Morgan Stanley Investment Funds Semi-Annual Report 2012 potx

Morgan Stanley Investment Funds Société d’Investissement à Capital Variable incorporated under the laws of Luxembourg Semi-Annual Report June 30, 2012 INVESTMENT MANAGEMENT R.C.S. Luxembourg: B-29.192 Morgan Stanley Investment Funds 30 June 2012 1 Shareholders’ information STATEMENT OF INVESTMENTS Equity Funds 2 Asian Equity Fund 5 Asia-Pacifi c Equity Fund 8 Asian Property Fund 10 Emerging Europe, Middle East and Africa Equity Fund 12 Emerging Markets Equity Fund 15 European Equity Alpha Fund 17 European Property Fund 19 European Small Cap Value Fund 21 Eurozone Equity Alpha Fund 23 Global Brands Fund 25 Global Equity Allocation Fund 32 Global Infrastructure Fund 34 Global Opportunity Fund 36 Global Property Fund 39 Indian Equity Fund 41 Japanese Equity Fund 43 Latin American Equity Fund 45 US Advantage Fund 47 US Growth Fund 50 US Property Fund Bond Funds 52 Emerging Markets Corporate Debt Fund 55 Emerging Markets Debt Fund 58 Emerging Markets Domestic Debt Fund 61 Euro Bond Fund 66 Euro Corporate Bond (ex Financials) Fund 70 Euro Corporate Bond Fund 75 Euro Strategic Bond Fund 82 European Currencies High Yield Bond Fund 86 Global Bond Fund 94 Global Convertible Bond Fund 98 Global Fixed Income Opportunities Fund 103 Global High Yield Bond Fund 106 Short Maturity Euro Bond Fund Liquidity Funds 110 Euro Liquidity Fund 112 US Dollar Liquidity Fund Asset Allocation Funds 114 Diversifi ed Alpha Plus Fund 123 Global Balanced Risk Control Fund of Funds Alternative Investment Funds 125 Absolute Return Currency Fund STATEMENTS AND NOTES 127 Statement of assets and liabilities 137 Statement of changes in number of shares 143 Statement of operations and changes in net assets 153 Statement of share and net assets statistics 160 Notes to the fi nancial statements OTHER INFORMATION 170 Directors and service providers 172 Paying and information agents 173 Appendix 1: Fund expense ratios 175 Appendix 2: Portfolio turnover rate 176 Appendix 3: Sub-Advisers 177 Appendix 4: Hedged Share Classes Table of contents 1 Morgan Stanley Investment Funds 30 June 2012 The annual general meeting of shareholders ofthe Company is held at the registered offi ce ofthe Company and will be held on the second Tuesday of the month of May at 10.30 am, orif such day is not a bank business day on the following bank business day. Notices of all general meetings are sent by mail to all registered shareholders at their registered address at least 8 days prior to the meeting. Such notices will indicate the time and place of the meeting as well as the conditions of admission thereto. Said notices will also contain the agenda and requirements of Luxembourg law with regard to the necessary quorum and majorities at the meeting. To the extent required by law, further notices will be published in the Mémorial C, Recueil des Sociétés et Associations du Journal Offi ciel du Grand-Duché de Luxembourg and in one Luxembourg newspaper. Audited fi nancial statements in respect of the preceding fi nancial period are made available at the registered offi ce of the Company and are available to shareholders upon request. In addition, unaudited semi-annual reports are also made available at the registered offi ce.  e Company’s fi nancial year end is 31 December. Any other notices relevant to the Company are also published in a Luxembourg newspaper or mailed to aff ected shareholders.  