Performance data quoted is based on average annualized returns and net of fees.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please select the "month" timeframe within the Performance tab or call 1-800-548-7786. Investment returns will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. The yield quotation more closely reflects the current earnings of the money market fund than the total return quotation. DEFINITIONS
Where the net expense ratio is lower than the gross expense ratio, certain fees have been waived and/ or expenses reimbursed. These waivers and/or reimbursem*nts will continue for at least one year from the date of the applicable fund’s current prospectus (unless otherwise noted in the applicable prospectus) or until such time as the fund's Board of Trustees acts to discontinue all or a portion of such waivers and/or reimbursem*nts. Absent such waivers and/or reimbursem*nts, returns would have been lower. Expenses are based on the fund's current prospectus.
Subsidizedreflects current fee waivers in effect. Absent such fee waivers, the yield would have been lower. TheUnsubsidizedyielddoes not reflect the fee waivers currently in effect. For Unsubsidized yield information, please click on the Unsubsidized link above.
Current yieldis a measure that looks at the current price of a bond instead of its face value and represents the return an investor would expect if he or she purchased the bond and held it for a year. Calculated by dividing the Annual Cash Inflows / Market Price.Theeffective yieldsare annualized net yields that describe 1-year earnings assuming dividends are reinvested at the average rate of the last 7 days.Weighted average maturity (WAM).Maturity measures the number of days remaining inthe life of a bond. The weighted average maturity of the portfolio represents the market-weighted average of the maturities of the portfolio's individual holdings.Weighted average life (WAL).A measure of sensitivity to liquidity and/or credit risk. Weighted average life takes into account all call options exercised by the issuer as well as permissible maturity shortening devices such as demand features.TheNet Asset Value(NAV)per share is determined by dividing the value of the fund's portfolio securities, cash and other assets, less all liabilities, by the total number of common shares outstanding.Total returnassumes an investment at the beginning of the period, reinvestment of all distributions for the period in accordance with the fund's dividend reinvestment plan, and sale of all shares at the end of the period.
STABLE NAV FUNDS
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please consider the investment objectives, risks, charges and expenses of the portfolios carefully before investing. The prospectus contains this and other information about the portfolios. To obtain a prospectus, download one at www.morganstanley.com/liquidity or call 1.800.236.0992. Please read the prospectus carefully before investing.
Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley.
WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.
WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.
Tracking error and information ratio are calculated using the Portfolio's Blended Index (added October 2, 2013), as this is a better representation of the Portfolio's global multi-asset strategy. The investment team manages the Portfolio relative to this Blended Index.
Excess return versus Custom Benchmark is calculated using the Portfolio's Blended Index based on the period since it was added as a benchmark on October 2, 2013.
NTM = Next Twelve Months
LTM = Last Twelve Months
Because the Portfolio had not commenced operations as of the most recent fiscal year end, no portfolio turnover rate is available for the Portfolio.
The Reorganization occurred on January 6, 2015. The inception date reflects the inception date of the Private Fund.
Global equities is represented by the MSCI All Country World Index.
Net exposure % calculated as [(MV of long cash security and derivative positions)-(absolute value of MV in short derivative positions)]/(portfolio MV)
Gross exposure % calculated as [(MV of long cash security and derivative positions)+(absolute value of MV in short derivative positions)]/(portfolio MV).
Fixed income net and gross exposure is duration adjusted (U.S. Treasury 10-Year equivalents)
Security ratings disclosed above have been obtained from Standard & Poor's Ratings Group ("S&P"). S&P's credit ratings express its opinion about the ability and willingness of an issuer to meet its financial obligations in full and on time.'AAA' is the highest rating. Any rating below 'BBB-' rating is considered non-investment grade. Ratings are relative and subjective and are not absolute standards of quality. Ratings apply only to the underlying holdings of the portfolio and does not remove market risk."NR" or "Not Rated" indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular obligation as a matter of policy. Futures are not rated.
I am an investment expert with a comprehensive understanding of the financial industry, particularly in the realm of mutual funds and fixed-income securities. My expertise is substantiated by years of experience and a deep dive into various investment vehicles. Let's delve into the concepts used in the provided article:
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Performance Data:
- Annualized Returns: The average annualized returns are quoted, indicating the performance of the investment over a specified period, typically expressed as a percentage.
- Net of Fees: Performance data is presented after deducting fees, providing a more accurate reflection of actual investor returns.
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Investment Risks and Guarantees:
- Disclaimer: Past performance is highlighted as no guarantee of future results, emphasizing the unpredictability of market fluctuations.
- Stable NAV Funds: These funds aim to maintain a stable net asset value (NAV) per share at $1.00, but there is a disclaimer about the lack of guarantee. Investors could potentially lose money.
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Expense Ratios:
- Net Expense Ratio: Indicates the actual cost of owning the fund after fee waivers and/or reimbursem*nts.
- Gross Expense Ratio: Represents the total expenses before any waivers, providing a clearer picture of the fund's operating costs.
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Yield and Return Metrics:
- Current Yield: Measures the return an investor can expect from a bond based on its current price, calculated by dividing annual cash inflows by market price.
- Effective Yields: Annualized net yields, assuming dividends are reinvested at the average rate of the last 7 days.
- Total Return: Reflects the overall return on investment, considering the beginning and ending values, along with reinvested distributions.
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Weighted Average Maturity (WAM) and Weighted Average Life (WAL):
- WAM: Represents the market-weighted average of the maturities of the portfolio's individual holdings.
- WAL: Measures sensitivity to liquidity and/or credit risk, accounting for call options exercised and permissible maturity shortening devices.
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Net Asset Value (NAV):
- NAV per Share: Calculated by dividing the value of the fund's portfolio securities, cash, and other assets, less liabilities, by the total number of common shares outstanding.
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Additional Concepts:
- Tracking Error and Information Ratio: Calculated using the Portfolio's Blended Index, offering insights into how well the portfolio replicates its benchmark.
- Excess Return versus Custom Benchmark: Measures the portfolio's performance relative to its custom benchmark.
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Additional Information:
- Various acronyms and abbreviations are clarified, such as NTM (Next Twelve Months), LTM (Last Twelve Months), MV (Market Value), and others.
- The article references a reorganization on January 6, 2015, and the inception date of the Private Fund.
In conclusion, the provided information covers a spectrum of investment-related concepts, from performance metrics and risk disclaimers to detailed explanations of yield calculations and portfolio characteristics.
