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Morgan Stanley Pathway Large Cap Equity ETF

Ticker: MSLC

Stock Exchange: NYSE Arca, Inc.

Investment objective

Capital appreciation.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory program (as a percentage of prior quarter‑end net assets)¹			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)¹



Management Fees²		0.55%

Other Expenses		0.08%

Total Annual Fund Operating Expenses		0.63%

Waiver²		(0.24%)

Net Annual Fund Operating Expenses²		0.39%

¹The Morgan Stanley Annual Advisory Program Fees are only applicable to shareholders who own shares of the Fund through a Morgan Stanley-sponsored investment advisory program.

²CGAS (defined herein) has contractually agreed to waive fees and reimburse expenses in order to keep the Fund’s management fees from exceeding the total amount of sub‑advisory fees paid by CGAS plus 0.20% based on average net assets. This contractual waiver will only apply if the Fund’s total management fees exceed the total amount of sub‑advisory fees paid by CGAS plus 0.20% and will not affect the Fund’s total management fees if they are less than such amount. This fee waiver and/or reimbursement will continue for at least one year from the date of this prospectus or until such time as the Board of Trustees acts to discontinue all or a portion of such waiver and/or reimbursement when they deem such action is appropriate.

Examples

These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The examples assume that you invest $10,000 in the Fund for the time periods indicated. The examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The effect of the Fund’s contractual fee waiver is only reflected in the first year of the example. The figures are calculated based upon total annual Fund operating expenses, and, for applicable shareholders as stated below, a maximum annual fee of 2.00% for the

applicable Morgan Stanley-sponsored investment advisory program through which you invest. Your actual costs may be higher or lower.

If you do not own Fund shares through a Morgan

Stanley-sponsored investment advisory program, based on these assumptions, your costs would be:

If you own Fund shares through a Morgan Stanley-sponsored investment advisory program, based on these assumptions, your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the portfolio turnover rate of the Morgan Stanley Pathway Large Cap Equity ETF was 13% of the average value of its portfolio.

Principal investment strategies

The Fund will invest, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of large capitalization (or “cap”) companies or in other investments with similar economic characteristics. The Fund defines large cap companies as companies whose market capitalizations typically fall within the range of the Russell 1000^® Index. The market capitalization of the companies in large‑cap market indices and the Fund’s portfolio changes over time. The Fund may invest up to 10% of its assets in the securities of foreign issuers that are not traded on a U.S. exchange or the U.S. over‑the‑counter market. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

The Fund employs a “multi-manager” strategy whereby portions of the Fund are allocated to professional money managers (each, a “Sub‑adviser,” collectively, the “Sub‑advisers”) who are responsible for investing the assets of the Fund.


MORGAN STANLEY \| 2026		1

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

ETF Structure Risks. The Fund is structured as an ETF and is subject to the special risks, including:

•

Not Individually Redeemable. Shares are not individually redeemable to retail investors and may be redeemed by the Fund only to Authorized Participants at NAV in large blocks known as “Creation Units.” An Authorized Participant may incur brokerage costs purchasing enough shares to constitute a Creation Unit.

•

Trading Issues. An active trading market for the Fund’s shares may not be developed or maintained. Trading in shares on NYSE Arca, Inc. (the “Exchange”) may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable, such as extraordinary market volatility. There can be no assurance that shares will continue to meet the listing requirements of the Exchange. If the Fund’s shares are traded outside a collateralized settlement system, the number of financial institutions that can act as Authorized Participants that can post collateral on an agency basis is limited, which may limit the market for the Fund’s shares. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.

•

Market Price Variance Risk. The market price of the Fund’s shares will fluctuate in response to changes in NAV and supply and demand for shares and will include a “bid‑ask spread” charged by the exchange specialists, market makers or other participants that trade the particular security. There may be times when the market price and the NAV vary significantly. This means that shares may trade at a discount to NAV, and, therefore, shareholders could receive less or pay more than NAV when selling or purchasing shares.

•

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruptions in the creation/redemption process. Any of these factors, among others, may lead to the Fund’s shares trading at a premium or discount to NAV.

•

below, at or above their NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for the Fund’s shares will be closely related to, but not identical to, the same forces influencing the prices of the Fund’s holdings trading individually or in the aggregate at any point in time.

•

Authorized Participant Concentration Risk. Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund, and none of those Authorized Participants is obligated to engage in creation and/or redemption transactions. The Fund has a limited number of institutions that may act as Authorized Participants on an agency basis (i.e., on behalf of other market participants). To the extent that Authorized Participants exit the business or are unable to proceed with creation or redemption orders with respect to the Fund and no other Authorized Participant is able to step forward to create or redeem Creation Units, Fund shares may be more likely to trade at a premium or discount to NAV and possibly face trading halts or delisting.

•

Market Risk, which is the risk that stock prices decline overall. Markets are volatile and can decline significantly in response to real or perceived adverse issuer, political, regulatory, market or economic developments in the U.S. and in other countries. Similarly, environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short and long-term. Market risk may affect a single company, sector of the economy or the market as a whole.

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily due to factors affecting individual companies, particular industries or the equity market as a whole.

•

Exchange-Traded Funds (“ETFs”) Risk, which is the risk of owning shares of an ETF and generally reflects the risks of owning the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio securities. When the Fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF’s expenses.

•

Investment Style Risk, which means large cap and/or growth stocks could fall out of favor with investors and trail the performance of other types of investments.

•

Foreign Investment Risk, which means risks unique to foreign securities, including less information about foreign issuers, less liquid securities markets, political instability and unfavorable changes in currency exchange rates.

•

Securities Lending Risk, which includes the potential insolvency of a borrower and losses due to the re‑investment of collateral received on loaned securities in investments that default or do not perform well.

•

Manager Risk, which is the risk that poor security selection by a Sub‑adviser will cause the Fund to underperform. This risk is common for all actively managed funds.


2		MORGAN STANLEY \| 2026

•

Multi-Manager Risk, which is the risk that the investment styles of the Sub‑advisers may not complement each other as expected by the Manager.

•

Issuer Risk, which is the risk that the value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

•

Sector Risk, which is the risk that the value of securities in a particular industry or sector will decline because of changing expectations for the performance of that industry or sector. From time to time, based on market or economic conditions, the Fund may have significant positions in one or more sectors of the market. To the extent the Fund invests more heavily in particular sectors, its performance will be especially sensitive to developments that significantly affect those sectors. Individual sectors may be more volatile, and may perform differently, than the broader market. The industries that constitute a sector may all react in the same way to economic, political or regulatory events.

An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. For more information on the risks of investing in the Fund please see the Fund details section of the Fund’s Prospectus.

Performance

Before the Fund commenced operations, the Fund acquired the assets and liabilities of the Large Cap Equity Fund, a former series of the Trust (the “Predecessor Large Cap Equity Fund”) (the “Large Cap Equity Fund Reorganization”) on December 9, 2024. As a result of the Large Cap Equity Fund Reorganization, shareholders of the Predecessor Large Cap Equity Fund received shares of the Fund, and the Fund assumed the performance and accounting history of the Predecessor Large Cap Equity Fund prior to the date of the

Large Cap Equity Fund Reorganization. Accordingly, the performance shown below for periods prior to the Large Cap Equity Fund Reorganization represents the performance of the Predecessor Large Cap Equity Fund. The Predecessor Large Cap Equity Fund’s investment objective was identical to the Fund’s, and the Predecessor Large Cap Equity Fund was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund.

The Predecessor Large Cap Equity Fund’s returns in the bar chart and table reflect the Predecessor Large Cap Equity Fund’s expenses but have not been adjusted to reflect the Fund’s expenses. If the Predecessor Large Cap Equity Fund’s performance information had been adjusted to reflect the Fund’s expenses, the performance may have been higher or lower for a given period depending on the expenses incurred by the Predecessor Large Cap Equity Fund for that period. Additionally, if the Predecessor Large Cap Equity Fund had operated as an ETF, its performance may have differed.

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s benchmark index. This information provides some indication of the risks of investing in the Fund. The performance information in the bar chart and table below does not reflect the Morgan Stanley Annual Advisory Program Fee applicable to investors participating in Morgan Stanley sponsored investment advisory programs (see Annual Advisory Program Fees above). These fees would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth-investmentsolutions/cgcm.


MORGAN STANLEY \| 2026		3

Annual total returns (%) calendar years

Morgan Stanley Pathway Large Cap Equity ETF

Fund’s best and worst calendar quarters

Best: 21.65% in 2nd quarter of 2020

Worst: -21.39% in 1st quarter of 2020

Year‑to‑date: 13.21% (through 3rd quarter 2025)

Average Annual Total Returns

(for the periods ended December 31, 2024)


	1 YEAR		5 YEARS		10 YEARS

Fund (without advisory program fee)¹

Return Before Taxes		21.85%		12.23%		11.25%

Return After Taxes on Distributions		20.70%		10.45%		9.09%

Return After Taxes on Distributions and Sale of Fund Shares		12.48%		9.17%		8.40%

Russell 1000^® Index (reflects no deduction for fees, expenses or taxes)		24.51%		14.28%		12.87%

¹The Predecessor Fund’s inception date was November 18, 1991.

The after‑tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after‑tax returns depend on an individual investor’s tax situation and may differ from those shown, and after‑tax returns shown are not relevant to investors who hold their Fund shares through tax‑deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases, the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.

The Fund’s benchmark is the Russell 1000^® Index. The Russell 1000^® Index is composed of the 1,000 largest U.S. companies by market capitalization. Unlike the Fund, the benchmark is unmanaged and does not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub‑adviser,” collectively, the “Sub‑advisers”) who are responsible for investing the assets of the Fund. The Sub‑advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub‑adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub‑advisers, continuously monitors and evaluates Sub‑adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub‑advisers), and oversees Sub‑adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub‑advisers should be made in response to such changes in market conditions. Sub‑advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.


4		MORGAN STANLEY \| 2026

Sub‑advisers and portfolio managers

BlackRock Financial Management, Inc. (“BlackRock”)

ClearBridge Investments, LLC (“ClearBridge”)

Great Lakes Advisors, LLC (“Great Lakes”)

Principal Asset Management (“Principal”)


PORTFOLIO MANAGERS	SUB‑ADVISER OR ADVISER	FUND’S PORTFOLIO MANAGER SINCE		PREDECESSOR FUND’S PORTFOLIO MANAGER SINCE

Jennifer Hsui, CFA^® Managing Director, Global Head of Index Equity	BlackRock		2024	2018

Peter Sietsema, CFA^® Director and Senior Portfolio Manager	BlackRock		2024	2022

Matt Waldron, CFA^® Managing Director and Portfolio Manager	BlackRock		2024	2022

Steven White, Director and Portfolio Manager, Head of Active Risk ETF	BlackRock		2025	N/A

Erica Furfaro, Director and Portfolio Manager	ClearBridge		2024	2024

Margaret Vitrano, Managing Director and Portfolio Manager	ClearBridge		2024	2017

Paul Roukis, CFA^®, Portfolio Manager and Managing Director	Great Lakes		2024	2023

Jeff Agne, Portfolio Manager and Managing Director	Great Lakes		2024	2023

Bill Nolan, Chief Investment Officer and Portfolio Manager	Principal		2024	2023

Tom Rozycki, Director of Research and Portfolio Manager	Principal		2024	2023

Purchase and sale of Fund shares

Individual Fund shares may only be bought and sold in the secondary market through a broker or dealer at a market price. Because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount). An investor may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares of the Fund (bid) and the lowest price a seller is willing to accept for shares of the Fund (ask) when buying or selling shares in the secondary market (the “bid/ask spread”). Information on the Fund’s NAV, market price, premiums and discounts, and bid/ask spreads, is available on the Fund’s website at www.morganstanley.com/wealth-investmentsolutions/cgcm.

Payments to financial intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your sales person to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.


MORGAN STANLEY \| 2026		5

Morgan Stanley Pathway Small-Mid Cap Equity ETF

Ticker: MSSM

Stock Exchange: NYSE Arca, Inc.

Investment objective

Capital appreciation.

Fund fees and expenses

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory program (as a percentage of prior quarter-end net assets)¹			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)¹



Management Fees²		0.75%

Other Expenses		0.14%

Total Annual Fund Operating Expenses		0.89%

Waiver²		(0.27%)

Net Annual Fund Operating Expenses²		0.62%

¹The Morgan Stanley Annual Advisory Program Fees are only applicable to shareholders who own shares of the Fund through a Morgan Stanley-sponsored investment advisory program.

²CGAS (defined herein) has contractually agreed to waive fees and reimburse expenses in order to keep the Fund’s management fees from exceeding the total amount of sub-advisory fees paid by CGAS plus 0.20% based on average net assets. This contractual waiver will only apply if the Fund’s total management fees exceed the total amount of sub-advisory fees paid by CGAS plus 0.20% and will not affect the Fund’s total management fees if they are less than such amount. This fee waiver and/or reimbursement will continue for at least one year from the date of this prospectus or until such time as the Board of Trustees acts to discontinue all or a portion of such waiver and/or reimbursement when they deem such action is appropriate.

Examples

applicable Morgan Stanley-sponsored investment advisory program through which you invest. Your actual costs may be higher or lower.

If you do not own Fund shares through a Morgan

Stanley-sponsored investment advisory program, based on these assumptions, your costs would be:

If you own Fund shares through a Morgan Stanley-sponsored investment advisory program, based on these assumptions, your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the portfolio turnover rate of the Morgan Stanley Pathway Small-Mid Cap Equity ETF was 45% of the average value of its portfolio.

Principal investment strategies

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 the equity securities of small-mid capitalization (or “cap”) companies or in other investments with similar economic characteristics. The Fund defines small-mid cap companies as companies with market caps not exceeding the highest month-end market cap value of any stock in the Russell 2500^® or Russell Mid Cap Index for the previous 12 months, whichever is greater. The Fund may invest up to 10% of its assets in the securities of foreign issuers that are not traded on a U.S. exchange or the U.S. over-the-counter market. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

The Fund employs a “multi-manager” strategy whereby portions of the Fund are allocated to professional money managers (each, a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.


6		MORGAN STANLEY \| 2026

ETF Structure Risks. The Fund is structured as an ETF and is subject to the special risks, including:

•

Trading Issues. An active trading market for the Fund’s shares may not be developed or maintained. Trading in shares on NYSE Arca, Inc. (the “Exchange”) may be halted due to market conditions or for reasons that, in the view of the Exchange make trading in shares inadvisable, such as extraordinary market volatility. There can be no assurance that shares will continue to meet the listing requirements of the Exchange. If the Fund’s shares are traded outside a collateralized settlement system, the number of financial institutions that can act as Authorized Participants that can post collateral on an agency basis is limited, which may limit the market for the Fund’s shares. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.

•

Market Price Variance Risk. The market price of the Fund’s shares will fluctuate in response to changes in NAV and supply and demand for shares and will include a “bid-ask spread” charged by the exchange specialists, market makers or other participants that trade the particular security. There may be times when the market price and the NAV vary significantly. This means that shares may trade at a discount to NAV, and, therefore, shareholders could receive less or pay more than NAV when selling or purchasing shares.

•

Fluctuation of Net Asset Value Risk. The NAV of the Fund’s shares will generally fluctuate with changes in the market value of the Fund’s holdings. The market prices of the Fund’s shares will generally fluctuate in accordance with changes in NAV as well as the relative supply of and demand for the Fund’s shares on the Exchange. The Adviser cannot predict whether the shares will trade below, at or above their NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for the Fund’s shares will be closely related to, but not identical

to, the same forces influencing the prices of the Fund’s holdings trading individually or in the aggregate at any point in time.

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily due to factors affecting individual companies, particular industries or the equity market as a whole.

•

Investment Style Risk, which means small cap and/or growth stocks could fall out of favor with investors and trail the performance of other types of investments.

•

Small-Mid Cap Risk, which refers to the fact that historically, small-mid cap companies tend to be more vulnerable to adverse business and economic events, have been more sensitive to changes in earnings results and forecasts and investor expectations, and experience sharper swings in market values than larger, more established companies. At times, small-mid cap stocks may be less liquid and harder to sell at prices the Sub-advisers believe are appropriate.

•

Securities Lending Risk, which includes the potential insolvency of a borrower and losses due to the re-investment of collateral received on loaned securities in investments that default or do not perform well.


MORGAN STANLEY \| 2026		7

•

Manager Risk, which is the risk that poor security selection by a Sub-adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Multi-Manager Risk, which is the risk that the investment styles of the Sub-advisers may not complement each other as expected by the Manager.

•

Performance

Before the Fund commenced operations, the Fund acquired the assets and liabilities of the Small-Mid Cap Equity Fund, a former series of the Trust (the “Predecessor Small-Mid Cap Equity Fund”) (the “Small-Mid Cap Equity Fund Reorganization”) on December 9, 2024. As a result of the Small-Mid Cap Equity Fund Reorganization, shareholders of the Predecessor Small-Mid Cap Equity Fund received shares of the Fund, and the Fund assumed the performance and accounting history of the Predecessor Small-Mid Cap Equity

Fund prior to the date of the Small-Mid Cap Equity Reorganization. Accordingly, the performance shown below for periods prior to the Small-Mid Cap Equity Fund Reorganization represents the performance of the Predecessor Small-Mid Cap Equity Fund. The Predecessor Small-Mid Cap Equity Fund’s investment objective was identical to the Fund’s, and the Predecessor Small-Mid Cap Equity Fund was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund.

The Predecessor Small-Mid Cap Equity Fund’s returns in the bar chart and table reflect the Predecessor Small-Mid Cap Equity Fund’s expenses but have not been adjusted to reflect the Fund’s expenses. If the Predecessor Small-Mid Cap Equity Fund’s performance information had been adjusted to reflect the Fund’s expenses, the performance may have been higher or lower for a given period depending on the expenses incurred by the Predecessor Small-Mid Cap Equity Fund for that period. Additionally, if the Predecessor Small-Mid Cap Equity Fund had operated as an ETF, its performance may have differed.

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s benchmark index. This information provides some indication of the risks of investing in the Fund. The performance information in the bar chart and table below does not reflect the Morgan Stanley Annual Advisory Program Fee applicable to investors participating in Morgan Stanley sponsored investment advisory programs (see Annual Advisory Program Fees above). These fees would reduce your return. The Predecessor Small-Mid Cap Equity Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth-investmentsolutions/cgcm.

Annual total returns (%) calendar years

Morgan Stanley Pathway Small-Mid Cap Equity ETF

Fund’s best and worst calendar quarters

Best: 25.93% in 4th quarter of 2020

Worst: -26.41% in 1st quarter of 2020

Year-to-date: 8.40% (through 3rd quarter 2025)


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Average Annual Total Returns

(for the periods ended December 31, 2024)


	1 YEAR		5 YEARS		10 YEARS

Fund (without advisory program fee)¹

Return Before Taxes		9.69%		7.81%		7.24%

Return After Taxes on Distributions		7.26%		5.28%		4.38%

Return After Taxes on Distributions and Sale of Fund Shares		1.96%		4.95%		4.66%

Russell 3000^® Index (reflects no deduction for fees, expenses or taxes)		23.81%		13.86%		12.55%

Russell 2500^® Index (reflects no deduction for fees, expenses or taxes)		12.00%		8.77%		8.85%

¹ The Predecessor Fund commenced operations on November 18, 1991.

The after-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an individual investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases, the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.

The Fund’s broad-based securities market index is the Russell 3000^® Index. The Russell 3000^® Index represents the 3,000 largest publicly traded U.S. companies, based on market

capitalization. The Fund also compares its performance to the Russell 2500 Index^®, which is a secondary benchmark that includes the smallest 2,500 U.S. companies out of the Russell 3000^® Index universe. Unlike the Fund, the benchmarks are unmanaged and do not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund. The Sub-advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-advisers and portfolio managers

AllianceBernstein L.P. (“AllianceBernstein”)

BlackRock Financial Management, Inc. (“BlackRock”)

Neuberger Berman Investment Advisers LLC (“Neuberger”)

Westfield Capital Management Company, L.P. (“Westfield”)


PORTFOLIO MANAGERS	SUB‑ADVISER OR ADVISER	FUND’S PORTFOLIO MANAGER SINCE		PREDECESSOR FUND’S PORTFOLIO MANAGER SINCE

James MacGregor, CFA^®, Chief Investment Officer	AllianceBernstein		2024	2024

Erik Turenchalk, CFA^®, Portfolio Manager	AllianceBernstein		2024	2024

Jennifer Hsui, CFA^® Managing Director, Global Head of Index Equity	BlackRock		2024	2018

Peter Sietsema, CFA^® Director and Senior Portfolio Manager	BlackRock		2024	2022

Matt Waldron, CFA^® Managing Director and Portfolio Manager	BlackRock		2024	2022

Steven White, Director and Portfolio Manager, Head of Active Risk ETF	BlackRock		2025	N/A

Benjamin H. Nahum, Managing Director	Neuberger		2024	2016

William A. Muggia, President, CEO and CIO	Westfield		2024	2004

Richard D. Lee, CFA^®, Managing Partner and CIO	Westfield		2024	2004

Matthew R. Renna, Managing Partner,	Westfield		2025	N/A

Edward D. Richardson, Partner	Westfield		2025	N/A


MORGAN STANLEY \| 2026		9

Purchase and sale of Fund shares

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.

Payments to financial intermediaries


10		MORGAN STANLEY \| 2026

International Equity Fund

Investment objective

Capital appreciation.

Fund Fees and Expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA, or Portfolio Management investment advisory programs (as a percentage of average prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.70%

Distribution (12b-1) Fees		None

Other Expenses		0.13%

Total Annual Fund Operating Expenses		0.83%

Waiver*		(0.23)%

Net Annual Fund Operating Expenses*		0.60%

* CGAS (defined herein) has contractually agreed to waive fees and reimburse expenses in order to keep the Fund’s management fees from exceeding the total amount of sub-advisory fees paid by CGAS plus 0.20% based on average net assets. This contractual waiver will only apply if the Fund’s total management fees exceed the total amount of sub-advisory fees paid by CGAS plus 0.20% and will not affect the Fund’s total management fees if they are less than such amount. This fee waiver and/or reimbursement will continue for at least one year from the date of this prospectus or until such time as the Board of Trustees acts to discontinue all or a portion of such waiver and/or reimbursement when they deem such action is appropriate.

Examples

These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that you invest $10,000 in the Fund for the time periods indicated. The examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The effect of the Fund’s contractual fee waiver is only reflected in the first year of the example. The figures are calculated based upon total annual Fund operating expenses and a maximum annual fee of 2.00% for the applicable Morgan Stanley-sponsored investment advisory program through which you invest. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 29% of the average value of its portfolio.

Principal investment strategies

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 the equity securities of companies located outside the U.S. The Fund focuses on companies located in developed markets, but also may invest a portion of its assets in securities of companies located in emerging markets. The Fund intends to diversify its assets by investing primarily in securities of issuers located in at least three foreign countries. The Fund may attempt to hedge against unfavorable changes in currency exchange rates by engaging in forward currency transactions or currency swaps and trading currency futures contracts and options on these futures. However, a Sub-adviser (as defined below) may choose not to, or may be unable to, hedge the Fund’s currency exposure. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily due to factors affecting individual companies, particular industries or the equity market as a whole.

•


MORGAN STANLEY \| 2026		11

•

Currency Risk, which refers to the risk that as a result of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, those currencies will decline in value relative to the U.S. dollar or, in the case of hedged positions, the U.S. dollar will decline in value relative to the currency hedged.

•

Forwards, Futures, Options and Swaps Risk, which means that the Fund’s use of forwards, futures, options and swaps to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Even a small investment in forwards, futures, options or swaps can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using forwards, futures, options or swaps can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in forwards, futures, options or swaps if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. Investing in forwards, futures, options or swaps can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Emerging Markets Risk, emerging markets countries, which are generally defined as countries that may be represented in a market index such as the MSCI Emerging Markets Index (Net) or having per capita income in the low to middle ranges, as determined by the World Bank. In addition to foreign investment and currency risks, emerging markets may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation. Emerging market securities may present market, credit, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign countries. The Fund also could experience a loss from settlement and custody practices in some emerging markets.

•

Small and Mid Cap Risk, which refers to the fact that historically, small and mid cap stocks tend to be more vulnerable to adverse business and economic events, more sensitive to changes in earnings results and forecasts and investor expectations and will experience sharper swings in market values than larger, more established companies. At times, small and mid cap stocks may be less liquid and harder to sell at prices the Sub-advisers believe are appropriate.

•

Manager Risk, which is the risk that poor security selection by a Sub-adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Multi-Manager Risk, which is the risk that the investment styles of the Sub-advisers may not complement each other as expected by the Manager. The Fund may experience a

higher portfolio turnover rate, which can increase the Fund’s transaction costs and result in more taxable short-term gains for shareholders.

•

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s benchmark index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth-investmentsolutions/cgcm.


12		MORGAN STANLEY \| 2026

Annual total returns (%) calendar years

International Equity Fund

Fund’s best and worst calendar quarters

Best: 18.66% in 4th quarter 2022

Worst: (25.29)% in 1st quarter 2020

Year-to-date: 23.91% (through 3rd quarter 2025)

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 11/18/1991	1 YEAR		5 YEARS		10 YEARS

Fund (without advisory program fee)

Return Before Taxes		2.98%		5.25%		5.35%

Return After Taxes on Distributions		1.56%		4.12%		4.59%

Return After Taxes on Distributions and Sale of Fund Shares		2.91%		4.05%		4.26%

MSCI EAFE^® Index (Net) (reflects no deduction for fees, expenses or taxes)		3.82%		4.73%		5.20%

The Fund’s benchmark is the MSCI EAFE^® Index (Net). The Benchmark is a composite portfolio of equity total returns for developed countries in Europe and the Far East and Australia and New Zealand. Unlike the Fund, the benchmark is

unmanaged and does not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund. The Sub-advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.


MORGAN STANLEY \| 2026		13

Sub-advisers and portfolio managers

BlackRock Financial Management, Inc. (“BlackRock”)

Causeway Capital Management LLC (“Causeway”)

Schroder Investment Management North America Inc. (“Schroders”)

Victory Capital Management, Inc. (“Victory Capital”)

Walter Scott & Partners Limited (“Walter Scott”)


PORTFOLIO MANAGERS	SUB-ADVISER OR ADVISER	FUND’S PORTFOLIO MANAGER SINCE

Jennifer Hsui, CFA^® Managing Director, Global Head of Index Equity	BlackRock		2024

Peter Sietsema, CFA^® Director and Senior Portfolio Manager	BlackRock		2024

Matt Waldron, CFA^® Managing Director and Portfolio Manager	BlackRock		2024

Steven White, Director and Portfolio Manager, Head of Active Risk ETF	BlackRock		2025

Alessandro Valentini, CFA^®, Portfolio Manager	Causeway		2021

Jonathan P. Eng, Portfolio Manager	Causeway		2014

Harry W. Hartford, President and Portfolio Manager	Causeway		2014

Sarah H. Ketterer, Chief Executive Officer and Portfolio Manager	Causeway		2014

Ellen Lee, Portfolio Manager	Causeway		2015

Conor S. Muldoon, CFA^®, Portfolio Manager	Causeway		2014

Steven Nguyen, Portfolio Manager	Causeway		2019

Brian Cho, Portfolio Manager	Causeway		2021

James Gautrey, CFA^®, Portfolio Manager	Schroders		2014

Simon Webber, CFA^®, Portfolio Manager	Schroders		2011

Daniel B. LeVan, CFA^®, Chief Investment Officer of Trivalent Investments, a Victory Capital investment franchise	Victory Capital		2017

John W. Evers, CFA^®, Senior Portfolio Manager	Victory Capital		2017

Jane Henderson, Managing Director	Walter Scott		2021

Roy Leckie, Executive Director – Investment & Client Service	Walter Scott		2021

Maxim Skorniakov, Investment Manager	Walter Scott		2022

Fraser Fox, Investment Manager	Walter Scott		2022

Purchase and sale of Fund shares

Purchases of shares of the Fund must be made through an investment advisory program with Morgan Stanley. You may purchase or sell shares of the Fund at net asset value on any day the New York Stock Exchange (“NYSE”) is open by contacting your Morgan Stanley Financial Advisor.

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.

Payments to financial intermediaries


14		MORGAN STANLEY \| 2026

Emerging Markets Equity Fund

Investment objective

Long-term capital appreciation.

Fund Fees and Expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA, or Portfolio Management investment advisory programs (as a percentage of average prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.90%

Distribution (12b-1) Fees		None

Other Expenses		0.21%

Total Annual Fund Operating Expenses		1.11%

Waiver*		(0.36)%

Net Annual Fund Operating Expenses*		0.75%

Examples

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 20% of the average value of its portfolio.

Principal investment strategies

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 equity securities of issuers organized, domiciled or with substantial operations in emerging markets countries, which are defined as countries included in an emerging markets index by a recognized index provider, such as the MSCI Emerging Markets Index (Net), or characterized as developing or emerging by any of the World Bank, the United Nations, the International Finance Corporation, or the European Bank for Reconstruction and Development. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging countries with even smaller national economies. To diversify its investments, the Fund invests primarily in securities of issuers located in at least three foreign countries. The Fund also may invest a portion of its assets in closed-end investment companies that invest in emerging markets. The Fund may attempt to hedge against unfavorable changes in currency exchange rates by engaging in forward currency transactions and trading currency futures contracts and options on these futures; however, a Sub-adviser (as defined below) may choose not to, or may be unable to, hedge the Fund’s currency exposure. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

The Fund employs a “multi-manager” strategy whereby portions of the Fund are allocated to professional money managers (each, a “Sub-adviser,” collectively, the “Sub‑advisers”) who are responsible for investing the assets of the Fund.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


MORGAN STANLEY \| 2026		15

both the short and long-term. Market risk may affect a single company, sector of the economy or the market as a whole.

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily due to factors affecting individual companies, particular industries or the equity market as a whole.