e net asset value per share of each Class of Share is available on each dealing day during Luxembourg business hours at the registered offi ce of the Company. Net asset value per share information is also available from market information providers, such as Bloomberg and Morningstar, as well as being available at www.morganstanleyinvestmentfunds.com. No subscriptions can be received on the basis of fi nancial reports alone. Subscriptions are only valid if made on the basis of the current prospectus and the latest Key Investor Information Document if applicable, the latest annual report and the most recent semi-annual report, if published thereafter. Morgan Stanley & Co. International plc, London, Zurich Branch, Bahnhofstrasse 92, 8001 Zurich, is the representative in Switzerland and RBC Dexia Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Badenerstrasse 567, 8048 Zurich, is the paying agent in Switzerland.  e Prospectus, the latest Key Investor Information Document, the Articles and the annual and semi-annual reports of the Company may be obtained free of charge from the representative in Switzerland. A list of purchases and sales (securities transactions) carried out by the Company during the reporting period may be obtained free of charge from the representative in Switzerland.  e investment aims set out in this annual report are summaries only.  e complete investment objectives and policies for each Fund are set out in the Company’s current prospectus. Shareholders’ information Please refer to the full prospectus for the Fund’s investment objective and policy. Morgan Stanley Investment Funds 30 June 2012 2 Asian Equity Fund Equities South Korea Samsung Electronics 13,152 13,810,922 6.69 Hyundai Motor 32,041 6,513,537 3.16 Nexon (Japan) (1) 212,700 4,144,896 2.01 Samsung Electronics Pfd 4,421 2,895,278 1.40 NCSoft 11,428 2,727,852 1.32 Hyundai Heavy Industries 10,758 2,422,126 1.17 Shinhan Financial Group 65,563 2,275,816 1.10 SK Hynix 101,470 2,115,992 1.02 Woongjin Coway 66,594 2,072,874 1.00 Samsung Fire & Marine Insurance 10,408 2,056,665 1.00 KB Financial Group 56,288 1,816,059 0.88 LG Chem 6,797 1,735,354 0.84 Hyundai Engineering & Construction 30,050 1,707,834 0.83 NHN 7,716 1,686,631 0.82 SK C&C 16,652 1,550,615 0.75 Kolao Holdings (Cayman Islands) (1) 116,900 1,420,748 0.69 Cheil Worldwide 85,655 1,363,051 0.66 Cheil Industries 14,892 1,300,788 0.63 Samsung Life Insurance 13,159 1,071,175 0.52 POSCO 3,084 980,182 0.47 Korea Kumho Petrochemical 9,106 955,425 0.46 Amorepacifi c 1,023 951,711 0.46 Korean Air Lines 21,434 942,669 0.46 Korea Aerospace Industries (2) 31,130 800,229 0.39 YG Entertainment 12,704 582,049 0.28 Mando 3,790 560,033 0.27 GS Retail 25,800 539,145 0.26 Orion 405 335,700 0.16 SSCP 82,187 243,248 0.12 E-Mart 841 183,833 0.09 Hyundai Steel 790 58,022 0.03 Total for South Korea 29.94 China Tencent Holdings (Cayman Islands) (1) 209,700 6,110,219 2.96 China Mengniu Dairy (Cayman Islands) (1) 1,689,000 4,431,431 2.15 PetroChina ‘H’ 3,192,000 4,094,830 1.98 China Construction Bank ‘H’ 5,412,400 3,691,437 1.79 Ping An Insurance Group ‘H’ 459,000 