The Trustees also reviewed a memorandum from the Funds legal counsel that summarized the fiduciary duties and responsibilities of the Board of Trustees in reviewing and approving the Investment Advisory Agreement, including the types of information and factors that should be considered in order to make an informed decision. Expert understanding and client-centric approach for insurance companies. Homestead Capital. As of Home Page | Municipal Employees Retirement System of Louisiana A positive correlation of 1 implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. In considering whether to approve the Investment Sub-Advisory Agreement, the Trustees reviewed and considered the information they deemed reasonably necessary, including the following material factors: (i) the nature, extent, and quality of the services provided by CenterSquare; (ii) theinvestment performance of the Fund and CenterSquare; (iii) the costs of the services provided and profits realized by CenterSquare and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale would be realized as the Fund grows and whether advisory fee levels reflect those economies of scale for the benefit of the Funds investors; (v) CenterSquares practices regarding brokerage and portfolio transactions; and (vi) CenterSquares practices regarding possible conflicts of interest. The Portfolio Manager may take into account information provided by the Underlying Funds personnel regarding the nature of the proxy. The Adviser supervises the investments of the Fund pursuant to an Investment Advisory Agreement. After further review and discussion, the Board determined that the Advisers practices regarding brokerage and portfolio transactions were satisfactory. Such instruments are considered cash equivalents because they are deemed liquid and not subject to significant risk of changes in values. The Trustees noted that the Fund outperformed the S&P 500 Index and the Barclays U.S. DST Systems, Inc. serves as transfer, dividend paying and shareholder servicing agent for the Fund (the Transfer Agent). You cannot invest directly in an index. For additional information regarding sector classification/definitions please visit www.msci.com/gics and the glossary page.Cash & Equivalentsare defined as the value of assets that can be converted into cash immediately. As of September 30, 2016, net unrealized appreciation/(depreciation) of investments based on the federal tax cost was as follows: Gross Appreciation (excess of value over tax cost), Gross Depreciation (excess of tax cost over value), Cost of Investments for Income Tax Purposes. In these offers, the Fund offered to repurchase up to 5% of the number of its outstanding shares as of the Repurchase Pricing Dates. The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. In the Media. Performance data for funds with less than one year's track record is not shown. The fund is located in New York, New York and invests in Northern California, Southern California, Chicago, South Florida, Chicago, Washington D.C., Boston and New York across the United States. For example, the Adviser may, directly or indirectly, receive fees from Client Accounts that are higher than the fee it receives from the Fund, or it may, directly or indirectly, receive a performance-based fee on a Client Account. The Funds most recent quarterly distribution payment (September 2016) represented an annualized 5.22% rate. We help people, businesses and institutions build, preserve and manage wealth so they can pursue their financial goals. The Fund has entered into a Distribution Agreement with ALPS Distributors, Inc. (the Distributor) to provide distribution services to the Fund. Class A and Class I shares are not currently subject to a Distribution Fee. Griffin Institutional Access Real Estate Fund Class C, Net increase/(decrease) in net asset value, Griffin Institutional Access Real Estate Fund Class I. Each class represents an interest in the same assets of the Fund and classes are identical except for differences in their sales charge structures and ongoing service and distribution charges. As a global financial services firm, Morgan Stanley is committed to technological innovation. In the twelve-month period since our last annual report, we surpassed one billion dollars in assets under management. /pub/content/dam/im/json/imwebdata/im/data/misc/translation/translation.json, /pub/content/dam/im/json/imwebdata/im/data/misc/translation/aggTranslation.json. It is the current yield of A comprehensive assessment of noteworthy trends shaping the global investment risk environment and our portfolio allocations. 1.2% JLL Income Property Trust 3.3 78 5.6% Morgan Stanley Prime Property Fund 31.9 444 3.6% Principal Enhanced Property Fund 3.8 54 7.2% PRISA LP 26.1 250 3.0% Prologis Targeted U.S. Learn from our industry leaders about how to manage your wealth and help meet your personal financial goals. The CCO has responsibility for implementation and monitoring of the Advisers proxy voting policy, practices, disclosures and record keeping, including outlining voting guidelines in its procedures. The agreement can be extended at the discretion of the Adviser and the Trustees. In some cases you might pay less, you can find this out from your financial adviser.Ongoing Chargesreflect the payments and expenses incurred during the fund's operation and are deducted from the assets of the fund over the period. The fund targets investments in the retail, multi-family, office and industrials properties. In considering the investment performance of the Fund and CenterSquare, the Trustees discussed the performance of the public investments portion of the Fund. As of Item 8. Last Annual Report Date: . The objectives of the investment pool and its policy and procedures governing fund allocations is here. Under the Shareholder Services Plan, the Class A and Class C shares may pay up to 0.25% per year of their average daily net assets for such services. