Morgan Stanley Investment Funds - stockselection

Notes to the financial statements
As at 30 June 2009
1 THE COMPANY
The Company was incorporated on 21 November 1988
under the laws of the Grand Duchy of Luxembourg as a “Société
d’Investissement à Capital Variable” (“SICAV”) and is registered
as an undertaking for collective investment pursuant to Part 1 of
the Law of 20 December 2002. The Company is an
Undertaking for Collective Investment in Transferable Securities
(“UCITS”) for the purpose of the Council Directive
EEC/85/611 (“UCITS Directive”).
The exclusive purpose of the Company is to invest the funds
available to it in transferable securities and other assets permitted
by law, with the purpose of spreading investment risks and
affording its shareholders the results of the management of its
assets. The Company is presently structured to provide both
institutional and individual investors with a variety of Equity,
Bond, Liquidity, Asset Allocation and Alternative Investment
Funds. At the date of this report forty-three Funds are open for
subscription.
Fund Date of launch
American Franchise Fund 30 November 2005
Asian Equity Fund 8 October 1991
Asian Property Fund 1 July 1997
Emerging Europe, Middle East and Africa Equity Fund 16 October 2000
Emerging Markets Equity Fund 27 July 1993
European Equity Alpha Fund 5 March 1991
European Property Fund 1 July 1997
European Small Cap Value Fund 12 November 2001
Eurozone Equity Alpha Fund 3 April 2000
Global Brands Fund 30 October 2000
Global Property Fund 31 October 2006
Global Small Cap Value Fund 14 December 1993
Global Value Equity Fund 7 November 1989
Indian Equity Fund 30 November 2006
Japanese Equity Advantage Fund 31 May 2006
Japanese Value Equity Fund 25 May 1993
Latin American Equity Fund 2 August 1994
US Equity Growth Fund 25 August 1992
US Property Fund 9 January 1996
US Small Cap Growth Fund 27 August 1991
US Value Equity Fund 17 May 1994
Alpha Advantage European Fixed Income Fund 15 April 2008
Emerging Markets Debt Fund 11 April 1995
Emerging Markets Domestic Debt Fund 28 February 2007
Euro Bond Fund 15 September 1992
Euro Corporate Bond Fund 3 September 2001
Euro Strategic Bond Fund 25 February 1991
European Currencies High Yield Bond Fund 27 May 1997
Global Bond Fund 7 November 1989
Short Maturity Euro Bond Fund 2 August 1994
US Bond Fund 25 August 1992
Global Convertible Bond Fund 16 July 2002
Euro Liquidity Fund 31 January 2000
US Dollar Liquidity Fund 1 April 1998
Diversified Alpha Plus VaR 400 (Euro) Fund 4 June 2008
Diversified Alpha Plus VaR 800 (Euro) Fund 4 September 2008
Commodities Active GSLE Fund 6 June 2007
FX Alpha Plus RC 200 (Euro) Fund 27 February 2007
FX Alpha Plus RC 400 (Euro) Fund 27 February 2007
FX Alpha Plus RC 400 (Sterling) Fund 5 June 2007
FX Alpha Plus RC 400 (US Dollar) Fund 27 February 2007
FX Alpha Plus RC 800 (Euro) Fund 27 February 2007
FX Alpha Plus RC 800 (Sterling) Fund 27 February 2007
Each Class of Shares within each Fund has a different fee structure
but participates in the same pool of assets within a given Fund.
Morgan Stanley Investment Funds 30 June 2009 176
The following significant changes were made in the six months
to 30 June 2009:
Mergers
• On 20 March 2009, the European Equity Opportunities Fund
merged into the Eurozone Equity Alpha Fund.
• On 20 March 2009, the Euro Total Return Bond Fund merged
into the Euro Strategic Bond Fund.
• On 20 March 2009, the Global Convertible Bond (Euro) Fund
merged into the Global Convertible Bond Fund.
• On 20 March 2009, the Global Diversified (Euro) Fund merged
into the Diversified Alpha Plus VaR 400 (Euro) Fund.
• On 3 April 2009, the Global Equity Growth Fund merged into
the Global Value Equity Fund.
• On 3 April 2009, the Japanese Equity Growth Fund merged
into the Japanese Equity Advantage Fund.
• On 3 April 2009, the US Equity Fund merged into the
American Franchise Fund.
• On 3 April 2009, the FX Alpha Plus RC 200 (US Dollar) Fund
merged into the FX Alpha Plus RC 400 (US Dollar) Fund.
• On 3 April 2009, the FX Alpha Plus RC 800 (US Dollar) Fund
merged into the FX Alpha Plus RC 800 (Sterling) Fund
Launched Classes
Fund Date of launch
US Value Equity Fund - IH 19 January 2009
Euro Strategic Bond Fund - Z 21 January 2009
Emerging Markets Debt Fund - S 23 January 2009
US Value Equity Fund - ZH 26 January 2009
FX Alpha Plus RC 400 (Sterling) Fund - ZX 13 February 2009
Global Convertible Bond Fund -
AH (EUR), BH (EUR), CH (EUR), IH (EUR), ZHX (EUR) 20 March 2009
Diversified Alpha Plus VaR 400 (Euro) Fund -
AH (USD), BH (USD), IH (USD) 20 March 2009
FX Alpha Plus RC 800 (Sterling) Fund - AH (USD), IH (USD), AHX (USD) 3 April 2009
Global Convertible Bond Fund - ZH (EUR) 8 April 2009
Emerging Markets Domestic Debt Fund - Z 14 May 2009
FX Alpha Plus RC 400 (Euro) Fund - ZHX (GBP) 27 May 2009
Fund Closures
• On 3 April 2009, the FX Alpha Plus RC 200 (Sterling) Fund
closed.
• On 30 April 2009, the European Equity Optimised Research
130/30 Fund closed.
Name changes
• On 6 March 2009, the Commodities Alpha Plus Fund changed
its name to Commodities Active GSLE Fund.
• On 6 March 2009, the European Equity Fund changed its name
to European Equity Alpha Fund.
• On 6 March 2009, the European Optimised Research Extension
Fund changed its name to European Equity Optimised Research
130/30 Fund.