APPROVED FOR USE IN GERMANY Morgan Stanley Investment … · 2020. 9. 12. · GLOBAL FIXED INCOME OPPORTUNITIES FUND Morningstar Overall Rating* CLASS Z SHARES EAA Fund Global Flexible

APPROVED FOR USE IN GERMANY

Morgan Stanley Investment Funds (MS INVF)

Global Fixed IncomeOpportunities Fund

GLOBAL FIXED INCOME | GLOBAL FIXED INCOME TEAM FUND OVERVIEW | 30 SEPTEMBER 2020

We believe the time to be passive has passed

In today’s environment, the low levels of yields and the risk of higher interestrates make for a challenging backdrop for global fixed income investors. Webelieve that a passive or benchmark driven approach to investing in fixedincome may be sub-optimal in this environment. As a result, an active,flexible allocation strategy may be an attractive alternative, and stand tooutperform a passive approach.

An Active Approach

An active, flexible strategy avoids the limitations of tracking a benchmarkand has the ability to consider the widest potential opportunity set withinthe global fixed income universe. This approach provides investors with thecapability to own the best sectors throughout the market cycle.

The MS INVF Global Fixed Income Opportunities Fund adopts an active,flexible approach and pursues an attractive yield and total return over athree to five year horizon, focusing on absolute return and risk-adjustedreturn rather than a level of tracking error.

Rigorous Active Management

We believe that a truly active approach requires flexible asset allocationbetween each segment of the market. Our investment decisions discountgeographic and sector limitations; we are not driven by a benchmark. Ourexperienced Asset Allocation team uses macroeconomic analysis andfundamental research to identify the best areas of the fixed income markets.The advantage of a flexible approach is that the portfolio has no “home bias”and if we determine that a particular segment of the market offers little orno value, we do not have to own it.

The MS INVF Global Fixed Income Opportunities Fund allocates across awide variety of fixed income asset classes. Each sleeve of the portfolio isthen populated with the best individual investment ideas; we only selectinvestment opportunities that we believe offer the most compelling

fundamental case and valuation prospects. Our flexible approach toportfolio positioning enables us to adjust market exposure as themacroeconomic backdrop changes, striving to generate returns from a broadrange of investment opportunities.

Experienced Investors

The MS INVF Global Fixed Income Opportunities Fund is managed by theGlobal Fixed Income Team, an experienced team of fixed income investors.The Fund fully leverages the expertise of our well-resourced research teamsdedicated to each segment of the fixed income universe.

We Consider the Entire Universe of Fixed Income

MORG AN S TAN LEY IN VES T MEN T FU N DS (MS IN VF)

An Active, Flexible Approach toInvesting that Seeks to Identify theBest Ideas within the Global FixedIncome Universe

This represents how the portfolio management team generally implements its investment process under normal market conditions and is being provided forinformational purposes only.

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G LOBAL FIXED IN COME OPPORT U N IT IES FU N D

Morningstar Overall Rating*CLASS Z SHARES

EAA Fund Global Flexible BondOut of 416 Funds. Based on Risk Adjusted Return.Ratings as of 30/09/2020.

Investment Team INVESTMENT EXPERIENCE

Michael B. Kushma,32 years

Christian G. Roth, 33 years

Jim Caron, 28 years

Richard Ford, 29 years

Utkarsh Sharma, 8 years

Team members may be subject to change at any time without notice.

Differentiators

1. Active Approach

Our investment decisions discount geographic and sector limitations; weare not driven by a benchmark.

2. Flexible Asset Allocation

We believe that a truly active approach requires flexible allocationbetween each segment of the market.

3. Expertise in Sub Asset Classes

The portfolio is populated with the best individual investment ideas ineach segment of the market, selected by our rigorous analysis.

4. Right Sized

Allows the team to execute trades, both implementation and liquidation,across the global fixed income universe.

5. Global Presence

Teams located across the globe allow the team to understand eachsegment of the market.

MS INVF Global Fixed Income Opportunities Fund

Class Z (% net of fees) Performance of 100 USD Invested Since Inception (07 November 2011)

12 Month Performance Periods to Latest Month End (%)

SEPTEMBER '19SEPTEMBER '19 - - SEPTEMBER '20SEPTEMBER '20





Class Z Shares Gross (without

deduction of max sales charge)2.86 7.82 2.53 6.16 5.44

Class Z Shares Net (with the deduction

of max sales charge)1.83 6.74 1.50 5.10 4.38

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. Allperformance data is calculated NAV to NAV. The sources for all performance and Index data is Morgan Stanley Investment Management.All data as of 30 September 2020 and subject to change daily. Please visit our website www.morganstanley.com/im to see the latestperformance returns for the fund’s other share classes.