•

Emerging Markets and Frontier Markets Risk, emerging markets countries, which are generally defined as countries that may be represented in a market index such as the MSCI Emerging Markets Index (Net) or having per capita income in the low to middle ranges, as determined by the World Bank. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging countries with even smaller national economies. In addition to foreign investment and currency risks, emerging markets may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation. Emerging market securities may present market, credit, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign countries. The Fund also could experience a loss from settlement and custody practices in some emerging markets. These risks tend to be even more prevalent in frontier market countries. The economies of frontier market countries tend to be less correlated to global economic cycles than the economies of more developed countries and their markets have lower trading volumes and may exhibit greater price volatility and illiquidity. A small number of large investments in these markets may affect these markets more than more developed markets. Frontier market countries may also be more affected by government activities than more developed countries. For example, the governments of frontier market countries may exercise substantial influence within the private sector or subject investments to government approval, and governments of other countries may impose or negotiate trade barriers, exchange controls, adjustments to relative currency values and other measures that adversely affect a frontier market country. Governments of other countries may also impose sanctions or embargoes on frontier market countries. Although all of these risks are generally heightened with respect to frontier market countries, they also apply to emerging market countries.

•

Forwards, Futures and Options Risk, which means that the Fund’s use of forwards, futures and options to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Even a small investment in forwards, futures or options can have a large impact on the Fund’s Interest rate, securities market and currency exposure. Therefore, using forwards, futures or

options can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in forwards, futures or options if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. Investing in forwards, futures or options can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Closed-End Investment Company Risk, which means that since closed-end investment companies issue a fixed number of shares they typically trade on a stock exchange or over-the-counter at a premium or discount to their net asset value per share. The Fund will also bear its pro rata portion of any costs of a closed-end fund in which it invests.

•

Strategy Risk, the Fund invests a portion of its assets in stocks believed by a Sub-adviser to be undervalued, but that may not realize their perceived value for extended periods of time or may never realize their perceived value. The Fund also invests a portion of its assets in stocks believed by a Sub-adviser to have the potential for growth, but that may not realize such perceived growth potential for extended periods of time or may never realize such perceived growth potential. Such stocks may be more volatile than other stocks because they can be more sensitive to investor perceptions of the issuing company’s growth potential. The stocks in which the Fund invests may respond differently to market and other developments than other types of stocks.

•

Manager Risk, which is the risk that poor security selection by a Sub-adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Multi-Manager Risk, which is the risk that the investment styles of the Sub-advisers may not complement each other as expected by the Manager. The Fund may experience a higher portfolio turnover rate, which can increase the Fund’s transaction costs and result in more taxable short-term gains for shareholders.

•

LIBOR Transition Risk, refers to the fact that the elimination of the London Inter-Bank Offered Rate (“LIBOR”) rate may adversely affect the interest rates on, and value of, certain Fund investments that are tied to LIBOR. The U.K. Financial Conduct Authority ceased publishing all LIBOR settings on a representative basis after June 30, 2023. Some LIBOR rates continued to be published, but only on a temporary, synthetic, and non-representative basis. These temporary, synthetic LIBOR rates were discontinued in September 2024. Alternatives to LIBOR are established or in development in most major currencies and markets are slowly responding to these new rates. It is difficult to predict the full impact of the transition away from LIBOR on the Fund.


16		MORGAN STANLEY \| 2026

•

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s benchmark index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth‑investmentsolutions/cgcm.

Annual total returns (%) calendar years

Emerging Markets Equity Fund

Fund’s best and worst calendar quarters

Best: 19.72% in 4th quarter 2020

Worst: (26.64)% in 1st quarter 2020

Year-to-date: 27.31% (through 3rd quarter 2025)

Average Annual Total Returns

(for the periods ended December 31,2024)


INCEPTION DATE: 4/21/1994	1 YEAR		5 YEARS			10 YEARS

Fund (without advisory program fee)

Return Before Taxes		5.45%		(0.57	)%		2.68%

Return After Taxes on Distributions		4.98%		(1.07	)%		2.32%

Return After Taxes on Distributions and Sale of Fund Shares		3.63%		(0.33	)%		2.21%

MSCI Emerging Markets Index (Net) (reflects no deduction for fees, expenses or taxes)		7.50%		1.70	%		3.64%

The after-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns

depend on an individual investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases, the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period.

The Fund’s benchmark is the MSCI Emerging Markets Index (Net). The benchmark is composed of equity total returns of countries with low to middle per capita incomes, as determined by the World Bank. Unlike the Fund, the benchmark is unmanaged and does not include any fees or expenses. An investor cannot invest directly in an index.


MORGAN STANLEY \| 2026		17

Investment adviser

among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-advisers and portfolio managers

BlackRock Financial Management, Inc. (“BlackRock”)

Lazard Asset Management LLC (“Lazard”)

ClearBridge Investment Management Limited (“CIML”) (Previously known as “Martin Currie”)

Van Eck Associates Corporation (“VanEck”)


PORTFOLIO MANAGERS	SUB‑ADVISER OR ADVISER	FUND’S PORTFOLIO MANAGER SINCE

Jennifer Hsui, CFA^® Managing Director, Global Head of Index Equity	BlackRock		2024

Peter Sietsema, CFA^® Director and Senior Portfolio Manager	BlackRock		2024

Matt Waldron, CFA^® Managing Director and Portfolio Manager	BlackRock		2024

Steven White, Director and Portfolio Manager, Head of Active Risk ETF	BlackRock		2025

James M. Donald, CFA^®, Managing Director, Portfolio Manager/Analyst and Head of Emerging Markets	Lazard		2009

Rohit Chopra, Managing Director and Portfolio Manager Analyst	Lazard		2009

Monika Shrestha, Managing Director and Portfolio Manager Analyst	Lazard		2015

Ganesh Ramachandran, Managing Director and Portfolio Manager Analyst	Lazard		2020

Alastair Reynolds, ASIP, Managing Director, Portfolio Manager	CIML		2021

Andrew Mathewson, CFA, Managing Director, Portfolio Manager	CIML		2021

Colin Dishington, CFA, Managing Director, Portfolio Manager	CIML		2021

Divya Mathur, ASIP, Managing Director, Portfolio Manager	CIML		2021

Paul Desoisa, CFA, Managing Director, Portfolio Manager	CIML		2021

Paul Sloane, ASIP, Managing Director, Portfolio Manager	CIML		2021

Aimee Truesdale, CFA, Managing Director, Portfolio Manager	CIML		2022

Angus Shillington, Deputy Portfolio Manager	VanEck		2016

Ola El-Shawarby, Portfolio Manager	VanEck		2023

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.


18		MORGAN STANLEY \| 2026

Core Fixed Income Fund

Investment objective

Maximum total return, consistent with preservation of capital and prudent investment management.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.40%

Distribution (12b-1) Fees		None

Other Expenses		0.16%

Total Annual Fund Operating Expenses		0.56%

Waiver*		(0.09)%

Net Annual Fund Operating Expenses*		0.47%

Examples

These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that you invest $10,000 in the Fund for the time periods indicated. The examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The effect of the Fund’s contractual fee waiver is only reflected in the first year of the example. The figures are calculated based upon total annual Fund operating expenses and a maximum annual fee of 2.00% for the applicable Morgan Stanley‑sponsored investment advisory program through which you invest. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 136% of the average value of its portfolio.

Principal investment strategies

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. Fixed income instruments include securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises (note that securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury); corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper; mortgage-related and mortgage-backed (mortgage-related and mortgage-backed securities may be structured as collateralized mortgage obligations (agency and non-agency), stripped mortgage-backed securities (interest-only or principalonly), commercial mortgage-backed securities and mortgage pass-through securities) and other asset-backed securities; inflation-indexed bonds issued both by governments and corporations; structured notes, including hybrid or “indexed” securities and event-linked bonds; loan participations and assignments (including commitments to purchase loan assignments (“Unfunded Commitments”); delayed funding loans and revolving credit facilities; bank certificates of deposit, fixed time deposits and bankers’ acceptances; repurchase agreements on fixed income instruments and reverse repurchase agreements on fixed income instruments; debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises; obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and obligations of international agencies or supranational entities.

The Fund may also invest in derivatives based on fixed income instruments, including futures, forwards, options, swaps, and swaptions, and may use other investment techniques such as mortgage dollar rolls, buy-backs and securities lending to earn additional income. The Fund also may engage in short sales. The Fund may also invest in Exchange-Traded Funds (“ETFs”) to gain exposure to a particular portion of the market while allocating assets among Sub-advisers (as defined below), transitioning the Fund’s portfolio or awaiting an opportunity to purchase securities directly.


20		MORGAN STANLEY \| 2026

currencies and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The Fund may invest in currency spot and forward transactions for the purpose of active currency exposure. Foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) normally will be limited to 20% of the Fund’s total assets. The Fund may invest up to 15% in emerging market securities. The Fund may also invest up to 10% of its total assets in preferred stocks, convertible securities and other equity-related securities. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help fund performance.

Credit quality. The Fund invests primarily in investment grade debt securities, but may invest up to 25% of its total assets in non-investment grade securities (sometimes called “high yield securities” or “junk bonds”) rated CCC- or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by the Sub-advisers to be of comparable quality.

Duration. The Fund’s average portfolio duration, as calculated by the Sub-advisers, normally ranges within two years (plus or minus) of the duration of the benchmark index. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. Maturity means the date on which the principal amount of a debt security is due and payable. Individual investments may be of any maturity.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Market Risk, which is the risk that the Fund will be affected by broad changes in the fixed income markets. The prices of the Fund’s fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund’s fixed income securities will decrease in value if interest rates rise and vice versa. Declines in dealer market-making capacity as a result of structural or regulatory changes could decrease liquidity and/or increase volatility in the fixed income markets. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. In response to these events, the Fund’s value may fluctuate and/or the Fund may experience increased redemptions from shareholders, which may impact the Fund’s liquidity or force the Fund to sell securities into a declining or illiquid market. Environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and

cause market volatility in both the short- and long-term.

•

Interest Rate Risk, which is the risk that interest rates rise and fall over time. When interest rates are low, the Fund’s yield and total return also may be low. When interest rates rise, bond prices generally fall, which might cause the Fund’s share price to fall. When the Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the Fund’s shares.

•

Credit and Junk Bond Risk, which means the credit quality of an investment could cause the Fund to lose money. Non-investment grade securities (sometimes called “high yield securities” or “junk bonds”) involve greater risks of default or downgrade, are more volatile and may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity, which could substantially adversely affect the market value of the securities.

•

U.S. Government Securities Risk, which means that although U.S. Government securities are considered to be among the safest investments, they are still subject to the credit risk of the U.S. Government and are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. Government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency’s own resources. No assurance can be given that the U.S. Government will provide financial support to its agencies and instrumentalities if it is not obligated by law to do so.

•

Convertible and Preferred Securities Risk, convertible and preferred securities have many of the same characteristics as stocks, including many of the same risks. In addition, convertible securities may be more sensitive to changes in interest rates than stocks. Convertible securities may also have credit ratings below investment grade, meaning that they carry a higher risk of failure by the issuer to pay principal and/or interest when due.

•

Mortgage-Backed Securities Risk, exists when the Fund invests in mortgage-backed securities, which represent an interest in a pool of mortgages. Mortgage-backed securities are subject to prepayment and extension risk as well as the risk that underlying borrowers will be unable to meet their obligations.

•

Asset-Backed Securities Risk, exists when the Fund invests in asset-backed securities which are structured like mortgage-backed securities, but instead of mortgage loans or interests in mortgage loans, the underlying assets may include such items as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property, and receivables from credit card agreements. Asset-backed securities are subject to many of the same risks as mortgage-backed securities including


MORGAN STANLEY \| 2026		21

prepayment and extension risk. The ability of an issuer of asset-backed securities to enforce its security interest in the underlying assets may be limited.

•

Portfolio Turnover Risk, which is the risk that due to its investment strategy, the Fund may buy and sell securities frequently. This may result in higher transaction costs and additional capital gains tax liabilities.

•

Derivatives Risk, which means that the Fund’s use of futures, forwards, options, swaps and swaptions based on fixed income instruments to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Even a small investment in futures, forwards, options, swaps and swaptions can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using futures, forwards, options, swaps and swaptions can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in futures, forwards, options, swaps and swaptions if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain futures, forwards, options, swaps and swaptions presents the same types of credit risks as issuers of fixed income securities. Investing in futures, forwards, options, swaps and swaptions can also make the Fund’s assets less liquid and harder to value, especially in declining markets.

•

Leverage Risk, which means the Fund’s use of leverage may exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities and cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to maintain asset coverage.

•

Currency Risk, which refers to the risk that as a result of the Fund’s active positions in currencies and investments in securities denominated in, and/or receiving revenues in, foreign currencies, those currencies will decline in value relative to the U.S. dollar or, in the case of hedged positions, the U.S. dollar will decline in value relative to the currency hedged.

•

Short Sale Risk, selling short may produce higher than normal portfolio turnover, result in increased transaction costs and magnify the potential for both gain and loss to the Fund. In addition, because the Fund’s loss on a short sale arises from increases in the value of the security sold short, such loss is theoretically unlimited. By contrast, the Fund’s loss on a long position arises from decreases in the value of the security and is limited by the fact that a security’s value cannot drop below zero.

•

Delayed Funding Loans and Revolving Credit Facilities Risk, the Fund’s investments in delayed funding loans and revolving credit facilities may have the effect of requiring the Fund to increase its investment in a company at a time when it might not otherwise decide to do so. Delayed funding loans and revolving credit facilities are subject to credit, interest rate and liquidity risk and the risks of being a lender.

•

Event-Linked Exposure Risk, event-linked exposure results in gains or losses that typically are contingent, or formulaically related to defined trigger events such as hurricanes, earthquakes, weather-related phenomena, or statistics relating to such events. If a trigger event occurs, a Fund may lose a portion of or the entire principal investment in the case of a bond or a portion of or the entire notional amount in the case of a swap. Event-linked exposure instruments often provide for an extension of maturity to process and audit loss claims where a trigger event has, or possibly has, occurred, such extension of maturity may increase volatility. Event-linked exposure may also expose a Fund to liquidity risk and certain unanticipated risks including credit risk, counterparty risk, adverse regulatory or jurisdictional interpretations, and adverse tax consequences.

•

Repurchase Agreements and Reverse Repurchase Agreements Risk, is the risk that in the event of the insolvency of the counterparty to a repurchase agreement or reverse repurchase agreement, recovery of the repurchase price owed to the Fund or, in the case of a reverse repurchase agreement, the securities sold by the Fund, may be delayed. Because reverse repurchase agreements may be considered to be the practical equivalent of borrowing funds, they constitute a form of leverage. If the Fund reinvests the proceeds of a reverse repurchase agreement at a rate lower than the cost of the agreement, entering into the agreement will lower the Fund’s yield.

•


22		MORGAN STANLEY \| 2026

•

Manager Risk, which is the risk that poor security selection by a Sub-adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Exchange-Traded Funds (ETFs) Risk, which is the risk of owning shares of an ETF and generally reflects the risks of owning the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio securities. When the Fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF’s expenses.

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s benchmark index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth-investmentsolutions/cgcm.

Annual total returns (%) calendar years

Core Fixed Income Fund

Fund’s best and worst calendar quarters

Best: 7.43% in 4th quarter 2023

Worst: (6.60)% in 1st quarter 2022

Year-to-date: 6.18% (through 3rd quarter 2025)

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 11/18/1991	1 YEAR			5 YEARS			10 YEARS
Fund (without advisory program fee)

Return Before Taxes		0.61	%		(0.60	)%		1.32	%

Return After Taxes on Distributions		(1.17	)%		(2.05	)%		(0.06	)%

Return After Taxes on Distributions and Sale of Fund Shares		0.35	%		(0.95	)%		0.47	%

Bloomberg U.S. Aggregate Bond^TM Index (reflects no deduction for fees, expenses or taxes)		1.25	%		(0.33	)%		1.35	%

The Fund’s benchmark is the Bloomberg U.S. Aggregate Bond^TM Index. The benchmark is composed of debt securities of the U.S. government and its agencies and publicly issued, fixed rate, non-convertible, investment-grade domestic corporate debt with at least one year remaining to maturity.


MORGAN STANLEY \| 2026		23

Unlike the Fund, the benchmark is unmanaged and does not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-advisers and portfolio managers

Allspring Global Investments, LLC (“Allspring (US)”)

Allspring Global Investments (UK) Limited (“Allspring (UK)”)

BlackRock Fund Advisors, Inc. (“BFA”)

J.P. Morgan Investment Management Inc. (“JPMIM”)


PORTFOLIO MANAGERS	SUB-ADVISER OR ADVISER	FUND’S PORTFOLIO MANAGER SINCE

Janet Rilling, CFA^®, Senior Portfolio Manager, Team Leader	Allspring (US)		2024

Noah Wise, CFA^®, Senior Portfolio Manager	Allspring (US)		2024

Christopher Kauffman, CFA^®, Senior Portfolio Manager	Allspring (US)		2024

Michal Stanczyk, Portfolio Manager	Allspring (US)		2024

Michael J, Schueller, CFA^®, Senior Portfolio Manager	Allspring (US)		2024

Sarah Harrison, Senior Portfolio Manager	Allspring (UK)		2025

James Mauro, CFA^®, Managing Director	BlackRock		2024

Jonathan Graves, Managing Director	BlackRock		2025

Marcus Tom, Director	BlackRock		2025

Kay Herr, CFA^®, Managing Director, GFICC U.S. Chief Investment Officer, Portfolio Manager	JPMIM		2025

Andrew Norelli, Managing Director, Portfolio Manager	JPMIM		2025

Priya Misra, Managing Director, Portfolio Manager	JPMIM		2025

Richard Figuly, Managing Director, Portfolio Manager	JPMIM		2025

Lisa Coleman, CFA^®, Managing Director, Portfolio Manager	JPMIM		2025

Thomas Hauser, CFA^®, Managing Director, Portfolio Manager	JPMIM		2025

Vikas Pathani, Managing Director, Portfolio Manager	JPMIM		2025

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.


24		MORGAN STANLEY \| 2026

High Yield Fund

Investment objective

A high level of current income primarily through investment in below-investment grade debt securities.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.70%

Distribution (12b-1) Fees		None

Other Expenses		0.32%

Total Annual Fund Operating Expenses		1.02%

Waiver*		(0.20)%

Net Annual Fund Operating Expenses*		0.82%

Examples

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 76% of the average value of its portfolio.

Principal investment strategies

The Fund will invest, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in U.S. dollar-denominated high yield fixed income securities of corporate issuers rated below investment grade by two or more nationally recognized statistical rating organizations (commonly called “junk bonds”), or, if unrated, of equivalent quality as determined by the Sub-advisers. These securities include all types of debt obligations, such as corporate bonds and notes, collateralized mortgage obligations and variable and floating rate securities. The Fund may invest up to 20% of its assets in securities not denominated in U.S. dollars, including securities of issuers located in emerging market foreign countries. The Fund also may invest up to 20% of its assets in equity and equity-related securities, including common stock, convertible securities, preferred stock, warrants and rights. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

Credit quality. The Fund invests primarily in high yield securities or junk bonds.

Duration. The Fund’s average portfolio duration, as calculated by the Sub-adviser (as defined below), ranges from two to six years. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. Maturity means the date on which the principal amount of a debt security is due and payable. Individual securities may be of any maturity.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


26		MORGAN STANLEY \| 2026

Generally, the Fund’s fixed income securities will decrease in value if interest rates rise and vice versa. Declines in dealer market-making capacity as a result of structural or regulatory changes could decrease liquidity and/or increase volatility in the fixed income markets. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. In response to these events, the Fund’s value may fluctuate and/or the Fund may experience increased redemptions from shareholders, which may impact the Fund’s liquidity or force the Fund to sell securities into a declining or illiquid market. Environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term.

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily due to factors affecting individual companies, particular industries or the equity market as a whole.

•

Credit and Junk Bond Risk, which means the credit quality of an investment could cause the Fund to lose money. Non‑investment grade securities (sometimes called “high yield securities” or “junk bonds”) involve greater risks of default or downgrade, are more volatile and may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity, which could substantially adversely affect the market value of the securities.

•

Foreign Investment Risk, which means risks unique to investing in foreign securities, including less information about foreign issuers, less liquid securities markets, political instability and unfavorable changes in currency exchange rates.

•


MORGAN STANLEY \| 2026		27

•

Manager Risk, which is the risk that poor security selection by a Sub-adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Leverage Risk means that the Fund’s use of derivatives may result in the Fund’s total investment exposure substantially exceeding the value of its portfolio securities and that the Fund’s investment returns depending substantially on the performance of securities that the Fund may not directly own. The use of leverage can amplify the effects of market volatility on the Fund’s share price and may also cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations. The Fund’s use of leverage may result in a heightened risk of investment loss.

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s broad-based index and an additional index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth-investmentsolutions/cgcm.

Annual total returns (%) calendar years

High Yield Fund

Fund’s best and worst calendar quarters

Best: 6.95% in 1st quarter 2019

Worst: (12.56)% in 1st quarter 2020

Year-to-date: 6.49% (through 3rd quarter 2025)


28		MORGAN STANLEY \| 2026

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 7/13/1998	1 YEAR		5 YEARS		10 YEARS

Fund (without advisory program fee)

Return Before Taxes		7.42%		2.56%		3.58%

Return After Taxes on Distributions		4.20%		0.12%		1.03%

Return After Taxes on Distributions and Sale of Fund Shares		4.34%		1.02%		1.60%

Bloomberg U.S. Universal Bond Index (reflects no deduction for fees, expenses or taxes)		2.04%		0.06%		1.73%

Bloomberg U.S. Corporate High Yield Bond Index (reflects no deduction for fees, expenses or taxes)		8.19%		4.21%		5.17%

The Fund’s broad-based securities market index is the Bloomberg U.S. Universal Bond Index, which measures the performance of U.S. dollar-denominated taxable bonds that are rated either investment grade or high yield. The index includes U.S. Treasury bonds, investment-grade and high yield U.S. corporate bonds, mortgage-backed securities, and Eurodollar

bonds. The Fund also compares its performance to the Bloomberg U.S. Corporate High Yield Bond Index, a broad‑based market measure of high yield bonds, commonly known as “junk bonds.” The benchmark is designed to mirror the investible universe of the dollar-denominated high yield debt market. Unlike the Fund, the benchmarks are unmanaged and do not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund. The Sub-advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-advisers and portfolio managers

PineBridge Investments LLC (“PineBridge”)


PORTFOLIO MANAGERS	SUB-ADVISER OR ADVISER		FUND’S PORTFOLIO MANAGER SINCE

John Yovanovic, CFA^®, Managing Director and Portfolio Manager		PineBridge		2021

Jeremy Burton, CFA^®, Managing Director and Portfolio Manager		PineBridge		2021

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.


MORGAN STANLEY \| 2026		29

International Fixed Income Fund

Investment objective

Maximize current income, consistent with the protection of principal.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.50%

Distribution (12b-1) Fees		None

Other Expenses⁽¹⁾		0.73%

Total Annual Fund Operating Expenses		1.23%

Waiver*		(0.05)%

Net Annual Fund Operating Expenses*⁽¹⁾		1.18%

⁽¹⁾ Includes Interest expense which represents 0.01%.

Examples

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 280% of the average value of its portfolio.

Principal investment strategies

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. The Fund invests primarily in fixed income instruments of issuers located outside the U.S. Up to 15% of the Fund’s total assets may be invested in fixed income instruments of issuers located in emerging markets countries. The fixed income instruments in which the Fund may invest include securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises (Note that securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury); corporate debt securities of U.S. and non-U.S. issuers, including preferred and convertible securities and corporate commercial paper; mortgage-backed and other asset-backed securities; inflation-indexed bonds issued both by governments and corporations; structured notes, including hybrid or “indexed” securities and event-linked bonds; loan participations and assignments; delayed funding loans and revolving credit facilities; bank loans; bank certificates of deposit, fixed time deposits and bankers’ acceptances; repurchase agreements on fixed income instruments and reverse repurchase agreements on fixed income instruments; debt securities issued by foreign sovereigns, states or local governments and their agencies, authorities and other government-sponsored enterprises; obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and obligations of international agencies or supranational entities.

The Fund also may invest in derivatives based on fixed income instruments including futures, forwards, options, swaps, and swaptions and may use other investment techniques such as mortgage dollar rolls, buy-backs and securities lending to earn additional income. The Fund also may engage in short sales and invest in privately placed securities.

Investments may be structured to provide all types of interest rate payments, including fixed, variable, floating, inverse, zero or interest-only rates of interest. The Fund may invest in currency spot and forward transactions for the purpose of active currency exposure. Foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) normally will be limited to 30% of the Fund’s total assets. The Fund may also invest up to 10% of its total assets in preferred stocks, convertible securities and other equity-related securities. The


MORGAN STANLEY \| 2026		31

Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

Credit Quality. The Fund invests primarily in investment grade debt securities, but may invest up to 15% of its total assets in non-investment grade securities (sometimes called “high yield

securities” or “junk bonds”) rated CCC- or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by the Sub-adviser (as defined below) to be of comparable quality.

Duration. The Fund’s average portfolio duration, as calculated by the Sub-adviser, normally ranges within two years (plus or minus) of the duration of the benchmark index. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. Maturity means the date on which the principal amount of a debt security is due and payable. The Fund may invest in individual securities of any maturity.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


32		MORGAN STANLEY \| 2026

forwards, options, swaps and swaptions can also make the Fund’s assets less liquid and harder to value, especially in declining markets.

•

Emerging Markets Risk, which refers to the fact that in addition to foreign investment and currency risks, emerging markets may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation. Emerging market securities may present market, credit, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign countries. The Fund also could experience a loss from settlement and custody practices in some emerging markets.

•

Manager Risk, which is the risk that poor security selection by the Sub-adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily due to factors affecting individual companies, particular industries or the equity market as a whole.

•

Foreign Sovereign Debt securities risk includes that (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due, due to factors such as debt service burden, political constraints, cash flow problems and other national economic factors; (ii) governments may default on their debt securities, which may require the Fund, as a holder of such securities, to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there is no bankruptcy proceeding by which defaulted sovereign debt may be collected in whole or in part.


MORGAN STANLEY \| 2026		33

Performance

These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth‑investmentsolutions/cgcm.

Annual total returns (%) calendar years

International Fixed Income Fund

Fund’s best and worst calendar quarters

Best: 6.46% in 4th quarter 2023

Worst: (5.91)% in 2nd quarter 2022

Year-to-date: 2.07% (through 3rd quarter 2025)

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 11/18/1991	1 YEAR			5 YEARS			10 YEARS

Fund (without advisory program fee)

Return Before Taxes		3.93%			0.10%			1.91%

Return After Taxes on Distributions		2.94%			(1.08	)%		0.58%

Return After Taxes on Distributions and Sale of Fund Shares		2.20%			(0.47	)%		0.82%

FTSE Non-U.S. Dollar World Government Bond Index (USD)-Hedged (reflects no deduction for fees, expenses or taxes)		3.61%			(0.12	)%		1.93%

FTSE Non-U.S. Dollar World Government Bond Index (USD)-Unhedged (reflects no deduction for fees, expenses or taxes)		(5.32	)%		(4.81	)%		(1.53	)%

The Fund’s benchmark is the FTSE Non-U.S. Dollar World Government Bond Index (USD)-Hedged. The benchmark is a market capitalization-weighted index consisting of government bond markets in developed countries, excluding the U.S., as the term “developed countries” is defined by the benchmark. Unlike the Fund, the benchmark is unmanaged and does not include any fees or expenses. An investor cannot invest directly in an index. Unlike the FTSE Non-U.S. Dollar World Government Bond Index (USD)-Hedged, the Fund may invest in U.S. securities.


34		MORGAN STANLEY \| 2026

Investment adviser

Sub-adviser and portfolio manager

Pacific Investment Management Company LLC (“PIMCO”)

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.

Payments to financial intermediaries


MORGAN STANLEY \| 2026		35

Municipal Bond Fund

Investment objective

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.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*			0.40%

Distribution (12b-1) Fees			None

Other Expenses			0.30%

Total Annual Fund Operating Expenses			0.70%

Waiver*^			0.00%

Net Annual Fund Operating Expenses*			0.70%

^ No portion of the management fees were waived during the most recent fiscal year.

Examples

These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that you invest $10,000 in the Fund for the time periods indicated. The examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The figures are calculated based upon total annual Fund operating expenses and a maximum annual fee of 2.00% for the applicable Morgan Stanley-sponsored investment advisory program through which you invest. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 68% of the average value of its portfolio.

Principal investment strategies

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). Tax-exempt means that the bonds pay interest that is excluded from gross income for regular federal income tax purposes but such bonds may pay income that is subject to the alternative minimum tax.

Credit quality. The Fund limits its investments to 20% in municipal obligations that are rated below investment grade by a nationally recognized statistical rating organization, or, if unrated, of equivalent quality as determined by the Sub‑adviser (as defined below).

Duration. The Fund’s average portfolio duration, as calculated by the Sub-adviser, is typically maintained at +/- 3 years of the average benchmark duration, which is the average duration of all the constituent bonds in the Bloomberg U.S. Municipal Bond Index. The Sub-adviser seeks to target the average duration of the benchmark which varies over time and may be impacted by market conditions. Duration is an approximate measure of the sensitivity of the market value of the portfolio holdings to changes in interest rates.

The Fund may engage in transactions in certain derivatives, such as financial futures contracts and options thereon, indexed and inverse floating rate obligations and swap agreements, including credit default swap agreements. The Fund may use derivative instruments to hedge its investments or to seek to enhance returns.

The Fund may leverage its assets through the use of proceeds received through tender option bond transactions. In a tender option bond transaction, the Fund transfers municipal bonds or other municipal securities into a special purpose entity. A TOB Trust typically issues two classes of beneficial interests: short‑term floating rate interests (“TOB Floaters”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are generally issued to the Fund. The Fund may invest in TOB Residuals and may also invest in TOB Floaters. The Fund will look through to the underlying municipal bond held by a TOB Trust for purposes of the Fund’s 80% policy.