3,651,302 1.77 AIA Group (Hong Kong) (1) 1,048,200 3,581,293 1.73 China Pacifi c Insurance Group ‘H’ 1,115,000 3,579,514 1.73 China Telecom ‘H’ 6,090,000 2,646,044 1.28 Hengan International Group (Cayman Islands) (1) 267,000 2,580,078 1.25 Belle International Holdings (Cayman Islands) (1) 1,205,000 2,038,312 0.99 Tsingtao Brewery ‘H’ (2) 234,000 1,328,959 0.64 Shanghai Pharmaceuticals Holding ‘H’ 964,200 1,202,108 0.58 China Resources Enterprises (Hong Kong) (1) (2) 390,000 1,153,977 0.56 Tingyi Cayman Islands Holding (Cayman Islands) (1) 444,000 1,134,584 0.55 Trinity (Bermuda) (1) 1,408,000 884,059 0.43 Chow Tai Fook Jewellery Group (Cayman Islands) (1) (2) 617,600 764,414 0.37 Ajisen China Holdings (Cayman Islands) (1) (2) 1,013,000 696,124 0.34 Total for China 21.10 Taiwan Taiwan Semiconductor Manufacturing 1,635,362 4,460,078 2.16 Uni-President Enterprises 2,240,206 3,577,115 1.73 Hon Hai Precision Industry 1,048,641 3,144,868 1.52 Asustek Computer 249,355 2,271,046 1.10 Fubon Financial Holding 2,081,054 2,080,356 1.01 Taiwan Cement 1,277,000 1,514,322 0.73 INVESTMENT AIM To seek long-term capital appreciation, measured in US dollars, through investment primarily in the equity securities of companies domiciled in or exercising the predominant part of their economic activity in Asia, excluding Japan, thereby taking advantage ofthe dynamic economic growth capabilities of the region. STATEMENT OF INVESTMENTS Transferable securities and money market instruments admitted to offi cial exchange listing or dealt in on another regulated market. As at 30 June 2012, expressed in US dollars. Investments Holdings Market value % of net assets 3 Morgan Stanley Investment Funds 30 June 2012 Asian Equity Fund STATEMENT OF INVESTMENTS (continued) Transferable securities and money market instruments admitted to offi cial exchange listing or dealt in on another regulated market. As at 30 June 2012, expressed in US dollars. Investments Holdings Market value % of net assets Investments Holdings Market value % of net assets MStar Semiconductor (Cayman Islands) (1) 213,000 1,421,905 0.69 Formosa Plastics 522,000 1,397,370 0.68 Taiwan Fertilizer 584,000 1,338,048 0.65 Catcher Technology 138,000 918,920 0.44 Lung Yen Life Service 303,000 869,054 0.42 Chailease Holding (Cayman Islands) (1) 519,000 755,605 0.37 HTC 49,395 645,399 0.31 Wowprime 36,000 535,592 0.26 MediaTek 52,000 476,216 0.23 Foxconn Technology 4,000 14,425 0.01 Total for Taiwan 12.31 Indonesia PT Bank Mandiri 3,274,000 2,510,415 1.22 PT Astra International 3,378,000 2,464,249 1.19 PT Lippo Karawaci 24,321,000 2,072,077 1.00 PT Bumi Serpong Damai 16,434,400 2,065,239 1.00 PT Kalbe Farma 4,939,000 1,985,594 0.96 PT Bank Tabungan Negara 12,726,000 1,748,300 0.85 PT Indofood Sukses Makmur 3,200,000 1,652,822 0.80 PT Indosat 3,406,500 1,569,022 0.76 Indofood Agri Resources (Singapore) (1) 1,095,000 1,240,095 0.60 PT Tempo Scan Pacifi c 3,225,000 978,834 0.47 PT Delta Dunia Makmur 18,998,400 799,187 0.39 PT Bank Central Asia 662,500 515,043 0.25 PT Ace Hardware Indonesia 144,000 77,444 0.04 Total for Indonesia 9.53 Hong Kong Wharf Holdings 516,323 2,832,507 1.37 Hutchison Whampoa 277,000 2,374,933 1.15 Samsonite International (Luxembourg) (1) 1,399,200 2,337,947 1.13 Lifestyle International