Morgan Stanley Investment Funds (MS INVF)

Global Property Fund

REAL ASSETS | GLOBAL LISTED REAL ASSETS TEAM FUND OVERVIEW | 31 DECEMBER 2019

We believe, over the long term, that real estate stock valuations will be mosthighly correlated to the underlying value of their assets.

The Morgan Stanley Investment Funds Global Property Fund is a value-driven portfolio of global real estate securities with a focus on generatingtotal return. We seek value opportunities from a universe of all public realestate companies, including Real Estate Investment Trusts (REITs) and RealEstate Operating Companies (REOCs).

The Fund is comprised of three actively managed property portfolios thatinvest across North American, Asian and European markets. Each regionalportfolio in the Fund is managed in accordance with our bottom-upinvestment strategy. In particular, we pay close attention to thecharacteristics of the individual property markets in which we invest.

The investment team has a rich background in both the public and privatemarkets. We believe the depth of our experience in the regional propertymarkets has resulted in a thorough understanding of nuances among thevarious real estate markets in which we invest. In our view, this helps usextract the greatest value from the investible universe.

Value-Driven Investors

We are value-driven real estate investors. Since the inception of the Fund,we have implemented a well-defined investment process geared towardsproviding clients with cost effective exposure to the real estate asset class.

We favour a bottom-up approach to stock selection and focus on rigorousproprietary research. As such we maintain valuation models for everycompany within our investible universe. This approach strongly influencesour perspective on which market segments we believe provide better relativevalue and growth prospects and, consequently, affects our decision tooverweight / underweight a given market segment.

Independently, we also conduct thorough top-down analysis to ensure focuson those property markets that offer the best valuation prospects. The resultis a diversified portfolio of global real estate securities that consists of 30 to40 core holdings per region and provides a broad exposure to a variety ofproperty sectors and countries.

Highly Experienced Investors

Key members of the investment team share backgrounds as both financiersand investors in the real estate and capital markets. This considerableexpertise in both the public and private real estate markets contributes toour understanding of the intricacies of global real estate markets. Oursuccess can be measured by our strong long term performance track recordand the growth of fund assets.

The Global Property Fund is managed by the Global Listed Real Assets team,a long-tenured group of highly experienced investment professionals locatedin Europe, the U.S. and Asia.

We consider a number of key themes when analysingthe global property markets

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

An Actively Managed Portfolio ofGlobal Real Estate Securities with aTotal Return Focus

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

2

Share Class I 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 property companyshares and the fund's simulated and/or realised return has experiencedhigh 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 be

considered before investing, these include: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 are additional risks associated with investing in real estate.There may be an insufficient number of buyers or sellers which mayaffect the funds ability to buy or sell securities.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.

G LOBAL PROPERT Y FU N D

Investment Team INVESTMENT EXPERIENCE

Ted Bigman,33 years

Sven van Kemenade,23 years

Michiel te Paske, 23 years

Angeline Ho, 28 years

Bill Grant, 18 years

Desmond Foong, 16 years

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

Differentiators

1. Cost Effective Exposure

We invest in the publically listed securities of real estate companies tocreate core real estate exposure in a cost effective manner, comparable orsuperior to direct real estate investments.

2. Value Driven Process

We seek securities that we view as offering the best value relative to theirunderlying assets and growth prospects.

3. Global Presence and Integration

Regional investment professionals are located in the U.S, Europe and Asia,providing local knowledge and expertise.

4. Long-Tenured, Highly Experienced Investment Team

Our portfolio managers have been with the team since fund inception.

5. Consistent Adherence to Philosophy and Process

We have remained committed to the investment philosophy sinceinception, irrespective of short term trends.

MS INVF Global Property Fund

Class I (% net of fees) Performance of 100 USD Invested Since Inception (31 October 2006)

12 Month Performance Periods to Latest Month End (%)

DECEMBER '18DECEMBER '18 - - DECEMBER '19DECEMBER '19

DECEMBER '17DECEMBER '17 - - DECEMBER '18DECEMBER '18

DECEMBER '16DECEMBER '16 - - DECEMBER '17DECEMBER '17

DECEMBER '15DECEMBER '15 - - DECEMBER '16DECEMBER '16

DECEMBER '14DECEMBER '14 - - DECEMBER '15DECEMBER '15

Class I Shares 18.18 -9.15 13.97 -0.47 -1.40

FTSE EPRA Nareit Developed Real

Estate (Net) Equally Weighted

Between North American, European

and Asian Regions Index

22.02 -6.42 15.34 1.66 -0.18

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, net of fees, and does not take account of commissions and costs incurred on the issue andredemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management. All data is as of 31December 2019 and subject to change daily. Please visit our website www.morganstanley.com/im to see the latest performance returnsfor the fund’s other share classes.

3

Head of Global Listed Real AssetsInvesting

Managing DirectorManaging Director

Managing DirectorManaging Director

Managing Director

Dol

lar

Am

ount

($)

Class I SharesFTSE EPRA Nareit Developed Real Estate (Net) Equally Weighted Between North American, European and Asian Regions Index

0

25

50

75

100

125

150

175

Oct-06 Sep-08 Sep-10 Sep-13 Sep-15 Sep-17 Dec-19

Lower Risk Higher Risk

Potentially Lower Rewards Potentially Higher Rewards

DEFINITIONS

Total return measures change in the value of an investment in the fundassuming reinvestment of dividends and capital gains. Correlation is astatistical measure of how the price of two securities or assets move inrelation to each other. A Real Estate Investment Trust or “REIT” is acompany or trust that typically owns, operates, and—to a limited extent—develops income-producing real estate property. A Real Estate OperatingCompany or “REOC” is a company that invests in real estate and whoseshares trade on a public exchange. A REOC is similar to REIT, except that anREOC will reinvest its earnings into the business, rather than distributingthem to unit holders like REITs do. Active Management is commonlycontrasted against buy-and-hold investing in which an asset allocation isheld for the long-term regardless of changes in the economy or variousfinancial markets. Value-driven investors actively seek stocks that theybelieve the market has undervalued. Bottom-up investing is aninvestment approach that focuses on the influence of company-factors (suchas the company’s overall financial health, financial statements, products andservices, supply and demand, etc.) on stock prices. Top-down investing, incontrast, looks at the broad performance of the economy, and then seeksindustries that are performing well, investing in the best opportunities withinthat industry. Investible universe refers to the total number of global realestate securities that are available for purchase by the investment team. NetAsset Value or “NAV” is the dollar value of a single fund share, based onthe value of the underlying assets of the fund minus its liabilities, divided bythe number of shares outstanding. It is calculated at the end of eachbusiness day.

INDEX INFORMATION

The FTSE EPRA Nareit Developed Index is a free float-adjusted marketcapitalization weighted index designed to reflect the stock performance ofcompanies engaged in specific aspects of the major real estatemarkets/regions of the developed world.

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IMPORTANT INFORMATION

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