Company: CAF
Filing Date: 2025-03-06
Form Type: N-CSR
Source: 0001104659-25-021323
Chunk: 134

Company: Morgan Stanley China A Share Fund, Inc.
Filing Date: 2025-03-06
Form: N-CSR
Chunk 134
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 a conflict of interest could exist to the extent the Adviser has proprietary investments in certain accounts, where portfolio managers have personal investments in certain accounts or when certain accounts are investment options in the Adviser’s employee benefits and/or deferred compensation plans. The portfolio managers may have an incentive to favor these accounts over others. If the Adviser manages accounts that engage in short sales of securities of the type in which the Fund invests, the Adviser could be seen as harming the performance of the Fund for the benefit of the accounts engaging in short sales if the short sales cause the market value of the securities to fall. The Adviser has adopted trade allocation and other policies and procedures that it believes are reasonably designed to address these and other conflicts of interest. Portfolio Manager Compensation Structure Morgan Stanley’s compensation structure is based on a total reward system of base salary and incentive compensation, which is paid either in the form of cash bonus, or for employees meeting the specified deferred compensation eligibility threshold, partially as a cash bonus and partially as mandatory deferred compensation. Deferred compensation granted to Investment Management employees are generally granted as a mix of deferred cash awards under the Investment Management Alignment Plan (IMAP) and equity-based awards in the form of stock units. The portion of incentive compensation granted in the form of a deferred compensation award and the terms of such awards are determined annually by the Compensation, Management Development and Succession Committee of the Morgan Stanley Board of Directors . Base salary compensation. Generally, portfolio managers receive base salary compensation based on the level of their position with the Adviser. Incentive compensation.In addition to base compensation, portfolio managers may receive discretionary year-end compensation. Incentive compensation may include: ●Cash Bonus. ●Deferred Compensation:

| ● | A mandatory program that defers a portion of incentive compensation into                                                                     
 restricted stock units or other awards based on Morgan Stanley common stock or other plans that are subject to vesting and other conditions. |

| ● | IMAP is a cash-based deferred compensation plan designed to increase the alignment of participants’                                         
 interests with the interests of the Advisor’s clients. For eligible employees, a portion of their deferred compensation is mandatorily      
 deferred into IMAP on an annual basis. Awards granted under IMAP are notionally invested in referenced funds available pursuant to the      
 plan, which are funds advised by MSIM and its affiliates that are investment advisers. Portfolio managers are required to notionally invest 
 a minimum of 40% of their account balance in the designated funds that they manage and are included in the IMAP notional investment