Holdings (Cayman Islands) (1) 750,000 1,636,106 0.79 BOC Hong Kong Holdings (2) 500,500 1,522,881 0.74 Hongkong Land Holdings (Bermuda) (1) (2) 266,000 1,518,860 0.74 Cheung Kong Holdings 123,000 1,500,190 0.73 Kerry Properties (Bermuda) (1) 266,070 1,133,750 0.55 Hong Kong Exchanges & Clearing (2) 74,000 1,049,480 0.51 Cathay Pacifi c Airways 482,000 774,310 0.37 SmarTone Telecommunications Holdings (Bermuda) (1) 287,500 552,299 0.27 Total for Hong Kong 8.35 Philippines Ayala 247,958 2,771,365 1.34 Metro Pacifi c Investments 20,301,000 2,016,560 0.98 Puregold Price Club 2,935,200 1,898,301 0.92 Metropolitan Bank & Trust 809,180 1,782,972 0.86 International Container Terminal Services 655,000 1,146,796 0.56 Cebu Air 477,060 782,978 0.38 DMCI Holdings 394,920 535,277 0.26 Bloomberry Resorts 1,649,400 373,649 0.18 Total for Philippines 5.48 Singapore DBS Group Holdings (2) 237,500 2,599,736 1.26 Oversea-Chinese Banking (2) 290,300 2,013,840 0.97 Keppel (2) 220,900 1,792,165 0.87 Olam International (2) 974,772 1,392,422 0.67 CapitaLand (2) 621,000 1,323,258 0.64 Wilmar International (2) 403,000 1,148,157 0.56 Total for Singapore 4.97 Thailand Kasikornbank ‘NVDR’ 335,700 1,720,449 0.83 Land & Houses ‘NVDR’ 6,039,700 1,490,340 0.72 Thai Airways International (Foreign) 1,921,600 1,313,083 0.65 Siam Cement ‘NVDR’ 99,800 997,684 0.48 Bangkok Bank Public ‘NVDR’ 163,600 991,123 0.48 Banpu (Foreign) Regd 65,971 934,989 0.45 Kasikornbank (Foreign) 141,600 739,133 0.36 Bank of Ayudhya ‘NVDR’ 216,400 201,955 0.10 Minor International ‘NVDR’ 378,700 167,725 0.08 Supalai ‘NVDR’ 78,600 42,520 0.02 Minor International ‘NVDR’ 32,000 14,173 0.01 Supalai (Foreign) 13,400 7,376 0.00 Total for Thailand 4.18 Malaysia CIMB Group Holdings 525,100 1,253,748 0.61 AMMB Holdings 492,900 977,871 0.48 Sime Darby 312,800 975,743 0.47 IJM 355,900 563,513 0.27 UEM Land Holdings 783,000 513,686 0.25 Gamuda 172,100 189,986 0.09 Mah Sing Group BHD 55,500 35,886 0.02 Total for Malaysia 2.19 United States of America Li & Fung (Bermuda) (1) (2) 434,000 829,254 0.40 Total for United States of America 0.40 Total for Equities 98.45 Mutual Fund Morgan Stanley Funds - US Dollar Liquidity Fund (Ireland) (1) (4) 3,330,000 3,330,000 1.62 Total for Mutual Fund 1.62 Total Investment Securities 206,588,760 100.07 Equities (continued) Equities (continued) Taiwan (continued) Morgan Stanley Investment Funds 30 June 2012 4 Asian Equity Fund DERIVATIVES OTC and exchange traded derivatives as at 30 June 2012, expressed in US dollars. Maturity date Amount bought Amount sold Net unrealised (loss) as at 30 June 2012 % of net assets 12/07/2012 2,576,815 USD 205,062,948 JPY (1,623) 0.00 Net Unrealised Loss on Forward Foreign Currency Exchange Contracts (1,623) 0.00 Total Derivatives (1,623) 0.00 Other Assets less Liabilities (140,152) (0.07) Total Net Asset Value 206,446,985 100.00 (1) The country in brackets represents the country of incorporation of this security. (2) All or part of this position is out on loan. (4) Managed by an affi liate of the Investment Adviser. 