Fund Evaluator:

Morgan Stanley Pathway Municipal Bd Overview

Morgan Stanley Pathway Municipal Bd (TMUUX) is an actively managed Municipal Bond Muni National Long fund. Morgan Stanley launched the fund in 1991.

The investment seeks a high level of interest income that is excluded from federal income taxation, to the extent consistent with prudent investment management and the preservation of capital. 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 tax exempt general obligation, revenue and private activity bonds and notes, which are issued by or on behalf of states, territories or possessions of the U.S. and the District of Columbia and their political subdivisions, agencies and instrumentalities (including Puerto Rico, the Virgin Islands and Guam).

About Morgan Stanley Pathway Municipal Bd (TMUUX)

There are 2 members of the management team with an average tenure of 7.52 years: Kevin Maloney (2019), Michael Kalinoski (2019). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Morgan Stanley Pathway Municipal Bd has 166 securities in its portfolio. The top 10 holdings constitute 13.6% 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 Municipal Bd is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Morgan Stanley Pathway Municipal Bd has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 95.2% (94.7% domestic bond, 0.5% foreign bond and 0.0% convertible bond). Morgan Stanley Pathway Municipal Bd has 4.8% of the portfolio in cash.

Assets Under Management

The fund has $93 million in total assets, which is below the $1 billion average for the Muni National Long 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.

TMUUX 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 Municipal Bd expense ratio is above average compared to funds in the Muni National Long category. Morgan Stanley Pathway Municipal Bd has an expense ratio of 0.70%, which is 11% 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 Pathway Municipal Bd has a portfolio turnover rate of 68%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 37% for the Muni National Long category.

Recently, in the month of August 2026, Morgan Stanley Pathway Municipal Bd returned -0.3%, which earned it a grade of C, as the Muni National Long category had an average return of -0.3%. 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 Municipal Bd has a trailing yield of 3.20%, which is below the 3.75% category average. The fund normally distributes its income monthly 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 Municipal Bd Grades

Year to date, the fund has returned -0.2%, 0.7 percentage points worse than the category, which translates into a grade of F. The fund has returned 4.1% over the past year (grade of F), 3.0% over the past three years (grade of F) and 0.2% per year over the past five years (grade of C) and 1.4% per year over the past 10 years (grade of F).

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