Figure shown assumes reinvestment of all distributions and deduction of fund level costs, but does not reflect the deduction of any sales charge applicableat investor level. Figure shown assumes reinvestment of all distributions and deduction of fund level costs, and includes the deduction of the maximum sales charge

applicable at investor level that may be taken out of your money before it is invested. Please see the Fund’s current prospectus and the share class’ KeyInvestor Information Document for complete details on fees and sales charges. Example: An investor wishes to purchase shares of USD 100. At the maximum sales charge of 5.75% the investor has to expend USD 106.10. The sales

charge is only incurred upon subscription.

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Chief Investment Officer of GlobalFixed Income

Managing DirectorManaging Director

Managing DirectorExecutive Director

Cas

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Class Z Gross (without deduction of max sales charge)

90

100

110

120

130

140

150

160

Nov-11-1 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20

1,2,†

1

2

1

2

†

Share Class Z Risk and Reward Profile

The risk and reward category shown is based on historic data.Historic figures are only a guide and may not be a reliable indicator ofwhat may happen in the future.As such this category may change in the future.The higher the category, the greater the potential reward, but also thegreater the risk of losing the investment. Category 1 does not indicate arisk free investment.The fund is in this category because it invests in fixed income securitiesand the fund's simulated and/or realised return has experiencedmedium rises and falls historically.The fund may be impacted by movements in the exchange ratesbetween the fund's currency and the currencies of the fund'sinvestments.

This rating does not take into account other risk factors which should beconsidered before investing, these include:

The value of bonds are likely to decrease if interest rates rise and viceversa.The value of financial derivative instruments are highly sensitive andmay result in losses in excess of the amount invested by the Sub-Fund.

Issuers may not be able to repay their debts, if this happens the valueof your investment will decrease. This risk is higher where the fundinvests in a bond with a lower credit rating.The fund relies on other parties to fulfill certain services, investmentsor transactions. If these parties become insolvent, it may expose thefund to financial loss.There may be an insufficient number of buyers or sellers which mayaffect the funds ability to buy or sell securities.Investment in Fixed Income Securities via the China Interbank BondMarket may also entail additional risks, such as counterparty andliquidity risk.There are increased risks of investing in emerging markets as political,legal and operational systems may be less developed than indeveloped markets.Past performance is not a reliable indicator of future results. Returnsmay increase or decrease as a result of currency fluctuations. Thevalue of investments and the income from them can go down as wellas up and investors may lose all or a substantial portion of his or herinvestment.The value of the investments and the income from them will vary andthere can be no assurance that the Fund will achieve its investmentobjectives.Investments may be in a variety of currencies and therefore changes inrates of exchange between currencies may cause the value ofinvestments to decrease or increase. Furthermore, the value ofinvestments may be adversely affected by fluctuations in exchangerates between the investor’s reference currency and the base currencyof the investments.

DEFINITIONS

Government bonds are debt securities issued by a government.Corporate bonds are debt securities issued by a corporation. Trackingerror is the standard deviation of the difference between the returns of aninvestment and its benchmark. Fundamental research is the analysis ofoverall economic, industry and company metrics. Home bias is the tendencyfor investors to invest a large portion of their investments in domesticholdings. High-yield bonds have a credit rating that indicates a higher riskof credit default than investment grade-bonds. Convertible bonds are atype of bond that has attached to it the optionality for the holder to convertthe bond into a specified number of shares of common stock of the issuingcompany or cash of equal value. Mortgage-backed securities areinstruments whose income payments and value are derived from a specifiedpool of underlying collateral.

DISTRIBUTION

This communication is only intended for and will only be distributed topersons resident in jurisdictions where such distribution or availability wouldnot be contrary to local laws or regulations. In particular, the Shares are notavailable for distribution to US persons.

Ireland: Morgan Stanley Investment Management (Ireland) Limited. Registered Office: The Observatory, 7-11 Sir John Rogerson's Quay, Dublin 2, Ireland. Registered in Ireland under company number 616662. Regulated by the Central Bank of Ireland. United Kingdom: Morgan Stanley Investment Management Limited is authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 1981121. Registered Office: 25 Cabot Square, Canary Wharf, London E14 4QA, authorised and regulated by the Financial Conduct Authority. Dubai: Morgan Stanley Investment Management Limited (Representative Office, Unit Precinct 3-7th Floor-Unit 701 and 702, Level 7, Gate Precinct Building 3, Dubai International Financial Centre, Dubai, 506501, United Arab Emirates. Telephone: +97 (0)14 709 7158). Germany: Morgan Stanley Investment Management Limited Niederlassung Deutschland, Grosse Gallusstrasse 18, 60312 Frankfurt am Main, Germany (Gattung: Zweigniederlassung (FDI) gem. § 53b KWG).Italy: Morgan Stanley Investment Management Limited, Milan Branch (Sede Secondaria di Milano) is a branch of Morgan Stanley Investment Management Limited, a company registered in the UK, authorised and regulated by the Financial Conduct Authority (FCA), and whose registered office is at 25 Cabot Square, Canary Wharf, London, E14 4QA. Morgan Stanley Investment Management Limited Milan Branch (Sede Secondaria di Milano) with seat in Palazzo Serbelloni Corso Venezia, 16 20121 Milano, Italy, is registered in Italy with company number and VAT number 08829360968. The Netherlands: Morgan Stanley Investment Management, Rembrandt Tower, 11th Floor Amstelplein 1 1096HA, Netherlands. Telephone: 31 2-0462-1300. Morgan Stanley Investment Management is a branch office of Morgan Stanley Investment Management Limited. Morgan Stanley Investment Management Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Switzerland: Morgan Stanley & Co. International plc, London,Zurich Branch Authorised and regulated by the EidgenössischeFinanzmarktaufsicht ("FINMA"). Registered with the Register of Commerce