36		MORGAN STANLEY \| 2026

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Market Risk, which is the risk that municipal bond prices decline overall. Markets are volatile and can decline significantly in response to real or perceived adverse issuer, political, regulatory, market or economic developments in the U.S. and in other countries. Similarly, environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term. Market risk may affect a single company, sector of the economy or the market as a whole. Declines in dealer market-making capacity as a result of structural or regulatory changes could decrease liquidity and/or increase volatility in the fixed income markets.

•

Municipal Securities Risk, which includes the risk that new federal or state legislation or Internal Revenue Service determinations may adversely affect the tax-exempt status of securities held by the Fund or the financial ability of the municipalities to repay these obligations. Municipal securities, like other fixed income securities, rise and fall in value in response to economic and market factors, primarily changes in interest rates, and actual or perceived credit quality. Rising interest rates will generally cause municipal securities to decline in value. Longer-term securities usually respond more sharply to interest rate changes than do shorter-term securities. A municipal security will also lose value if, due to rating downgrades or other factors, there are concerns about the issuer’s current or future ability to make principal or interest payments. State and local governments rely on taxes and, to some extent, revenues from private projects financed by municipal securities, to pay interest and principal on municipal debt. Poor statewide or local

economic results or changing political sentiments may reduce tax revenues and increase the expenses of municipal issuers, making it more difficult for them to meet their obligations. Actual or perceived erosion of the creditworthiness of municipal issuers may reduce the value of the Fund’s holdings. As a result, the Fund will be more susceptible to factors that adversely affect issuers of municipal obligations than a mutual fund that does not have as great a concentration in municipal obligations. Also, there may be economic or political changes that impact the ability of issuers of municipal securities to repay principal and to make interest payments on securities owned by the Fund. Any changes in the financial condition of municipal issuers may also adversely affect the value of the Fund’s securities. Due to local economic and financial conditions, certain municipal issuers will be more susceptible to default on their obligations than others. Each of these risks may be heightened with respect to investments in U.S. instrumentalities, such as Guam, the Virgin Islands and Puerto Rico.

•

Taxation Risk, which means the possibility that some of the Fund’s income distributions, and distributions of the Fund’s gains, may be subject to federal taxation. The Fund will rely on the opinions of issuers’ bond counsel on the tax-exempt status of interest on municipal bond obligations. Neither the Fund nor its Sub-adviser will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its shareholders to substantial tax liabilities. In addition, the Fund may realize taxable gains on the sale of its securities or other transactions, and some of the Fund’s income distributions may be subject to the federal alternative minimum tax. This may result in a lower tax-adjusted return. Additionally, distributions of the Fund’s income and gains generally will be subject to state taxation. Municipal bond funds are generally not appropriate investments for those investing through a tax-deferred account, such as an individual retirement account or employer-sponsored retirement plan, because the funds’ tax advantages are not applicable if investing through such an account.

•


MORGAN STANLEY \| 2026		37

•

Manager Risk, which is the risk that poor security selection by the Sub-adviser will cause the Fund to underperform relevant benchmarks or other investments with similar strategies. This risk is common for all actively managed funds.

•

Tender Option Bonds and Related Securities Risk, which means the Fund’s participation in tender option bond transactions may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest in TOB Trusts on either a non-recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB Residuals.

•

Derivatives Risk, which means that the Fund’s use of futures, options and swaps based on fixed income instruments to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Even a small investment in futures, options and swaps can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore,

using futures, options and swaps can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in futures, options and swaps if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain futures, options and swaps presents the same types of credit risks as issuers of fixed income securities. Investing in futures, options and swaps can also make the Fund’s assets less liquid and harder to value, especially in declining markets.

•

Floating Rate Obligations Risk, which is the risk that unexpected changes in the interest rates on floating rate obligations could result in losses to the Fund. The price of inverse floating rate obligations (inverse floaters) is expected to decline when interest rates rise, and generally will be more volatile and decline further than the price of a bond with a similar maturity.

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s benchmark index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth‑investmentsolutions/cgcm.

Annual total returns (%) calendar years

Municipal Bond Fund

Fund’s best and worst calendar quarters

Best: 7.28% in 4th quarter 2023

Worst: (5.68)% in 1st quarter 2022

Year-to-date: 1.99% (through 3rd quarter 2025)


38		MORGAN STANLEY \| 2026

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 11/18/1991	1 YEAR		5 YEARS		10 YEARS

Fund (without advisory program fee)

Return Before Taxes		1.46%		0.51%		1.70%

Return After Taxes on Distributions		1.34%		0.39%		1.51%

Return After Taxes on Distributions and Sale of Fund Shares		2.01%		0.91%		1.84%

Bloomberg U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes)		1.05%		0.99%		2.25%

The Fund’s primary benchmark is the Bloomberg U.S. Municipal Bond Index. The benchmark is a composite measure of the total return performance of the municipal bond market. Unlike the Fund, the benchmark is unmanaged and does not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund. The Sub-advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-adviser and portfolio managers

BlackRock Financial Management, Inc. (“BlackRock”)

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally expected to be exempt from regular federal income tax.

Payments to financial intermediaries


MORGAN STANLEY \| 2026		39

Inflation-Linked Fixed Income Fund

Investment objective

Total return that exceeds the rate of inflation over an economic cycle.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.50%

Distribution (12b-1) Fees		None

Other Expenses⁽¹⁾		1.82%

Total Annual Fund Operating Expenses		2.32%

Waiver*		(0.05)%

Net Annual Fund Operating Expenses*⁽¹⁾		2.27%

⁽¹⁾ Includes interest expense which represents 1.51%.

Examples

These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that you invest $10,000 in the Fund for the time periods indicated. The examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The effect of the Fund’s contractual fee waiver is only reflected in the first year of the example. The figures are calculated based upon total annual Fund operating expenses and a maximum annual fee of 2.00% for the applicable Morgan Stanley‑sponsored investment advisory program through which you invest. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 112% of the average value of its portfolio.

Principal investment strategies

Under normal market conditions, the Fund will invest at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in fixed income securities. The Fund seeks to allocate assets among investments to achieve the highest level of real return (total return less the rate of inflation). The Fund will shift its investments among the following general asset classes: inflation-indexed securities issued by governments, corporations, and municipal issuers; investment grade fixed income securities and high-yield fixed income securities (i.e., junk bonds) issued by governments, corporations, and municipal issuers; and short-term non-dollar denominated debt securities. The Fund may also, to a lesser extent, invest in equity securities with high correlation to broad measures of inflation.

Inflation-indexed securities are fixed income securities that are structured to provide protection against inflation. The value of the security’s principal or the interest income paid on the security will be adjusted to track changes in an official inflation measure. The U.S. Treasury uses the Consumer Price Index for Urban Consumers as their inflation measure. Inflation-indexed securities issued by a foreign government are generally adjusted to reflect a comparable inflation index, calculated by that government.

The Fund invests primarily in investment grade debt securities; however, the Fund may invest up to 20% of its total assets in below investment grade debt securities (i.e., junk bonds), as rated by Moody’s, S&P or Fitch or, if unrated, determined by the Sub-adviser (as defined below) to be of comparable credit quality to such a rating. The Fund may also invest up to 30% of its total assets in foreign currency denominated securities, including emerging market securities. For purposes of pursuing its investment goal, the Fund may enter into currency-related transactions involving certain derivative instruments, including currency and cross currency forward contracts. The use of derivative currency transactions may allow the Fund to reduce a specific risk exposure of a portfolio security or its denominated currency or to obtain net long exposure to selected currencies. Under normal market conditions, the Fund will seek to limit its foreign currency exposure to 20% of its total assets.

The Fund may invest, without limitation, in derivative instruments, such as options, futures contracts, or swap agreements, or in mortgage- or asset- backed securities, subject to applicable law and any other restrictions described


40		MORGAN STANLEY \| 2026

in this Prospectus or Statement of Additional Information. The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis and may engage in short sales. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The Fund may also invest up to 10% of its total assets in preferred stocks.

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Interest Rate Risk, the risk that fixed income securities will decline in value because of an increase in interest rates; a fund with longer average portfolio duration will be more sensitive to changes in interest rates than a fund with shorter average portfolio duration.

•

Call Risk, the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Fund has invested in, the Fund may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.

•

Credit Risk, the risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.

•

High Yield Risk, the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments and may be more volatile than higher-rated securities of similar maturity.

•

Market Risk, the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries. Environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term.

•

Issuer Risk, the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.

•

Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

•

Derivatives Risk, the risk of investing in derivative instruments (such as forwards, futures, options, swaps and structured securities), include liquidity, interest rate, market, and credit risks, each of which is described herein. Derivative instruments also may be difficult to accurately price due to their complexity, particularly derivative instruments that are traded off an exchange (also known as “over the counter”). Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Fund could lose more than the initial amount invested. The Fund’s use of derivatives may result in losses to the Fund, a reduction in the Fund’s returns and/or increased volatility. Over-the-counter derivatives are also subject to the risk that the other party in the transaction will not fulfill its contractual obligations. For derivatives traded on exchanges, the primary credit risk is the creditworthiness of the Fund’s clearing broker or the exchange itself.

•

Equity Risk, the risk that the value of equity securities, such as common stocks and preferred stocks, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

•

Mortgage-Related and Other Asset-Backed Securities risk, the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk, and credit risk.

•


MORGAN STANLEY \| 2026		41

•

Foreign (Non-U.S.) Investment Risk, the risk that investing in foreign securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

•

Emerging Markets Risk, the risk of investing in emerging market securities, primarily increased foreign investment risk.

•

Sovereign Debt Risk, the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from the issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.

•

Currency Risk, the risk that foreign currencies will decline in value relative to the U.S. dollar and affect the Fund’s investments in foreign currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign currencies.

•

Leveraging Risk, the risk that certain transactions of the Fund, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.

•

Short Sale Risk, the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to the Fund.

•

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s broad-based index and an additional index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see www.morganstanley.com/wealth-investmentsolutions/cgcm.

Annual total returns (%) calendar years

Inflation-Linked Fixed Income Fund

Fund’s best and worst calendar quarters

Best: 6.18% 2nd quarter 2020

Worst: (6.42)% 2nd quarter 2022

Year-to-date: 7.51% (through 3rd quarter 2025)


42		MORGAN STANLEY \| 2026

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 3/8/2016	1 YEAR		5 YEAR			SINCE INCEPTION
Fund (without advisory program fee)

Return Before Taxes		1.86%		1.90	%		2.45%

Return After Taxes on Distributions		0.34%		(0.47	)%		0.57%

Return After Taxes on Distributions and Sale of Fund Shares		1.09%		0.71	%		1.16%

Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)		1.25%		(0.33	)%		1.23%

Bloomberg U.S. Treasury Inflation Protected Securities (TIPS) Index (reflects no deduction for fees, expenses or taxes)		1.84%		1.87	%		2.49%

The Fund’s broad-based securities market index is the Bloomberg U.S. Aggregate Bond Index, which is composed of debt securities of the U.S. government and its agencies and

publicly issued, fixed rate, non-convertible, investment-grade domestic corporate debt with at least one year remaining to maturity. The Fund also compares its performance to the Bloomberg U.S. Treasury Inflation Protected Securities (TIPS) Index. Unlike the Fund, the benchmarks are unmanaged and do not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund. The Sub-advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-adviser and portfolio managers

Pacific Investment Management Company LLC (“PIMCO”)

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.


MORGAN STANLEY \| 2026		43

Ultra-Short Term Fixed Income Fund

Investment objective

Total return, consistent with preservation of capital.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		0.50%

Distribution (12b-1) Fees		None

Other Expenses⁽¹⁾		0.18%

Total Annual Fund Operating Expenses		0.68%

Waiver*		(0.15)%

Net Annual Fund Operating Expenses*⁽¹⁾		0.53%

⁽¹⁾ Includes interest expense which represents 0.01%.

Examples

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transactions costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 123% of the average value of its portfolio.

Principal investment strategies

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 year.

Under normal market conditions, the Fund invests primarily in investment-grade securities and will seek to maintain an average portfolio duration of two years or less. The Fund seeks to outperform the FTSE 3-Month U.S. Treasury Bill Index over a full market cycle, while maintaining overall risk similar to the index. The Fund will invest in government and corporate debt securities, mortgage- and asset-backed securities, money market instruments, collateralized loan obligations (“CLOs”), and derivatives, including futures contracts, forward contracts (such as currency and cross-currency forwards), options and swaps (such as interest rate swaps and credit default swaps). The Fund may invest up to 20% of net assets in securities rated below investment grade. It may also 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. Under normal market conditions, the Fund will seek to limit its foreign currency exposure to 20% of its total assets. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help fund performance.

The Fund may invest up to 20% of its total assets in non-investment grade securities (sometimes called “high yield securities” or “junk bonds”) rated CCC- or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by the Sub-adviser (as defined below) to be of comparable credit quality.

The Fund’s average portfolio duration, as calculated by the Sub-adviser is normally less than two years. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. In addition, the dollar-weighted average portfolio maturity of the Fund, under normal circumstances, is expected not to exceed three years. Maturity means the date on which the principal amount of a debt security is due and payable. Individual investments may be of any maturity.


MORGAN STANLEY \| 2026		45

entering into a series of purchase and sales contracts or by using other investment techniques (such as buy-backs or dollar rolls).

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Interest Rate Risk, the risk that fixed income securities will decline in value because of an increase in interest rates; a fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.

•

Liquidity Risk, the risk that a particular investment may be difficult to purchase or sell and that the Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed

income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.

•

Mortgage-Related and Other Asset-Backed Securities Risk, the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk, and credit risk.

•


46		MORGAN STANLEY \| 2026

•

Money Market Securities Risk, means that an investment in the Fund is subject to the risk that the value of its investments in high-quality short-term obligations (“money market securities”) may be subject to changes in interest rates, changes in the rating of any money market security and in the ability of an issuer to make payments of interest and principal.

•

Collateralized Loan Obligations Risk, collateralized loan obligations (“CLOs”) are a type of asset-backed security that

is typically structured as a trust collateralized by a pool of loans. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the instrument in which the Fund invests. In addition to the normal risks associated with fixed income securities, CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the Fund may invest in CLOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Performance

The bar chart below shows how the Fund’s investment results have varied from year to year, and the following table shows how the Fund’s annual total returns for various periods compare to those of the Fund’s broad-based index and an additional index. This information provides some indication of the risks of investing in the Fund. The Fund is available only to investors participating in Morgan Stanley-sponsored investment advisory programs. These programs charge an annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not necessarily indicate how the Fund will perform in the future. For current performance information please see

www.morganstanley.com/wealth-investmentsolutions/cgcm.

Annual total returns (%) calendar years

Ultra-Short Term Fixed Income Fund

Fund’s best and worst calendar quarters

Best: 3.64% 2nd quarter 2020

Worst: (2.34)% 1st quarter 2020

Year-to-date: 3.71% (through 3rd quarter 2025)


MORGAN STANLEY \| 2026		47

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 3/8/2016	1 YEAR		5 YEAR			SINCE INCEPTION

Fund (without advisory program fee)

Return Before Taxes		6.03%		2.83	%		2.51%

Return After Taxes on Distributions		3.88%		1.59	%		1.35%

Return After Taxes on Distributions and Sale of Fund Shares		3.54%		1.75	%		1.41%

Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)		1.25%		(0.33	)%		1.23%

FTSE 3-Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses or taxes)		5.45%		2.54	%		2.03%

non‑convertible, investment-grade domestic corporate debt with at least one year remaining to maturity. The Fund also compares its performance to the FTSE 3-Month U.S. Treasury Bill Index. Unlike the Fund, the benchmarks are unmanaged and do not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund. Subject to Board review, the Manager selects and oversees professional money managers (each a “Sub-adviser,” collectively, the “Sub-advisers”) who are responsible for investing the assets of the Fund. The Sub-advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among one or more Sub-advisers, continuously monitors and evaluates Sub-adviser performance (including trade execution), performs other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub-advisers), and oversees Sub-adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub-advisers should be made in response to such changes in market conditions. Sub-advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

Sub-adviser and portfolio manager

Pacific Investment Management Company LLC (“PIMCO”)


PORTFOLIO MANAGER	SUB-ADVISER OR ADVISER		FUND’S PORTFOLIO MANAGER SINCE

Jerome M. Schneider, Managing Director and Portfolio Manager		PIMCO		Since Inception

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.


48		MORGAN STANLEY \| 2026

Alternative Strategies Fund

Investment objective

Long term growth of capital.

Fund fees and expenses

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

Annual Advisory Program Fees

(fees paid directly from your investment in the applicable Morgan Stanley-sponsored investment advisory program)



Maximum annual fees in the Consulting Group Advisor, Select UMA or Portfolio Management investment advisory programs (as a percentage of prior quarter-end net assets)*			2.00%

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment in the Fund)



Management Fees*		1.20%

Distribution (12b-1) Fees		None

Other Expenses		0.18%

Acquired Fund Fees and Expenses**		1.23%

Total Annual Fund Operating Expenses*		2.61%

Waiver*		(1.00)%

Net Annual Fund Operating Expenses*		1.61%

* CGAS (defined herein) has contractually agreed to waive fees and reimburse expenses in order to keep the Fund’s management fees from exceeding the total amount of sub-advisory fees paid by CGAS plus 0.20% based on average net assets. Because the Fund does not currently have sub-advisers, CGAS will contractually waive 1.00% of its management fees. In addition, CGAS and its affiliates have also separately agreed to waive fees and reimburse expenses in order to keep the Fund’s total annual operating expenses, (exclusive of interest from borrowing, brokerage commissions, taxes, acquired fund fees and expenses, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business), from exceeding 0.70%. These contractual arrangements shall remain in effect for at least one year from the date of this prospectus or until such time as the Board of Trustees acts to discontinue all or a portion of such waiver and/or reimbursement when they deem such action is appropriate.

**The Fund may invest a portion of its assets in other investment companies (the “Acquired Funds”). The Fund’s shareholders indirectly bear a pro rata portion of the expenses of the Acquired Funds in which the Fund invests. “Acquired Fund Fees and Expenses” in the table is an estimate of those expenses. The estimate is based upon the average allocation of the Fund’s investments in the Acquired Funds and upon the actual total operating expenses of the Acquired Funds (including any current waivers and expense limitations) for the fiscal year ended August 31, 2025. Actual Acquired Fund Fees and Expenses incurred by the Fund may vary with changes in the allocation of Fund assets among the Acquired Funds and with other events that directly affect the fees and expenses of the Acquired Funds. Since “Acquired Fund Fees and Expenses” are not directly borne by the Fund, they are not reflected in the Fund’s financial statements, with the result that the Information presented in the table will differ from that presented in the Financial Highlights.

Examples

These examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The examples assume that you invest $10,000 in the

Fund for the time periods indicated. The examples also assume that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The effect of the Fund’s contractual fee waivers are only reflected in the first year of the example. The figures are calculated based upon total annual Fund operating expenses and a maximum annual fee of 2.00% for the applicable Morgan Stanley-sponsored investment advisory program through which you invest. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Portfolio turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual Fund operating expenses or in the above examples, affect the Fund’s performance. During the fiscal year ended August 31, 2025, the Fund’s portfolio turnover rate was 29% of the average value of its portfolio.

Principal investment strategies

Under normal market conditions, the Fund seeks to generate long term growth across market cycles with reduced correlation to the equity and fixed income markets. The Fund seeks to achieve its investment objective by allocating its assets among shares of mutual funds, exchange-traded funds or closed-end funds managed by third-party professional money managers (“Underlying Funds”).

The Underlying Funds may apply a variety of alternative investment strategies, but will typically apply one or more of four main investment strategies, including: (i) investments in real asset strategies, (ii) equity-based tactical, value or event-driven strategies, (iii) absolute return strategies that seek to generate returns independent of market conditions, and (iv) equity hedged (i.e., long/short) strategies.

The Underlying Funds’ investment strategies may rely in part on derivative investments, such as futures, forwards, swaps, swaptions, and options, to implement their investment strategies, to generate positive returns, for hedging or risk management purposes, to limit volatility and to provide exposure to an instrument without directly purchasing it. The Underlying Funds’ investments may also include exposure to companies located both in the U.S. and in foreign countries, including companies located in emerging market countries. The Underlying Funds may invest in securities and other investments of all capitalization sizes, including securities and other investment that have exposure to small- and mid-capitalization issues. The Underlying Funds may also invest in investment grade fixed income securities of any maturity or duration.


50		MORGAN STANLEY \| 2026

The Fund may, in the future, allocate all or a portion of its assets directly to professional money managers (each, a “Sub-Adviser,” collectively, the “Sub-Advisers”), each of which would be responsible for investing its portion of the Fund’s assets. Currently, the Fund does not use any Sub-Advisers.

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.

Due to its investment strategy, the Fund may buy and sell securities and other instruments frequently.

Principal risks of investing in the Fund

Loss of money is a risk of investing in the Fund.

The following principal risks are applicable to the Fund:

•

Allocation Risk, which refers to the risk that the Adviser’s judgment about, and allocations among, strategies through investments in Underlying Funds may adversely affect the Fund’s performance.

•

Closed-end fund risk, which means that since closed-end funds issue a fixed number of shares they typically trade on a stock exchange or over-the-counter at a premium or discount to their net asset value per share. The Fund will also bear its pro rata portion of any costs of a closed-end fund in which it invests.

•

Investment company and exchange-traded funds (ETFs) risk, which is when the Fund invests in an investment company, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the investment company’s expenses. In addition, while the risks of owning shares of an investment company generally reflect the risks of owning the underlying investments of the investment company, the Fund may be subject to additional or different risks than if the Fund had invested directly in the underlying investments.

•

Manager risk, which is the risk that poor selection of Underlying Funds by the Adviser will cause the Fund to underperform.

•

Portfolio turnover risk, due to its investment strategy, the Fund may buy and sell securities frequently. This may result in higher transaction costs and additional capital gains tax liabilities.

The following principal risks are applicable to the Fund’s investment in Underlying Funds:

•

Absolute Return Investing Risk, which refers to the risk that an Underlying Fund’s investment returns may converge with the investment returns of equity or fixed income markets during a period of declining stock prices, thereby eliminating the diversification benefit that the Underlying Fund expects from the strategies. During these times, the strategies’ correlations could increase, which in turn could increase the Underlying Fund’s overall volatility.

•

Active Management Risk, due to the active management investment strategies used by the Underlying Funds, the

Underlying Funds could underperform their benchmark indexes and/or other funds with similar investment objectives and/or strategies.

•

Arbitrage Strategies Risk, which involves engaging in transactions that attempt to exploit price differences of identical, related or similar securities on different markets or in different forms. The Underlying Funds may realize losses or reduced rate of return if underlying relationships among securities in which they take investment positions change in an adverse manner or if a transaction is unexpectedly terminated or delayed. Trading to seek short-term capital appreciation can be expected to cause an Underlying Fund’s portfolio turnover rate to be substantially higher than that of the average equity-oriented investment company.

•

Alternative Strategies Risk, pursued by the Underlying Funds may be subject to risks including, but not limited to, derivatives risk, liquidity risk, credit risk, commodities risk and risks associated with the use of leverage.

•

Credit and Junk Bond Risk, which means the credit quality of an investment could cause an Underlying Fund to lose money. Non-investment grade securities (sometimes called “high yield securities” or “junk bonds”) involve greater risks of default or downgrade, are more volatile and may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity, which could substantially adversely affect the market value of the securities.

•

Currency Risk, which refers to the risk that as a result of an Underlying Fund’s active positions in currencies and investments in securities denominated in, and/or receiving revenues in, foreign currencies, those currencies will decline in value relative to the U.S. dollar or, in the case of hedged positions, the U.S. dollar will decline in value relative to the currency hedged.

•

Derivatives Risk, which means that an Underlying Fund’s use of futures, forwards, options, swaps and swaptions based on fixed income instruments to enhance returns or hedge against market declines subjects the Underlying Fund to potentially greater volatility and/or losses. Even a small investment in futures, forwards, options, swaps and swaptions can have a large impact on an Underlying Fund’s interest rate, securities market and currency exposure. Therefore, using futures, forwards, options, swaps and swaptions can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. An Underlying Fund may not fully benefit from or may lose money on its investment in futures, forwards, options, swaps and swaptions if changes in their value do not correspond accurately to changes in the value of the Underlying Fund’s holdings. The other party to certain futures, forwards, options, swaps and swaptions presents the same types of credit risks as issuers of fixed income securities. Investing in futures, forwards, options, swaps and swaptions can also make the Underlying Fund’s assets less liquid and harder to value, especially in declining markets.


MORGAN STANLEY \| 2026		51

•

Event-Linked Exposure Risk, event-linked exposure results in gains or losses that typically are contingent, or formulaically related to defined trigger events such as hurricanes, earthquakes, weather-related phenomena, or statistics relating to such events. If a trigger event occurs, an Underlying Fund may lose a portion of or the entire principal investment in the case of a bond or a portion of or the entire notional amount in the case of a swap. Event-linked exposure instruments often provide for an extension of maturity to process and audit loss claims where a trigger event has, or possibly has, occurred, such extension of maturity may increase volatility. Event-linked exposure may also expose an Underlying Fund to liquidity risk and certain unanticipated risks including credit risk, counterparty risk, adverse regulatory or jurisdictional interpretations, and adverse tax consequences.

•

Emerging Markets Risk, emerging markets countries may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation. Emerging market securities may present market, credit, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign countries. An Underlying Fund also could experience a loss from settlement and custody practices in some emerging markets.

•

Foreign Sovereign Debt Securities Risk, the risks that (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due, due to factors such as debt service burden, political constraints, cash flow problems and other national economic factors; (ii) governments may default on their debt securities, which may require holders of such securities to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there is no bankruptcy proceeding by which defaulted sovereign debt may be collected in whole or in part.

•

Interest Rate Risk, which is the risk that interest rates rise and fall over time, thereby affecting the value of certain investments of the Fund.

•

Investment Limitation Risk, which refers to the potential that the Fund may want to invest in an Underlying Fund that is not available in sufficient quantities for the Fund to participate fully due to capacity constraints of the strategy. The Fund may therefore have reduced exposure to a capacity constrained Underlying Fund, which could adversely affect the Fund’s return.

•

Leverage Risk, which means an Underlying Fund’s use of leverage may exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities and cause the Underlying Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to maintain asset coverage.

•

Liquidity Risk exists when securities are difficult or impossible for an Underlying Fund to sell at the time and the price that the Underlying Fund would like due to a limited market or to legal restrictions. These securities may also need to be fair valued.

•

Market Risk, which is the risk that an Underlying Fund will be affected by changes in the markets for the various securities in which the Underlying Fund invests. Environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term.

•

Short Sale Risk, selling short may produce higher than normal portfolio turnover, result in increased transaction costs and magnify the potential for both gain and loss to an Underlying Fund.

•

Small and Medium Capitalization Company Risk, which is the risk that small and medium capitalization companies in which the Underlying Funds invest may be more vulnerable to adverse business or economic events than larger, more established companies.

An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. For more

information on the risks of investing in the Fund please see the Fund details section of the Fund’s Prospectus.

Performance


52		MORGAN STANLEY \| 2026

annual fee (see Annual Advisory Program Fees above). The performance information in the bar chart and table below does not reflect this fee, which would reduce your return. The Fund’s past performance, before and after taxes, does not

necessarily indicate how the Fund will perform in the future. For current performance information please see

www.morganstanley.com/wealth-investmentsolutions/cgcm.

Annual total returns (%) calendar years

Alternative Strategies Fund

Fund’s best and worst calendar quarters

Best: 6.64% in 2nd quarter 2020

Worst: (9.43)% in 1st quarter 2020

Year-to-date: 4.07% (through 3rd quarter 2025)

Average Annual Total Returns

(for the periods ended December 31, 2024)


INCEPTION DATE: 2/15/2018	1 YEAR		5 YEARS		SINCE INCEPTION

Fund (without advisory program fee)

Return Before Taxes		6.59%		3.95%		3.39%

Return After Taxes on Distributions		5.55%		2.88%		2.40%

Return After Taxes on Distributions and Sale of Fund Shares		3.90%		3.01%		2.21%

Bloomberg U.S. Universal Bond Index (reflects no deduction for fees, expenses or taxes)		2.04%		0.06%		1.44%

HFRX Global Hedge Index (reflects no deduction for fees, expenses or taxes)		5.27%		2.81%		2.05%

The Fund also compares its performance to the HFRX Global Hedge Index, which is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies falling within four principal strategies: equity hedge, event driven, macro/CTA and relative value arbitrage. Unlike the Fund, the benchmarks are unmanaged and do not include any fees or expenses. An investor cannot invest directly in an index.

Investment adviser and portfolio managers

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for the Fund.


MORGAN STANLEY \| 2026		53

Purchase and sale of Fund shares

•

The minimum initial aggregate investment in the Morgan Stanley-sponsored investment advisory programs is $1,000.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

For more information about the Morgan Stanley-sponsored investment advisory programs, see the About the Funds section of this Prospectus.

Tax information

The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two.

Payments to financial intermediaries


54		MORGAN STANLEY \| 2026

Fund details

Investment objectives, strategies and risks

Morgan Stanley Pathway Large Cap Equity ETF

Investment objective

Capital appreciation.

Principal investment strategies

How the Sub‑advisers select the Fund’s investments

BlackRock Financial Management, Inc. (“BlackRock”) will employ a “passive” investment approach. This means that BlackRock will attempt to invest in a portfolio of assets whose performance is expected to match approximately the performance of the Russell 1000^® Index before deduction of Fund expenses. The Fund will buy or sell securities only when BlackRock believes it is necessary to do so in order to match the performance of the index. Accordingly, it is anticipated that the Fund’s portfolio turnover and trading costs will be lower than those of an “actively” managed fund. However, the Fund has operating and other expenses, while an index does not. Therefore, the Fund will tend to underperform its target index to some degree over time. At times, the portfolio composition of the Fund may be altered (or rebalanced) to reflect changes in the characteristics of the index that the Fund tracks. BlackRock may invest a portion of the account in Exchange Traded Funds (“ETFs”) to reflect a growth or value tilt as directed by the Manager.

