Fund Evaluator:
Morgan Stanley Pathway Ultra-S/T F/I (TSDUX)
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Fund Details
Morgan Stanley Pathway Ultra-S/T F/I Overview
Morgan Stanley Pathway Ultra-S/T F/I (TSDUX) is an actively managed Taxable Bond Ultrashort Bond fund. Morgan Stanley launched the fund in 2016.
The investment seeks total return, consistent with 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 fixed income instruments with maturities of less than or equal to two years. Under normal market conditions, it invests primarily in investment-grade securities and will seek to maintain an average portfolio duration of two years or less.
About Morgan Stanley Pathway Ultra-S/T F/I (TSDUX)
There are 1 members of the management team with an average tenure of 10.49 years: Jerome Schneider (2016). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and FTSE Treasury Bill 3 Mon USD index with a weighting of 100%. Morgan Stanley Pathway Ultra-S/T F/I has 400 securities in its portfolio. The top 10 holdings constitute 40.4% 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 Ultra-S/T F/I is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Morgan Stanley Pathway Ultra-S/T F/I has 34.6% 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 100.8% (66.2% domestic bond, 34.6% foreign bond and 0.0% convertible bond). Morgan Stanley Pathway Ultra-S/T F/I has -0.8% of the portfolio in cash.
Assets Under Management
The fund has $255 million in total assets, which is below the $969 million average for the Ultrashort Bond 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.
TSDUX 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 Ultra-S/T F/I expense ratio is average compared to funds in the Ultrashort Bond category. Morgan Stanley Pathway Ultra-S/T F/I has an expense ratio of 0.53%, which is 18% higher than its category average, making the fund expense ratio grade a D. 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 Ultra-S/T F/I has a portfolio turnover rate of 123%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 76% for the Ultrashort Bond category.
Recently, in the month of August 2026, Morgan Stanley Pathway Ultra-S/T F/I returned 0.4%, which earned it a grade of A, as the Ultrashort Bond 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 Ultra-S/T F/I has a trailing yield of 4.33%, which is above the 4.16% category average. The fund normally distributes its income monthly.
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 Ultra-S/T F/I Grades
Year to date, the fund has returned 3.0%, 0.6 percentage points better than the category, which translates into a grade of A. The fund has returned 4.5% over the past year (grade of A), 5.3% over the past three years (grade of B) and 4.0% per year over the past five years (grade of A) and 2.9% per year over the past 10 years (grade of B).
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TSDUX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| TSDUX Return (NAV) | 0.4% | 1.1% | 4.5% | 5.3% | 4.0% | 2.9% |
| TSDUX Grade | A | A | A | B | A | B |
| +/- Category | 0.0% | 0.2% | 0.6% | 0.2% | 0.3% | 0.2% |
| Ultrashort Bond Avg | 0.3% | 0.9% | 3.9% | 5.1% | 3.7% | 2.7% |
| TSDUX Tax Cost Ratio | na | na | 1.8% | 1.9% | 1.7% | 1.3% |
TSDUX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| TSDUX Return (NAV) | 3.0% | 4.9% | 6.0% | 5.9% | 0.4% | -0.1% | 2.1% | 2.7% | 1.6% | 1.7% | na |
| TSDUX Grade | A | B | B | B | B | D | B | D | C | B | na |
| +/- Category | 0.6% | 0.0% | 0.2% | 0.0% | 0.6% | -0.2% | 0.5% | -0.4% | -0.0% | 0.2% | na |
| Ultrashort Bond Avg | 2.4% | 4.9% | 5.9% | 5.9% | -0.2% | 0.1% | 1.5% | 3.1% | 1.7% | 1.6% | 1.5% |
| Risk Measures | |
| Standard Deviation: | 0.4% |
| Total Risk Index: | 0.03 - Low |
| Category Risk Index: | 0.65 - Below Average |
| Category Risk Grade: | B (21% Rank) |
| Beta: | 0.00 |
| R-Squared: | 0% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 4.3% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | |
| Total Assets: | $255 Mil |
| Fund Total Assets: | $ 255 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 123% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 10.5 years | |||
| Average Tenure: 10.5 years | |||
| Managers (Year): Schneider Jerome (2016) | |||
Portfolio Composition (as of 8/31/26)
| # of Holdings: | 400 |
| % in Top 10 Holdings: | 40.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 34.6% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 66.2% |
| Foreign Bond: | 34.6% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | -0.8% |
Purchase Information
| Fund Family: | Morgan Stanley |
| Phone Number: | 800-869-3326 |
| Website: | www.smithbarney.com |
| Status: | Open |
| Inception Date: | March 8, 2016 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.53% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.45% |
| Share Class: | Morgan Stanley Pathway Ultra-S/T F/I |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
