Morgan Stanley Investment Funds - stockselection
Morgan Stanley Investment Funds - stockselection
Morgan Stanley Investment Funds - stockselection
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
179 <strong>Morgan</strong> <strong>Stanley</strong> <strong>Investment</strong> <strong>Funds</strong> 30 June 2009<br />
Notes to the financial statements (continued)<br />
As at 30 June 2009<br />
recorded in the Statement of Assets and Liabilities and the<br />
Statement of Operations and Changes in Net Assets of the<br />
Indian Equity Fund. All investments held by the Subsidiary<br />
are individually disclosed in the statement of investments<br />
of the Indian Equity Fund.<br />
The Subsidiary incurs and pays certain fees and expenses<br />
relating to its investment activity in India. These fees and<br />
expenses may include brokerage costs and commissions,<br />
transaction costs associated with converting currency to and<br />
from Indian Rupee to US Dollars, fees incurred by its standing<br />
proxy, corporate and registration fees and taxes associated<br />
with the establishment and operation of the Subsidiary.<br />
3 SECURITIES LENDING<br />
As of 30 June 2009, the Company lent securities as follows:<br />
Value in USD Collateral MV<br />
Asian Equity Fund 51,134,677 52,570,032<br />
Emerging Markets Equity Fund 47,035,381 48,350,567<br />
European Equity Alpha Fund 4,859,391 5,051,376<br />
European Property Fund 41,753,108 43,768,590<br />
Eurozone Equity Alpha Fund 3,270,278 3,361,455<br />
Global Value Equity Fund 10,517,413 10,810,741<br />
Japanese Equity Advantage Fund 83,310 92,955<br />
Japanese Value Equity Fund 28,152,828 28,940,145<br />
Euro Bond Fund 67,076,119 68,490,277<br />
Euro Strategic Bond Fund 8,224,148 8,369,309<br />
European Currencies High Yield Bond Fund 13,438,665 13,607,414<br />
Global Bond Fund 8,557,260 8,717,968<br />
Short Maturity Euro Bond Fund 9,146,320 9,421,346<br />
Total 293,248,897 301,552,177<br />
4 RELATED PARTY TRANSACTIONS AND AFFILIATIONS<br />
Under the terms of an investment advisory agreement, <strong>Morgan</strong><br />
<strong>Stanley</strong> <strong>Investment</strong> Management, Inc. has been appointed<br />
<strong>Investment</strong> Adviser with responsibility for advising the Company<br />
within the scope of the day-to-day management of the various<br />
<strong>Funds</strong>. The <strong>Investment</strong> Adviser may delegate any of its<br />
responsibilities to any other party subject to approval by the<br />
Directors and the CSSF but the <strong>Investment</strong> Adviser shall remain<br />
responsible for the proper performance by such party of those<br />
responsibilities. A full list of sub-advisers can be found on page 189.<br />
The <strong>Investment</strong> Adviser is entitled to receive from the Company<br />
a fee payable monthly in arrears, and calculated on the basis of the<br />
average daily net assets (before deduction of the fee) of each Fund<br />
attributable to each Class of Shares.<br />
All expenses are paid directly by the Company and fees paid to the<br />
<strong>Investment</strong> Adviser are at the following annual rates:<br />
Fund Name<br />
Class I,<br />
IH, IX,<br />
Z, ZH<br />
and ZHX<br />
Class A, AH,<br />
AHX,<br />
B, BH<br />
and BX<br />
Class C,<br />
CH and CX<br />
Class S<br />
American Franchise Fund 0.70% 1.40% 2.20% -<br />
Asian Equity Fund 0.75% 1.40% 2.20% -<br />
Asian Property Fund 0.75% 1.40% 2.20% -<br />
Emerging Europe, Middle East<br />
and Africa Equity Fund 1.10% 1.60% 2.40% -<br />
Class I, Class A, AH,<br />
IH, IX, AHX,<br />
Z, ZH B, BH Class C,<br />
Fund Name and ZHX<br />
and BX CH and CX Class S<br />
Emerging Markets Equity Fund 1.10% 1.60% 2.40% -<br />