ClearBridge Investments, LLC (“ClearBridge”) invests in large capitalization companies that it believes are dominant in their industries due to product, distribution or service strength. ClearBridge emphasizes individual security selection while diversifying the Fund’s investments across industries, which may help to reduce risk. ClearBridge attempts to identify established large capitalization companies with the highest growth potential, then analyze each company in detail, ranking its management, strategy and competitive market position. Finally, ClearBridge attempts to identify the best values available among the growth companies identified. ClearBridge may sell a security if it no longer meets the Fund’s investment criteria or for other reasons, including to meet redemptions or to redeploy assets to better investment opportunities.

ClearBridge defines large cap companies as those within the range of the Russell 1000^® Index and the strategy may include

investments in REITs and ADRs, as well as ordinary shares of non‑U.S. companies. ClearBridge may sometimes invest portions of the account in cash equivalents and/or ETFs.

Great Lakes Advisors, LLC (“Great Lakes”) In managing its portion of the Fund’s assets, Great Lakes believes that a bottom‑up focused portfolio targeting stocks with attractive valuations and improving fundamentals, coupled with a disciplined use of risk controls, has the potential to deliver consistent outperformance as well as protection in down markets with lower volatility than the benchmark. Great Lakes employs an integrated approach which balances quantitative analysis, fundamental research, and risk management guidelines to identify stocks within the broader market that align with this investment philosophy. Great Lakes will sell securities that no longer meet the investment criteria of its portfolio management team and will seek to replace them with stocks deemed to produce a portfolio with a better combination of risk and reward.

Principal Asset Management (“Principal”) In managing its portion of the Fund’s assets, Principal believes that a focus on high quality companies led by owner-operators with attractive valuations and strong business fundamentals, alongside a valuation discipline, has the potential to deliver consistent long-term outperformance. Principal employs fundamental analysis with a focus on risk-adjusted returns over full market cycles to identify stocks within the market that align with its investment philosophy.

Principal risks

Loss of money is a risk of investing in the Fund.

ETF Structure Risks. The Fund is structured as an ETF and is subject to the special risks, including:

Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruptions in the creation/redemption process. Active trading markets for the Fund’s shares may not be developed or maintained by market makers or Authorized Participants (as defined below). Authorized Participants are not obligated to make a market in the Fund’s shares or to submit purchase or redemption orders for Creation Units (as defined below). In times of market stress, market makers or Authorized Participants may step away from their respective roles, which could lead to variances between the market price of the Fund’s shares and its underlying NAV. Trading in shares on an exchange may be halted in certain circumstances. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund. Any of these factors could lead the Fund’s shares to trade at a premium or discount to NAV. Thus, you may pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than NAV when you sell those shares in the secondary market, particularly during times of market stress. The Adviser cannot predict whether shares will trade above (premium), below (discount) or at NAV or whether the


MORGAN STANLEY \| 2026		55

spread between bid and ask prices will widen. In addition, there can be no assurance that the requirements of the listing exchange necessary to maintain the listing of the Fund will continue to be met.

Authorized Participant Concentration Risk. Only broker-dealers (referred to “Authorized Participants” or “APs”) that have executed authorized participation agreements with respect to the Trust may engage in creation or redemption transactions directly with the Fund, and no AP is obligated to engage in creation and/or redemption transactions. To the extent that APs exit the business or are unable to proceed with orders, Fund shares may be more likely to trade at a premium or discount to NAV, have wider spreads between bid and ask prices or face trading halts or delisting.

•

Market Risk, which is the risk that stock prices decline overall. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. Markets are volatile and can decline significantly in response to real or perceived adverse issuer, political, regulatory, market or economic developments in the U.S. and in other countries. Similarly, environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term. Recent examples include pandemic risks related to a coronavirus (COVID‑19) and aggressive measures taken worldwide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. Market risk may affect a single company, sector of the economy or the market as a whole.

•

Equity Risk, which is the risk that prices of equity securities rise and fall daily. Price movements may occur due to factors affecting individual companies, such as the issuance of an unfavorable earnings report, or other events affecting particular industries or the equity market as a whole.

•

Investment Style Risk, which means large cap and/or growth stocks could fall out of favor with investors and trail the performance of other types of investments. Many of the risks of this Fund are associated with its emphasis on large cap and growth stocks. Both types of style tend to go in and out of favor. Additionally, the Fund generally will be more volatile

than Large Capitalization Value Equity Investments because of the Fund’s focus on growth stocks.

•

Foreign Investment Risk, which means risk unique to foreign securities, including less information about foreign issuers, less liquid securities markets, political instability and unfavorable changes in currency exchange rates.

•

Securities Lending Risk, which includes the potential insolvency of the borrower that could result in delays in recovering securities and capital losses. Additionally, losses could result from the re‑investment of collateral received on loaned securities in investments that default or do not perform well.

•

Manager Risk, which is the risk that poor security selection by a Sub‑adviser will cause the Fund to underperform relevant benchmarks or other investments with similar strategies. This risk is common for all actively managed funds.

•

Morgan Stanley Pathway Small‑Mid Cap Equity ETF

Investment objective

Capital appreciation.

Principal investment strategies

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 the equity securities of small‑mid capitalization (or “cap”) companies or in other investments with similar economic characteristics. The Fund defines small‑mid cap companies as companies with market caps not exceeding the highest month‑end market cap value of any stock in the Russell 2500^® or Russell Mid Cap Index for the previous 12 months, whichever is greater. The Fund may invest up to 10% of its assets in the securities of foreign issuers that are not traded on a U.S. exchange or the U.S. over‑the‑counter market. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.


56		MORGAN STANLEY \| 2026

How the Sub‑advisers select the Fund’s investments

AllianceBernstein L.P. (“AllianceBernstein”) seeks to purchase attractively valued stocks with compelling company and/or industry-level investment catalysts to outperform the market. AllianceBernstein employs a systematic and disciplined bottom‑up investment process characterized by a unique integration of fundamental and quantitative research. All of AllianceBernstein’s investment decisions are made based upon its analysts’ proprietary internal research and the judgment of the U.S. Small & Mid‑Cap Value Equities strategy’s portfolio management team. AllianceBernstein’s investment process has three main components: (1) identifying and researching attractive opportunities, (2) rigorous research review, and (3) portfolio construction. AllianceBernstein begins with a universe of approximately 2,500 small- and mid‑capitalization stocks and focuses on those with market capitalizations between $1 billion and $5 billion at the time of initial purchase or are members of the Russell 2500 Value Index.

BlackRock Financial Management, Inc. (“BlackRock”) uses a representative sampling indexing strategy to manage the Fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Russell 2500^® Index (the “Underlying Index”). The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index. BlackRock may invest a portion of the account in ETFs to reflect a growth or value tilt as directed by the Manager.

Neuberger Berman Investment Advisers LLC (“Neuberger”) uses a bottom‑up, research driven approach to identify stocks of companies that are available at market prices below Neuberger’s estimate of their intrinsic value and that Neuberger believes has the potential for appreciation in value over time. Neuberger’s estimate of a company’s intrinsic value represents its view of the company’s true, long-term economic value, which may be currently distorted by market inefficiencies. This estimate of intrinsic value represents what Neuberger believes a company could be worth if it is acquired, if its profitability normalizes to its long-term average level, or if its valuation moves in line with valuations of publicly traded peers. Neuberger believes that while markets are often efficient, certain investment opportunities tend to be mispriced due to market inefficiencies. For example, market inefficiencies may exist at times in the small capitalization segment of the market due to a lack of widely available research on these companies. The portfolio managers attempt to exploit these market inefficiencies and look for opportunities to invest in companies they believe to be undervalued, such as companies with complex corporate structures, cyclical business and growing franchises whose growth has been temporarily interrupted.

Westfield Capital Management Company, L.P. (“Westfield”) uses a fundamental bottom‑up research

approach, which seeks to identify reasonably priced stocks with high earnings potential. In order to seek the highest returns with the least degree of risk, Westfield generally favors stocks that, in the judgment of the firm, have: (i) sizeable management ownership; (ii) strong financial conditions; (iii) sufficient cash flow to fund growth internally; and (iv) strong pricing power. Westfield also considers factors such as earnings growth forecasts, price target estimates, total return potential, and business developments. Stocks may be sold when Westfield believes that the stocks no longer represent attractive investment opportunities, based on the factors described above.

Principal risks

Loss of money is a risk of investing in the Fund.

ETF Structure Risks. The Fund is structured as an ETF and is subject to the special risks, including:

Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruptions in the creation/redemption process. Active trading markets for the Fund’s shares may not be developed or maintained by market makers or Authorized Participants. Authorized Participants are not obligated to make a market in the Fund’s shares or to submit purchase or redemption orders for Creation Units. In times of market stress, market makers or Authorized Participants may step away from their respective roles, which could lead to variances between the market price of the Fund’s shares and its underlying NAV. Trading in shares on an exchange may be halted in certain circumstances. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund. Any of these factors could lead the Fund’s shares to trade at a premium or discount to NAV. Thus, you may pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than NAV when you sell those shares in the secondary market, particularly during times of market stress. The Adviser cannot predict whether shares will trade above (premium), below (discount) or at NAV or whether the spread between bid and ask prices will widen. In addition, there can be no assurance that the requirements of the listing exchange necessary to maintain the listing of the Fund will continue to be met.


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brokerage costs purchasing enough shares to constitute a Creation Unit and investor expectations and will experience sharper swings in market values. At times, small‑mid cap stocks may be less liquid and harder to sell at prices the Sub‑advisers believe are appropriate. Additionally, the Fund generally will be more volatile than large cap funds because of the Fund’s focus on small‑mid cap stocks. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Multi-Manager Risk, which is the risk that the investment styles of the Sub‑advisers may not complement each other as expected by the Manager. The Fund’s exposure to a particular stock, industry or technique could be greater or smaller than if the Fund had a single Sub‑adviser. Also, the Fund may experience a higher portfolio turnover rate, which is the frequency with which the Fund sells and replaces its securities within a given period. Higher turnover can increase the Fund’s transaction costs, thereby lowering its returns. It also may generate more taxable short-term gains for shareholders.

•

and cause market volatility in both the short- and long-term. Recent examples include pandemic risks related to a coronavirus (COVID‑19) and aggressive measures taken worldwide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. Market risk may affect a single company, sector of the economy or the market as a whole.

•

Investment Style Risk, which means small cap and/or growth stocks could fall out of favor with investors and trail the performance of other types of investments. Many of the risks of this Fund are associated with its emphasis on small cap and growth stocks. Both types of style tend to go in and out of favor.

•

Small‑Mid Cap Risk, which refers to the fact that historically, small‑mid cap stocks have been riskier than large cap stocks. Small‑mid cap companies tend to be more vulnerable to adverse business and economic events than larger, more established companies. Small‑mid cap companies tend to have more limited product lines, capital resources and/or management depth. Small‑mid cap companies tend to be more sensitive to changes in earnings results and forecasts

International Equity Fund

Investment objective

Capital appreciation.

Principal investment strategies

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 the equity securities of companies located outside the U.S. The Fund focuses on companies located in developed markets, but also may invest a portion of its assets in securities of companies located in emerging markets. The Fund intends to diversify its assets by investing primarily in securities of issuers located in at least three foreign countries. The Fund may attempt to hedge against unfavorable changes in currency exchange rates by engaging in forward currency transactions or currency swaps and trading currency futures contracts and options on these futures. However, a Sub‑adviser (as defined below) may choose not to, or may be unable to, hedge the Fund’s currency exposure. The Fund may


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also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

How the Sub‑advisers select the Fund’s investments

BlackRock Financial Management, Inc. (“BlackRock”) will employ a “passive” management approach, attempting to invest in a portfolio of assets whose performance is expected to match approximately the performance of the MSCI EAFE^® Index (Net). The Fund will be substantially invested in securities in the MSCI EAFE^® Index (Net), and will invest, under normal circumstances, at least 80% of its assets in securities or other financial instruments that are components of or have economic characteristics similar to the securities included in the MSCI EAFE^® Index (Net). The Fund will invest in a statistically selected sample of equity securities included in the MSCI EAFE^® Index (Net) and in derivative instruments linked to the MSCI EAFE^® Index (Net). Equity securities include common stock, preferred stock, securities convertible into common stock and securities or other instruments whose price is linked to the value of common stock. The Fund will, under normal circumstances, invest in all of the countries represented in the MSCI EAFE^® Index (Net). The Fund may not, however, invest in all of the companies within a country represented in the MSCI EAFE^® Index (Net), or in the same weightings as in the MSCI EAFE^® Index (Net).

Causeway Capital Management LLC (“Causeway”) follows a value style, performing fundamental research supplemented by quantitative analysis. Beginning with a universe of companies throughout the non‑U.S. developed and emerging markets, Causeway uses quantitative market capitalization and valuation screens to narrow the potential investment candidates to approximately 2,000 securities. To select investments, Causeway then performs fundamental research, which generally includes company specific research, company visits, and interviews of suppliers, customers, competitors, industry analysts, and experts. Causeway also applies a proprietary quantitative risk model to adjust return forecasts based on risk assessments. Using a value style means that Causeway buys stocks that it believes have lower prices than their true worth. For example, stocks may be “undervalued” because the issuing companies are in industries that are currently out of favor with investors. However, even in those industries, certain companies may have high rates of growth of earnings and be financially sound. Causeway considers whether a company has each of the following value characteristics in purchasing or selling securities for the Fund: (i) low price‑to earnings ratio relative to the sector, (ii) high yield relative to the market, (iii) low price‑to‑book value ratio relative to the market, (iv) low price‑to‑cash flow ratio relative to the market, and (v) financial strength. Generally, price‑to‑earnings ratio and yield are the most important factors.

Schroder Investment Management North America Inc. (“Schroders”) seeks to invest in securities of international companies where it has identified a significant growth gap, which is defined as forward earnings growth that is not yet recognized by the market. Schroders leverages the extensive knowledge of, and recommendations generated by,

approximately 100 regional analysts located across the globe. The strongest ideas of these local analysts are then overlaid with the global perspective of an international team of global sector specialists. In Schroders’ view, this combination of local expertise and global analysis provides an optimal framework for identifying strong investment candidates and building high-quality efficient portfolios across multiple regions and sectors. Schroder Investment Management North America Limited, an affiliate of Schroders, serves as sub‑adviser to the portion of the Fund’s assets allocated to Schroders.

Victory Capital Management, Inc., (“Victory Capital”) pursues the Fund’s investment objective by investing primarily in equity securities of companies principally in countries represented in the S&P^® Developed ex‑U.S. SmallCap Index (“Index”). Under normal circumstances, at least 80% of the Fund’s assets will be invested in securities of small-capitalization companies. The Sub‑adviser considers any company with a market capitalization at the time of purchase that is within such country’s smallest 15% based on market capitalization to be a small-capitalization company. The size of companies in the Index changes with market conditions and the composition of the Index. The Sub‑adviser employs a bottom‑up investment approach that emphasizes individual stock selection. The Sub‑adviser’s investment process uses a combination of quantitative and traditional qualitative, fundamental analysis to identify attractive stocks with low relative price multiples and positive trends in earnings forecasts, high profitability and companies with a strong or positively trending environmental, social, and governance (“ESG”) profile. The stock selection process is designed to produce a diversified portfolio that, relative to the Index, tends to have a below-average price‑to‑earnings ratio and an above-

average earnings growth trend and above average return on invested capital. ESG investing considerations are not a primary or exclusive factor, but rather an additional inclusive consideration to Victory Capital’s process. The Fund’s investment allocation to countries and sectors tends to approximate the country and sector allocations of the Index, which concentrates its exposure in one or more countries, regions or sectors. The Index consists of the stocks representing the lowest 15% of float-adjusted market capitalization in each country other than the U.S. represented in the S&P^® Developed Broad Market Index (BMI). The S&P^® Developed BMI includes all listed shares of companies from 24 developed countries with float-adjusted market capitalizations of at least US$100 million and annual trading value of at least US$50 million. The Fund normally invests in a minimum of ten countries.

Walter Scott & Partners Limited (“Walter Scott”) believes that, over time, the returns derived from investing in the shares of a company will reflect the internal wealth generated by that business. By investing in companies capable of sustaining exceptional rates of internal wealth creation over the long term, superior investment returns can be achieved. In‑house fundamental research, rigorous analysis and collegiate decision-making are at the core of Walter Scott’s investment process. Walter Scott’s long-term strategy is to protect and grow its client’s assets over time by acting as responsible


MORGAN STANLEY \| 2026		59

stewards of capital. To deliver this strategy effectively, the firm must seek to understand as fully as possible the risks and opportunities, including those relating to sustainability, faced by the companies in which it invests and the impact these could have on the performance of its clients’ investments. The team-based approach draws on the combined knowledge and experience of investment professionals. Collective discussion and debate around investment ideas and all portfolio holdings is integral to the investment approach. The industrial and geographic structure of portfolios reflects the bottom‑up stock selection process, rather than the composition of indices. Portfolios are comprised of a carefully selected group of companies that satisfy Walter Scott’s strict investment criteria and the firm expects 100% of the alpha to come either directly or indirectly from stock selection. Walter Scott’s investment style is long-term growth at a reasonable price, paying close attention to valuation.

The Adviser regularly reviews the Fund’s investments and will sell a security if the Adviser believes there has been a deterioration in the rank of the security in accordance with the Adviser’s process, the security’s valuation has become unattractive relative to other stocks in the universe or other available investments are considered to be more attractive.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Foreign Investment Risk, which means risks unique to investing in foreign issuers. These include:

•

Less information about foreign issuers or markets may be available because of less rigorous accounting standards or regulatory practices.

•

Many foreign markets are smaller, less liquid and more volatile than U.S. markets. In a changing market, the Sub‑advisers may not be able to sell securities held by the

Fund in amounts and at prices they consider reasonable. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Economic, political or social instability in foreign countries may significantly disrupt the principal financial markets in which the Fund invests.

•

Foreign governments may expropriate assets, impose capital or currency controls, impose punitive taxes, or nationalize a company, which could have a severe effect on the Fund’s ability to bring its capital or income back to the U.S. or on security prices.

•

Withholding and other foreign taxes may decrease the Fund’s return.

•

Forwards, Futures, Options and Swaps Risk, which means that the Fund’s use of forwards, futures, options and swaps to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Forwards, futures, options and swaps will obligate or entitle the Fund to deliver or receive an asset or a cash payment based on the change in value of one or more designated securities, currencies or indices. Even a small investment in forwards, futures, options or swaps can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using forwards, futures, options or swaps can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in forwards, futures, options or swaps if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain forward, futures or swap contracts presents the same types of credit risks as issuers of fixed income securities. Investing in forwards, futures, options or swaps can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Emerging Markets Risk, which refers to the fact that the market value for emerging market equity securities historically has been very volatile and an investment in the Fund involves a substantial degree of risk. In addition to foreign investment and currency risks, which tend to be amplified in emerging markets, emerging markets may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation. The economies of emerging market countries may grow at slower rates than expected or suffer a downturn or recession. Emerging market securities may present market, credit, liquidity, legal, political and other risks different from, or greater than, the risks of investing in developed foreign countries. The Fund also could experience a loss from settlement and custody practices in some emerging markets.


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•

Small and Mid Cap Risk, which refers to the fact that historically, small and mid cap stocks have been riskier than large cap stocks. Small and mid cap companies tend to be more vulnerable to adverse business and economic events than larger, more established companies. Small and mid cap companies tend to have more limited product lines, capital resources and/or management depth. Small and mid cap companies tend to be more sensitive to changes in earnings results and forecasts and investor expectations and will experience sharper swings in market values. At times, small and mid cap stocks may be less liquid and harder to sell at prices the Sub‑advisers believe are appropriate. Additionally, the Fund generally will be more volatile than large cap funds because of the Fund’s focus on small and mid cap stocks. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

LIBOR Transition Risk refers to the fact that the elimination of the London Inter-Bank Offered Rate (“LIBOR”) rate may adversely affect the interest rates on, and value of, certain Fund investments that are tied to LIBOR. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, ceased publishing all LIBOR settings on a representative basis after June 30, 2023. Some LIBOR rates continued to be published, but only on a temporary, synthetic, and non‑representative basis. These temporary, synthetic LIBOR rates were discontinued in September 2024. Alternatives to LIBOR are established or in development in most major currencies, including the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that it will have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability. Questions around liquidity impacted by these rates, and how to appropriately adjust these rates at the time of transition, remain a concern for the Fund.

Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.

•

Emerging Markets Equity Fund

Investment objective

Long-term capital appreciation.

Principal investment strategies

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 equity securities of issuers organized, domiciled or with substantial operations in emerging markets countries, which are defined as countries included in an emerging markets index by a recognized index provider, such as the MSCI Emerging Markets Index (Net), or characterized as developing or emerging by any of the World Bank, the United Nations, the International Finance Corporation, or the European Bank for Reconstruction and Development. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging countries with even smaller national economies. To diversify its investments, the Fund invests primarily in securities of issuers located in at least three foreign countries. The Fund also may invest a portion of its assets in closed‑end investment companies that invest in emerging markets. The Fund may attempt to hedge against unfavorable changes in currency exchange rates by engaging in forward currency transactions and trading currency futures contracts and options on these futures; however, a Sub‑adviser (as defined below) may choose not to, or may be unable to, hedge the Fund’s currency exposure. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

How the Sub‑advisers select the Fund’s investments


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Emerging Markets Index (Net). The Fund will be substantially invested in securities in the MSCI Emerging Markets Index (Net), and will invest, under normal circumstances, at least 80% of its assets in securities or other financial instruments that are components of or have economic characteristics similar to the securities included in the MSCI Emerging Markets Index (Net). The Fund will invest in a statistically selected sample of equity securities included in the MSCI Emerging Markets Index (Net) and in derivative instruments linked to the MSCI Emerging Markets Index (Net). Equity securities include common stock, preferred stock, securities convertible into common stock and securities or other instruments whose price is linked to the value of common stock. The Fund will, under normal circumstances, invest in all of the countries represented in the MSCI Emerging Markets Index (Net). The Fund may not, however, invest in all of the companies within a country represented in the MSCI Emerging Markets Index (Net), or in the same weightings as in the MSCI Emerging Markets Index (Net).

Lazard Asset Management LLC (“Lazard”) manages a relative value strategy (“Strategy”) and invests primarily in equity securities, principally common stocks, of non‑U.S. companies whose principal business activities are located in emerging or developing market countries. The Strategy is based on value creation through a process of bottom‑up stock selection. The Strategy consists of an analytical framework, accounting validation, fundamental analysis and portfolio construction parameters. In the Strategy, assets are invested in companies that are believed to be undervalued based on their earnings, cash flow or asset values.

ClearBridge Investment Management Limited (“CIML”) In July 2025, the business of Martin Currie became operationally integrated and aligned with ClearBridge Investments, LLC, a US-based adviser registered with the SEC (“ClearBridge”). Effective as of September 30, 2025, Martin Currie Inc. was replaced as a sub‑adviser to the Emerging Markets Equity Fund by its affiliate, Martin Currie Investment Management Limited, a UK‑based adviser with a principal place of business in Edinburgh, Scotland and registered with the Financial Conduct Authority in the UK and the SEC in the United States, which also changed its name to ClearBridge Investment Management Limited” (“CIML”). As a part of this integration and alignment, a number of ClearBridge’s policies were adopted by CIML. UK‑specific policies were retained to comply with certain UK‑specific regulations.

CIML employs an active management approach, attempting to invest in a portfolio of assets whose performance is expected to exceed that of the MSCI Emerging Markets Index (Net). CIML seeks to invest in companies that can generate economic value in excess of the market’s existing expectations. The Sub‑adviser adopts a long-term view when making this assessment, believing that a three- to five-year investment horizon best captures such opportunities. CIML adopts a fundamental, bottom‑up approach aiming to identify companies with sustainable growth potential with this research being enhanced by consideration of top‑down risks that could impact the investment case. In addition, environmental, social

and governance (ESG) factors are fully integrated into the process.

Van Eck Associates Corporation (“VanEck”) seeks long-term capital appreciation by investing primarily in securities of companies that are organized in, maintain at least 50% of their assets in, or derive at least 50% of their revenues from, emerging market countries. VanEck has broad discretion to identify countries that it considers to qualify as emerging markets. VanEck selects emerging market countries that the Fund will invest in based on VanEck’s evaluation of economic fundamentals, legal structure, political developments and other specific factors VanEck believes to be relevant. Utilizing qualitative and quantitative measures, the Fund’s portfolio manager seeks to invest in reasonably-priced companies that have strong structural growth potential. The portfolio manager seeks attractive investment opportunities in all areas of emerging markets and utilizes a flexible investment approach across all market capitalizations. VanEck seeks to (i) integrate financially-material environmental, social and governance (“ESG”) factors into the Fund’s investment process and (ii) reduce material exposure to issuers that VanEck deems controversial in the ESG universe. The Fund’s holdings may include issues denominated in currencies of emerging market countries, investment companies (like country funds) that invest in emerging market countries, and American Depositary Receipts, and similar types of investments, representing emerging market securities.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Foreign Investment Risk, which means risks unique to investing in foreign issuers. These include:


62		MORGAN STANLEY \| 2026

•

Less information about foreign issuers or markets may be available because of less rigorous accounting standards or regulatory practices.

•

Many foreign markets are smaller, less liquid and more volatile than U.S. markets. In a changing market, the Sub‑advisers may not be able to sell securities held by the

Fund in amounts and at prices they consider reasonable. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Economic, political or social instability in foreign countries may significantly disrupt the principal financial markets in which the Fund invests.

•

Withholding and other foreign taxes may decrease the Fund’s return.

•

of hedged positions, the U.S. dollar will decline in value relative to the currency hedged. In either event, the value of your investment in the Fund would be adversely affected.

•

Forwards, Futures and Options Risk, which means that the Fund’s use of forwards, futures and options to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Futures or options will obligate or entitle the Fund to deliver or receive an asset or a cash payment based on the change in value of one or more designated currencies or indices. Even a small investment in forwards, futures or options can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using forwards, futures and options can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in forwards, futures or options if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain forwards, futures or options presents the same types of credit risks as issuers of fixed income securities. Investing in forwards, futures and options can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Closed‑End Investment Company Risk, which means that since closed‑end investment companies issue a fixed number of shares they typically trade on a stock exchange or over‑the‑counter at a premium or discount to their net asset value per share. The Fund will also bear its pro rata portion of any costs of a closed‑end fund in which it invests.

•

Strategy Risk, the Fund invests a portion of its assets in stocks believed by a Sub‑adviser to be undervalued, but that may not realize their perceived value for extended periods of time or may never realize their perceived value. The Fund also invests a portion of its assets in stocks believed by a Sub‑adviser to have the potential for growth, but that may not realize such perceived growth potential for extended periods of time or may never realize such perceived growth potential. Such stocks may be more volatile than other stocks because they can be more sensitive to investor perceptions of the issuing company’s growth potential. The stocks in which the Fund invests may respond differently to market and other developments than other types of stocks.

•

Multi-Manager Risk, which is the risk that the investment styles of the Sub‑advisers may not complement each other as expected by the Manager. The Fund’s exposure to a


MORGAN STANLEY \| 2026		63

particular stock, industry or technique could be greater or smaller than if the Fund had a single Sub‑adviser. Also, the Fund may experience a higher portfolio turnover rate, which is the frequency with which the Fund sells and replaces its securities within a given period. Higher turnover can increase the Fund’s transaction costs, thereby lowering its returns. It also may generate more taxable short-term gains for shareholders.

•

Core Fixed Income Fund

Investment objective

Maximum total return, consistent with preservation of capital and prudent investment management.

Principal investment strategies

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. Fixed income instruments include securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises (note that securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury); corporate debt securities of U.S. and non‑U.S. issuers, including convertible securities and corporate commercial paper; mortgage-backed and other asset-backed securities; inflation-indexed bonds issued both by governments and corporations; structured notes, including hybrid or “indexed” securities and event-linked bonds; loan participations and assignments; delayed funding loans and revolving credit facilities; bank certificates of deposit, fixed time deposits and bankers’ acceptances; repurchase agreements on fixed income instruments and reverse repurchase agreements on fixed income instruments; debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises; obligations of non‑U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and obligations of international agencies or supranational entities.

The Fund may also invest in derivatives based on fixed income instruments, including futures, forwards, options, swaps, and swaptions, and may use other investment techniques such as mortgage dollar rolls, buy‑backs and securities lending to earn additional income. The Fund also may engage in short sales. The Fund may also invest in Exchange-Traded Funds (“ETFs”) to gain exposure to a particular portion of the market while allocating assets among Sub‑advisers (as defined below), transitioning the Fund’s portfolio or awaiting an opportunity to purchase securities directly.

Investments may be structured to provide all types of interest rate payments, including fixed, variable, floating, inverse, zero or interest-only rates of interest. The Fund 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. The Fund may invest in currency spot and forward transactions for the purpose of active currency exposure. Foreign currency exposure (from non‑U.S. dollar-denominated securities or currencies) normally will be limited to 20% of the Fund’s total assets. The Fund may invest up to 15% in emerging market securities. The Fund may also invest up to 10% of its total assets in preferred stocks, convertible securities and other equity-related securities. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help fund performance.

Credit quality. The Fund invests primarily in investment grade debt securities, but may invest up to 25% of its total assets in non‑investment grade securities (sometimes called “high yield


64		MORGAN STANLEY \| 2026

securities” or “junk bonds”) rated CCC- or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by the Sub‑advisers to be of comparable quality.

Duration. The Fund’s average portfolio duration, as calculated by the Sub‑advisers, normally ranges within two years (plus or minus) of the duration of the benchmark index. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. Maturity means the date on which the principal amount of a debt security is due and payable. Individual investments may be of any maturity.

