China Equity Portfolio
MORGAN STANLEY INSTITUTIONAL FUND INC
Expense ratio
Net assets1
$7.64M
Holdings1
31
Category
International Equity
Return

Investment objective & strategy

As of April 29, 2022 · prospectus

Objective. The China Equity Portfolio (the Fund) seeks long-term capital appreciation.

Strategy. The Adviser and/or Sub-Adviser seeks to achieve the Funds investment objective, under normal circumstances, by investing at least 80% of the Funds net assets in equity securities of companies located in or operating in China (which, for the purposes of the Funds investment strategy, includes mainland China and Hong Kong). This policy may be changed without shareholder approval; however, you would be notified upon 60 days notice in writing of any changes. The Adviser and/or Sub-Adviser actively selects positions in a limited number of equity securities using a fundamental bottom-up stock selection process informed by macro thematic research on China. The Adviser and/or Sub-Adviser will employ this consistent and targeted approach seeking companies with strong sustainable earnings growth and fundamentals. … The Adviser and/or Sub-Adviser seeks to achieve the Funds investment objective, under normal circumstances, by investing at least 80% of the Funds net assets in equity securities of companies located in or operating in China (which, for the purposes of the Funds investment strategy, includes mainland China and Hong Kong). This policy may be changed without shareholder approval; however, you would be notified upon 60 days notice in writing of any changes. The Adviser and/or Sub-Adviser actively selects positions in a limited number of equity securities using a fundamental bottom-up stock selection process informed by macro thematic research on China. The Adviser and/or Sub-Adviser will employ this consistent and targeted approach seeking companies with strong sustainable earnings growth and fundamentals. Investment selection criteria include attractive growth characteristics, reasonable valuations and company managements oriented towards creating strong shareholder value. The Adviser and/or Sub-Adviser generally considers selling an investment when it determines the company no longer satisfies their investment criteria. The Fund may invest in China A-shares (shares of publicly traded companies based in mainland China) listed and traded on the Shanghai Stock Exchange through the Shanghai-Hong Kong Stock Connect program, as well as China A-shares listed and traded on the Shenzhen Stock Exchange through the Shenzhen-Hong Kong Stock Connect program (collectively, Stock Connect). Stock Connect is a securities trading and clearing program between the Shanghai and Shenzhen Stock Exchanges, the Stock Exchange of Hong Kong Limited, China Securities Depository and Clearing Corporation Limited (CSDCC) and Hong Kong Securities Clearing Company Limited (HKSCC) designed to permit mutual stock market access between mainland China and Hong Kong by allowing investors to trade and settle shares on each market via their local exchanges. Stock Connect may include other exchanges in the future. The Fund may also invest in China A-shares through any other means permitted in the future by applicable law or regulation. The equity securities of Chinese companies the Fund may invest in also include securities issued by Hong Kong domiciled companies, as well as China H-shares (shares of China-incorporated, Hong Kong-listed companies), Shanghai- and Shenzhen-listed B-shares (shares of China-incorporated companies that are traded in foreign currencies) and China red chip shares (shares of companies based in mainland China that are incorporated outside China and listed in Hong Kong). In addition, the Fund may invest in American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and other types of depositary receipts with respect to companies operating in China. The Fund may also invest in securities of other investment companies, including exchange- traded funds (ETFs). The Fund may hold or have exposure to equity securities of companies in any industry or sector. The investment process integrates information about environmental, social and governance issues (also referred to as ESG) when making investment decisions. The Adviser believes that monitoring ESG helps build a more complete picture of the opportunities and risks facing companies, and seeks to engage directly with company management to gain insights on how each company addresses material ESG issues and how these may affect long-term financial performance. The investment process excludes holdings in tobacco companies. The Fund may, but it is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. The Funds use of derivatives may involve the purchase and sale of derivative instruments such as futures, structured investments and other related instruments and techniques. Derivative instruments used by the Fund will be counted toward the Funds 80% policy discussed above to the extent they have economic characteristics similar to the securities included within that policy.

Top holdings

As of Sept. 30, 2022 · N-PORT
SecurityTickerValue% of fund
MSILF-GOVT-INS MVRXX $1.11M 14.52%
TENCENT HOLDINGS LTD $1.05M 13.80%
MEITUAN-W $628.39K 8.23%
KWEICHOW MOUTAI CO LTD A $500.04K 6.55%
PDD HOLDINGS INC ADR $346.44K 4.54%
CHINA MERCHANTS BANK-H COMMON STOCK 3968 $305.44K 4.00%
BABA-W $299.66K 3.92%
CHINA RESOURCES $291.34K 3.82%
ANJOY FOODS GR-A $215.97K 2.83%
LI NING CO LTD $212.46K 2.78%
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Allocation by sector

As of September 30, 2022 · N-PORT
View portfolio breakdown →

Portfolio moves

Jun 30, 2022 → Sep 30, 2022
Opened
3
Exited
4
Increased
9
Decreased
6
Unchanged
13

How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.

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Footnotes

  1. Net assets and holdings count as of September 30, 2022, from the fund's N-PORT filing.

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