5 Morgan Stanley Investment Funds 30 June 2012 Please refer to the full prospectus for the Fund’s investment objective and policy. Asia-Pacifi c Equity Fund Equities Australia Commonwealth Bank of Australia 63,078 3,428,421 3.58 Australia & New Zealand Banking Group 135,562 3,056,851 3.19 BHP Billiton 70,317 2,263,616 2.36 UGL (2) 156,400 1,986,691 2.07 WorleyParsons 69,688 1,790,414 1.87 Suncorp Group 171,245 1,418,039 1.48 AMP 293,081 1,154,969 1.20 AGL Energy 73,852 1,116,515 1.16 Telstra 270,982 1,023,502 1.07 Santos 83,631 911,672 0.95 Wesfarmers 28,572 874,447 0.91 Total for Australia 19.84 South Korea Samsung Electronics 4,132 4,339,015 4.53 Hyundai Motor 8,512 1,730,384 1.80 Nexon (Japan) (1) (2) 88,200 1,718,758 1.79 NCSoft 4,897 1,168,909 1.22 Hyundai Heavy Industries 3,933 885,501 0.92 SK Hynix 40,530 845,187 0.88 LG Chem 2,957 754,957 0.79 KB Financial Group 23,285 751,260 0.78 Woongjin Coway 22,350 695,689 0.73 Kolao Holdings (Cayman Islands) (1) 49,770 604,882 0.63 Cheil Worldwide 31,600 502,859 0.53 Samsung Electronics Pfd 749 490,514 0.51 Samsung Life Insurance 6,008 489,066 0.51 Shinhan Financial Group 13,290 461,321 0.48 Hyundai Engineering & Construction 7,731 439,377 0.46 Korea Aerospace Industries 14,660 376,851 0.39 Korean Air Lines 8,352 367,321 0.38 Cheil Industries 3,642 318,122 0.33 Korea Kumho Petrochemical 2,542 266,713 0.28 YG Entertainment 4,703 215,474 0.23 POSCO 666 211,673 0.22 Mando 1,401 207,020 0.22 GS Retail 9,800 204,791 0.21 Samsung Fire & Marine Insurance 874 172,706 0.18 Orion 191 158,318 0.17 SK C&C 1,123 104,572 0.11 E-Mart 280 61,205 0.06 NHN 180 39,346 0.04 Hyundai Steel 370 27,175 0.03 Total for South Korea 19.41 China Tencent Holdings (Cayman Islands) (1) 64,400 1,876,481 1.96 China Mengniu Dairy (Cayman Islands) (1) (2) 519,000 1,361,701 1.42 AIA Group (Hong Kong) (1) 393,800 1,345,462 1.40 PetroChina ‘H’ 980,000 1,257,185 1.31 China Construction Bank ‘H’ 1,662,000 1,133,539 1.18 Ping An Insurance Group ‘H’ 141,000 1,121,642 1.17 China Pacifi c Insurance Group ‘H’ 342,600 1,099,858 1.15 China Telecom ‘H’ 1,872,000 813,365 0.85 Hengan International Group (Cayman Islands) (1) 82,000 792,383 0.83 Belle International Holdings (Cayman Islands) (1) 370,000 625,872 0.65 Tsingtao Brewery ‘H’ (2) 72,000 408,911 0.43 Shanghai Pharmaceuticals Holding ‘H’ 295,800 368,786 0.39 Trinity (Bermuda) (1) 582,000 365,428 0.38 China Resources Enterprises (Hong Kong) (1) (2) 120,000 355,070 0.37 Tingyi Cayman Islands Holding (Cayman Islands) (1) (2) 136,000 347,530 0.36 INVESTMENT AIM To seek long term capital appreciation, measured in US dollars, through investment primarily in the equity securities of companies domiciled in or exercising the predominant part of their economic activity in the Asia-Pacifi c region, excluding Japan, thereby taking advantage of the dynamic economic growth capabilities of the region. STATEMENT OF INVESTMENTS Transferable securities and money market instruments admitted to offi cial exchange listing or dealt in on another regulated market. As at 30 June 2012, expressed in US dollars. Investments Holdings Market value % of net assets Morgan Stanley Investment Funds 30 June 2012 6 Asia-Pacifi c Equity Fund STATEMENT OF INVESTMENTS (continued) Transferable securities and money market instruments admitted to offi cial exchange listing or dealt in on another regulated market. As at 30 June 2012, expressed in US dollars. Investments Holdings Market value % of net assets Investments Holdings Market value % of