Strategy. The Adviser and the Funds Sub-Adviser, Morgan Stanley Investment Management Limited (MSIM Limited), seek to invest primarily in high quality non-U.S. companies that they believe can generate sustainably high returns on operating capital with dominant market positions due to powerful, hard-to-replicate intangible assets - notably brands, networks, licenses and patents - and pricing power, resulting in high gross margins. The Adviser and/or Sub-Adviser also seek to identify capable management teams able to allocate capital effectively to grow the franchise, maintain the intangible assets and sustain and/or improve the returns on operating capital. As an integrated part of the investment process, the Adviser and/or Sub-Adviser assess relevant factors potentially material to long- term sustainably high returns on operating capital, including environmental, … Show more… The Adviser and the Funds Sub-Adviser, Morgan Stanley Investment Management Limited (MSIM Limited), seek to invest primarily in high quality non-U.S. companies that they believe can generate sustainably high returns on operating capital with dominant market positions due to powerful, hard-to-replicate intangible assets - notably brands, networks, licenses and patents - and pricing power, resulting in high gross margins. The Adviser and/or Sub-Adviser also seek to identify capable management teams able to allocate capital effectively to grow the franchise, maintain the intangible assets and sustain and/or improve the returns on operating capital. As an integrated part of the investment process, the Adviser and/or Sub-Adviser assess relevant factors potentially material to long- term sustainably high returns on operating capital, including environmental, social and governance (ESG) factors, and seek to engage with companies as part of this. Subject to the Funds investment objective, the Adviser and/or Sub-Adviser retain discretion over which investments are selected. In exercising this discretion, ESG factors are not the sole determinant of whether an investment can be made or a holding can remain in the Funds portfolio, but instead the Adviser and/or Sub-Adviser consider potentially material risks or opportunities in any of the ESG areas which could potentially threaten or enhance high returns on operating capital of a company. The Adviser and/or Sub-Adviser rely on their research capabilities, analytical resources and judgment to identify and monitor high quality businesses meeting their investment criteria. The Adviser and/or Sub-Adviser believe that the number of issuers with high quality businesses meeting their criteria may be limited, and accordingly, the Fund may concentrate its holdings in a relatively small number of companies. The Funds equity investments may include convertible securities. The Adviser and/or Sub-Adviser generally consider selling a portfolio holding when they determine that the holding no longer satisfies their investment criteria or that replacing the holding with another investment should improve the Funds valuation and/or quality. The Fund may utilize foreign currency forward exchange contracts, which are derivatives, for currency hedging purposes . Show less