Morgan Stanley Pathway Funds International Fixed Income Fund

Morgan Stanley Pathway Funds International Fixed Income Fund is an actively managed mutual fund focused on delivering current income while preserving capital. The fund primarily invests in a diversified portfolio of fixed income securities issued by entities located outside the United States. Managed by Pacific Investment Management Company (PIMCO), its sole sub-adviser, the fund employs a research-driven investment process that combines macroeconomic analysis and security-specific insights. Using advanced quantitative models, the team strategically allocates across global fixed income markets, targeting key variables such as duration, yield curve positioning, country and currency exposure, and credit sectors. The portfolio can include investment-grade as well as select high-yield bonds, with measured exposure to emerging-market debt in local currencies, offering potential for enhanced yield and currency appreciation. Risk exposures, including currency, credit, and interest rate risks, are carefully managed, with many non-U.S. dollar exposures typically hedged back to the U.S. dollar. The fund serves investors seeking to diversify their income portfolios internationally, balancing the pursuit of income with prudent risk controls in global bond markets.