Fund Evaluator:

Morgan Stanley Developing Opportunity R6 Overview

Morgan Stanley Developing Opportunity R6 (MDODX) is an actively managed International Equity Diversified Emerging Mkts fund. Morgan Stanley launched the fund in 2020.

The investment seeks long-term capital appreciation. Under normal market conditions, the Adviser seeks to achieve the fund's investment objective by investing primarily in equity securities of issuers located or operating in developing or emerging market countries, with capitalizations within the range of companies included in the MSCI Emerging Markets Net Index. For purposes of maintaining exposure of at least 80% of its assets to equity securities of issuers located or operating in developing markets.

About Morgan Stanley Developing Opportunity R6 (MDODX)

There are 1 members of the management team with an average tenure of 6.46 years: Kristian Heugh (2020). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: MSCI EM NR USD index with a weighting of 100%. Morgan Stanley Developing Opportunity R6 has 36 securities in its portfolio. The top 10 holdings constitute 54.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Morgan Stanley Developing Opportunity R6 is part of the Equity global asset class and is within the International Equity fund group. Morgan Stanley Developing Opportunity R6 has 91.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 4.6%. There is 91.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Morgan Stanley Developing Opportunity R6 has 3.8% of the portfolio in cash.

Assets Under Management

The fund has $12 million in total assets, which is below the $967 million average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

MDODX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Morgan Stanley Developing Opportunity R6 expense ratio is high compared to funds in the Diversified Emerging Mkts category. Morgan Stanley Developing Opportunity R6 has an expense ratio of 1.11%, which is 4% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Morgan Stanley Developing Opportunity R6 has a portfolio turnover rate of 51%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 68% for the Diversified Emerging Mkts category.

Recently, in the month of July 2026, Morgan Stanley Developing Opportunity R6 returned -3.3%, which earned it a grade of B, as the Diversified Emerging Mkts category had an average return of -4.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Morgan Stanley Developing Opportunity R6 has a trailing yield of 0.68%, which is below the 1.72% category average. The fund normally distributes its income annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Morgan Stanley Developing Opportunity R6 Grades

Year to date, the fund has returned 12.0%, 7.0 percentage points worse than the category, which translates into a grade of F. The fund has returned 9.9% over the past year (grade of F), 10.7% over the past three years (grade of F) and -0.5% per year over the past five years (grade of F).

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