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Morgan Stanley Pathway Em Mkts Eq Overview

Morgan Stanley Pathway Em Mkts Eq (TEMUX) is an actively managed International Equity Diversified Emerging Mkts fund. Morgan Stanley launched the fund in 1994.

The investment seeks long-term capital appreciation. The fund will invest, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in equity securities of issuers organized, domiciled or with substantial operations in emerging markets countries, which are defined as countries included in an emerging markets index by a recognized index provider, such as the MSCI Emerging Markets Index (Net), or characterized as developing or emerging by any of the World Bank, the United Nations, the International Finance Corporation, or the European Bank for Reconstruction and Development.

About Morgan Stanley Pathway Em Mkts Eq (TEMUX)

There are 18 members of the management team with an average tenure of 5.71 years: Joseph Giroux (2026), Paul Sloane (2021), Monika Shrestha (2015), Scott Bartone (2026), Angus Shillington (2016), Andrew Mathewson (2021), Ehren Stanhope (2026), Paul Desoisa (2021), Ola El-Shawarby (2023), Daniel Nitiutomo (2026), Colin Dishington (2021), Claire Noel (2026), Aimee Truesdale (2022), Rohit Chopra (2009), James Donald (2009), Ganesh Ramachandran (2020), Divya Mathur (2021), Alastair Reynolds (2021). 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 Pathway Em Mkts Eq has 1086 securities in its portfolio. The top 10 holdings constitute 37.1% 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 Pathway Em Mkts Eq is part of the Equity global asset class and is within the International Equity fund group. Morgan Stanley Pathway Em Mkts Eq has 97.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.0%. There is 97.5% 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 Pathway Em Mkts Eq has 1.5% of the portfolio in cash.

Assets Under Management

The fund has $826 million in total assets, which is below the $992 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.

TEMUX 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 Pathway Em Mkts Eq expense ratio is above average compared to funds in the Diversified Emerging Mkts category. Morgan Stanley Pathway Em Mkts Eq has an expense ratio of 0.75%, which is 35% lower than its category average, making the fund expense ratio grade a A. 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 Pathway Em Mkts Eq has a portfolio turnover rate of 20%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 68% for the Diversified Emerging Mkts category.

Recently, in the month of August 2026, Morgan Stanley Pathway Em Mkts Eq returned 3.7%, which earned it a grade of C, as the Diversified Emerging Mkts category had an average return of 3.9%. 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 Pathway Em Mkts Eq has a trailing yield of 1.96%, which is above the 1.65% category average. The fund normally distributes its income annually and its capital gains 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 Pathway Em Mkts Eq Grades

Year to date, the fund has returned 23.6%, 0.1 percentage points worse than the category, which translates into a grade of C. The fund has returned 39.7% over the past year (grade of B), 22.3% over the past three years (grade of C) and 7.2% per year over the past five years (grade of C) and 8.0% per year over the past 10 years (grade of D).

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