How the Sub‑advisers select the Fund’s investments

Allspring Global Investments, LLC (“Allspring (US)”) and Allspring Global Investments (UK) Limited (“Allspring (UK)” and together with Allspring (US), “Allspring”) Allspring’s Plus Fixed Income team uses a relative value framework for duration (within one year of the benchmark), yield curve positioning, sector allocation, and security selection decisions. Allspring combines a top‑down and bottom up approach using a six‑month investment horizon to anticipate market cycles and then position the portfolio accordingly. The portfolio managers then utilize a robust portfolio construction and risk control process to tactically allocate to plus sectors in an effort to enhance the portfolio’s total return and manage risks over a market cycle. Pursuant to a sub-advisory agreement between Allspring (US) and Allspring (UK), Allspring (UK) assists Allspring (US) in the provision of investment advisory services with respect to the portion of the Fund’s assets allocated to Allspring (US) by the Manager, from which Allspring (US) may assign a portion to Allspring (UK).

BlackRock Financial Management, Inc. (“BlackRock”) will employ a “passive” investment approach. This means that BlackRock will attempt to invest in a portfolio of assets whose performance is expected to match approximately the performance of the Bloomberg U.S. Aggregate Bond Index before deduction of Fund expenses. The Fund will buy or sell securities only when BlackRock believes it is necessary to do so in order to match the performance of the index. Accordingly, it is anticipated that the Fund’s portfolio turnover and trading costs will be lower than those of an “actively” managed fund. However, the Fund has operating and other expenses, while an index does not. Therefore, the Fund will tend to underperform its target index to some degree over time. At times, the portfolio composition of the Fund may be altered (or rebalanced) to reflect changes in the characteristics of the index that the Fund tracks. BlackRock may invest a portion of the account in Exchange Traded Funds (“ETFs”) to reflect a growth or value tilt as directed by the Manager.

J.P. Morgan Investment Management Inc. (“JPMIM”) employs an investment philosophy that bond portfolios managed by a globally integrated fixed income team, within a disciplined risk-controlled framework, will help produce strong risk-adjusted returns. JPMIM believes inefficiencies in the fixed income market are pervasive and will continue and that it can identify inefficiencies through a combination of active investment management and disciplined risk control. JPMIM

aims to deliver a ballast to portfolios while providing a disciplined yield advantage relative to the benchmark in order to deliver strong risk adjusted returns. JPMIM targets diversified sources of portfolio returns and does not rely on any single strategy or market directionality. JPMIM’s investment process includes utilizing bottom‑up research with top‑down macro positioning to select high quality investment grade securities across multiple sectors of the U.S. fixed income market. JPMIM draws on diversified sources of alpha and seeks to deliver positive excess returns over a full market cycle, drawing returns from sector allocation, security selection, duration and yield curve positioning.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


MORGAN STANLEY \| 2026		65

interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When the Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the Fund’s shares.

•

Credit and Junk Bond Risk, which means the credit quality of an investment could cause the Fund to lose money. Although the Fund invests primarily in investment grade securities, the Fund could lose money if the issuer or guarantor of a portfolio security or a counterparty to a derivative contract fails to make timely payment or otherwise honor its obligations. Non‑investment grade securities (sometimes called “high yield securities” or “junk bonds”) involve greater risks of default or downgrade and are more volatile than investment grade securities due to actual or perceived changes in an issuer’s creditworthiness. Additionally, issuers of non‑investment grade securities may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the securities.

•

Prepayment and Extension Risks, which means a debt obligation may be paid off earlier or later than expected. Either situation could cause the Fund to hold securities paying lower-than-market rates of interest, which could hurt the Fund’s yield or share price. Additionally, rising interest rates tend to extend the duration of certain fixed income securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, the Fund may exhibit additional volatility. This is known as extension risk. When interest rates decline, borrowers may pay off their fixed income securities sooner than expected. This can reduce the returns of the Fund because the Fund will have to reinvest that money at the lower prevailing interest rates. This is known as prepayment risk.

•

U.S. Government Securities Risk, it means that U.S. Government securities are obligations of, or guaranteed by, the U.S. Government, its agencies or government-sponsored entities. U.S. Government securities include issues by non‑governmental entities (such as financial institutions) that carry direct guarantees from U.S. Government agencies as part of government initiatives in response to a market crisis or otherwise. Although the U.S. Government guarantees principal and interest payments on securities issued by the U.S. Government and some of its agencies, such as securities issued by the Government National Mortgage Association, this guarantee does not apply to losses resulting from declines in the market value of these securities. U.S. Government securities include zero coupon securities that make payments of interest and principal only upon maturity, which tend to be subject to greater volatility than interest bearing securities with comparable maturities. Some of the U.S. Government securities that the Fund may hold are not guaranteed or backed by the full faith and credit of the U.S. Government, such as those issued by the Federal National Mortgage Association and the Federal

Home Loan Mortgage Corporation. The maximum potential liability of the issuers of some U.S. Government securities may greatly exceed their current resources, including any legal right to support from the U.S. Government. Although U.S. Government securities are considered to be among the safest investments, they are still subject to the credit risk of the U.S. Government and are not guaranteed against price movements due to changing interest rates.

•

Convertible Securities and Preferred Stocks Risk, convertible securities are bonds, debentures, notes, preferred stock or other securities that may be converted into or exercised for a prescribed amount of common stock at a specified time and price. Convertible securities provide an opportunity for equity participation, with the potential for a higher dividend or interest yield and lower price volatility compared to common stock. Convertible securities typically pay a lower interest rate than nonconvertible bonds of the same quality and maturity because of the conversion feature. The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline, and the credit standing of the issuer. The price of a convertible security will also normally vary in some proportion to changes in the price of the underlying common stock because of the conversion or exercise feature. Convertible securities may also be rated below investment grade (junk bonds) or not rated and are subject to credit risk and prepayment risk.

•

Mortgage-Backed Securities Risk, exists when the Fund invests in mortgage-backed securities which represent an interest in a pool of mortgages. Mortgage-backed securities are subject to prepayment and extension risk, but the negative effect of a rate increase on the market value of mortgage-backed securities is usually more pronounced than it is for other types of fixed income securities, potentially increasing the volatility of a portfolio. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations.

•

Liquidity Risk exists when securities are difficult or impossible for the Fund to sell at the time and the price that the Fund would like due to a limited market or to legal restrictions. This may result in a loss or may otherwise be costly to the Fund. Additionally, the market for certain investments may become illiquid under adverse market or


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economic conditions independent of any specific adverse changes in the conditions of a particular issuer. These securities may also need to be fair valued.

•

Derivatives Risk, which means that the Fund’s use of futures, forwards, options, swaps and swaptions based on fixed income instruments to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Futures, forwards, options, swaps and swaptions will obligate or entitle the Fund to deliver or receive an asset or a cash payment based on the change in value of one or more designated securities, currencies or indices. Even a small investment in futures, forwards, options, swaps and swaptions can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using futures, forwards, options, swaps and swaptions can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in futures, forwards, options, swaps and swaptions if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain futures, forwards, options, swaps and swaptions presents the same types of credit risks as issuers of fixed income securities. Investing in futures, forwards, options, swaps and swaptions can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Leverage Risk, which means the Fund creates an opportunity for increased net income but, at the same time, creates special risks. For example, leveraging may exaggerate changes in and increase the volatility of the net asset value of Fund shares. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities. The use of leverage also may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to maintain asset coverage.

•

Foreign Investment Risk, which means risks unique to investing in foreign issuers. These include:

•

Less information about foreign issuers or markets may be available because of less rigorous accounting standards or regulatory practices.

•

Many foreign markets are smaller, less liquid and more volatile than U.S. markets. In a changing market, the Sub‑advisers may not be able to sell securities held by the Fund in amounts and at prices they consider reasonable.

•

Economic, political or social instability in foreign countries may significantly disrupt the principal financial markets in which the Fund invests.

•

Withholding and other foreign taxes may decrease the Fund’s return.

•

Currency Risk, which refers to the risk that as a result of the Fund’s active positions in currencies and investments in securities denominated in, and/or receiving revenues in foreign currencies, those currencies will decline in value relative to the U.S. dollar or, in the case of hedged positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the value of your investment in the Fund would be adversely affected.

•

Short Sale Risk, selling short may produce higher than normal portfolio turnover and result in increased transaction costs to the Fund. In addition, selling short magnifies the potential for both gain and loss to the Fund. The larger the Fund’s short position, the greater the potential for gain and loss. If a security sold short increases in price, the Fund may have to cover its short position at a higher price than the short sale price, resulting in a loss. To borrow the security, the Fund also may be required to pay a premium, which could increase the cost of the security sold short. The amount of any gain will be decreased, and the amount of any loss increased, by the amount of the premium, dividends, interest or expenses the Fund may be required to pay in connection with the short sale. In addition, because the Fund’s loss on a short sale arises from increases in the value of the security sold short, such loss is theoretically unlimited. By contrast, the Fund’s loss on a long position arises from decreases in the value of the security and is limited by the fact that a security’s value cannot drop below zero.

•

Delayed Funding Loans and Revolving Credit Facilities Risk, the Fund’s investments in delayed funding loans and revolving credit facilities may have the effect of requiring a Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when such company’s financial condition makes it unlikely that such additional funding commitments will be repaid). Delayed funding loans and revolving credit facilities are subject to credit, interest rate and liquidity risk and the risks of being a lender.


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•

Event-Linked Exposure Risk, event-linked exposure results in gains or losses that typically are contingent, or formulaically related to defined trigger events. Examples of trigger events include hurricanes, earthquakes, weather-related phenomena, or statistics relating to such events. Some event-linked bonds are commonly referred to as “catastrophe bonds.” If a trigger event occurs, a Fund may lose a portion of or the entire principal investment in the case of a bond or a portion of or the entire notional amount in the case of a swap. Event-linked exposure instruments often provide for an extension of maturity to process and audit loss claims where a trigger event has, or possibly has, occurred. An extension of maturity may increase volatility. Event-linked exposure may also expose a Fund to certain unanticipated risks including credit risk, counterparty risk, adverse regulatory or jurisdictional interpretations, and adverse tax consequences. Event-linked exposures may also be subject to liquidity risk.

•

High Yield Fund

Investment objective

A high level of current income primarily through investment in below-investment grade debt securities.

Principal investment strategies

The Fund may invest up to 20% of its assets in securities not denominated in U.S. dollars, including securities of issuers located in emerging market foreign countries. The Fund also may invest up to 20% of its assets in equity and equity-related securities, including common stock, convertible securities, preferred stock, warrants and rights. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund

performance.

Credit quality. The Fund invests primarily in high yield securities or junk bonds.


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rates. Maturity means the date on which the principal amount of a debt security is due and payable. Individual securities may be of any maturity.

How the Sub-adviser selects the Fund’s investments

PineBridge Investments LLC (“PineBridge”) PineBridge’s High Yield Bond Strategy (the “strategy”) seeks to achieve its objective by investing primarily in a diversified portfolio of high-yield, lower-quality fixed-income securities of U.S. and foreign issuers, the risks of which are, in the judgement of PineBridge, consistent with the Strategy’s investment objective. PineBridge applies a team oriented fundamental analysis approach to the investment decision-making process to uncover value in the marketplace. By applying in‑depth fundamental research to determine individual issuer weights as well as aggregate sector weights and by constantly monitoring those securities selected to avoid unexpected events, they seek to achieve consistent outperformance over an economic cycle. The investment process is focused on bottom‑up credit analysis and security selection, driven by a proprietary credit rating process. The credit rating process specifically focuses on three sequential steps: evaluation of credit risk, appropriately pricing credit risk, and identifying and monitoring issuer specific metrics for early warning of changes in credit risk. Bonds are selected on a company by company basis with the goal of being appropriately compensated for the credit risk.

Under normal circumstances, the Strategy invests at least 80% of its net assets in non‑investment grade debt securities, commonly called “high yield” or “junk” bonds. Such bonds include debt securities rated BB+ or lower by S&P Global Ratings, a division of S&P Global Inc. (“S&P”), or comparably rated by another recognized statistical rating organization (“NRSRO”), or, if unrated, determined by PineBridge to be of comparable quality.

The Strategy also may invest up to 20% of its total assets in debt securities that are considered investment grade. Such securities include those rated BBB+, BBB or BBB- by S&P (or comparably rated by another NRSRO, or, if unrated, determined by PineBridge to be of comparable quality). The Strategy may invest in fixed-income securities of any maturity and in companies of any size, but intends to invest primarily in intermediate and long-term corporate obligations. The Strategy may also invest in foreign debt securities that are denominated in U.S. dollars or foreign currencies. Such securities include those rated BBB+, BBB or BBB- by S&P (or comparably rated by another NRSRO, or, if unrated, determined by PineBridge to be of comparable quality). The Strategy may invest in fixed-income securities of any maturity and in companies of any size, but intends to invest primarily in intermediate and long-term corporate obligations. The Strategy may also invest in foreign debt securities that are denominated in U.S. dollars or foreign currencies.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Derivatives Risk, which means that the Fund’s use of futures, forwards, options, swaps and swaptions based on fixed income instruments to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Futures, forwards, options, swaps and swaptions will obligate or entitle the Fund to deliver or receive an asset or a cash payment based on the change in value of one or more designated securities, currencies or indices. Even a small investment in futures, forwards, options, swaps and swaptions can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using futures, forwards, options, swaps and swaptions can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in futures, forwards, options, swaps and swaptions if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain futures, forwards, options, swaps and swaptions presents the same types of credit risks as issuers of fixed income securities. Investing in futures, forwards, options, swaps and swaptions can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.


MORGAN STANLEY \| 2026		69

•

Interest Rate Risk, which is the risk that interest rates rise and fall over time. As the yields of the underlying investments change over time, the Fund’s yield will change. When interest rates are low, the Fund’s yield and total return also may be low. When interest rates rise, bond prices generally fall, which might cause the Fund’s share price to fall. The longer the Fund’s maturity or duration, the more sensitive its share price will be to interest rate movements. Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When the Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the Fund’s shares.

•

Credit and Junk Bond Risk, which means the credit quality of an investment could cause the Fund to lose money. Investment in high yield securities or junk bonds involves substantial risk of loss. The Fund could lose money if the issuer or guarantor of a Fund security or a counterparty to a derivative contract fails to make timely payment or otherwise honor its obligations. Junk bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve greater risk of price declines than investment- grade securities due to actual or perceived changes in an issuer’s creditworthiness. Additionally, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the securities.

•

Prepayment and Extension Risks, which means a debt obligation may be paid off earlier or later than expected. Either situation could cause the Fund to hold securities paying lower than market rates of interest, which could hurt the Fund’s yield or share price. Additionally, rising interest rates tend to extend the duration of certain fixed income securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, the Fund may exhibit additional volatility. This is known as extension risk. When interest rates decline, borrowers may pay off their fixed income securities sooner than expected. This can reduce the returns of the Fund because the Fund will have to reinvest that money at the lower prevailing interest rates. This is known as prepayment risk.

•

Mortgage-Backed Securities Risk, exists when the Fund invests in mortgage-backed securities which represent an interest in a pool of mortgages. Mortgage-backed securities are subject to prepayment and extension risk but the negative effect of a rate increase on the market value of mortgage-backed securities is usually more pronounced than it is for other types of fixed income securities, potentially increasing the volatility of a portfolio. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations.

•

Liquidity Risk, exists when securities are difficult or impossible for the Fund to sell at the time and the price that the Fund would like due to a limited market or to legal restrictions. This may result in a loss or may otherwise be costly to the Fund. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. These securities may also need to be fair valued.

•

Foreign Investment Risk, which means risks unique to investing in foreign issuers. These include:


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•

Less information about foreign issuers or markets may be available because of less rigorous accounting standards or regulatory practices.

•

Many foreign markets are smaller, less liquid and more volatile than U.S. markets. In a changing market, the Sub-adviser may not be able to sell securities held by the Fund in amounts and at prices they consider reasonable. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Economic, political or social instability in foreign countries may significantly disrupt the principal financial markets in which the Fund invests.

•

Withholding and other foreign taxes may decrease the Fund’s return.

•

grade (junk bonds) or not rated and are subject to credit risk and prepayment risk.

•

Manager Risk, which is the risk that poor security selection by the Sub‑adviser will cause the Fund to underperform relevant benchmarks or other investments with similar strategies. This risk is common for all actively managed funds.

•

International Fixed Income Fund

Investment objective

Maximize current income, consistent with the protection of principal.

Principal investment strategies

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. The Fund


MORGAN STANLEY \| 2026		71

invests primarily in fixed income instruments of issuers located outside the U.S. Up to 15% of the Fund’s total assets may be invested in fixed income instruments of issuers located in emerging markets countries. The fixed income instruments in which the Fund may invest include securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises (Note that securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury); corporate debt securities of U.S. and non‑U.S. issuers, including preferred and convertible securities and corporate commercial paper; mortgage-backed and other asset-backed securities; inflation-indexed bonds issued both by governments and corporations; structured notes, including hybrid or “indexed” securities and event-linked bonds; loan participations and assignments; delayed funding loans and revolving credit facilities; bank loans; bank certificates of deposit, fixed time deposits and bankers’ acceptances; repurchase agreements on fixed income instruments and reverse repurchase agreements on fixed income instruments; debt securities issued by foreign sovereigns, states or local governments and their agencies, authorities and other government-sponsored enterprises; obligations of non‑U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and obligations of international agencies or supranational entities.

The Fund also may invest in derivatives based on fixed income instruments including futures, forwards, options, swaps, and swaptions and may use other investment techniques such as mortgage dollar rolls, buy‑backs and securities lending to earn additional income. The Fund also may engage in short sales and invest in privately placed securities.

Investments may be structured to provide all types of interest rate payments, including fixed, variable, floating, inverse, zero or interest-only rates of interest. The Fund may invest in currency spot and forward transactions for the purpose of active currency exposure. Foreign currency exposure (from non‑U.S. dollar-denominated securities or currencies) normally will be limited to 30% of the Fund’s total assets. The Fund may also invest up to 10% of its total assets in preferred stocks, convertible securities and other equity-related securities. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help Fund performance.

Credit Quality. The Fund invests primarily in investment grade debt securities, but may invest up to 15% of its total assets in non‑investment grade securities (sometimes called “high yield securities” or “junk bonds”) rated CCC- or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by the Sub‑adviser (as defined below) to be of comparable quality.

Duration. The Fund’s average portfolio duration, as calculated by the Sub‑adviser, normally ranges within two years (plus or minus) of the duration of the benchmark index. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. Maturity means the date on which the principal amount of a debt

security is due and payable. The Fund may invest in individual securities of any maturity.

How the Sub‑adviser selects the Fund’s investments

Pacific Investment Management Company LLC (“PIMCO”) employs a total return approach that focuses on both capital appreciation and income while managing overall risk. PIMCO manages global bond investments by focusing on both economic and credit fundamentals as key determinants of value in fixed income markets, limiting volatility with respect to the benchmark index.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


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•

Mortgage-Backed Securities Risk, exists when the Fund invests in mortgage-backed securities which represent an interest in a pool of mortgages. Mortgage-backed securities are subject to prepayment and extension risk but the negative effect of a rate increase on the market value of mortgage-backed securities is usually more pronounced than it is for other types of fixed income securities, potentially increasing the volatility of a portfolio. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations.

•

and personal property, and receivables from credit card agreements. Asset-backed securities are subject to many of the same risks as mortgage-backed securities including prepayment and extension risk. The ability of an issuer of asset-backed securities to enforce its security interest in the underlying assets may be limited.

•

Derivatives risk, which means that the Fund’s use of futures, forwards, options, swaps and swaptions based on fixed income instruments to enhance returns or hedge against market declines subjects the Fund to potentially greater volatility and/or losses. Futures, forwards, options, swaps and swaptions will obligate or entitle the Fund to deliver or receive an asset or a cash payment based on the change in value of one or more designated securities, currencies or indices. Even a small investment in futures, forwards, options, swaps and swaptions can have a large impact on the Fund’s interest rate, securities market and currency exposure. Therefore, using futures, forwards, options, swaps and swaptions can disproportionately increase losses and reduce opportunities for gains when interest rates, stock prices or currency rates are changing. The Fund may not fully benefit from or may lose money on its investment in futures, forwards, options, swaps and swaptions if changes in their value do not correspond accurately to changes in the value of the Fund’s holdings. The other party to certain futures, forwards, options, swaps and swaptions presents the same types of credit risks as issuers of fixed income securities. Investing in futures, forwards, options, swaps and swaptions can also make the Fund’s assets less liquid and harder to value, especially in declining markets. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•


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Delayed funding loans and revolving credit facilities are subject to credit, interest rate and liquidity risk and the risks of being a lender.

•

Foreign Investment Risks, which means risks unique to investing in foreign issuers. These include:

•

Less information about foreign issuers or markets may be available because of less rigorous accounting standards or regulatory practices.

•

Many foreign markets are smaller, less liquid and more volatile than U.S. markets. In a changing market, the Sub‑adviser may not be able to sell securities held by the Fund in amounts and at prices it considers reasonable. The Fund may hold illiquid securities that may be difficult to sell and may be required to be fair valued.

•

Economic, political or social instability in foreign countries may significantly disrupt the principal financial markets in which the Fund invests.

•

Withholding and other foreign taxes may decrease the Fund’s return.

•

Currency Risk, which refers to the risk that as a result of the Fund’s active positions in currencies and investments in securities denominated in, and/or receiving revenues in,

foreign currencies, those currencies will decline in value relative to the U.S. dollar or, in the case of hedged positions, the U.S. dollar will decline in value relative to the currency hedged. In either event, the value of your investment in the Fund would be adversely affected.

•


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2024. Alternatives to LIBOR are established or in development in most major currencies, including the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that it will have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability. Questions around liquidity impacted by these rates, and how to appropriately adjust these rates at the time of transition, remain a concern for the Fund. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.

•

Foreign Sovereign Debt Securities Risk includes that (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due, due to factors such as debt service burden, political constraints, cash flow problems and other national economic factors; (ii) governments may default on their debt securities, which may require the Fund, as a holder of such securities, to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there is no bankruptcy proceeding by which defaulted sovereign debt may be collected in whole or in part.

Municipal Bond Fund

Investment objective

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.

Principal investment strategies

pay interest that is excluded from gross income for regular federal income tax purposes but such bonds may pay income that is subject to the alternative minimum tax.

Duration. The Fund’s average portfolio duration, as calculated by the Sub‑adviser, is typically maintained at +/- 3 years of the average benchmark duration, which is the average duration of all the constituent bonds in the Bloomberg U.S. Municipal Bond Index. The Sub‑adviser seeks to target the average duration of the benchmark which varies over time and may be impacted by market conditions. Duration is an approximate measure of the sensitivity of the market value of the portfolio holdings to changes in interest rates.

The Fund may leverage its assets through the use of proceeds received through tender option bond transactions. In a tender option bond transaction, the Fund transfers municipal bonds or other municipal securities into a special purpose entity. A TOB Trust typically issues two classes of beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are generally issued to the Fund. The Fund may invest in TOB Residuals and may also invest in TOB Floaters. The Fund will look through to the underlying municipal bond held by a TOB Trust for purposes of the Fund’s 80% policy.

How the Sub‑adviser selects the Fund’s investments

BlackRock Financial Management, Inc. (“BlackRock”) seeks to achieve its objective by investing at least 80% of its assets in municipal bonds. Municipal bonds include debt obligations issued by or on behalf of a governmental entity or other qualifying issuer that pay interest that is, in the opinion of bond counsel to the issuer, generally excludable from gross income for Federal income tax purposes (except that the interest may be includable in taxable income for purposes of the Federal alternative minimum tax). Municipal bonds may be obligations of a variety of issuers, including governmental entities or other qualifying issuers. Issuers may be states, territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities. Municipal bonds also include short-term tax‑exempt obligations like municipal notes and variable rate demand obligations. The Fund limits its investments to 20% in municipal obligations that are rated below investment grade by a nationally recognized statistical rating organization, or, if unrated, of equivalent quality as determined by the Sub‑adviser.


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Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•

Market Risk, which is the risk that municipal bond prices decline overall. Bond markets tend to move in cycles, with periods of rising prices and periods of falling prices. Markets are volatile and can decline significantly in response to real or perceived adverse issuer, political, regulatory, market or economic developments in the U.S. and in other countries. Similarly, environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term. Recent examples include pandemic risks related to a coronavirus (COVID‑19) and aggressive measures taken worldwide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. Market risk may affect a single company, sector of the economy or the market as a whole. Declines in dealer market-making capacity as a result of structural or regulatory changes could decrease liquidity and/or increase volatility in the fixed income markets.

•

Interest Rate Risk, which is the risk that interest rates rise and fall over time. As the yields of the underlying investments change over time, the Fund’s yield will change. When interest rates are low, the Fund’s yield and total return also may be low. When interest rates rise, bond prices generally fall, which might cause the Fund’s share price to fall. The longer the Fund’s maturity, the more sensitive its share price will be to interest rate movements. Variable and floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. Inverse floating rate securities may decrease in value if interest rates increase. Inverse floating rate securities may also exhibit greater price volatility than a fixed rate obligation with similar credit quality. When the Fund holds variable or floating rate securities, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the Fund’s shares.

•

the Fund’s yield or share price. Additionally, rising interest rates tend to extend the duration of certain fixed income securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, the Fund may exhibit additional volatility. This is known as extension risk. When interest rates decline, borrowers may pay off their fixed income securities sooner than expected. This can reduce the returns of the Fund because the Fund will have to reinvest that money at the lower prevailing interest rates. This is known as prepayment risk.

•

Municipal Securities Risk, which includes the risk that new federal or state legislation or Internal Revenue Service determinations may adversely affect the tax‑exempt status of securities held by the Fund or the financial ability of the municipalities to repay these obligations. Municipal securities, like other fixed income securities, rise and fall in value in response to economic and market factors, primarily changes in interest rates, and actual or perceived credit quality. Rising interest rates will generally cause municipal securities to decline in value. Longer-term securities usually respond more sharply to interest rate changes than do shorter-term securities. A municipal security will also lose value if, due to rating downgrades or other factors, there are concerns about the issuer’s current or future ability to make principal or interest payments. State and local governments rely on taxes and, to some extent, revenues from private projects financed by municipal securities, to pay interest and principal on municipal debt. Poor statewide or local economic results or changing political sentiments may reduce tax revenues and increase the expenses of municipal issuers, making it more difficult for them to meet their obligations. Actual or perceived erosion of the creditworthiness of municipal issuers may reduce the value of the Fund’s holdings. As a result, the Fund will be more susceptible to factors that adversely affect issuers of municipal obligations than a mutual fund that does not have as great a concentration in municipal obligations. Also, there may be economic or political changes that impact the ability of issuers of municipal securities to repay principal and to make interest payments on securities owned by the Fund. Any changes in the financial condition of municipal issuers may also adversely affect the value of the Fund’s securities. Due to local economic and financial conditions, certain municipal issuers will be more susceptible to default on their obligations than others. Each of these risks may be heightened with respect to investments in U.S. instrumentalities, such as Guam, the Virgin Islands and Puerto Rico.

•

Liquidity Risk, which means when there is little or no active trading market for specific types of securities, it can become more difficult to sell the securities at or near their perceived value. In such a market, the value of such securities and the Fund’s share price may fall dramatically, even during periods of declining interest rates. The secondary market for certain municipal bonds tends to be less well-developed or liquid than many other securities markets, which may adversely affect the Fund’s ability to sell such municipal bonds at attractive prices.


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•

Taxation Risk, which means the possibility that some of the Fund’s income distributions may be, and distributions of the Fund’s gains may be subject to federal taxation. The Fund will rely on the opinions of issuers’ bond counsel on the tax‑exempt status of interest on municipal bond obligations. Neither the Fund nor its Sub‑adviser will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its shareholders to substantial tax liabilities. In addition, the Fund may realize taxable gains on the sale of its securities or other transactions, and some of the Fund’s income distributions may be subject to the federal alternative minimum tax. This may result in a lower tax‑adjusted return. Additionally, distributions of the Fund’s income and gains generally will be subject to state taxation. Municipal bond funds are generally not appropriate investments for those investing through a tax‑deferred account, such as an individual retirement account or employer-sponsored retirement plan, because the funds’ tax advantages are not applicable if investing through such an account.

•

Tender Option Bonds and Related Securities Risk, which means the Fund’s participation in tender option bond transactions may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest in TOB Trusts on either a non‑recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB Residuals.

•

Floating Rate Obligations Risk, which is the risk that unexpected changes in the interest rates on floating rate obligations could result in losses to the Fund. In addition, the secondary market on which floating rate obligations are traded may be less liquid than the market for investment grade securities or other types of income-producing securities, which may have an adverse impact on their market price. There is also a potential that there will be no active market to trade floating rate obligations, that there may be restrictions on their transfer, or that they may have delayed settlement periods. As a result, the Fund may be unable to sell such instruments at the desired time or may be able to sell only at a price less than fair market value. The price of inverse floating rate obligations (inverse floaters) is expected to decline when interest rates rise, and generally will be more volatile and decline further than the price of a bond with a similar maturity. These risks can be particularly high if leverage is used in the formula that determines the interest payable by the inverse floater, which may make the


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Fund’s returns more volatile and increase the risk of loss. Additionally, these securities may lose some or all of their principal and, in some cases, the Fund could lose money in excess of its investment.

Inflation-Linked Fixed Income Fund

Investment objective

Total return that exceeds the rate of inflation over an economic cycle.

Principal investment strategies

Under normal market conditions, the Fund will invest at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in fixed income securities. The Fund seeks to allocate assets among investments to achieve the highest level of real return (total return less the rate of inflation). The Fund will shift its investments among the following general asset classes: inflation-indexed securities issued by governments, corporations, and municipal issuers; investment grade fixed income securities and high-yield fixed income securities (i.e., junk bonds) issued by governments, corporations, and municipal issuers; and short-term non‑dollar denominated debt securities. The Fund may also, to a lesser extent, invest in equity securities with high correlation to broad measures of inflation.

The Fund invests primarily in investment grade debt securities; however, the Fund may invest up to 20% of its total assets in below investment grade debt securities (i.e., junk bonds), as rated by Moody’s, S&P or Fitch or, if unrated, determined by the Sub‑adviser (as defined below) to be of comparable credit quality to such a rating. The Fund may also invest up to 30% of its total assets in foreign currency denominated securities, including emerging market securities. For purposes of pursuing its investment goal, the Fund may enter into currency-related transactions involving certain derivative instruments, including currency and cross currency forward contracts. The use of derivative currency transactions may allow the Fund to reduce a specific risk exposure of a portfolio security or its denominated currency or to obtain net long exposure to selected currencies. Under normal market conditions, the Fund will seek to limit its foreign currency exposure to 20% of its total assets.

Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis and may engage in short sales. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The Fund may also invest up to 10% of its total assets in preferred stocks.

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.

How the Sub‑adviser selects the Fund’s investments

Pacific Investment Management Company LLC (“PIMCO”) employs a total return approach that focuses on maximum real return, consistent with preservation of capital and prudent investment management. PIMCO manages real return investments by focusing on both macro inflation outlook and bottom‑up research capabilities as key determinants of value in fixed income markets, limiting volatility with respect to the benchmark index.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


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may impact markets adversely and cause market volatility in both the short- and long-term. Recent examples include pandemic risks related to a coronavirus (COVID‑19) and aggressive measures taken worldwide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff.

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Derivatives Risk, the risk of investing in derivative instruments (such as forwards, futures, options, swaps and structured securities), include liquidity, interest rate, market, and credit risks, each of which is described herein. Derivative instruments also may be difficult to accurately price due to their complexity, particularly derivative instruments that are traded off an exchange (also known as “over the counter”). Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Fund could lose more than the initial amount invested. The Fund’s use of derivatives may result in losses to the Fund, a reduction in the Fund’s returns and/or increased volatility. Over‑the‑counter derivatives are also subject to the risk that the other party in the transaction will not fulfill its contractual obligations. For derivatives traded on exchanges, the primary credit risk is the creditworthiness of the Fund’s clearing broker or the exchange itself.

•

or unavailability. Questions around liquidity impacted by these rates, and how to appropriately adjust these rates at the time of transition, remain a concern for the Fund. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.

•

Foreign (Non‑U.S.) Investment Risk, the risk that investing in foreign securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

•

Emerging Markets Risk, the risk of investing in emerging market securities, primarily increased foreign investment risk.

•


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not been leveraged. This means that leverage entails a heightened risk of loss.

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Ultra-Short Term Fixed Income Fund

Investment objective

Total return, consistent with preservation of capital.

Principal investment strategies

Under normal market conditions, the Fund invests primarily in investment-grade securities and will seek to maintain an average portfolio duration of two years or less. The Fund seeks to outperform the FTSE 3‑Month U.S. Treasury Bill Index over a full market cycle, while maintaining overall risk similar to the index. The Fund will invest in government and corporate debt securities, mortgage- and asset-backed securities, money market instruments, collateralized loan obligations (“CLOs”), and derivatives, including futures contracts, forward contracts (such as currency and cross-currency forwards), options and swaps (such as interest rate swaps and credit default swaps). The Fund may invest up to 20% of net assets in securities rated below investment grade. It may also 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. Under normal market conditions, the Fund will seek to limit its foreign currency exposure to 20% of its total assets. The Fund may also lend portfolio securities to earn additional income. Any income realized through securities lending may help fund performance.

The Fund may invest up to 20% of its total assets in non‑investment grade securities (sometimes called “high yield securities” or “junk bonds”) rated CCC- or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by the Sub‑adviser (as defined below) to be of comparable credit quality.

The Fund’s average portfolio duration, as calculated by the Sub‑adviser is normally less than two years. Duration is an approximate measure of the sensitivity of the market value of the Fund’s holdings to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. In addition, the dollar-weighted average portfolio maturity of the Fund, under normal circumstances, is expected not to exceed three years. Maturity means the date on which the principal amount of a debt security is due and payable. Individual investments may be of any maturity.

The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis and may engage in short sales. The Fund may seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sales contracts or by using other investment techniques (such as buy‑backs or dollar rolls).

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.

How the Sub‑adviser selects the Fund’s investments

Pacific Investment Management Company LLC (“PIMCO”) employs a total return approach that seeks maximum current income, consistent with preservation of capital and daily liquidity. PIMCO manages short-term return investments by focusing on ultra-short, high quality fixed income securities, offering higher potential than traditional cash investments, with modest additional risk.

Principal risks

Loss of money is a risk of investing in the Fund.

The Fund’s principal risks include:

•


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pandemic risks related to a coronavirus (COVID‑19) and aggressive measures taken worldwide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff.

•

Derivatives Risk, the risk of investing in derivative instruments (such as forwards, futures, options, swaps and structured securities), include liquidity, interest rate, market, and credit risks, each of which is described herein. Derivative instruments also may be difficult to accurately price due to their complexity, particularly derivative instruments that are traded off an exchange (also known as “over the counter”). Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Fund could lose more than the initial amount invested. The Fund’s use of derivatives may result in losses to the Fund, a reduction in the Fund’s returns and/or increased volatility. Over‑the‑counter derivatives are also subject to the risk that the other party in the transaction will not fulfill its contractual obligations. For derivatives traded on exchanges, the primary credit risk is the creditworthiness of the Fund’s clearing broker or the exchange itself.

•

LIBOR Transition Risk refers to the fact that the elimination of the London Inter-Bank Offered Rate (“LIBOR”) rate may adversely affect the interest rates on, and value of, certain Fund investments that are tied to LIBOR. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, ceased publishing all LIBOR settings on a representative basis after June 30, 2023. Some LIBOR rates continued to be published, but only on a temporary, synthetic, and non‑representative basis. These temporary, synthetic LIBOR rates were discontinued in September 2024. Alternatives to LIBOR are established or in development in most major currencies, including the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or provide the same value or economic equivalence as LIBOR or that it will have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability. Questions around liquidity impacted by these rates, and how to appropriately adjust these rates at

the time of transition, remain a concern for the Fund. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.

•

Equity risk, the risk that the value of equity securities, such as common stocks and preferred stocks, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.

•

U.S. Government Securities Risk, it means that U.S. Government securities are obligations of, or guaranteed by, the U.S. Government, its agencies or government-sponsored entities. U.S. Government securities include issues by non‑governmental entities (such as financial institutions) that carry direct guarantees from U.S. Government agencies as part of government initiatives in response to a market crisis or otherwise. Although the U.S. Government guarantees principal and interest payments on securities issued by the U.S. Government and some of its agencies, such as securities issued by the Government National Mortgage Association, this guarantee does not apply to losses resulting from declines in the market value of these securities. U.S. Government securities include zero coupon securities that make payments of interest and principal only upon maturity, which tend to be subject to greater volatility than interest bearing securities with comparable maturities. Some of the U.S. Government securities that a Fund may hold are not guaranteed or backed by the full faith and credit of the U.S. Government, such as those issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The maximum potential liability of the issuers of some U.S. Government securities may greatly exceed their current resources, including any legal right to support from the U.S. Government. Although U.S. Government securities are considered to be among the safest investments, they are still subject to the credit risk of the U.S. Government and are not guaranteed against price movements due to changing interest rates.

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Foreign (Non‑U.S.) Investment Risk, the risk that investing in foreign securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests


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exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.

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Collateralized Loan Obligations Risk, collateralized loan obligations (“CLOs”) are a type of asset-backed security that is typically structured as a trust collateralized by a pool of loans. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the instrument in which the Fund invests. In addition to the normal risks associated with fixed income securities, CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the Fund may invest in CLOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Alternative Strategies Fund

Investment objective

Long term growth of capital.

Principal investment strategies

Under normal market conditions, the Fund seeks to generate long term growth across market cycles with reduced correlation to the equity and fixed income markets. The Fund seeks to achieve its investment objective by allocating its assets among shares of mutual funds, exchange-traded funds or closed‑end funds managed by third-party professional money managers (“Underlying Funds”). The Adviser determines which Underlying Funds in which to invest the Fund’s assets through

a diligence process that is designed to identify the most appropriate Underlying Funds under the circumstances. The Adviser then uses a risk-budgeting technique to allocate the Fund’s assets among the identified Underlying Funds, based on the investment exposure that each Underlying Fund represents and the Adviser’s views on various sectors, industries and investment strategies. The Adviser then monitors the Fund’s investments in Underlying Funds on an ongoing basis to determine whether the Fund’s assets should be reallocated among the existing Underlying Funds, whether the Fund should invest in a new Underlying Fund and/or whether the Fund should sell out of its position in an Underlying Fund. As a result of this process, no single Underlying Fund should contribute excessively to the risk of the Fund’s overall portfolio.

The Underlying Funds may apply a variety of alternative investment strategies, but will typically apply one or more of four main investment strategies, including:

1. Real Assets: Real assets strategies may include investments in (i) US or international real estate and securities of companies tied to the real estate industry; (ii) interests in natural resources and commodities; (iii) master limited partnerships; and (iv) infrastructure or utilities.

2. Equity Trading: Equity-based strategies encompass a wide range of investment programs, including (i) directional or tactical strategies, such as long/short (strategies that seek to profit from both increases and decreases in security prices) and global tactical asset allocation; (ii) relative value (strategies that seek to profit from price differences between related assets); and (iii) event driven strategies (such as distressed securities, special situations and merger arbitrage).

3. Absolute Return: Absolute return strategies seek to generate absolute returns independent of market conditions, while minimizing volatility by combining strategies with different volatility patterns. Absolute return strategies may include (i) long/short credit allocation; (ii) arbitrage strategies, such as fixed income or interest rate arbitrage, convertible arbitrage, and equity market neutral arbitrage; and (iii) unconstrained bond strategies.

4. Equity Hedged Strategies: Equity hedged strategies take long and short positions in equities (and related instruments) believed to be under- and overvalued, respectively. Short positions may also be used solely to hedge broad market exposure. Equity hedged strategies may include (i) managed futures; (ii) global macro; and (iii) multi-strategy funds.

The Underlying Funds’ investment strategies may rely in part on derivative investments, such as futures, forwards, swaps,


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swaptions, and options, to implement their investment strategies, to generate positive returns, for hedging or risk management purposes, to limit volatility and to provide exposure to an instrument without directly purchasing it. The Underlying Funds’ investments may also include exposure to companies located both in the U.S. and in foreign countries, including companies located in emerging market countries. The Underlying Funds may invest in securities and other investments of all capitalization sizes, including securities and other investment that have exposure to small- and mid‑capitalization issues. The Underlying Funds may also invest in investment grade fixed income securities of any maturity or duration.

The Fund may, in the future, allocate all or a portion of its assets directly to professional money managers (each, a “Sub‑adviser,” collectively, the “Sub‑advisers”), each of which would be responsible for investing its portion of the Fund’s assets. Currently, the Fund does not use any Sub‑Advisers.

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.

Due to its investment strategy, the Fund may buy and sell securities and other instruments frequently.

Principal risks

Loss of money is a risk of investing in the Fund.

•

Absolute Return Investing Risk, which refers to the risk that the Fund’s investment returns may converge with the investment returns of equity or fixed income markets during a period of declining stock prices, thereby eliminating the diversification benefit that an Underlying Fund expects from the strategies. During these times, the strategies’ correlations could increase, which in turn could increase the Fund’s overall volatility.

•

Active Management Risk, due to the active management investment strategies used by the Fund, the Fund could underperform its benchmark index and/or other funds with similar investment objectives and/or strategies.

•

Arbitrage Strategies Risk, which involves engaging in transactions that attempt to exploit price differences of identical, related or similar securities on different markets or in different forms. The Fund may realize losses or reduced rate of return if underlying relationships among securities in which it takes investment positions change in an adverse manner or if a transaction is unexpectedly terminated or delayed. Trading to seek short-term capital appreciation can be expected to cause the Fund’s portfolio turnover rate to be substantially higher than that of the average equity-oriented investment company.

•

Allocation Risk, which refers to the risk that the Adviser’s judgment about, and allocations among, strategies may adversely affect the Fund’s performance.

•

Closed‑End Fund Risk, which means that since closed‑end funds issue a fixed number of shares they typically trade on a stock exchange or over‑the‑counter at a premium or discount to their net asset value per share. The Fund will also bear its pro rata portion of any costs of a closed‑end fund in which it invests.

•

Credit and Junk Bond Risk, which means the credit quality of an investment could cause an Underlying Fund to lose money. Non‑investment grade securities (sometimes called “high yield securities” or “junk bonds”) involve greater risks of default or downgrade, are more volatile and may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity, which could substantially adversely affect the market value of the securities.

•


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transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.

•

Investment Company and Exchange-Traded Funds (ETFs) Risk, which is when the Fund invests in an investment company, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the investment company’s expenses. In addition,

while the risks of owning shares of an investment company generally reflect the risks of owning the underlying investments of the investment company, the Fund may be subject to additional or different risks than if the Fund had invested directly in the underlying investments. For example, the lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio securities. Closed‑end investment companies issue a fixed number of shares that trade on a stock exchange or over‑the‑counter at a premium or a discount to their net asset value. As a result, a closed‑end fund’s share price fluctuates based on what another investor is willing to pay rather than on the market value of the securities in the fund.

•

Manager Risk, which is the risk that poor security selection by the Investment Adviser will cause the Fund to underperform. This risk is common for all actively managed funds.

•

Market Risk, which is the risk that the Fund will be affected by broad changes in the fixed income markets. The prices of the Fund’s fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund’s fixed income securities will decrease in value if interest rates rise and vice versa. Declines in dealer market-making capacity as a result of structural or regulatory changes could decrease liquidity and/or increase volatility in the fixed income markets. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. In response to these events, the Fund’s value may fluctuate and/or the Fund may experience increased redemptions from shareholders, which may impact the Fund’s liquidity or force the Fund to sell securities into a declining or illiquid market. Similarly, Environmental and public health risks, such as natural disasters, epidemics, pandemics or widespread fear that such events may occur, may impact markets adversely


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•

MLP Risk, which is the risk that, to the extent that an MLP’s interests are all in a particular industry, the MLP will be negatively impacted by economic events adversely impacting that industry. Additional risks of investing in an MLP also include those involved in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded to investors in an MLP than investors in a corporation; for example, investors in MLPs may have limited voting rights or be liable under certain circumstances for amounts greater than the amount of their investment. In addition, MLPs may be subject to state taxation in certain jurisdictions which will have the effect of reducing the amount of income paid by the MLP to its investors.

•

Portfolio Turnover Risk, due to its investment strategy, the Fund may buy and sell securities frequently. This may result in higher transaction costs and additional capital gains tax liabilities.

•

Small and Medium Capitalization Company Risk, which is the risk that small and medium capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, small and medium capitalization companies may have limited product lines, markets and financial resources and may depend upon a relatively small management group. Therefore, small capitalization and medium capitalization stocks may be more volatile than those of larger companies. Small capitalization and medium capitalization stocks may be traded over‑the‑counter or listed on an exchange.


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About the Funds

Consulting Group Advisory Services LLC (“CGAS” or the “Manager”), a business of Morgan Stanley Wealth Management (“MSWM”), serves as the investment adviser for each series of the Morgan Stanley Pathway Funds (the “Trust,” and each series, a “Fund,” and collectively, the “Funds”). The Funds share a “multi-manager” strategy. Other than with respect to the Alternative Strategies Fund, the Manager selects and oversees professional money managers (each a “Sub‑adviser,” and collectively, the “Sub‑advisers”) who are responsible for investing the assets of the Funds.

The investments and strategies described in this Prospectus are those that CGAS and the Sub‑advisers use under normal conditions. During unusual economic or market conditions or for temporary defensive or liquidity purposes, each Fund may invest up to 100% of its assets in cash, money market instruments and other short-term obligations that would not ordinarily be consistent with a Fund’s objectives. A Fund will do so only if CGAS or the Sub‑advisers believe that the risk of loss outweighs the opportunity for capital gains or higher income. There is no guarantee that any Fund will achieve its investment objective. Unless otherwise explicitly stated herein, or in the Statement of Additional Information (“SAI”), the investment policies and restrictions of the Funds are not fundamental and may be changed by the Board of Trustees of the Trust (“Board”), upon 60 days’ written notice to shareholders and without shareholder approval.

Currently the Alternative Strategies Fund gets its investment exposure through investments in non‑affiliated mutual funds, exchange traded funds or closed end funds (“Underlying Funds”), as determined by CGAS. Over time and depending on the particular facts and circumstances, CGAS may hire sub‑advisers to directly manage a portion of the Alternative Strategies Fund’s assets and may eventually move the entire Alternative Strategies Fund’s portfolio to a manager‑of‑managers model, consistent with other funds within the Trust.

The multi-manager strategy

Subject to Board review and approval, and in reliance on an exemptive order obtained from the SEC, the Manager selects and oversees professional money managers (the Sub‑advisers) who are responsible for investing the assets of the Funds. The exemptive order permits CGAS, with the approval of the Board, to retain unaffiliated sub‑advisers for a Fund without submitting the sub‑advisory agreements to a vote of the Fund’s shareholders. Among other things, the exemptive order permits the non‑disclosure of amounts payable by CGAS to individual unaffiliated sub‑advisers under such sub‑advisory agreements.

The Sub‑advisers are selected based primarily upon the research and recommendation of the Manager, which includes a quantitative and qualitative evaluation of a Sub‑adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies. The Manager allocates and, when appropriate, reallocates the Fund’s assets among the Sub‑advisers, continuously monitors and evaluates Sub‑adviser performance (including trade execution), performs

other due diligence functions (such as an assessment of changes in personnel or other developments at the Sub‑advisers), and oversees Sub‑adviser compliance with the Fund’s investment objectives, policies and guidelines. The Manager also monitors changes in market conditions and considers whether changes in the allocation of Fund assets or the lineup of Sub‑advisers should be made in response to such changes in market conditions. Sub‑advisers may also periodically recommend changes or enhancements to the Fund’s investment objectives, policies and guidelines, which are subject to the approval of the Manager and may also be subject to the approval of the Board.

The Manager screens a universe of registered investment advisory firms and tracks the performance of these advisory firms. The Manager continually evaluates the strength and performance of these firms, focusing on a number of key issues, which may include:

•

level of expertise

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relative performance and consistency of performance

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strict adherence to investment discipline or philosophy

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personnel, facility and financial strength

•

quality of service and communication

The Manager employs a rigorous evaluation process to select Sub‑advisers that have distinguished themselves through consistent and superior performance. The Manager recommends the portion of assets of each Fund to be managed by each Sub‑adviser and may adjust each allocation by up to 10% without Board approval under normal circumstances. During unusual economic or market conditions or in response to developments at one or more Sub‑advisers, the Manager may adjust allocations without limitation.

Many of the Funds feature multiple Sub‑advisers chosen to complement each other’s specific style of investing.

About the Morgan Stanley-sponsored investment advisory programs

Shares of the Funds, except the Morgan Stanley Pathway Large Cap Equity ETF and Morgan Stanley Pathway Small‑Mid Cap Equity ETF, are only available to participants in certain investment advisory programs sponsored by Morgan Stanley. The services offered through these programs may provide investors with asset allocation recommendations, which are implemented through the Funds.

These services generally include:

•

evaluating the investor’s investment objectives and time horizon

•

analyzing the investor’s risk tolerance

•

recommending an allocation of assets among the Funds in the Trust

•

providing monitoring reports containing an analysis and evaluation of an investor’s account and recommending any changes

While an investment advisory program makes recommendations, the ultimate investment decision is typically up to the investor and not the provider of the investment advisory program. Under an investment advisory program, an


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Fund Management

The Manager’s address is 2000 Westchester Avenue, Purchase, NY 10577. CGAS was formed as a Delaware corporation on September 21, 2005 and was reorganized as a Delaware limited liability company in May 2009. Morgan Stanley Smith Barney LLC, which serves as the distributor to the International Equity Fund, Emerging Markets Equity Fund, Core Fixed Income Fund, High Yield Fund, International Fixed Income Fund, Municipal Bond Fund, Inflation-Linked Fixed Income Fund, Ultra-Short Term Fixed Income Fund, and Alternative Strategies Fund, is an affiliate of the Manager. The Manager was established to match the investment needs of institutional investors and substantial individual investors with appropriate and well qualified investment advisers.

Subject to the review and approval of the Board, and in reliance on an exemptive order obtained from the SEC, the Manager is responsible for selecting, supervising, monitoring and evaluating the Sub‑advisers. The Manager may adjust the allocation of a Fund’s assets among Sub‑advisers by up to 10%. Only the Board can make any adjustment affecting more than 10% of a Fund’s assets. The Manager also is responsible for recommending to the Board whether a Sub‑adviser should be replaced. The Funds rely upon an exemptive order from the SEC that permits the Manager to select new Sub‑advisers or replace existing Sub‑advisers without first obtaining shareholder approval. One of the conditions of the exemptive order is that the Board, including a majority of the

“non‑interested” Trustees, must approve each new Sub‑adviser. In accordance with the exemptive order, the Funds will provide investors with information about each new Sub‑adviser within 90 days of the hiring of any new Sub‑adviser. The exemptive order also permits the non‑disclosure of amounts payable by CGAS to each individual Sub‑adviser.

A discussion regarding the Board’s basis for approving the investment advisory and sub‑advisory agreements is available in the Trust’s Form N‑CSR filing with the SEC, which covers the fiscal year ended August 31, 2025. For Sub‑advisers approved after August 31, 2025, a discussion of the Board’s basis for approval of such agreement(s) will be in the Trust’s Form N‑CSRS filing with the SEC, which will cover the six‑month period ending February 28, 2026.

The Sub‑advisers. The Sub‑advisers are responsible for the day‑to‑day investment management of the Funds. The names and addresses of the Sub‑advisers, the percentage of Fund assets each Sub‑adviser manages and certain information about the Fund manager or portfolio management team for each Fund are set forth below. The Fund’s SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in each Fund.


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Morgan Stanley Pathway Large Cap Equity ETF	BlackRock Financial Management, Inc. (“BlackRock”) Park Avenue Plaza 55 East 52^nd St. New York, NY 10055	63%	Jennifer Hsui, CFA^® Managing Director, Global Head of Index Equity (2006-present). Mrs. Hsui is the Chief Investment Officer for Global Portfolio Management within BlackRock’s EII business. She is responsible for setting direction, establishing policy, and guiding investment decisions across Index Equity products.	2018

			Peter Sietsema, CFA^® Director and Senior Portfolio Manager Mr. Sietsema is the Head of Sub‑Advised, US Institutional, and Canada/LatAm ETF Portfolio Management within BlackRock’s EII business. Mr. Sietsema’s service with the firm dates back to 2007.	2022

			Matt Waldron, CFA^® Managing Director Mr. Waldron is US Head of International Portfolio Management within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for the management of ETFs, sub‑advised, and Institutional pooled & separate accounts that are predominantly invested in developed and emerging markets. Mr. Waldron’s service with the firm dates back to 2003. Prior to his current role, Mr. Waldron was a portfolio manager in Blackrock’s Multi Asset Client Solutions Group (BMACS), where he was responsible for the management of asset allocation portfolios for Institutional and HNW clients.	2025


88		MORGAN STANLEY \| 2026


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Morgan Stanley Pathway Large Cap Equity ETF (continued)			Steven White Director Mr. White is Head of the Active Risk Index ETF team in the Americas, and co‑CIO for Index Equity Investments within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for all complex, alternatively-weighted equity index ETFs. As co‑CIO, he is responsible for leading efforts to drive scaled investment decisions across the global index equity book, resulting in consistent, risk managed investment outcomes for clients. He leads oversight of investment risk, performance oversight and equity index provider engagement. Steven is a member of the Index Equity Leadership Team. Steven’s service with the firm began in 2011.	2025

	ClearBridge Investments, LLC (“ClearBridge”) One Madison Avenue New York, New York 10010	8%	Erica Furfaro Director and Portfolio Manager (2019-Present) Ms. Furfaro has 20 years of investment industry experience. Erica Furfaro joined the firm in 2019.	2024

			Margaret Vitrano Managing Director and Portfolio Manager (1997-Present). Ms. Vitrano has 28 years of investment industry experience. Margaret Vitrano joined the firm in 1997.	2017

	Great Lakes Advisors, LLC (“Great Lakes”) 231 S. Lasalle Street, 4^th Floor Chicago, IL 60604	17%	Paul Roukis, CFA^® Portfolio Manager and Managing Director Paul is a Portfolio Manager on the Great Lakes Advisors Fundamental Equity Large Cap team. Paul joined the firm in 2005 and has been in the industry since 1992. Previously, he served as a Portfolio Manager on the Large Cap team at Rothschild & Co Asset Management US (acquired by Great Lakes Advisors in 2023). Paul was also a Research Analyst for over 12 years with Sidoti & Company, Schroders, NatWest Securities, and Value Line. Paul is a CFA^® charter holder.	2023

			Jeff Agne, Portfolio Manager and Managing Director Jeff is a Portfolio Manager on the Great Lakes Advisors Fundamental Equity Large Cap team. Jeff joined the firm in 2015 and has been in the industry since 2001. Previously, he served as a portfolio manager on the Large Cap strategies at Rothschild & Co Asset Management US (acquired by Great Lakes Advisors in 2023). Prior to that Jeff worked as a co‑portfolio manager for the Global Focus strategy at PineBridge Investments. He was also an Equity Research Analyst at Banc of America Securities and Schwab Soundview Capital Markets, and a Consultant for FactSet Research Systems.	2023


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Morgan Stanley Pathway Large Cap Equity ETF (continued)	Principal Asset Management (“Principal”) 801 Grand Avenue, Des Moines, Iowa 50392	12%	Bill Nolin, CFA^® - CIO, Portfolio Manager Bill is the chief investment officer for Principal Aligned. He has served as lead portfolio manager of the MidCap strategy since 1999. Bill and his dedicated investment team subsequently introduced the Aligned Blue Chip strategy in 2012, utilizing the same philosophy and process while extending the team’s reach to larger companies. Bill joined Principal in 1993 in corporate credit research and transitioned to equities research in 1996. He earned his MBA from the Yale School of Management, and a bachelor’s degree in finance from the University of Iowa. Bill is a CFA^® charterholder and a member for the CFA^® Institute.	2023

			Tom Rozycki, CFA^® - Director of Research, Portfolio Manager Tom is the director of research for Principal Aligned. He is responsible for coordinating the research effort at Principal Aligned and also serves as portfolio manager for the team’s strategies. Tom joined the firm in 2001. He received his bachelor’s degree in finance from Drake University. Tom is a CFA^® charterholder and a member for the CFA^® Institute.	2023

Morgan Stanley Pathway Small‑Mid Cap Equity ETF	AllianceBernstein L.P. (“AllianceBernstein”) 501 Commerce Street Nashville, TN 37203	20%	James W. MacGregor, CFA^® - Chief Investment Officer James MacGregor is the Chief Investment Officer for the U.S. Small & Mid‑Cap Value Equities team at AllianceBernstein, and has served in this role since 2009. He previously held the roles of the Director of Research of Small & Mid‑Cap Value Equities and as the Chief Investment Officer for the Canadian Value Equities team at AllianceBernstein. He earned a bachelor’s degree in economics from McGill University, a master’s degree in economics from the London School of Economics and Political Science, and a master’s degree of business administration with an emphasis in analytic finance from the University of Chicago. Mr. MacGregor is a Chartered Financial Analyst^® (CFA^®) charterholder.	2024

			Erik Turenchalk, CFA^® - Portfolio Manager Erik Turenchalk is a portfolio manager for the U.S. Small & Mid‑Cap Value Equities team at AllianceBernstein, and has served in that role since 2020. He previously held the roles of Research Analyst and Senior Research Analyst at AllianceBernstein. He earned a bachelor’s degree in business administration from the University of Connecticut. Mr. Turenchalk is a Chartered Financial Analyst^® (CFA^®) charterholder.	2024

	BlackRock Financial Management, Inc. (“BlackRock”) Park Avenue Plaza 55 East 52^nd St. New York, NY 10055	40%	Jennifer Hsui, CFA^® Managing Director, Global Head of Index Equity (2006-present). Mrs. Hsui is the Chief Investment Officer for Global Portfolio Management within BlackRock’s EII business. She is responsible for setting direction, establishing policy, and guiding investment decisions across Index Equity products.	2018


90		MORGAN STANLEY \| 2026


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Morgan Stanley Pathway Small‑Mid Cap Equity ETF (continued)			Peter Sietsema, CFA^® Director and Senior Portfolio Manager Mr. Sietsema is the Head of Sub‑Advised, US Institutional, and Canada/LatAm ETF Portfolio Management within BlackRock’s EII business. Mr. Sietsema’s service with the firm dates back to 2007.	2022

			Matt Waldron, CFA^® Managing Director Mr. Waldron is US Head of International Portfolio Management within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for the management of ETFs, sub‑advised, and Institutional pooled & separate accounts that are predominantly invested in developed and emerging markets. Mr. Waldron’s service with the firm dates back to 2003. Prior to his current role, Mr. Waldron was a portfolio manager in Blackrock’s Multi Asset Client Solutions Group (BMACS), where he was responsible for the management of asset allocation portfolios for Institutional and HNW clients.	2025

			Steven White Director Mr. White is Head of the Active Risk Index ETF team in the Americas, and co‑CIO for Index Equity Investments within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for all complex, alternatively-weighted equity index ETFs. As co‑CIO, he is responsible for leading efforts to drive scaled investment decisions across the global index equity book, resulting in consistent, risk managed investment outcomes for clients. He leads oversight of investment risk, performance oversight and equity index provider engagement. Steven is a member of the Index Equity Leadership Team.	2025

	Neuberger Berman Investment Advisers LLC (“Neuberger”) 1290 Avenue of the Americas New York, NY 10104	17%	Benjamin H. Nahum Managing Director Mr. Nahum is the portfolio manager for the fund. Mr. Nahum launched the fund’s strategy in 1997 and has been the Portfolio Manager for the strategy since its inception.	2016

	Westfield Capital Management Company, L.P. (“Westfield”) One Financial Center 23^rd Floor Boston, MA 02111	23%	William A. Muggia President, CEO and CIO William A. Muggia is President, Chief Executive Officer and Chief Investment Officer of Westfield. He provides market outlook and strategy. Mr. Muggia has been at Westfield since 1994 and has managed the Fund since 2004.	2004

			Richard D. Lee, CFA^® Managing Partner and CIO Richard D. Lee is a Managing Partner and Chief Investment Officer of Westfield. He covers Hardware, Semiconductors and IT Services. Mr. Lee has been at Westfield since 2004 and has managed the Fund since 2004.	2004


