Morgan Stanley Investment Funds - stockselection

Global Convertible Bond Fund*
INVESTMENT AIMS
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.
* Name changed from Global Convertible Bond (USD) Fund on 20 March 2009.
Please refer to the full prospectus for the Fund’s investment objective and policy.
Morgan Stanley Investment Funds 30 June 2009 88
STATEMENT OF INVESTMENTS
Transferable securities and money market instruments admitted
to official exchange listing or dealt in on another regulated
market. As at 30 June 2009, expressed in US dollars.
Investments
Holdings/
Nominal in
US dollars
unless specified
Market
value
% of net
assets
Diversified Financial Services
Rafflesia Capital CV 1.25% /2011 (3) 6,300,000 6,877,473 2.22
Cherating Capital co gtd CV 2% /2012 (3) 6,500,000 6,630,000 2.15
ORIX unsecur CV 1% /2014 (JPY) 612,000,000 6,258,043 2.02
Sonata Securities secured SerADEN CV
1.5% /2010 (CHF) 5,900,000 5,096,742 1.65
Feringghi Capital co gtd SerRegS CV
0% 22/12/2009 4,400,000 4,969,967 1.61
Paka Capital SerPARK CV 0% /2013 4,500,000 4,224,375 1.37
Aldar Funding secured SerALDA CV
5.767% /2011 3,535,000 3,547,888 1.15
Actelion Finance co gtd CV 0% /2011 (CHF) 3,385,000 3,517,319 1.14
SOCO Finance Jersey co gtd SerSIA CV
4.5% /2013 3,402,000 3,302,985 1.07
IIG Funding SerIIG CV 6.75% /2012 7,700,000 1,720,711 0.56
China Overseas Finance Investment
Cayman co gtd SerCOLI CV 0% /2014 800,000 1,040,040 0.35
Adidas International co gtd CV 2.5% /2018 (EUR) 500,000 819,546 0.27
AngloGold Ashanti Holdings Finance co gtd
SerREGS CV 3.5% /2014 600,000 625,850 0.20
Total for Diversified Financial Services 15.76
Banks
Bank of America SerL Pfd Stock
7.25% perpetual 9,346 7,788,302 2.52
Wells Fargo & Co SerL Pfd Stock 7.5% 7,949 6,239,965 2.02
Mizuho Financial Group Ser11XI CV
2% /2016 (JPY) 354,000 2,556,910 0.83
BES Finance bnk gtd SerEMTN CV
1.25% /2011 1,500,000 1,429,950 0.46
KfW - Kreditanstalt fuer Wiederaufbau
govt gtd SerDPW CV 0.5% /2010 (EUR) 620,000 866,834 0.28
KfW - Kreditanstalt fuer Wiederaufbau
govt gtd SerDTE CV 3.25% /2013 (EUR) 600,000 859,140 0.28
Bank of Kyoto subord CV 0% /2014 (JPY) 79,000,000 833,481 0.27
La Caja de Ahorros y Pensiones
de Barcelona SerCRI CV 3.5% /2011 (EUR) 550,000 757,160 0.24
Total for Banks 6.90
Oil & Gas
Seadrill sr unsecur CV 3.625% /2012 8,400,000 6,603,727 2.14
Transocean sr unsecur SerC CV 1.5% /2037 6,048,000 5,360,040 1.73
Nabors Industries co gtd CV 0.94% /2011 3,201,000 2,976,930 0.96
Chesapeake Energy Corp co gtd CV
2.75% /2035 2,612,000 2,262,645 0.73
Etablissements Maurel et Prom sr nts CV
3.5% /2010 (EUR) 2,774,200 887,567 0.29
Total for Oil & Gas 5.85
Mining
Newmont Mining co gtd CV 1.25% /2014 5,200,000 5,772,000 1.87
Freeport-McMoRan Copper & Gold Pfd Stock
5.5% perpetual 3,301 3,802,660 1.23
Anglo American sr unsecur SerAAL CV
4% /2014 2,300,000 3,127,540 1.01
Vedanta Finance Jersey co gtd CV
4.26% /2026 2,766,000 2,299,237 0.74
Goldcorp sr nts Ser144A priv plmt CV
2% /2014 1,410,000 1,413,525 0.46
Alcoa sr unsecur CV 5.25% /2014 109,000 193,203 0.06
Total for Mining 5.37