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. The Fund may use the fair value of a security to calculate its NAV when, for example, (1) a portfolio security is not traded in a public market or the principal market in which the security trades is closed, (2) trading in a portfolio security is suspended and not resumed prior to the normal market close, (3) a portfolio security is not traded in significant volume for a substantial period, or (4) the Adviser determines that the quotation or price for a portfolio security provided by a broker-dealer or independent pricing service is inaccurate. Following further discussion of the Funds current and projected asset levels, expectations for growth, and levels of fees, the Board determined that the Funds fee arrangements were fair and reasonable in relation to the nature and quality of the services provided by CenterSquare. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The tax character of the Funds distributions, in isolation, does not reveal much information about whether the distributions are supported by the Funds returns. Morgan Stanley is differentiated by the caliber of our diverse team. All requests for information regarding proxy votes, or policies and procedures, received by any Adviser employee, officer, or director should be forwarded to the CCO. As of 1. Diversification does not eliminate the risk of experiencing investment losses. All returns reflect reinvested dividends, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The Funds private holdings include: Formerly known as the Cornerstone Patriot Fund. Core AEW Core Property Trust (1) Morgan Stanley Prime Property Fund . In considering the costs of the services provided and profits realized by AHIC and its affiliates from the relationship with the Fund, the Trustees evaluated AHICs staffing, personnel, and methods of operating; the education and experience of AHICs personnel; AHICs compliance programs, policies, and procedures; the financial condition of AHIC; the level of commitment to the Fund and AHIC by the principals of AHIC; the current and projected asset levels of the Fund; and the overall expenses of the Fund, including the nature and frequency of advisory fee payments. Discover who we are and the right opportunity for you. 2TheFTSE Nareit (National Association of Real Estate Investment Trusts) Equity REITs Index: is a free float-adjusted market-capitalization-weighted index of tax qualified REITs listed on the New York Stock Exchange, NYSE Amex and the NASDAQ National Market Systems. Measurement is time-weighted. The Trustees reviewed the balance sheet of CenterSquare and discussed the financial stability and profitability of the firm. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investors reference currency and the base currency of the investments. Returns may increase or decrease as a result of currency fluctuations. The Fund distribution rate is the amount, expressed as a percentage, a Fund investor would receive in distributions if the most recent Fund distribution stayed consistent going forward. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements. 31-Dec-2022, As of Item 10. The Funds Private Allocation Sub-Advisor, Aon Hewitt Investment Consulting, an Aon Company, provides investment consulting services to over 480 clients in North America with total client assets worldwide of approximately $4 trillion, including more than $3 trillion in the U.S. as of December 31, 2015. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. One basis point is equal to 1/100th of 1%, or 0.01%. In addition, two or more Clients may have different investment objectives or investment styles. Because in the context of Underlying Funds each solicited vote raises unique questions, each Proxy with respect to an Underlying Funds will be analyzed by the Portfolio Manager, and in turn the President and the Investment Committee, on a case-by-case basis. Calculated using the average shares method. Morgan Stanley Prime Property Fund - Staff Memo.pdf. endobj 322 0 obj >/Filter/FlateDecode/ID[5B1E6BB644E5214FA1B00738D0097441>]/Index[298 41]/Info 297 0 R/Length 121/Prev 378094/Root 299 0 R/Size 339/Type/XRef/W[1 3 1 . . The largest outstanding borrowing during the year ended September 30, 2016 relating to Credit Suisse was $149,500,000. Our culture of access and inclusion has built our legacy and shapes our future, helping to strengthen our business and bring value to clients. IC Berkeley Partners IV 30,000,000 3,087,000 26,913,000 0 n/a n/a JP Morgan Alternative Property Fund . The fund pursues its investment objectives by investing, under normal circumstances, at least 80% of net assets, plus the amount of any borrowings for investment purposes, in "real estate industry securities," primarily in income producing equity and debt securities. S&P 500 (Stocks), The MSCI US REIT Index (Publicly Traded Real Estate). Macro and thematic insights shaping the global investment landscape. The following is a summary of the inputs used in valuing the Funds investments as of September 30, 2016: Level 2 - Other Significant Observable Inputs, Private Investment Funds (Measured at net asset value). The Trustees also considered the portfolio turnover rate for the Fund; the process by which evaluations are made of the overall reasonableness of commissions paid; the method and basis for selecting and evaluating the broker-dealers used; any allocation of portfolio business to persons affiliated with the Adviser; and the