European Equity Alpha Fund 0.70% 1.20% 1.90% -<br />
European Property Fund 0.75% 1.40% 2.20% -<br />
European Small Cap Value Fund 0.95% 1.60% 2.40% -<br />
Eurozone Equity Alpha Fund 0.75% 1.40% 2.20% -<br />
Global Brands Fund 0.75% 1.40% 2.20% -<br />
Global Property Fund 0.85% 1.50% 2.30% -<br />
Global Small Cap Value Fund 0.95% 1.60% 2.40% -<br />
Global Value Equity Fund 0.75% 1.40% 2.20% -<br />
Indian Equity Fund 0.90% 1.60% 2.40% -<br />
Japanese Equity Advantage Fund 0.75% 1.40% 2.20% -<br />
Japanese Value Equity Fund 0.75% 1.40% 2.20% -<br />
Latin American Equity Fund 1.00% 1.60% 2.40% -<br />
US Equity Growth Fund 0.70% 1.40% 2.20% -<br />
US Property Fund 0.75% 1.40% 2.20% -<br />
US Small Cap Growth Fund 0.95% 1.60% 2.40% -<br />
US Value Equity Fund 0.70% 1.40% 2.20% -<br />
Alpha Advantage European<br />
Fixed Income Fund 0.65% 1.30% 2.10% -<br />
Emerging Markets Debt Fund 0.90% 1.40% 2.10% 0.75%<br />
Emerging Markets Domestic Debt Fund 0.90% 1.40% 2.10% 0.75%<br />
Euro Bond Fund 0.45% 0.80% 1.45% 0.45%<br />
Euro Corporate Bond Fund 0.45% 0.80% 1.45% 0.40%<br />
Euro Strategic Bond Fund 0.45% 0.80% 1.45% 0.35%<br />
European Currencies High Yield Bond Fund 0.50% 0.85% 1.50% 0.45%<br />
Global Bond Fund 0.45% 0.80% 1.45% 0.35%<br />
Short Maturity Euro Bond Fund 0.45% 0.80% 1.45% 0.30%<br />
US Bond Fund 0.45% 0.80% 1.45% 0.45%<br />
Global Convertible Bond Fund 0.60% 1.00% 1.60% 0.55%<br />
Euro Liquidity Fund 0.20% 0.50% 0.85% -<br />
US Dollar Liquidity Fund 0.20% 0.50% 0.85% -<br />
Diversified Alpha Plus VaR 400 (Euro) Fund 0.80% 1.60% 2.40% -<br />
Diversified Alpha Plus VaR 800 (Euro) Fund 1.10% 2.20% 3.00% -<br />
Commodities Active GSLE Fund 0.55% 1.10% 1.70% -<br />
FX Alpha Plus RC 200 (Euro) Fund 0.45% 0.80% 1.45% -<br />
FX Alpha Plus RC 400 (Euro) Fund 0.70% 1.20% 1.90% -<br />
FX Alpha Plus RC 400 (Sterling) Fund 0.70% 1.20% 1.90% -<br />
FX Alpha Plus RC 400 (US Dollar) Fund 0.70% 1.20% 1.90% -<br />
FX Alpha Plus RC 800 (Euro) Fund 1.00% 1.50% 2.30% -<br />
FX Alpha Plus RC 800 (Sterling) Fund 1.00% 1.50% 2.30% -<br />
No investment advisory fee is payable in respect of Class “N”, “NH” and “NX” Shares.<br />
In the case of any individual Fund or Class, the <strong>Investment</strong><br />
Adviser may choose to waive or rebate all of its fee or any<br />
portion thereof at its absolute discretion for an indefinite period,<br />
in order to reduce the impact such fee may have on the<br />
performance of the Fund or Class in instances where the net<br />
assets of the Fund or Class are of insufficient size.<br />
The <strong>Funds</strong> are subject to a monthly shareholder service fee at<br />
a maximum annual rate of 0.25% of the <strong>Funds</strong>’ aggregate<br />
average daily Net Asset Value attributable to all Classes of Shares<br />
of the <strong>Funds</strong>. The Equity <strong>Funds</strong>, Bond <strong>Funds</strong>, Asset Allocation<br />
<strong>Funds</strong> and Alternative <strong>Investment</strong> <strong>Funds</strong> are currently subject to<br />
a monthly shareholder service fee at the annual rate of 0.08% of<br />
the <strong>Funds</strong>’ aggregate average daily Net Asset Value attributable<br />
to Class I, IX, IH, IHX, Z, ZX, ZH and ZHX Shares and at the<br />
annual rate of 0.15% of the <strong>Funds</strong>’ aggregate average daily Net<br />
Asset Value attributable to Class A, AX, AH and AHX Shares<br />
and Class B, BX, BH and BHX Shares. There are no shareholder<br />
service fees for Class N, NX, NH and NHX Shares.<br />
The Company has similarly reduced the fees for shareholder<br />
service so that the Liquidity <strong>Funds</strong> will be subject to a monthly<br />
shareholder service fee at the annual rate of 0.05% of such