertpapiere, die die Kriterien für die hauptsächlich getätigten Anlagen des Fonds nicht erfüllen, in Schuldverschreibungen, die in Stammaktien wandelbar sind, Vorzugsaktien, Barmittel und geldnahe Mittel, Optionsscheine sowie in andere aktienbezogene Wertpapiere investieren.
Bei Allokationsentscheidungen führt der Unter-Anlageberater eine quantitative und qualitative Analyse mit dem Ziel durch, ein ausgewogenes Verhältnis zwischen Renditepotenzial und Risiko über börsennotierte Immobilienvermögensklassen hinweg zu erreichen. Für die zugrunde liegenden Immobilienvermögensklassen kombiniert der Unter-Anlageberater einen Top-Down-Prozess mit einer Bottom-Up-Wertpapierauswahl. Infolge der Allokationsentscheidungen des Unter-Anlageberaters kann der Fonds vollständig in eine einzelne Immobilienvermögensklasse investiert sein.
Der Fonds wird aktiv verwaltet und ist nicht konzipiert, um eine Benchmark nachzubilden. Daher ist die Verwaltung des Fonds nicht durch die Zusammensetzung einer Benchmark beschränkt. Die Wertentwicklung des Fonds wird an einer Benchmark wie in den Wesentlichen Anlegerinformationen des Fonds näher beschrieben gemessen.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Real Assets Fund kann dieser für Anleger geeignet sein,
- die ein Engagement in Immobilienwerten durch die vorwiegende Investition in übertragbare Wertpapiere weltweit anstreben;
- die auf mittelfristige Sicht Kapitalzuwachs erzielen möchten;
- die Erträge entweder in Form von Kapitalzuwachs oder Ausschüttungen anstreben, wie im Kapitel „Ausschüttungspolitik“ beschrieben,
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.

ALTERNATIVE INVESTMENTFONDS
Die folgenden alternativen Investmentfonds haben die folgenden Ziele:
LIQUID ALPHA CAPTURE FUND
Das Anlageziel des Liquid Alpha Capture Fund ist es, einen attraktiven, in US-Dollar gemessenen Gesamtertrag vorrangig durch eine Anlage in ein globales Portfolio bestehend aus Finanzinstrumenten, einschließlich Aktienwerte und festverzinsliche Wertpapiere jedweder Art, zu erzielen.
Es wird vorsorglich darauf hingewiesen, dass der Fonds in Depositary Receipts, in Schuldverschreibungen, die in Aktien wandelbar sind, in aktiengebundene Wertpapiere, Vorzugsaktien, geschlossene ETFs sowie Rechte und Optionsscheine zum Kauf von Aktienwerten anlegen kann.
Zur Renditesteigerung und/oder im Rahmen der Anlagestrategie darf der Fonds (gemäß den in Anhang A ausgeführten Anlagerichtlinien und Anlagegrenzen) börsengehandelte sowie am OTC-Markt gehandelte Optionen, Futures, Forwards, Swaps, Optionen auf Swaps (Swaptions) und andere Derivate zu Anlagezwecken oder zum Zwecke eines effizienten Portfoliomanagements (unter anderem zur Risikoabsicherung (Hedging)) einsetzen.
Der Fonds kann in beschränktem Umfang in Organismen für gemeinsame Anlagen und offene ETFs, die nach dem Gesetz von 2010 als zulässige Anlagen für OGAW gelten, anlegen.
Der Fonds wird eine Reihe von Anlagestrategien einsetzen, um dieses Anlageziel zu erreichen. Wertpapiere werden eingesetzt, um ein Engagement in Bezug auf die Performance verschiedener, häufig von Hedgefonds eingesetzter Strategien zu erlangen, insbesondere Long-/Short-Strategien bei der Wertpapierauswahl („Alpha-Strategien“) und alternative Beta- oder Handelsstrategien („alternative Beta-Strategien“). Der Fonds beabsichtigt, den Zugang zu dieser Hedgefonds-Performance zu ermöglichen, indem er nur in Wertpapiere anlegt, deren Liquiditätsprofil mit demjenigen eines täglich gehandelten Fonds übereinstimmt.
Bei Alpha-Strategien wird versucht, eine attraktive Rendite in Bezug auf eine Benchmark zu erzielen, indem in Aktienwerte, in Kombination mit einer synthetischen Short-Position gegenüber der Benchmark, angelegt wird. Zu den alternativen Beta-Strategien gehören verschiedene Handelsstrategien, bei denen die Risikoprämien innerhalb der Hedgefonds-Renditen isoliert werden. Der Anlageberater wird versuchen, das Portfolio so über die Alpha- Strategien und alternativen Beta-Strategien zu verteilen, dass eine attraktive Gesamtrendite bei gleichzeitiger Steuerung des Gesamtportfoliorisikos erzielt wird.
Der Fonds kann auch versuchen, als Anlagestrategie ein Engagement in Bezug auf die Volatilität einzugehen. Volatilität als Anlagestrategie bedeutet in der Regel, dass eine Anlageentscheidung auf der Grundlage des Vergleichs zwischen implizierter Volatilität (z. B. können die Preise von Optionen auf die Referenzaktiva die vom Markt auf einer Forward-Basis (forward basis) erwartete Volatilität abbilden) und realisierter Volatilität (d.h. die tatsächlich bei den Referenzaktiva aufgetretene Volatilität) getroffen wird. Der Fonds kann dieses Engagement durch den Einsatz von Derivaten, Organismen für gemeinsame Anlagen oder sonstige zulässige Vermögenswerte, die ein solches Engagement ermöglichen, erlangen.
Der Fonds kann höchstens 20 % seiner Vermögenswerte in Contingent Convertible Instruments anlegen.
Der Fonds wird aktiv verwaltet und die Zusammensetzung der Portfoliobestände ist nicht von einer Benchmark eingeschränkt.
Offenlegung gemäß der Taxonomie-Verordnung
Die dem Fonds zugrunde liegenden Anlagen berücksichtigen nicht die EU-Kriterien für ökologisch nachhaltige Wirtschaftstätigkeiten.
Profil des typischen Anlegers
In Anbetracht des Anlageziels des Fonds kann dieser für Anleger geeignet sein,
- die auf mittelfristige Sicht eine Rendite erzielen möchten, die eine niedrigere Volatilität als die Rendite auf traditionellen Aktienmärkten aufweist;
- die bereit sind, die mit dieser Anlageart verbundenen Risiken, wie im Abschnitt 1.5. „Risikofaktoren“ beschrieben, in Kauf zu nehmen.
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