net assets Philippines Metro Pacifi c Investments 13,650,000 1,355,896 1.41 Ayala 91,408 1,021,644 1.07 Puregold Price Club 1,294,500 837,200 0.87 Metropolitan Bank & Trust 374,510 825,207 0.86 International Container Terminal Services 283,000 495,486 0.52 DMCI Holdings 167,720 227,329 0.24 Cebu Air 113,620 186,480 0.19 Bloomberry Resorts 742,500 168,203 0.18 Total for Philippines 5.34 India HDFC Bank ADR 29,615 956,564 1.00 Tata Motors 118,001 515,902 0.54 Tata Consultancy Services 21,563 496,721 0.52 Glenmark Pharmaceuticals 74,330 486,687 0.51 ITC GDR Regd 98,180 456,844 0.47 IndusInd Bank (3) 70,243 444,430 0.46 ACC 16,662 380,998 0.40 Asian Paints 4,102 287,636 0.30 ITC 7,356 34,343 0.03 Total for India 4.23 Singapore DBS Group Holdings (2) 57,000 623,937 0.65 Olam International (2) 394,045 562,877 0.59 Oversea-Chinese Banking (2) 72,000 499,471 0.52 Keppel (2) 57,700 468,121 0.49 CapitaLand (2) 190,000 404,861 0.42 Wilmar International (2) 122,000 347,581 0.36 Total for Singapore 3.03 Thailand Land & Houses ‘NVDR’ 1,916,700 472,960 0.49 Kasikornbank ‘NVDR’ 88,900 455,609 0.47 Kasikornbank (Foreign) 61,900 323,110 0.34 Bangkok Bank Public ‘NVDR’ 51,900 314,421 0.33 Siam Cement ‘NVDR’ (2) 30,300 302,904 0.32 Banpu (Foreign) Regd 20,950 296,919 0.31 Thai Airways International (Foreign) 368,000 251,465 0.26 Bank of Ayudhya ‘NVDR’ 68,700 64,114 0.07 Minor International ‘NVDR’ 120,300 53,281 0.06 Supalai ‘NVDR’ 25,000 13,524 0.01 Minor International ‘NVDR’ 10,100 4,473 0.00 Supalai (Foreign) 4,300 2,367 0.00 Total for Thailand 2.66 Malaysia CIMB Group Holdings 184,200 439,803 0.46 AMMB Holdings 166,900 331,115 0.34 Sime Darby 105,900 330,343 0.34 IJM 137,400 217,552 0.23 UEM Land Holdings 262,100 171,950 0.18 Gamuda 58,300 64,359 0.07 Mah Sing Group 18,900 12,220 0.01 Total for Malaysia 1.63 United States of America Li & Fung (Bermuda) (1) (2) 178,000 340,109 0.36 Total for United States of America 0.36 Total for Equities 95.40 Chow Tai Fook Jewellery Group (Cayman Islands) (1) (2) 189,800 234,919 0.24 Ajisen China Holdings (Cayman Islands) (1) (2) 311,000 213,716 0.22 Total for China 14.31 Taiwan Uni-President Enterprises 1,017,540 1,624,787 1.70 Taiwan Semiconductor Manufacturing 553,000 1,508,182 1.57 Hon Hai Precision Industry 372,100 1,115,926 1.16 Fubon Financial Holding 770,176 769,918 0.80 Taiwan Cement 569,000 674,745 0.70 Formosa Plastics 218,000 583,576 0.61 MStar Semiconductor (Cayman Islands) (1) 87,000 580,778 0.61 Catcher Technology 84,000 559,342 0.58 Asustek Computer 60,120 547,554 0.57 Chailease Holding (Cayman Islands) (1) 211,000 307,192 0.32 Taiwan Fertilizer 134,000 307,018 0.32 Wowprime 20,000 297,551 0.31 Lung Yen Life Service 87,000 249,530 0.26 HTC 19,000 248,256 0.26 MediaTek 17,000 155,686 0.16 Foxconn Technology 1,000 3,606 0.01 China Steel 2,700 2,536 0.00 Total for Taiwan 9.94 Indonesia PT Astra International 1,147,500 837,101 0.87 PT Bank Mandiri 1,083,500 830,799 0.87 PT Bumi Serpong Damai 6,095,000 765,932 0.80 PT Kalbe Farma 1,833,500 737,110 0.77 PT Lippo Karawaci 8,263,500 704,026 0.73 PT Indosat 1,486,000 684,446 0.72 PT Bank Tabungan Negara 4,132,500 567,724 0.59 PT Indofood Sukses Makmur 1,086,500 561,185 0.59 PT Bank Central Asia 557,000 433,024 0.45 PT Tempo Scan Pacifi c 1,116,500 338,874 