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IMPORTANT INFORMATION

EMEA: This marketing communication has been issued by MorganStanley Investment Management Limited (“MSIM”). Authorisedand regulated by the Financial Conduct Authority. Registered inEngland No. 1981121. Registered Office: 25 Cabot Square, CanaryWharf, London E14 4QA.

This document contains information relating to the sub-fund ("Fund") ofMorgan Stanley Investment Funds, a Luxembourg domiciled Sociétéd’Investissement à Capital Variable. Morgan Stanley Investment Funds (the“Company”) is registered in the Grand Duchy of Luxembourg as anundertaking for collective investment pursuant to Part 1 of the Law of 17thDecember 2010, as amended. The Company is an Undertaking for CollectiveInvestment in Transferable Securities (“UCITS”).

Applications for shares in the Fund should not be made without firstconsulting the current Prospectus, Key Investor Information Document("KIID"), Annual Report and Semi-Annual Report (“Offering Documents”), orother documents available in your local jurisdiction which is available free

MORG AN S TAN LEY IN VES T MEN T FU N DS (MS IN VF)

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Lower Risk Higher Risk

Potentially Lower Rewards Potentially Higher Rewards

of charge from the Registered Office: European Bank and Business Centre,6B route de Trèves, L-2633 Senningerberg, R.C.S. Luxemburg B 29 192. Inaddition, all Italian investors should refer to the ‘Extended Application Form’,and all Hong Kong investors should refer to the ‘Additional Information forHong Kong Investors’ section, outlined within the Prospectus. Copies of theProspectus, KIID, the Articles of Incorporation and the annual and semi-annual reports, in German, and further information can be obtained free ofcharge from the representative in Switzerland. The representative inSwitzerland is Carnegie Fund Services S.A., 11, rue du Général-Dufour, 1204Geneva. The paying agent in Switzerland is Banque Cantonale de Genève, 17,quai de l’Ile, 1204 Geneva. The document has been prepared solely forinformational purposes and does not constitute an offer or arecommendation to buy or sell any particular security or to adopt anyspecific investment strategy.

Any index referred to herein is the intellectual property (including registeredtrademarks) of the applicable licensor. Any product based on an index is inno way sponsored, endorsed, sold or promoted by the applicable licensorand it shall not have any liability with respect thereto.

This communication has been prepared solely for informational purposesand does not constitute an offer or a recommendation to buy or sell anyparticular security or to adopt any specific investment strategy.

All investments involve risks, including the possible loss of principal. Thematerial contained herein has not been based on a consideration of anyindividual client circumstances and is not investment advice, nor should it beconstrued in any way as tax, accounting, legal or regulatory advice. To thatend, investors should seek independent legal and financial advice, includingadvice as to tax consequences, before making any investment decision.

The views and opinions expressed are those of the portfolio managementteam at the time of writing/of this presentation and are subject to change atany time due to market, economic, or other conditions, and may notnecessarily come to pass. These comments are not representative of theopinions and views of the firm as a whole.

The information contained in this communication is not aresearch recommendation or ‘investment research’ and isclassified as a ‘Marketing Communication’ in accordance with theapplicable European regulation or Swiss regulation. This meansthat this marketing communication (a) has not been prepared inaccordance with legal requirements designed to promote theindependence of investment research (b) is not subject to anyprohibition on dealing ahead of the dissemination of investmentresearch.

MSIM has not authorised financial intermediaries to use and to distribute thisdocument, unless such use and distribution is made in accordance withapplicable law and regulation. MSIM shall not be liable for, and accepts noliability for, the use or misuse of this document by any such financialintermediary. If you are a distributor of the Morgan Stanley InvestmentFunds, some or all of the funds or shares in individual funds may beavailable for distribution. Please refer to your sub-distribution agreement forthese details before forwarding fund information to your clients.

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This document may be translated into other languages. Where such atranslation is made this English version remains definitive. If there are anydiscrepancies between the English version and any version of this documentin another language, the English version shall prevail.

*MORNINGSTAR

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The Europe/Asia and South Africa category (EAA) includes fundsdomiciled in European markets, major cross-border Asian markets wherematerial numbers of European UCITS funds are available (principally HongKong, Singapore and Taiwan), South Africa, and selected other Asian andAfrican markets where Morningstar believes it is of benefit to investors forthe funds to be included in the EAA classification system.

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