Fund Evaluator:
Morgan Stanley Long Duration Govt Opps A (USGAX)
Follow This Fund
Best Performing in Long Government Over the Last Year
| 1.9% | Wasatch-Hoisington US Treasury (WHOSX) |
| 1.1% | Russell Inv Long Duration Bond Y (RMHYX) |
| 1.1% | Russell Inv Long Duration Bond M (RMHTX) |
| 0.8% | Shelton US Government Securities Inv (CAUSX) |
| 0.4% | DoubleLine Long Duration Total Ret Bd N (DLLDX) |
Fund Details
Morgan Stanley Long Duration Govt Opps A Overview
Morgan Stanley Long Duration Govt Opps A (USGAX) is an actively managed Taxable Bond Long Government fund. Morgan Stanley launched the fund in 1997.
The investment seeks a high level of current income consistent with safety of principal. The fund normally invests at least 80% of its net assets in a portfolio of U.S. government securities. In making investment decisions, the Adviser considers economic developments, interest rate trends and other factors. Under normal circumstances, the Adviser expects to construct an investment portfolio for the fund with a dollar-weighted average effective duration of at least ten years.
About Morgan Stanley Long Duration Govt Opps A (USGAX)
There are 2 members of the management team with an average tenure of 1.81 years: Andrew Szczurowski (2023), Gregory Finck (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and Bloomberg US Long Treasury TR USD index with a weighting of 100%. Morgan Stanley Long Duration Govt Opps A has 180 securities in its portfolio. The top 10 holdings constitute 59.2% 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 Long Duration Govt Opps A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Morgan Stanley Long Duration Govt Opps A has 0.0% 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 99.4% (99.4% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Morgan Stanley Long Duration Govt Opps A has 0.6% of the portfolio in cash.
Assets Under Management
The fund has $131 million in total assets, which is below the $1 billion average for the Long Government 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.
USGAX 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 Long Duration Govt Opps A expense ratio is high compared to funds in the Long Government category. Morgan Stanley Long Duration Govt Opps A has an expense ratio of 0.85%, which is 32% lower 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 Long Duration Govt Opps A has a portfolio turnover rate of 349%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 120% for the Long Government category.
Recently, in the month of July 2026, Morgan Stanley Long Duration Govt Opps A returned -4.0%, which earned it a grade of B, as the Long Government 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 Long Duration Govt Opps A has a trailing yield of 5.60%, which is above the 4.48% category average. The fund normally distributes its income monthly and its capital gains semi-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 Long Duration Govt Opps A Grades
Year to date, the fund has returned -3.9%, 0.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 2.9% over the past year (grade of A), 2.7% over the past three years (grade of A) and -1.6% per year over the past five years (grade of B) and 0.3% per year over the past 10 years (grade of A).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Morgan Stanley Long Duration Govt Opps A, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
USGAX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| USGAX Return (NAV) | -4.0% | -3.0% | 2.9% | 2.7% | -1.6% | 0.3% |
| USGAX Grade | B | F | A | A | B | A |
| +/- Category | -0.1% | -0.3% | 3.1% | 3.4% | 4.4% | 2.2% |
| Long Government Avg | -3.9% | -2.6% | -0.2% | -0.6% | -6.0% | -1.9% |
| USGAX Tax Cost Ratio | na | na | 2.1% | 2.0% | 1.7% | 1.4% |
USGAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| USGAX Return (NAV) | -3.9% | 13.5% | -6.6% | 5.6% | -13.0% | -2.1% | 5.6% | 6.4% | 0.0% | 2.9% | 2.4% |
| USGAX Grade | D | A | D | A | B | A | F | F | A | F | A |
| +/- Category | -0.4% | 7.2% | -0.7% | 2.4% | 12.3% | 2.0% | -9.1% | -6.0% | 1.7% | -4.6% | 1.1% |
| Long Government Avg | -3.5% | 6.3% | -6.0% | 3.2% | -25.3% | -4.1% | 14.7% | 12.5% | -1.7% | 7.5% | 1.3% |
| Risk Measures | |
| Standard Deviation: | 16.8% |
| Total Risk Index: | 1.37 - High |
| Category Risk Index: | 1.29 - High |
| Category Risk Grade: | F (91% Rank) |
| Beta: | 2.93 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 5.6% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Semi-Annually |
| Total Assets: | $195 Mil |
| Fund Total Assets: | $ 132 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 349% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 3.2 years | |||
| Average Tenure: 1.8 years | |||
| Managers (Year): Szczurowski Andrew (2023), Finck Gregory (2026) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 180 |
| % in Top 10 Holdings: | 59.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.4% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.6% |
Purchase Information
| Fund Family: | Morgan Stanley |
| Phone Number: | 800-869-6397 |
| Website: | www.morganstanley.com |
| Status: | Open |
| Inception Date: | July 28, 1997 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $1,000 |
| True No-Load: | No |
| Front Load Maximum: | 3.25% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 0.85% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.25% |
| Share Class: | Morgan Stanley Long Duration Govt Opps I |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