MORGAN STANLEY \| 2026		91


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Morgan Stanley Pathway Small‑Mid Cap Equity ETF (continued)			Matthew R. Renna Managing Partner Matthew R. Renna is a Managing Partner and covers Biopharma, and Life Sciences and Tools. Mr. Renna has been at Westfield since 2013 and has managed the Fund since 2025.	2025

			Edward D. Richardson Partner Edward D. Richardson is a Partner and covers A&D, Consumer Cyclicals, and Restaurants. Mr. Richardson has been at Westfield since 2014 and has managed the Fund since 2025.	2025

International Equity Fund	BlackRock Financial Management, Inc. (“BlackRock”) Park Avenue Plaza 55 East 52^nd St. New York, NY 10055	35%	Jennifer Hsui, CFA^® Managing Director and Global Head of Index Equity (2006-present). Mrs. Hsui is the Chief Investment Officer for Global Portfolio Management within BlackRock’s EII business. She is responsible for setting direction, establishing policy, and guiding investment decisions across Index Equity products.	2018

			Peter Sietsema, CFA^® Director and Senior Portfolio Manager Mr. Sietsema is the Head of Sub‑Advised, US Institutional, and Canada/LatAm ETF Portfolio Management within BlackRock’s EII business. Mr. Sietsema’s service with the firm dates back to 2007.	2022

			Matt Waldron, CFA^® Managing Director Mr. Waldron is US Head of International Portfolio Management within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for the management of ETFs, sub‑advised, and Institutional pooled & separate accounts that are predominantly invested in developed and emerging markets. Mr. Waldron’s service with the firm dates back to 2003. Prior to his current role, Mr. Waldron was a portfolio manager in Blackrock’s Multi Asset Client Solutions Group (BMACS), where he was responsible for the management of asset allocation portfolios for Institutional and HNW clients.	2025

			Steven White Director Mr. White is Head of the Active Risk Index ETF team in the Americas, and co‑CIO for Index Equity Investments within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for all complex, alternatively-weighted equity index ETFs. As co‑CIO, he is responsible for leading efforts to drive scaled investment decisions across the global index equity book, resulting in consistent, risk managed investment outcomes for clients. He leads oversight of investment risk, performance oversight and equity index provider engagement. Steven is a member of the Index Equity Leadership Team. Steven’s service with the firm began in 2011.	2025


92		MORGAN STANLEY \| 2026


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

International Equity Fund (continued)	Causeway Capital Management LLC (“Causeway”) 11111 Santa Monica Blvd. 15^th Floor Los Angeles, CA 90025	24%	Alessandro Valentini, CFA^® Portfolio Manager (2013-present). Mr. Valentini is a portfolio manager of Causeway and is responsible for investment research in the global health care and financials sectors. He joined the firm in July 2006 and has been a portfolio manager since April 2013.	2014

			Jonathan P. Eng Portfolio Manager (2002-present). Mr. Eng is a director of Causeway and is responsible for investment research in the global consumer discretionary, industrials and materials sectors. He joined the firm in July 2001 as a research associate and has been a portfolio manager since February 2002.	2014

			Harry W. Hartford President and Portfolio Manager (2001-present). Mr. Hartford is the president of Causeway, portfolio manager for the firm’s fundamental and absolute return strategies, and director of research. He co‑founded the firm in June 2001.	2014

			Sarah H. Ketterer Chief Executive Officer and Portfolio Manager (2001-present). Ms. Ketterer is the chief executive officer of Causeway, portfolio manager for the firm’s fundamental and absolute return strategies and is responsible for investment research across all sectors. She co‑founded the firm in June 2001.	2014

			Ellen Lee Portfolio Manager (2007-present). Ms. Lee is a director of Causeway and is responsible for investment research in the energy and global utilities sectors. Ms. Lee joined the firm in August 2007 as a research associate and has been a portfolio manager since January 2015.	2015

			Conor S. Muldoon, CFA^® Portfolio Manager (2010-present). Mr. Muldoon is a director of Causeway and is responsible for investment research in the global financials and materials sectors. He joined the firm in August 2003 as a research associate and has been a portfolio manager since September 2010.	2014

			Steven Nguyen Portfolio Manager (2019-present). Mr. Nguyen is a director of Causeway and is responsible for investment research in the global energy, utilities and health care sectors. He joined the firm in April 2012 as a research associate and has been a portfolio manager since January 2019.	2019


MORGAN STANLEY \| 2026		93


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

International Equity Fund (continued)			Brian Cho Portfolio Manager (2021-present) Mr. Cho is a director and fundamental portfolio manager at Causeway. He joined the firm in September 2013 and has been a portfolio manager since January 2021. His current responsibilities include coverage of companies in the technology and communication services sectors.	2021

	Schroder Investment Management North America Inc. (“Schroders”) 7 Bryant Park New York, NY 10018	16%	James Gautrey, CFA^® Portfolio Manager (2001-present). Mr. Gautrey became a portfolio manager for International Equities at Schroders in 2014. He began his career in 2001 with Schroders.	2014

			Simon Webber, CFA^® Portfolio Manager (1999-present). Mr. Webber has been a portfolio manager of the fund since 2011. He joined Schroders as a research analyst in 1999.	2011

	Victory Capital Management, Inc. (“Victory Capital”) 15935 La Cantera Parkway San Antonio, TX 78256	8%	Daniel B. LeVan, CFA^® Chief Investment Officer of Trivalent Investments, a Victory Capital investment franchise Chief Investment Officer of Trivalent Investments, a Victory Capital investment franchise, has been with Victory Capital since 2014. From 2007-2014, Mr. LeVan was a Senior Portfolio Manager of Munder Capital Management, which was acquired by Victory Capital in 2014.	2017

			John W. Evers, CFA^® Senior Portfolio Manager Senior Portfolio Manager, has been with Victory Capital’s Trivalent Investments since 2014. From 2007-2014, Mr. Evers was a Senior Portfolio Manager of Munder Capital Management, which was acquired by Victory Capital in 2014.	2017

	Walter Scott & Partners Limited (“Walter Scott”) One Charlotte Square, Edinburg, EH2 4DR, Scotland	17%	Jane Henderson Managing Director Jane is Managing Director of Walter Scott. Having joined the firm in 1995 as an investment analyst, she has held a range of investment, management, client service and governance responsibilities and was instrumental in the development of the firm’s US investment strategy. Jane co‑chaired Walter Scott’s Investment Management Group before becoming Managing Director in 2010. She holds a BSc (Hons) in Marine and Environmental Biology from the University of St Andrews.	2021


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

International Equity Fund (continued)			Roy Leckie Executive Director – Investment & Client Service Roy is Executive Director, Investment & Client Service at Walter Scott. Since joining the firm in 1995, he has held a range of investment, management, client service and governance responsibilities. Roy was integral to the development of the firm’s emerging market capabilities, and he has played a central role in the stewardship of Walter Scott’s global and international strategies since 2007. Roy joined the firm’s Board in 2008 and is Co‑Chair of the Investment Management Committee. He holds a BSc (Hons) in Statistics from the University of Glasgow.	2021

			Maxim Skorniakov Investment Manager Maxim is an Investment Manager at Walter Scott, who joined the firm in 2003. He holds an MA in Economics from the University of Colorado and an MS in Investment Analysis from the University of Stirling. Maxim is a CFA^® charterholder. He joined the Investment Executive (IE) in 2022.	2022

			Fraser Fox Investment Manager Fraser is an Investment Manager at Walter Scott, who joined the firm in 2003. He has experience across each of the three regional research teams, and he joined the Investment Executive (IE) in 2022. Fraser holds a first class LLB (Hons) in Law from the University of Edinburgh and is a CFA^® charterholder.	2022

Emerging Markets Equity Fund	BlackRock Financial Management, Inc. (“BlackRock”) Park Avenue Plaza 55 East 52^nd St. New York, NY 10055	35%	Jennifer Hsui, CFA^® Managing Director and Global Head of Index Equity (2006-present). Mrs. Hsui is the Chief Investment Officer for Global Portfolio Management within BlackRock’s EII business. She is responsible for setting direction, establishing policy, and guiding investment decisions across Index Equity products.	2018

			Peter Sietsema, CFA^® Director and Senior Portfolio Manager Mr. Sietsema is the Head of Sub‑Advised, US Institutional, and Canada/LatAm ETF Portfolio Management within BlackRock’s EII business. Mr. Sietsema’s service with the firm dates back to 2007.	2022


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Emerging Markets Equity Fund (continued)			Matt Waldron, CFA^® Managing Director Mr. Waldron is US Head of International Portfolio Management within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for the management of ETFs, sub‑advised, and Institutional pooled & separate accounts that are predominantly invested in developed and emerging markets. Mr. Waldron’s service with the firm dates back to 2003. Prior to his current role, Mr. Waldron was a portfolio manager in Blackrock’s Multi Asset Client Solutions Group (BMACS), where he was responsible for the management of asset allocation portfolios for Institutional and HNW clients.	2025

			Steven White Director Mr. White is Head of the Active Risk Index ETF team in the Americas, and co‑CIO for Index Equity Investments within BlackRock Global Markets & Index Investments (“BGM”). He is responsible for all complex, alternatively-weighted equity index ETFs. As co‑CIO, he is responsible for leading efforts to drive scaled investment decisions across the global index equity book, resulting in consistent, risk managed investment outcomes for clients. He leads oversight of investment risk, performance oversight and equity index provider engagement. Steven is a member of the Index Equity Leadership Team. Steven’s service with the firm began in 2011.	2025

	Lazard Asset Management LLC (“Lazard”) 30 Rockefeller Plaza 57^th Floor New York, NY 10112	17.5%	Rohit Chopra, Managing Director and Portfolio Manager/Analyst (1999-present). Mr. Chopra is a Portfolio Manager/ Analyst on the Emerging Markets Equity team, focusing on consumer and telecommunications research and analysis.	2009

			James M. Donald, CFA^®, Managing Director, Portfolio Manager/Analyst and Head of Emerging Markets (1996-present). Mr. Donald is a Managing Director and Head of Emerging Markets and Portfolio Manager/Analyst on the Emerging Markets Equity team. He is also a member of the International Equity Select with Emerging Markets team.	2009

			Monika Shrestha, Managing Director and Portfolio Manager/Analyst (2003-present). Ms. Shrestha is a Portfolio Manager/ Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in the financial sector.	2015

			Ganesh Ramachandran, Managing Director and Portfolio Manager/Analyst (1997-present) Mr. Ramachandran is a Portfolio Manager/ Analyst on the Emerging Income and Emerging Markets Equity teams.	2020


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Emerging Markets Equity Fund (continued)	ClearBridge Investment Management Limited (“CIML”) (“Previously known as Martin Currie”) Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES, Scotland	30%	Alastair Reynolds, ASIP Managing Director, Portfolio Manager Alastair has been investing in equities for over 30 years. He joined the firm in 2010, when CIML expanded its commitment to the Emerging Market asset class. During his career, Alastair has managed a broad range of emerging market equity strategies, including frontier markets and small caps. Prior to joining CIML, Alastair worked at Scottish Widows Investment Partnership, Edinburgh Fund Managers and Scottish Amicable Investment Management. He is an associate of the UK Society of Investment Professionals (ASIP), the predecessor of the CFA Society of the UK.	2021

			Andrew Mathewson, CFA Managing Director, Portfolio Manager Andrew is a co‑manager of our Emerging Markets strategy. Andrew is also responsible for the overall management of our Emerging Markets team. He has had responsibility for researching stocks in the consumer and healthcare sectors since the formation of the Emerging Markets team in 2010. Prior to this, he worked in CIML’s Asia and Emerging Markets team, as an investment manager for the Emerging Markets product with a research focus on EMEA markets. Andrew joined CIML in 2005 from the Scottish Investment Trust, where he was an investment manager for UK equities. Andrew is a CFA^® charterholder. He has a BSc (Hons) in Economics from the University of St. Andrews.	2021

			Colin Dishington, CFA Managing Director, Portfolio Manager Colin is a co‑manager of our Emerging Markets strategy, with responsibility for researching stocks in the communication services sector. Before re‑joining the firm in 2018, he worked as a research analyst at Matthews Asia, an Asia-only investment specialist. Before this, Collin worked at CIML from 2010-2012, initially as Assistant Research Analyst, working on global financial stocks, before progressing to Assistant Portfolio Manager in our Japan team. Collin is a chartered accountant (CA), beginning his professional career at Chiene & Tait Chartered Accountants. He was then at Lloyds Banking Group before he first joined CIML. He is a CFA^® Charterholder and has an MA in Economics from the University of Glasgow.	2021


MORGAN STANLEY \| 2026		97


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Emerging Markets Equity Fund (continued)			Divya Mathur, ASIP Managing Director, Portfolio Manager Divya is a co‑manager of our Emerging Markets strategy, with responsibility for technology sector research. He joined the firm in 2010 from SWIP, where he was investment director on its GEMs desk. As portfolio manager, Divya was lead manager of the Global Emerging Markets Infrastructure fund and co‑manager of the balanced mandates. As sector analyst, he was responsible for stocks across the technology and utilities sectors in emerging markets. Earlier, Divya spent over a decade at Henderson Global Investors in London, where he began his career as a quantitative strategist, before managing GEM and dedicated Indian equity portfolios for eight years. Divya has an MSc in investment analysis from the University of Stirling and a BSc (Hons) in Computer Science and Accounting from the University of Manchester. He is an associate of the UK Society of Investment Professionals (ASIP), the predecessor of the CFA Society of the UK.	2021

			Paul Desoisa, CFA Managing Director, Portfolio Manager (2013-present). Mr. Desoisa is a co‑manager of our Emerging Markets strategy, with responsibility for researching stocks in the industrial, financial and utilities sectors. Mr. Desoisa joined the firm in 2013 researching technology, media and telecoms stocks in the Global team, before progressing into a portfolio management role in the North America team. He joined the Emerging Markets team as a portfolio manager in 2017. Before CIML, Mr. Desoisa worked as a trainee actuary for Punter Southall. Mr. Desoisa is a CFA^® charterholder and has a BSc (Hons) in Mathematics and Statistics from the University of York.	2021

			Paul Sloane, ASIP Managing Director, Portfolio Manager Paul is a co‑manager of our Emerging Markets strategy with responsibility for researching financials stocks. Paul first joined the firm in 2003, leading our global financials research and co-managing our Global Financials Absolute Return Fund from 2006 to 2011 and Global Alpha strategy from 2013. Paul left the firm in 2017 and re‑joined in 2018 as part of the Emerging Markets team. Prior to his time at CIML, he was at Deutsche Bank, where he was responsible for specialist sales in the pan‑European insurance sector. He started his career in 1993 as a Trainee Chartered Accountant at Standard Life before moving into an investment analyst role at Standard Life Investments in 1997. Paul is a Chartered Accountant (CA) and an associate of the UK Society of Investment Professionals (ASIP). Paul has a PGDip in Investment Analysis from the University of Stirling and a BA (Hons) Accounting from the University of Ulsher.	2021


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Emerging Markets Equity Fund (continued)			Aimee Truesdale Managing Director, Portfolio Manager Aimee joined CIML in 2021. Aimee is part of the Emerging Markets strategy team and has responsibility for researching stocks in the healthcare sector. Before joining CIML, Aimee was an assistant fund manager and equities analyst at Jupiter Asset Management, where she managed and conducted research on the firm’s Indian equities strategy. Part of her role involved collaborating with Jupiter’s Stewardship team to oversee ESG issues at investee companies. Prior to this, she worked in the Global equities and Asia equities teams at Waverton Investment Management. Before joining the investment management industry, Aimee was a nuclear physicist at AWE. Aimee is a CFA (Chartered Financial Analyst) charterholder and has a B.Sc. in Physics with honours from the University of Edinburgh. CFA^® and Chartered Financial Analyst^® are registered trademarks owned by CFA Institute.	2022

	Van Eck Associates Corporation (“VanEck”) 666 Third Avenue New York, NY 10017	17.5%	Ola El‑Shawarby‑ Portfolio Manager (2024-present) Ms. El‑Shawarby serves as Portfolio Manager and is responsible for asset allocation and stock selection in global emerging markets. Prior to that, she served as Deputy Portfolio Manager (2023) and as Senior Analyst from 2017-2023.	2023

			Angus Shillington Deputy Portfolio Manager (2014-present). Mr. Shillington is a Deputy Portfolio Manager of the strategy. Prior to that, he was a Senior Analyst at VanEck from 2009-2014.	2016

Core Fixed Income Fund	Allspring Global Investments, LLC (“Allspring (US)”) 1415 Vantage Park Dr. 3^rd Floor, Charlotte, NC 28203 Allspring Global Investments (UK) Limited (“Allspring (UK)”) 30 Cannon Street, Third Floor London, EC4M 6XH	40%	Janet Rilling, CFA^® - Senior Portfolio Manager, Team Leader (Allspring (US)) Janet Rilling is a senior portfolio manager and the head of the Plus Fixed Income team at Allspring Global Investments. In this capacity, she has oversight and portfolio management responsibilities for separate accounts, mutual funds, and commingled vehicles across a range of strategies. Janet joined Allspring from its predecessor, Wells Fargo Asset Management (WFAM). She joined WFAM from Strong Capital Management. Prior to joining WFAM, she was a high-yield and investment-grade credit research analyst and a portfolio manager. Janet began her investment industry career in 1990 as an auditor with Coopers & Lybrand, specializing in the manufacturing and financial services industries. She earned a bachelor’s degree in accounting and finance and a master’s degree in finance from the University of Wisconsin, Madison. Janet is a certified public accountant and has earned the right to use the Chartered Financial Analyst^® (CFA^®) designation.	2024


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Core Fixed Income Fund (continued)			Noah Wise, CFA^® - Senior Portfolio Manager (Allspring (US)) Noah Wise is a senior portfolio manager for the Plus Fixed Income team at Allspring Global Investments. He joined Allspring from its predecessor, Wells Fargo Asset Management (WFAM). Noah joined WFAM as a research analyst and later became a portfolio manager. Prior to joining the firm, Noah worked as a lead market maker for Interactive Brokers. Noah began his investment industry career in 2001. He earned a bachelor’s degree in finance and a master’s degree in business administration with an emphasis in securities analysis from the University of Wisconsin, Madison. Noah has earned the right to use the Chartered Financial Analyst^® (CFA^®) designation.	2024

			Christopher Kauffman, CFA^® - Senior Portfolio Manager (Allspring (US)) Christopher Kauffman is a senior portfolio manager for the Plus Fixed Income team at Allspring Global Investments. He joined Allspring from its predecessor, Wells Fargo Asset Management (WFAM). Christopher joined WFAM from Tattersall Advisory Group, where he served in a similar role. Before that, he was an investment officer for NISA Investment Advisors, where he was responsible for MBS analysis, risk assessment, and trading. He began his investment industry career in 1997. Christopher earned a bachelor’s degree in finance and economics and a master’s degree in business administration with an emphasis in finance from Washington University in St. Louis. He has earned the right to use the Chartered Financial Analyst^® (CFA^®) designation and is a member of CFA Institute.	2024

			Michal Stanczyk - Portfolio Manager (Allspring (US)) Michal Stanczyk is a portfolio manager and research analyst for the Plus Fixed Income team at Allspring Global Investments. He joined Allspring from its predecessor, Wells Fargo Asset Management (WFAM). Prior to joining WFAM, Michal worked for Wells Fargo within the Wholesale Leadership Pipeline Program. He began his investment industry career in 2006. Michal earned a bachelor’s degree in economics from Indiana Wesleyan University.	2024


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Core Fixed Income Fund (continued)			Michael Schueller, CFA^® - Senior Portfolio Manager (Allspring (US)) Michael (Mike) Schueller is a senior portfolio manager for the Plus Fixed Income team at Allspring Global Investments. He joined Allspring from its predecessor, Wells Fargo Asset Management (WFAM). He joined WFAM as a senior investment research analyst from Strong Capital Management, where he held a similar position. Mike rejoined Strong in 2000, having left the firm to start a trust department for Community Bank & Trust in Sheboygan, Wisconsin. Before that, he served as associate counsel for Strong’s legal department. Prior to this, Mike practiced law with Reinhart, Boerner, Van Deuren, Norris & Rieselbach, S.C., in Milwaukee, specializing in corporate reorganizations, mergers, and acquisitions. He began his investment industry career in 1998. Mike earned a bachelor’s degree in economics from the University of Minnesota and a law degree from the University of Wisconsin, Madison. He has earned the right to use the Chartered Financial Analyst^® (CFA^®) designation.	2024

			Sarah Harrison - Senior Portfolio Manager (Allspring (UK)) Sarah Harrison is a senior portfolio manager specializing in European high yield for the Plus Fixed Income team at Allspring Global Investments. In this capacity, she has oversight and portfolio management responsibilities for separate accounts and commingled vehicles across a range of strategies. She joined Allspring from Morgan Stanley, where she most recently was a credit portfolio manager serving as the lead on the European high yield strategies and as a co‑portfolio manager on the global high yield strategies. Before that, Sarah served as a credit analyst for the firm. She began her investment industry career in 2009. Sarah earned a bachelor’s degree in business administration from the Schulich School of Business.	2025

	BlackRock Fund Advisors (“BFA”) 400 Howard Street, San Francisco, CA 94105	30%	James Mauro, CFA^® - Managing Director, is the Head of Index Fixed Income (IFI) Portfolio Management in the Americas within the Portfolio Management Group (PMG). Mr. Mauro’s investment team is responsible for management of US based iShares and Index Funds. Other responsibilities include oversight of the index investment process, portfolio construction and risk. Prior to joining BlackRock in 2010, Mr. Mauro was Head of US‑based government and inflation strategies with State Street Global Advisors. Mr. Mauro earned a BS degree in business finance from Saint Michaels College in 1992 and an MBA from Boston University in 1997.	2024


MORGAN STANLEY \| 2026		101


FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Core Fixed Income Fund (continued)			Jonathan Graves - Managing Director, is the Deputy Head of Index Fixed Income (IFI) Portfolio Management in the Americas and is a member of the San Francisco Portfolio Management team within the BlackRock Global Markets & Index Investments group. Mr. Graves’ team is responsible for managing all Investment Grade Corporate, High Yield Corporate, Emerging Market and Municipal index strategies. Previously, Mr. Graves was a senior portfolio manager in the US Fixed Income Group. Prior to joining BGI in 2003, Mr. Graves’ managed active investment grade corporate bond portfolios at Banc of America Capital Management. Mr. Graves earned a BS degree in finance from the California State University, Northridge in 1987 and an MBA in finance from the University of California, Los Angeles in 1997.	2025

			Marus Tom - Director, is head of BlackRock’s Indexed Fixed Income Portfolio Management Team in Atlanta. Mr. Tom’s service with the firm dates back to 2000, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. At BGI, he was an institutional index portfolio manager/trader. Currently, he leads the Securitized, US Rates, and Optimized Outcome Solutions teams across Indexed Fixed Income’s suite of portfolios. His sector specialties include Agency MBS, US Treasuries, TIPS, Agencies, and Listed and OTC Derivatives. Mr. Tom earned a BA degree in Managerial Economics from the University of California, Davis, in 1999.	2025

	J.P. Morgan Investment Management Inc. (“JPMIM”) 270 Park Avenue New York, NY 10017-2014	30%	Kay Herr, CFA^® Managing Director, GFICC U.S. Chief Investment Officer, Portfolio Manager (2023-Present). Ms. Herr is the U.S. Chief Investment Officer (“CIO”) for the Global Fixed Income, Currency, & Commodities (“GFICC”) group, responsible for all fixed income investment strategies in the U.S. Prior to becoming the U.S. CIO, Ms. Herr was the Head of Research for the GFICC team. Ms. Herr returned to Fixed Income in 2019 after having spent the prior 17 years in Equity Research as a portfolio manager, research analyst, and Associate Director of Global Developed Market Equity Research. An employee since 1999, Ms. Herr was a credit research analyst for investment grade and high yield securities in U.S. Fixed Income before moving to U.S. Equity in 2002. She holds a B.A. in economics from the University of Virginia, where she was an Echols Scholar, and an M.B.A. with distinction from New York University Stern School of Business. She is also a CFA charterholder.	2025


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Core Fixed Income Fund (continued)			Andrew Norelli Managing Director, Portfolio Manager (2014-Present). Mr. Norelli is a member of the GFICC group. Based in Columbus, Ohio, Mr. Norelli is a portfolio manager for the JPM Income Fund and Core Plus strategies and is a member of the Asset Allocation Committee for JPMIM’s Investor Funds. Mr. Norelli focuses on portfolio construction, asset allocation, macroeconomic strategy, and global market dynamics. Additionally, Mr. Norelli’s specialist knowledge of emerging markets and distressed credit resolution are integral to the assessment of global investment opportunities and proactive risk mitigation. Prior to joining the firm in 2012, Mr. Norelli spent eleven years as a trader at Morgan Stanley, ultimately serving as co‑head of the firm’s emerging markets credit trading desk from 2008 to 2012. Mr. Norelli holds an A.B. summa cum laude in economics from Princeton University.	2025

			Priya Misra Managing Director, Portfolio Manager (2024-Present). Ms. Misra is a member of the GFICC group. Based in New York, New York, Ms. Misra is a portfolio manager for the Core Plus team. Prior to joining JPMIM, she was head of Global Rates Strategy at TD Securities. In that role, Ms. Misra was responsible for the U.S. and global interest rate markets and provided investment advice for clients. Ms. Misra has been a member of several prestigious industry groups including the Alternative Reference Rate Committee (ARRC) and Treasury Market Practices Group (TMPG). She ranked in the top 6 in Institutional Investor’s All‑ America Fixed Income Research team surveys among all U.S. rates categories from 2019‑22, and ranked in the top three for U.S. Governments Strategy and Federal Agency Debt Strategy in 2014 and 2015 and from 2003 to 2008. Ms. Misra joined TD Securities in September 2015. Prior to this she ran U.S. rates strategy research at BofA Merrill Lynch for 6 years. From 2001 to 2008, she worked at Lehman Brothers as an interest rate strategist, at Barclays Capital as a mortgage strategist and at Nomura Securities, where she was head of U.S. rates strategy. In 2007, she authored a chapter in Frank Fabozzi‘s Handbook of Fixed Income Securities. Ms. Misra graduated from the Lady Sri Ram College, University of Delhi, with a bachelor’s degree in economics. She has a postgraduate diploma in management, majoring in finance, from the Indian Institute of Management, Bangalore, India.	2025


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Core Fixed Income Fund (continued)			Richard Figuly Managing Director, Portfolio Manager (2006-Present). Mr. Figuly is Head of Core Strategy within JPMIM’s GFICC group. Based in Columbus, Ohio, Mr. Figuly leads a group of portfolio managers on the Core Strategy team who are responsible for managing institutional taxable bond portfolios and fund vehicles. Mr. Figuly is the Lead Portfolio Manager on the Core Bond Fund and Mortgaged Backed Securities Fund. An employee since 1993, Mr. Figuly previously served as a fixed income trader trading all taxable fixed income securities while specializing in structured products. Prior to joining the firm, Mr. Figuly was a fiduciary tax accountant at the Bank One Ohio Trust Company. Rick is also a retired Major of the Ohio Army National Guard. He holds a B.S. in finance from The Ohio State University.	2025

			Lisa Coleman, CFA^® Managing Director, Portfolio Manager (2020-Present). Ms. Coleman is the head of the Global Investment Grade Corporate Credit team in the GFICC group. Prior to joining the firm in 2008, Ms. Coleman was at Schroders Investment Management for eight years, serving as the head of Global Credit Strategies and the head of European Fixed Income. Previously, she was at Allmerica Financial for six years, managing core and corporate bond portfolios. Before this, Ms. Coleman was Deputy Manager of Global Fixed Income at Brown Brothers Harriman for five years, managing corporate bond, asset- backed security, mortgage- backed security and government bond portfolios. Prior to Brown Brothers Harriman, Ms. Coleman worked at Merrill Lynch in foreign exchange sales and at Travelers Insurance Company as an analyst and portfolio manager. Ms. Coleman began her career at the Federal Reserve Bank of New York, holding roles in the foreign exchange and foreign relations departments. Ms. Coleman holds a B.A. in economics from Trinity College, Hartford, Connecticut and a Master’s in international affairs from the School of International and Public Affairs (SIPA) at Columbia University, New York. She is a member of the SIPA Advisory Board. In addition, she is a CFA charterholder and holds the Investment Management Certificate from the UK Society of Investment Professionals.	2025


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Core Fixed Income Fund (continued)			Thomas Hauser, CFA^® Managing Director, Portfolio Manager (2020-Present). Mr. Hauser is a senior portfolio manager within the Global High Yield team. Prior to joining the firm in 2004, Mr. Hauser was at 40\|86 Advisors, most recently serving as a co‑portfolio manager on three mutual funds and as the co‑head of the Collateralized Bond Obligation (CBO) Group. Previously, Mr. Hauser worked at Van Kampen Investments co‑ managing several high yield mutual funds and leading the high yield trading desk. Mr. Hauser holds a B.S. in finance from Miami (Ohio) University, is a member of the CFA Society of Indianapolis, and is a CFA charterholder.	2025

			Vikas Pathani - Managing Director, Portfolio Manager (2025-present) Mr. Pathani is a member of the Global Fixed Income, Currency & Commodities (GFICC) group. Based in New York, he is Head of U.S. Investment Grade Credit and a portfolio manager on the Global Investment Grade Corporate Credit Team, with a focus on financial and corporate hybrid capital, which include subordinated debt, preferred stock and other capital securities. An employee since 2004, Vikas started his career in J.P. Morgan’s Investment Bank as a Collateralized Debt Obligations (CDO) market maker where he analyzed and traded CDOs backed by high yield bonds, leveraged loans, asset backed securities, and trust preferred securities. Subsequently he headed the fixed income trading and solutions effort for a group within J.P. Morgan Private Bank that specializes in opportunistic, absolute return focused investments. In this role, he was responsible for developing investment ideas, constructing portfolios and trading across all taxable fixed income products. Most recently Vikas was the head of the preferred stock strategy within the Customized Bond Portfolios team. Vikas graduated from The Pennsylvania State University’s Smeal College of Business with Honors. He was selected as the Student Marshall of his class for outstanding academic achievement and contributions to student life. He received a Bachelor of Science in Finance.	2025