0.35 Indofood Agri Resources (Singapore) (1) 289,000 327,295 0.34 PT Delta Dunia Makmur 6,240,600 262,517 0.27 PT Ace Hardware Indonesia 49,000 26,352 0.03 Total for Indonesia 7.38 Hong Kong Wharf Holdings 216,000 1,184,959 1.24 Hutchison Whampoa 122,000 1,045,999 1.09 Samsonite International (Luxembourg) (1) 430,200 718,828 0.75 Cheung Kong Holdings 56,000 683,013 0.71 Lifestyle International Holdings (Cayman Islands) (1) 305,000 665,350 0.69 BOC Hong Kong Holdings (2) 210,500 640,492 0.67 Hongkong Land Holdings (Bermuda) (1) (2) 106,000 605,260 0.63 SmarTone Telecommunications (Bermuda) (1) 302,500 581,114 0.61 Hong Kong Exchanges & Clearing (2) 30,700 435,392 0.45 Kerry Properties (Bermuda) (1) 96,500 411,196 0.43 Total for Hong Kong 7.27 Equities (continued) Equities (continued) China (continued) 7 Morgan Stanley Investment Funds 30 June 2012 Asia-Pacifi c Equity Fund Mutual Fund Morgan Stanley Funds - US Dollar Liquidity Fund (Ireland) (1) (4) 1,150,000 1,150,000 1.20 Total for Mutual Fund 1.20 Total Investment Securities 92,637,138 96.60 DERIVATIVES OTC and exchange traded derivatives as at 30 June 2012, expressed in US dollars. Forward Foreign Currency Exchange Contracts Maturity date Amount bought Amount sold Net unrealised gain/(loss) as at 30 June 2012 % of net assets 06/07/2012 427,909 EUR 534,922 USD 7,227 0.01 Unrealised Gain on Forward Foreign Currency Exchange Contracts 7,227 0.01 12/07/2012 1,053,635 USD 83,848,249 JPY (664) 0.00 Unrealised Loss on Forward Foreign Currency Exchange Contracts (664) 0.00 Net Unrealised Gain on Forward Foreign Currency Exchange Contracts 6,563 0.01 Total Derivatives 6,563 0.01 Other Assets less Liabilities 3,249,936 3.39 Total Net Asset Value 95,893,637 100.00 (1) The country in brackets represents the country of incorporation of this security. (2) All or part of this position is out on loan. (3) These securities are valued at their fair value. See note 2(a) within the Notes to the Financial Statements. (4) Managed by an affi liate of the Investment Adviser. STATEMENT OF INVESTMENTS (continued) Transferable securities and money market instruments admitted to offi cial exchange listing or dealt in on another regulated market. As at 30 June 2012, expressed in US dollars. Investments Holdings Market value % of net assets [...]... security (2) All or part of this position is out on loan (4) Managed by an affiliate of the Investment Adviser 30 June 2012 22 23 Morgan Stanley Investment Funds 30 June 2012 Global Brands Fund INVESTMENT AIM STATEMENT OF INVESTMENTS To seek an attractive long-term rate of return, measured in US dollars, through investment principally in equity securities of companies in the world’s developed countries,... 12,716,549 87,967,322 1.14 1.14 96.71 Morgan Stanley Investment Funds Global Brands Fund STATEMENT OF INVESTMENTS (continued) Transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market As at 30 June 2012, expressed in US dollars Investments Market % of net value assets Holdings Mutual Fund Morgan Stanley Funds - US Dollar Treasury Liquidity... fair value See note 2(a) within the Notes to the Financial Statements (4) Managed by an affiliate of the Investment Adviser 15 Morgan Stanley Investment Funds 30 June 2012 European Equity Alpha Fund INVESTMENT AIM STATEMENT OF INVESTMENTS To seek long-term capital growth, measured in Euro, through investment primarily in a concentrated portfolio of equity securities of European companies listed on European... 