extent to which the Fund allocates portfolio business to broker-dealers who provide research, statistical, or other services (soft dollars). The Distributor serves as principal underwriter of shares of the Fund. The difference between book basis and tax basis net unrealized appreciation is primarily attributable to the investments in partnerships, wash sales and certain other investments. Morgan Stanley Real Estate Prime Property Fund, Youre viewing 5 of 128 limited partners. Luxemburg B 29 192. The Trustees noted that the Fund commenced operations on June 30, 2014, and continued to gather assets. As of September 30, 2016, Dr. Anderson and Mr. Propper were responsible for the management of the following types of accounts in addition to the Fund: Item 9. As previously stated, we remain focused on net operating income (NOI) growth. The Adviser is responsible for the allocation of, or in the case of the Non-discretionary Client, recommendations regarding the allocation of, assets on behalf of the Clients to Underlying Funds, which may include hedge funds and other alternative investment pools that are structured as limited partnerships, limited liability companies or offshore corporations. At Morgan Stanley, we lead with exceptional ideas. The Trustees also noted that the Advisers fee was similar to other funds employing similar strategies to the Fund. Dr. Anderson also served as the Howard Phillips Eminent Scholar Chair and Professor of Real Estate at the University of Central Florida where he directed the research and education institute. The registrants Code of Ethics is attached as an Exhibit hereto. Premier. Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer of the Global Balanced Risk Control (GBaR) Team, shares his macro thematic views on key market drivers. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Stay on top of today's volatile markets with these timely resources. The Trustees also considered potential benefits for AHIC in managing the Fund, including promotion of AHIC name, the ability for AHIC to place small accounts into the Fund, and the potential for AHIC to generate soft dollars from Fund trades that may benefit AHICs other clients. Adjusted for initial maximum sales charge of 5.75%. The original Morgan Stanley Prime Property Fund is 47 years old and manages around $30B of assets in all real estate sectors across the U.S. . The Trustees noted that CenterSquare assists the Adviser in seeking to achieve the Funds investment objective to generate a balanced return comprised of current income and capital appreciation with moderate volatility and low correlation to the broader markets by pursuing strategically investing across private institutional real estate investment funds as well as a diversified set of public real estate securities. A career at Morgan Stanley means belonging to an ideas-driven culture that embraces new perspectives to solve complex problems. If the Funds NAV has increased, the Fund will have economically earned more than it has distributed, regardless of whether such distributions are reported as being from net investment income, net realized gains on investments or return of capital. Our underlying private securities have benefited from a growing economy that has driven strong demand for core real estate across all sectors. In considering AHICs practices regarding conflicts of interest, the Trustees evaluated the potential for conflicts of interest and considered such matters as the experience and ability of the advisory personnel assigned to the Fund; the basis of decisions to buy or sell securities for the Fund and AHICs other accounts; the method for bunching of portfolio securities transactions; and the substance and administration of AHICs code of ethics. No. At Morgan Stanley, giving back is a core valuea central part of our culture globally. An investor cannot invest directly into an index. Total distributions during a calendar year generally will be made from the Funds net investment income, net realized gains on investments and net unrealized gains on investments, if any. It also contained information on Fund expenses, including comparative expense ratio information for other investment companies with strategies similar to the Fund. Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. The Trustees then compared the fees and expenses of the Fund (including the management fee) to other funds comparable in terms of the type of fund, the nature of its investment strategy, and its style of investment management, among other factors. Ratings do not take into account sales loads. The Barclays Capital U.S. Griffin Capital Advisor along with CenterSquare Investment Management have designed a public market strategy in line with the objectives of the Fund with a focus on identifying public real estate securities whose current prices are below their intrinsic values. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Currently, no secondary market exists for the Funds shares, and the Fund expects that no secondary market will develop. See how you can continue your career journey at Morgan Stanley. Includes all wholly owned debt and PRIME's proportionate share of joint venture debt. Top-down considerations are also incorporated into the portfolio construction process and the Team may integrate forecasted fundamental inflections, macroeconomic considerations, geopolitical and country risk assessments, among other factors. Material Conflicts of Interest and Proxy Voting Committee. hb```e``"g\dd@ A( For a description of a possible sales charge, please see (Note 1). The Trustees noted that the Funds principal officers are personnel of the Adviser and its affiliates serve the Fund without additional compensation.