Morgan Stanley Investment Funds – Emerging Markets Debt Fund Overview and Share Classes

The Morgan Stanley Investment Funds (MS INVF) Emerging Markets Debt Fund targets total return through a strategy that allocates at least 70% of its net assets to government and corporate bonds within emerging markets. According to fund documentation, the objective is to increase investment value through a combination of income and capital growth, incorporating both investment-grade and high-yield, below-investment-grade instruments.

Fund Focuses on Emerging Market Bonds

The fund focuses on bonds issued by entities located in emerging market countries, as well as issuers in developed markets that derive at least half of their revenue from, or primarily trade their debt in, emerging markets. The portfolio includes a wide array of share classes tailored to different currencies and cost structures, with ongoing costs ranging from 1.63% for standard classes to 2.33% for specific C-share classes.

Returns Show Volatility over Ten Years

The fund recorded a 1-year trailing return of 7.56% and a 3-year trailing return of 12.67%. However, longer-term metrics show more volatility; the 10-year trailing return stands at 1.36%, with a maximum loss of 31.01% over the same 10-year period. The fund’s beta relative to its benchmark was 0.50 over the 1-year period and 0.80 over the 10-year period, reflecting its sensitivity to broader market movements.

Fund Is Restricted for US Investors

Investors should note that the securities within this fund are not registered for sale in the United States. According to markets.ft.com, the fund cannot be purchased by U.S. investors, and the offer or sale of these securities to U.S. persons is restricted. The data provided by Morningstar, Inc. is proprietary and serves for general information purposes only; it does not constitute investment advice or a solicitation to buy securities in any jurisdiction where such an offer is not authorized.

Who Can Invest and What the Fund Seeks

Who is eligible to invest in these share classes?
The fund is available to investors in jurisdictions where it has been registered for sale. It is not registered in the United States and is generally unavailable to U.S. persons.

What is the primary objective of the fund?
The fund seeks to increase the value of an investment through a combination of income and capital growth by investing at least 70% of its net assets in emerging market government and corporate bonds.

Where does the performance data originate?
Performance data and analytics, including Sharpe ratios and volatility metrics, are provided by Morningstar, Inc. and are subject to their proprietary terms and conditions regarding accuracy and distribution.

Upcoming Share Class Additions

The fund continues to expand its offerings, with the most recent share class, MS INVF Emerging Markets Debt B2YM USD, launched on September 19, 2025. This follows the introduction of the AYM USD share class on January 24, 2025.