5,964,423 1.87 1.32 3.19 Morgan Stanley Investment Funds 30 June 2012 16 European Equity Alpha Fund STATEMENT OF INVESTMENTS (continued) DERIVATIVES Transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market As at 30 June 2012, expressed in Euro OTC and exchange traded derivatives as at 30 June 2012, expressed in Euro Investments Holdings... fair value See note 2(a) within the Notes to the Financial Statements (4) Managed by an affiliate of the Investment Adviser 17 Morgan Stanley Investment Funds 30 June 2012 European Property Fund INVESTMENT AIM STATEMENT OF INVESTMENTS To seek long-term capital appreciation, measured in Euro, through investment in the equity securities of companies in the European real estate industry Transferable securities... 0.58 Total Investment Securities 179,735,272 96.91 Other Assets less Liabilities 5,726,689 3.09 185,461,961 100.00 Total Net Asset Value (1) The country in brackets represents the country of incorporation of this security (2) All or part of this position is out on loan 30 June 2012 18 19 Morgan Stanley Investment Funds 30 June 2012 European Small Cap Value Fund INVESTMENT AIM STATEMENT OF INVESTMENTS... Spain 0.49 0.14 0.14 0.10 0.09 0.96 Total Investment Securities 12,593,839 96.53 Other Assets less Liabilities 452,387 3.47 13,046,226 100.00 Total Net Asset Value (1) The country in brackets represents the country of incorporation of this security 30 June 2012 20 21 Morgan Stanley Investment Funds 30 June 2012 Eurozone Equity Alpha Fund INVESTMENT AIM STATEMENT OF INVESTMENTS To seek attractive long-term... 0.96 0.75 0.69 0.67 0.60 0.54 0.34 0.28 0.26 0.22 13 Morgan Stanley Investment Funds 30 June 2012 Emerging Markets Equity Fund STATEMENT OF INVESTMENTS (continued) Investments Transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market As at 30 June 2012, expressed in US dollars Investments Holdings Market % of net value assets Equities... 7,717,000 1.63 0.73 0.66 155,028 3,908,256 0.33 3.35 Morgan Stanley Investment Funds 30 June 2012 14 Emerging Markets Equity Fund STATEMENT OF INVESTMENTS (continued) Investments Transferable securities and money market instruments admitted to official exchange listing or dealt in on another regulated market As at 30 June 2012, expressed in US dollars Investments Holdings Market % of net value assets Equities... 7,705,347,499 (1) The country in brackets represents the country of incorporation of this security (4) Managed by an affiliate of the Investment Adviser (0.12) 100.00 30 June 2012 24 25 Morgan Stanley Investment Funds 30 June 2012 Global Equity Allocation Fund INVESTMENT AIM STATEMENT OF INVESTMENTS To seek long-term capital appreciation, in US dollars, by investing primarily in equity securities issued by companies . 30, 2012 INVESTMENT MANAGEMENT R.C.S. Luxembourg: B-29.192 Morgan Stanley Investment Funds 30 June 2012 1 Shareholders’ information STATEMENT OF INVESTMENTS Equity. (continued) China (continued) 7 Morgan Stanley Investment Funds 30 June 2012 Asia-Pacifi c Equity Fund Mutual Fund Morgan Stanley Funds - US Dollar Liquidity