Morgan Stanley Institutional Funds

Funds Group: Morgan Stanley Institutional Funds
Management Company: Morgan Stanley Investment Management Inc.
Funds Affected: (1) Morgan Stanley Institutional Asia Opportunities Portfolio, Morgan Stanley Institutional Global Opportunity Portfolio, Morgan Stanley Institutional International Opportunity Portfolio, Morgan Stanley Institutional International Advantage Portfolio (2) Morgan Stanley Institutional Emerging Markets Fixed Income Opportunities Fund, Morgan Stanley Institutional Emerging Markets Leaders Portfolio, Morgan Stanley Institutional Emerging Markets Small Cap Portfolio, Morgan Stanley Institutional Frontier Markets Portfolio, (3) Morgan Stanley Institutional International Real Estate Portfolio, Morgan Stanley Institutional Global Real Estate Fund, Morgan Stanley Institutional US Real Estate Fund, Morgan Stanley Global Concentrated Real Estate, Morgan Stanley Institutional High Yield Portfolio, Morgan Stanley Institutional Corporate Bond Fund, Morgan Stanley Institutional Core Plus Fixed Income Fund, Morgan Stanley Institutional (4) Global Opportunity Portfolio, Morgan Stanley Institutional International Equity Portfolio, and Morgan Stanley Institutional International Advantage Portfolio, (5) Morgan Stanley Institutional Inception Fund, Morgan Stanley Insight Fund, and Morgan Stanley Institutional Discovery Fund, Morgan Stanley Institutional Advantage Fund, Morgan Stanley Global Permanence Fund
Principal Sustainable Investment Management Strategy: (1) ESG integration, (2) ESG Integration, Negative screening (exclusions), Shareholder Engagement, (3) ESG integration, Shareholder/Bondholder  Engagement, (4-5) ESG integration
Summary:
(1) The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG).
(2) The investment process takes into account information about environmental, social and governance issues (also referred to as ESG) when making investment decisions. The adviser and/or sub-adviser focus on engaging company management around corporate governance practices as well as what the adviser and/or sub-adviser deem to be materially important environmental and/or social issues facing a company. The investment process excludes holdings in tobacco companies.
(3) The investment process takes into account information about environmental, social and governance issues (also referred to as ESG) when making investment decisions. The adviser and/or sub-adviser focus on engaging company management around corporate governance practices as well as what the adviser and/or sub-adviser deem to be materially important environmental and/or social issues facing a company.
(4) The investment process takes into account information about environmental, social and governance issues (also referred to as ESG) when making investment decisions.
(5) The adviser actively integrates sustainability into the investment process by using environmental, social and governance (“ESG”) factors as a lens for additional fundamental research, which can contribute to investment decision-making. The adviser conducts research to examine how environmental and social initiatives within companies can drive enterprise value by creating growth opportunities, reducing risk, driving profitability, strengthening durable competitive advantages and/or aligning with secular growth trends. Other aspects of the investment process include a proprietary, systematic evaluation of governance policies, specifically focusing on compensation alignment on long-term value creation. The adviser does not treat ESG as a deterministic, reductive screen, nor as a portfolio construction tool layered on top of a passive vehicle.

 

 

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