Fund Evaluator:
Morgan Stanley Pathway Core F/ I (TIIUX)
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Best Performing in Intermediate Core-Plus Bond Over the Last Year
| 5.0% | Performance Trust Total Return Bd Inst (PTIAX) |
| 5.0% | Diamond Hill Core Plus Bond Y (DHNYX) |
| 4.9% | Diamond Hill Core Plus Bond I (DHNIX) |
| 4.7% | Carillon Reams Core Plus Bond I (SCPZX) |
| 4.7% | Cavanal Hill Strategic Enhanced Yld Inv (APENX) |
Fund Details
Morgan Stanley Pathway Core F/ I Overview
Morgan Stanley Pathway Core F/ I (TIIUX) is an actively managed Taxable Bond Intermediate Core-Plus Bond fund. Morgan Stanley launched the fund in 1991.
The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. 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. It may invest up to 30% of its total assets in securities denominated in foreign currencies and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers.
About Morgan Stanley Pathway Core F/ I (TIIUX)
There are 16 members of the management team with an average tenure of 1.47 years: Kay Herr (2025), Christopher Kauffman (2024), James Mauro (2024), Michael Schueller (2024), Richard Figuly (2025), Noah Wise (2024), Michal Stanczyk (2024), Jonathan Graves (2026), Sarah Harrison (2026), Andrew Norelli (2025), Vikas Pathani (2026), Thomas Hauser (2025), Priya Misra (2025), Marcus Tom (2026), Lisa Coleman (2025), Janet Rilling (2024). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. Morgan Stanley Pathway Core F/ I has 3514 securities in its portfolio. The top 10 holdings constitute 22.6% 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 Core F/ I is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Morgan Stanley Pathway Core F/ I has 10.1% 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 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 95.3% (85.1% domestic bond, 10.1% foreign bond and 0.1% convertible bond). Morgan Stanley Pathway Core F/ I has 4.4% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is below the $1 billion average for the Intermediate Core-Plus 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.
TIIUX 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 Core F/ I expense ratio is average compared to funds in the Intermediate Core-Plus Bond category. Morgan Stanley Pathway Core F/ I has an expense ratio of 0.47%, which is 40% lower than its category average, making the fund expense ratio grade a B. 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 Core F/ I has a portfolio turnover rate of 136%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 180% for the Intermediate Core-Plus Bond category.
Recently, in the month of June 2026, Morgan Stanley Pathway Core F/ I returned 0.4%, which earned it a grade of A, as the Intermediate Core-Plus 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 Core F/ I has a trailing yield of 4.47%, which is above the 4.29% 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 Core F/ I Grades
Year to date, the fund has returned 0.7%, 0.0 percentage points better than the category, which translates into a grade of C. The fund has returned 4.1% over the past year (grade of C), 4.0% over the past three years (grade of F) and -0.4% per year over the past five years (grade of F) and 1.6% per year over the past 10 years (grade of F).
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TIIUX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| TIIUX Return (NAV) | 0.4% | 0.8% | 4.1% | 4.0% | -0.4% | 1.6% |
| TIIUX Grade | A | D | C | F | F | F |
| +/- Category | 0.1% | -0.1% | 0.1% | -0.6% | -0.7% | -0.5% |
| Intermediate Core-Plus Bond Avg | 0.3% | 0.9% | 3.9% | 4.7% | 0.3% | 2.1% |
| TIIUX Tax Cost Ratio | na | na | 1.8% | 1.8% | 1.5% | 1.5% |
TIIUX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| TIIUX Return (NAV) | 0.7% | 7.4% | 0.6% | 5.9% | -14.7% | -1.7% | 8.7% | 9.8% | -0.5% | 3.9% | 2.9% |
| TIIUX Grade | C | C | F | D | D | F | C | B | B | D | D |
| +/- Category | 0.0% | 0.0% | -1.6% | -0.2% | -1.3% | -1.1% | 0.0% | 0.6% | 0.4% | -0.5% | -1.4% |
| Intermediate Core-Plus Bond Avg | 0.7% | 7.3% | 2.3% | 6.1% | -13.4% | -0.6% | 8.6% | 9.1% | -0.9% | 4.4% | 4.3% |
| Risk Measures | |
| Standard Deviation: | 6.0% |
| Total Risk Index: | 0.49 - Below Average |
| Category Risk Index: | 1.08 - High |
| Category Risk Grade: | F (90% Rank) |
| Beta: | 1.07 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 4.5% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1871 Mil |
| Fund Total Assets: | $1,872 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 136% |
Management Team
| Number of Managers: 16 | |||
| Longest Tenure: 2.3 years | |||
| Average Tenure: 1.5 years | |||
| Managers (Year): Kauffman Christopher (2024), Mauro James (2024), Schueller Michael (2024), Wise Noah (2024), Stanczyk Michal (2024), Rilling Janet (2024), Herr Kay (2025), Coleman Lisa (2025), Norelli Andrew (2025), Hauser Thomas (2025), Misra Priya (2025), Figuly Richard (2025), Graves Jonathan (2026), Harrison Sarah (2026), Tom Marcus (2026), Pathani Vikas (2026) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 3514 |
| % in Top 10 Holdings: | 22.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 10.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.2% |
| Domestic Bond: | 85.1% |
| Foreign Bond: | 10.1% |
| Convertible Bond: | 0.1% |
| Other: | 0.0% |
| Cash: | 4.4% |
Purchase Information
| Fund Family: | Morgan Stanley |
| Phone Number: | 800-869-3326 |
| Website: | www.smithbarney.com |
| Status: | Open |
| Inception Date: | November 18, 1991 |
| 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 (%): | 0.47% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | Morgan Stanley Pathway Core F/ I |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