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

High Yield Fund	PineBridge Investments LLC (“PineBridge”) Park Avenue Tower 65 E 55th Street New York, NY 10022	100%	John Yovanovic, CFA^® Managing Director and Portfolio Manager (2000-Present). Mr. Yovanovic became Portfolio Manager of High Yield for the firm in 2005 and was promoted to lead PM in September of 2010. Prior to 2005, he held positions as a senior research analyst and as head of AIG’s high yield trading desk; while in investment research, he served as the energy/utilities group head. Previously, Mr. Yovanovic was a senior research analyst and trader at Mentor Investment Advisors, a division of Wachovia Corporation. Mr. Yovanovic started his career in equity research at VanKampen Funds, where he subsequently moved into high yield research and trading. He received a BBA from the University of Houston and is a CFA^® charterholder.	2021

			Jeremy Burton, CFA^® Managing Director and Portfolio Manager (2014-Present). Mr. Burton is a portfolio manager for PineBridge’s high yield bond and leveraged loan strategies. He has served as a portfolio manager since 2014. Previously, he was a credit research analyst covering a number of industries in the Communications and Consumer Cyclical sectors from 2004 to 2007 and from 2009 to 2017. Prior to that, he was an investment banking analyst with CIBC World Markets and an investment analyst with Linden Advisors. Mr. Burton received a BA with a concentration in History from Harvard College in 2000 and an MBA with a concentration in Finance from the Wharton School of Business at the University of Pennsylvania in 2004. He is a CFA^® charterholder.	2021

International Fixed Income Fund	Pacific Investment Management Company LLC (“PIMCO”) 650 Newport Center Drive Newport Beach, CA 92660	100%	Sachin Gupta Managing Director and Portfolio Manager (2003-Present). Mr. Gupta is a managing director in the Newport Beach office, global portfolio manager and leader of the global desk. He is a member of the Asia-Pacific portfolio committee, and European portfolio committee. Previously at PIMCO, he was in the London office managing European liability-driven investment (LDI) portfolios, and in the Singapore office on the global portfolio management team. In these roles, he focused on investments in government bonds, foreign exchange, and interest rate derivatives across global markets. Prior to joining PIMCO in 2003, he was in the fixed income and currency derivatives group at ABN AMRO Bank. He has 28 years of investment experience and holds an MBA from XLRI, India. He received an undergraduate degree from Indian Institute of Technology, Delhi. He is a director of The Global FoodBanking Network, an international nonprofit that is working toward a hunger-free future in more than 30 countries. He is currently chair of the board of directors of GFN.	2014


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Municipal Bond Fund	BlackRock Financial Management, Inc. (“BlackRock”) Park Avenue Plaza 55 East 52^nd St. New York, NY 10055	100%	Michael Kalinoski, CFA^® Director (1999-Present). Mr. Kalinoski’s is a portfolio manager on the Municipal Mutual Fund Desk within BlackRock’s Municipal Fixed Income business in BlackRock’s Portfolio Management Group. Mr. Kalinoski’s service with the firm dates back to 1999, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, he was a member of the tax‑exempt fixed income team responsible for managing a number of national and state funds. Prior to joining MLIM in 1999, Mr. Kalinoski was a municipal trader with Strong Capital Management. Mr. Kalinoski earned a Bachelor of Science in Accounting from Marquette University in 1992.	2019

			Kevin Maloney, CFA^® Director (2011-Present). Mr. Maloney is a Portfolio Manager for the mutual fund desk within the Municipal Fixed Income business in BlackRock’s Portfolio Management Group. Mr. Maloney began his career at BlackRock in 2011 as an Analyst on the Municipal Credit Research Team. He currently serves as a Portfolio Manager for the Municipal Mutual Fund Desk within BlackRock’s Global Fixed Income Group. Mr. Maloney graduated from Drexel University in 2011 with a Bachelor of Science in Finance.	2019

Inflation-Linked Fixed Income Fund	Pacific Investment Management Company LLC (“PIMCO”) 650 Newport Center Drive Newport Beach, CA 92660	100%	Daniel He Executive Vice President and Real Return Portfolio Manager (2011-Present). Mr. He is an executive vice president and portfolio manager in the Newport Beach office. He is currently a member of the liquid products group specializing in real return and mortgage-backed securities and serves as a member of Americas portfolio committee. Previously, he was a member of the global rates desk focusing on government bonds, foreign exchange, and interest rate derivatives. Prior to joining PIMCO in 2011, he structured and traded derivative strategies in foreign exchange and interest rates for a global macro hedge fund in Singapore. He has 20 years of investment experience and holds an MBA from the University of Chicago Booth School of Business. He also holds a master’s degree in financial engineering and an undergraduate degree in computer science from the National University of Singapore.	2019


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Inflation-Linked Fixed Income Fund (continued)			Lorenzo Pagani Managing Director and Real Return Portfolio Manager (2004-Present). Dr. Pagani is a managing director and portfolio manager in the London office. He leads the European rates desk and is a member of the global bond and real return portfolio management teams, and is responsible for European and UK liability-driven investing (LDI) portfolio management. Additionally, he is a member of the European portfolio committee, the counterparty risk committee, and the best execution committee. He also serves as lead of talent management for portfolio management outside of the U.S. Dr. Pagani is also a director of PIMCO Europe Ltd. Prior to joining PIMCO in 2004, he was with the nuclear engineering department at the Massachusetts Institute of Technology (MIT) and with Procter & Gamble in Italy. He has 22 years of investment experience and holds a Ph.D. in nuclear engineering from MIT. He graduated from the Financial Technology Option program of MIT/Sloan Business School and holds a joint master of science degree from the Politecnico di Milano in Italy and the Ecole Centrale de Paris in France.	2025

Ultra-Short Term Fixed Income Fund	Pacific Investment Management Company LLC (“PIMCO”) 650 Newport Center Drive Newport Beach, CA 92660	100%	Jerome M. Schneider Managing Director and Portfolio Manager (2008-present). Mr. Schneider is a managing director in the Newport Beach office and leader of short-term portfolio management and funding. Morningstar named him Fixed-Income Fund Manager of the Year (U.S.) for 2015. Prior to joining PIMCO in 2008, Mr. Schneider was a senior managing director with Bear Stearns. There he most recently specialized in credit and mortgage-related funding transactions and helped develop one of the first “repo” conduit financing companies. Additionally, during his tenure at Bear Stearns he held various positions on the municipal and fixed income derivatives trading desks. He has 30 years of investment experience and holds an undergraduate degree in economics and international relations from the University of Pennsylvania and an MBA from the Stern School of Business at New York University.	Since Inception


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FUND	SUB‑ADVISER OR ADVISER	PERCENTAGE	FUND MANAGER/FUND MANAGEMENT TEAM MEMBERS, TITLE, PAST 5 YEARS’ BUSINESS EXPERIENCE	FUND MANAGER SINCE

Alternative Strategies Fund	Consulting Group Advisory Services LLC (“CGAS”) 2000 Westchester Avenue Purchase, NY 10577	100%	Andrew Nania Vice President and Portfolio Manager Mr. Nania is a Vice President and Portfolio Manager in the Morgan Stanley Wealth Management Global Investment Office since the acquisition of ETRADE in 2021. He joined ETRADE in 2014 where he held multiple roles including Portfolio Manager, Investment Strategist, and Financial Consultant. Previously, Andrew was a Private Client Banker at JPMorgan Chase, where he was responsible for working with high‑net worth households on banking and investing. Andrew is a graduate of Amherst College with a Bachelor of Arts (B.A.) in religion and political science. He is a Chartered Financial Analyst (CFA^®) charterholder and member of the CFA Institute and CFA Society New York.	2023

			Andrew Cohen Executive Director and Portfolio Manager Mr. Cohen is a Portfolio Manager for Morgan Stanley Portfolio Solutions (MSPS). He joined Morgan Stanley via the acquisition of ETRADE Financial where he was a member of the Investment Strategy team. Prior to joining ETRADE in 2015, he was the Director of Investments and Operations for a large Registered Investment Advisor, where his responsibilities included investment manager research, asset allocation, and portfolio construction. Previously, he was a Senior Research Analyst and Team Leader in investment manager research for Morgan Stanley. He is a graduate of Virginia Tech with a Bachelor of Science (B.S.) in finance and is a CFA^® charterholder and member of the CFA Institute and CFA Society New York.	2025


MORGAN STANLEY \| 2026		109

Management Fees. The Manager receives a management fee from each Fund for its services. In turn, the Manager pays each Sub‑adviser a fee for its sub‑advisory services. The Manager may voluntarily waive a portion or all of the management fees otherwise payable to it by a Fund. The chart below shows the contractual management fees for each Fund and the actual management fees paid to the Manager for the fiscal year ended August 31, 2025, based on a percentage of average daily net assets:


FUND	CONTRACTUAL MANAGEMENT FEE		ACTUAL MANAGEMENT FEE PAID DURING MOST RECENT FISCAL YEAR

Morgan Stanley Pathway Large Cap Equity ETF		0.55%		0.31%

Morgan Stanley Pathway Small‑Mid Cap Equity ETF		0.75%		0.48%

International Equity Fund		0.70%		0.47%

Emerging Markets Equity Fund		0.90%		0.54%

Core Fixed Income Fund		0.40%		0.31%

High Yield Fund		0.70%		0.50%

International Fixed Income Fund		0.50%		0.45%

Municipal Bond Fund		0.40%		0.40%

Inflation-Linked Fixed Income Fund		0.50%		0.45%

Ultra-Short Term Fixed Income Fund		0.50%		0.35%

Alternative Strategies Fund		1.20%		0.20%

Potential Conflicts of Interest. The management fees paid by each Fund to the Manager and the sub‑advisory fees paid by the Manager to each Sub‑adviser vary depending upon the Fund. The Manager intends to comply with the standards of fiduciary duty that require it to act solely in the best interest of a participant when making such investment recommendations and to avoid any conflict of interest. Due to the structure of its contractual fee waiver, which was designed to mitigate potential conflicts of interest, the Manager will not retain a larger portion of its management fees for any Fund, relative to any other Fund.

The SAI provides additional information about each Sub‑adviser, including more information about their investment strategies and techniques, compensation paid to each Sub‑adviser’s portfolio manager(s), other accounts managed by such portfolio managers and the portfolio managers’ ownership of the Fund’s shares.

Morgan Stanley affiliates, including their directors, officers or employees, may have banking or investment banking relationships with the issuers of securities that are held in the Funds. They may also own the securities of these issuers. However, in making investment decisions for the Funds, the

Manager does not obtain or use inside information acquired by any division, department or affiliate of Morgan Stanley in the course of those relationships. To the extent the Funds acquire securities from an issuer that has a borrowing or other relationship with Morgan Stanley or its affiliates, the proceeds of the purchase may be used to repay such borrowing or otherwise benefit Morgan Stanley and/or its affiliates.

Additional information regarding various former or current affiliates of, or predecessors to, CGAS or Morgan Stanley is included in the Trust’s Annual Report and the Form ADV of CGAS.


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Investment and account information

Information Concerning the Morgan Stanley Pathway ETFs

The Morgan Stanley Pathway Large Cap Equity ETF and Morgan Stanley Pathway Small‑Mid Cap Equity ETF (together, the “Morgan Stanley Pathway ETFs”) each issues or redeems its shares at NAV per share only in Creation Units. Shares of each Fund are listed for trading on a national securities exchange and trade on the secondary market during the trading day. Shares can be bought and sold throughout the trading day like shares of other publicly traded companies. There is no minimum investment. When buying or selling Fund shares through a broker, you will incur customary brokerage commissions and charges, and you may pay some or all of the spread between the bid and offered price in the secondary market on each purchase and sale transaction. Fund shares are traded on NYSE Arca, Inc. under the trading symbol MSLC for the Morgan Stanley Pathway Large Cap Equity ETF and MSSM for the Morgan Stanley Pathway Small‑Mid Cap Equity ETF. Share prices are reported in dollars and cents per share.

APs may acquire Fund shares directly from each Fund, and APs may tender their Fund shares for redemption directly to the Fund, at NAV per share, only in Creation Units and in accordance with the procedures described in the Funds’ SAI.

Purchasing and Selling Shares. Shares of the Morgan Stanley Pathway Large Cap Equity ETF and Morgan Stanley Pathway Small‑Mid Cap Equity ETF are listed for trading on a national securities exchange during the trading day. Shares can be bought and sold throughout the trading day like shares of other publicly traded companies. However, there can be no guarantee that an active trading market will develop or be maintained, or that each Fund’s share listing will continue or remain unchanged. Each Fund does not impose any minimum investment for shares of the Fund purchased on an exchange. Buying or selling each Fund’s shares involves certain costs that apply to all securities transactions. When buying or selling shares of each Fund through a financial intermediary, you may incur a brokerage commission or other charges determined by your financial intermediary. Due to these brokerage costs, if any, frequent trading may detract significantly from investment returns. In addition, you may also incur the cost of the spread (the difference between the bid price and the ask price). The commission is frequently a fixed amount and may be a significant cost for investors seeking to buy or sell small amounts of shares.

Shares of the Morgan Stanley Pathway Large Cap Equity ETF and Morgan Stanley Pathway Small‑Mid Cap Equity ETF may be acquired through Foreside Fund Services, LLC or redeemed directly with the Fund only in Creation Units or multiples thereof, as discussed in the Funds’ SAI. Once created, shares of each Fund generally trade in the secondary market in amounts less than a Creation Unit.

Each Fund’s primary listing exchange is NYSE Arca, Inc. (the “Exchange”). The Exchange is open for trading Monday through Friday and is closed on the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

A Business Day with respect to each Fund is each day the Exchange is open. Orders from APs to create or redeem Creation Units will only be accepted on a Business Day. On days when the Exchange closes earlier than normal, each Fund may require orders to create or redeem Creation Units to be placed earlier in the day. In addition, to minimize brokerage and other related trading costs associated with securities that cannot be readily transferred in‑kind, each Fund may establish early trade cut‑off times for APs to submit orders for Creation Units, in accordance with the 1940 Act. See the Funds’ SAI for more information.

In compliance with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”), your financial intermediary is required to verify certain information on your account application as part of its Anti-Money Laundering Program. You will be required to provide your full name, date of birth, social security number, and permanent street address to assist in verifying your identity. You may also be asked to provide additional documents that may help to establish your identity. Until verification of your identity is made, your financial intermediary may temporarily limit additional share purchases. In addition, your financial intermediary may close an account if it is unable to verify your identity. Please contact your financial intermediary if you need additional assistance when completing your application or additional information about your financial intermediary’s Anti-Money Laundering Program.

In an effort to ensure compliance with this law, the Funds’ Anti-Money Laundering Program (the “Program”) provides for the development of internal practices, procedures and controls, designation of anti-money laundering compliance officers, an ongoing training program, and an independent audit function to determine the effectiveness of the Program.

Continuous Offering. The method by which Creation Units of shares are created and traded may raise certain issues under applicable securities laws. Because new Creation Units of shares are issued and sold by each Fund on an ongoing basis, a “distribution,” as such term is used in the Securities Act, may occur at any point. Broker-dealers and other persons are cautioned that some activities on their part may, depending on the circumstances, result in their being deemed participants in a distribution in a manner which could render them statutory underwriters and subject them to the prospectus delivery requirements and liability provisions of the Securities Act. For example, a broker-dealer firm or its client may be deemed a statutory underwriter if it takes Creation Units after placing an order with the Distributor, breaks them down into constituent shares and sells the shares directly to customers or if it chooses to couple the creation of a supply of new shares with an active selling effort involving solicitation of secondary market demand for shares. A determination of whether one is an underwriter for purposes of the Securities Act must take into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be considered a complete description of all the activities that could lead to a characterization as an underwriter.


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Broker-dealer firms should also note that dealers who are not “underwriters” but are effecting transactions in shares, whether or not participating in the distribution of shares, are generally required to deliver a prospectus. This is because the prospectus delivery exemption in Section 4(a)(3)(C) of the Securities Act is not available in respect of such transactions as a result of Section 24(d) of the 1940 Act. As a result, broker-dealer firms should note that dealers who are not “underwriters” but are participating in a distribution (as contrasted with engaging in ordinary secondary market transactions) and thus dealing with the shares that are part of an unsold allotment within the meaning of Section 4(a)(3)(C) of the Securities Act, will be unable to take advantage of the prospectus delivery exemption provided by Section 4(a)(3) of the Securities Act. For delivery of prospectuses to exchange members, the prospectus delivery mechanism of Rule 153 under the Securities Act is only available with respect to transactions on a national exchange.

Book Entry. Shares of each Fund are held in book-entry form, which means that no stock certificates are issued. The DTC or its nominee is the record owner of all outstanding shares of each Fund and is recognized as the owner of all shares for all purposes. Investors owning shares of each Fund are beneficial owners as shown on the records of DTC or its participants. DTC serves as the securities depository for shares of the Funds. DTC participants include securities brokers and dealers, banks, trust companies, clearing corporations and other institutions that directly or indirectly maintain a custodial relationship with DTC. As a beneficial owner of shares, you are not entitled to receive physical delivery of stock certificates or to have shares registered in your name, and you are not considered a registered owner of shares. Therefore, to exercise any right as an owner of shares, you must rely upon the procedures of DTC and its participants. These procedures are the same as those that apply to any other exchange-traded securities that you hold in book-entry or “street name” form.

Share Prices. The trading prices of each Fund’s shares in the secondary market generally differ from the Fund’s daily NAV per share and are affected by market forces such as supply and demand, economic conditions, and other factors. Information regarding the intra‑day net asset value of each Fund is disseminated every 15 seconds throughout the trading day by the national securities exchange on which the Fund’s shares are primarily listed or by market data vendors or other information providers. The intra‑day net asset value calculations are estimates of the value of each Fund’s NAV per Fund share based on the current market value of the securities and/or cash included in the Fund’s intra‑day net asset value basket. The intra‑day net asset value does not necessarily reflect the precise composition of the current portfolio of securities and instruments held by each Fund at a particular point in time. Additionally, when current pricing is not available for certain portfolio securities the intra‑day indicative value may not accurately reflect the current market value of each Fund’s shares or the best possible valuation of the current portfolio. For example, the intra‑day net asset value is based on quotes and closing prices from the securities’ local market and may

not reflect events that occur subsequent to the local market’s close. Therefore, the intra‑day net asset value should not be viewed as a “real-time” update of the NAV, which is computed only once a day. The intra‑day net asset value is generally determined by using both current market quotations and/or price quotations obtained from broker-dealers that may trade in the portfolio securities and instruments included in each Fund’s intra‑day net asset value basket. Each Fund is not involved in, or responsible for, the calculation or dissemination of the intra‑day net asset value and makes no representation or warranty as to its accuracy. An inaccuracy in the intra‑day net asset value could result from various factors, including the difficulty of pricing portfolio instruments on an intra‑day basis.

Premiums and Discounts. There may be differences between the daily market prices on secondary markets for shares of each Fund and the Fund’s NAV. NAV is the price per share at which a Fund issues and redeems shares. See “Valuation of shares” below. The price used to calculate market returns (“Market Price”) of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the national securities exchange on which shares of the Fund are primarily listed for trading, as of the time that the Fund’s NAV is calculated. A Fund’s Market Price may be at, above, or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and the Market Price of a Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV. A discount or premium could be significant. Information regarding a Fund’s premium/discount to NAV for the most recently completed calendar year and the most recently completed calendar quarters since that calendar year end (or the life of the Fund, if shorter) is available at www.morganstanley.com/wealth-investmentsolutions/cgcm by selecting the Fund for additional details.

Bid/Ask Spread. Investors purchasing or selling shares of a Fund in the secondary market may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares of the Fund (the “bid”) and the lowest price a seller is willing to accept for shares of the Fund (the “ask”). The spread varies over time for shares of a Fund based on its trading volume and market liquidity, and is generally less if the Fund has more trading volume and market liquidity and more if the Fund has less trading volume and market liquidity. Historical information regarding a Fund’s spread over various periods of time, when available, can be accessed at www.morganstanley.com/wealth-investmentsolutions/cgcm by selecting the Fund for additional details. However, because each Fund is new, it does not currently have sufficient trading history to report certain bid/ask spread information and related costs.


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Excessive Trading. Unlike traditional mutual funds, the frequent trading of Fund shares generally does not disrupt portfolio management, increase a Fund’s trading costs, lead to realization of capital gains by the Fund, or otherwise harm Fund shareholders. The vast majority of trading in Fund shares occurs on the secondary market. Because these trades do not involve a Fund, they do not harm the Fund or its shareholders. A few institutional investors, referred to as Authorized Participants, are authorized to purchase and redeem Fund shares directly with each Fund. Most ETFs typically effect these trades in kind (i.e., for securities and not for cash), and therefore they do not cause any of the harmful effects to the issuing fund (as previously noted) that may result from frequent cash trades. Although each Fund typically redeems its shares on an in‑kind basis, the Fund may issue Creation Units in exchange for cash, thereby potentially subjecting the Fund and its shareholders to those harmful effects. As a result, each Fund requires Authorized Participants to pay transaction fees to cover brokerage and certain related costs when purchasing or redeeming Creation Units. Those fees are designed to protect each Fund and its shareholders from the dilutive costs associated with frequent creation and redemption activity. For these reasons, the Trustees of each Fund have determined that it is not necessary to adopt policies and procedures to detect and deter frequent trading and market timing of Fund shares. However, each Fund’s policies and procedures regarding frequent purchases and redemptions may be modified by the Trustees at any time.

Funds’ Website and Portfolio Holdings Information. Each Business Day, each Fund’s portfolio holdings information is provided by its custodian or other agent for dissemination through the facilities of the NSCC and/or other fee‑based subscription services to NSCC members and/or subscribers to entities that publish and/or analyze such information in connection with the process of purchasing or redeeming Creation Units or trading shares of the Fund in the secondary market. In addition, on each Business Day before commencement of trading in shares on the Exchange, each Fund will disclose on www.morganstanley.com/wealth‑investmentsolutions/cgcm the identities and quantities of each portfolio position held by the Fund that will form the basis for the Fund’s next calculation of the NAV. Each Fund is also required to disclose its complete holdings as an exhibit to its reports on Form N‑PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to Fund shareholders.

For additional information on these disclosures and the availability of portfolio holdings information, please refer to the Funds’ SAI.


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Account transactions

Purchase of shares. You may purchase shares of a Fund if you are a participant in an advisory program sponsored by Morgan Stanley. You may establish a brokerage account with Morgan Stanley free of charge in order to purchase shares of a Fund.

•

The minimum initial aggregate investment in the Morgan-Stanley-sponsored investment advisory programs is $1,000.

•

The minimum investment in a Fund is $100. In other words, in order to invest in the Fund through your Morgan Stanley-sponsored investment advisory program, you must allocate at least $100 of your investment advisory program assets to the Fund.

•

There is no minimum on additional investments in the Fund or the applicable investment advisory program through which you invest.

•

Each of the Fund and the Morgan Stanley-sponsored investment advisory programs through which investments in the Fund are offered may vary or waive these investment minimums at any time.

Shares of the Funds are sold at net asset value per share (“NAV”) without imposition of a sales charge but will be subject to any applicable advisory program fee. You may buy shares of the International Equity Fund, Emerging Markets Equity Fund, Core Fixed Income Fund, High Yield Fund, International Fixed Income Fund, Municipal Bond Fund, Inflation-Linked Fixed Income Fund, Ultra-Short Term Fixed Income Fund and Alternative Strategies Fund (each, a “Morgan Stanley Pathway Mutual Fund” and together, the “Morgan Stanley Pathway Mutual Funds”) at NAV on any day the NYSE is open by contacting your broker. All orders to purchase received by Morgan Stanley before 4:00 p.m. Eastern time will receive that day’s share price. Orders received after 4:00 p.m. will receive the next day’s share price. If the NYSE closes early, the Morgan Stanley Pathway Mutual Funds may accelerate transaction deadlines accordingly. All purchase orders must be in good order to be accepted. This means you have provided the following information:

•

Name of the Fund

•

Your account number

•

Dollar amount or number of shares to be purchased

•

Signatures of each owner exactly as the account is registered

Each Morgan Stanley Pathway Mutual Fund reserves the right to reject purchase orders or to stop offering its shares without notice. No order will be accepted unless Morgan Stanley has received and accepted an advisory agreement signed by the investor participating in a Morgan Stanley-sponsored investment advisory program. Orders may only be accepted from investors who maintain a brokerage account with Morgan Stanley. Payment for shares must be received by Morgan Stanley within three business days after the order is placed in good order.

Customer Identification Program. Federal law requires the Trust to obtain, verify and record identifying information, which will be reviewed solely for customer identification purposes,

which may include the name, residential or business street address, date of birth (for an individual), Social Security Number or taxpayer identification number or other information, for each investor who opens an account directly with the Trust. Applications without the required information may not be accepted. After accepting an application, to the extent permitted by applicable law or its customer identification program, the Trust reserves the right to: (i) place limits on transactions in any account until the identity of the investor is verified; (ii) refuse an investment in the Trust; or (iii) involuntarily redeem an investor’s shares and close an account in the event that the Trust is unable to verify an investor’s identity. The Trust has appointed an anti-money laundering officer to administer this process. The Trust will not be responsible for any loss in an investor’s account resulting from the investor’s delay in providing all required information or from closing an account and redeeming an investor’s shares pursuant to the customer identification program.

Redemption of shares (Morgan Stanley Pathway Mutual Funds Only). You may sell shares of a Morgan Stanley Pathway Mutual Fund at NAV on any day the NYSE is open by contacting your broker. All redemption requests accepted by Morgan Stanley before 4:00 p.m. Eastern time on any business day will be executed at that day’s share price. Orders accepted after 4:00 p.m. will be executed at the next day’s price. If the NYSE closes early, the Morgan Stanley Pathway Mutual Funds may accelerate transaction deadlines accordingly. All redemption orders must be in good form, which may require a signature guarantee (available from most banks, dealers, brokers, credit unions and federal savings and loan associations, but not from a notary public) to assure the safety of your account. If you discontinue your Morgan Stanley advisory service, you must redeem your shares in the Morgan Stanley Pathway Mutual Funds. The Morgan Stanley Pathway Mutual Funds are available only to investors in Morgan Stanley-sponsored investment advisory programs. If any account does not meet this or any other eligibility requirement, we reserve the right to liquidate such account.

In certain circumstances, the Board of Trustees may determine that it would be detrimental to the best interests of a Fund’s shareholders to make a redemption payment wholly in cash. In such situations, the Fund may pay a portion of a shareholder redemption request by a distribution in‑kind of readily marketable portfolio securities, subject to applicable laws and regulations and the policies of the Trust. Shareholders receiving distributions in‑kind may incur brokerage commissions when subsequently disposing of those securities.

Each Fund has the right to suspend redemptions of shares and to postpone the transmission of redemption proceeds to a shareholder’s account at Morgan Stanley for up to seven days, as permitted by law. For example, the Funds may suspend the shareholders’ right to redeem their shares if the NYSE restricts trading, the SEC declares an emergency or for similar reasons permitted by law. Redemption proceeds held in an investor’s brokerage account generally will not earn any income and Morgan Stanley may benefit from the use of temporarily uninvested funds. A shareholder who pays for shares of a


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Fund by personal check will be credited with the proceeds of a redemption of those shares after the purchaser’s check has cleared, which may take up to 10 days.

Exchange of shares. An investor that participates in an advisory program sponsored by Morgan Stanley may exchange shares in a Morgan Stanley Pathway Mutual Fund for shares in any other Morgan Stanley Pathway Mutual Fund at NAV without payment of an exchange fee. Be sure to read the Prospectus and consider the investment objectives and policies of any Morgan Stanley Pathway Mutual Fund into which you make an exchange. An exchange is a taxable transaction except for exchanges within a retirement account.

Frequent purchases and sales of portfolio shares. Frequent purchases and redemptions of fund shares may interfere with the efficient management of a Fund’s portfolio by its portfolio manager, increase portfolio transaction costs, and have a negative effect on a Fund’s long-term shareholders. For example, in order to handle large flows of cash into and out of a Fund, a portfolio manager may need to allocate more assets to cash or other short-term investments or sell securities, rather than maintaining full investment in securities selected to achieve the Fund’s investment objective. Frequent trading may cause a Fund to sell securities at less favorable prices. Transaction costs, such as brokerage commissions and market spreads, can detract from a Fund’s performance. In addition, the return received by long-term shareholders may be reduced when trades by other shareholders are made in an effort to take advantage of certain pricing discrepancies, when, for example, it is believed that a Morgan Stanley Pathway Mutual Fund’s share price, which is determined at the close of the NYSE on each trading day, does not accurately reflect the value of the Fund’s portfolio securities. Funds investing in foreign securities have been particularly susceptible to this form of arbitrage, but other Funds could also be affected.

Because of the potential harm to the Funds and their long-term shareholders, the Board has approved policies and procedures that are intended to discourage and prevent excessive trading and market timing abuses through the use of various surveillance and other techniques. Under these policies and procedures, the Trust may limit additional exchanges or purchases of Morgan Stanley Pathway Mutual Fund shares by shareholders whom the Manager believes to be engaged in these abusive trading activities. The intent of the policies and procedures is not to inhibit legitimate strategies, such as asset allocation, dollar cost averaging, or similar activities that may nonetheless result in frequent trading of Morgan Stanley Pathway Mutual Fund shares. For this reason, the Board has not adopted any specific restrictions on purchases and sales of Fund shares, but the Trust reserves the right to reject any exchange or purchase of Morgan Stanley Pathway Mutual

Fund shares with or without prior notice to the account holder. In cases where surveillance of a particular account establishes what the Manager believes to be obvious market timing, the Manager will seek to block future purchases and exchanges of Fund shares by that account. Where surveillance of a particular account indicates activity that the Manager believes could be either abusive or for legitimate purposes, the Trust may permit the account holder to justify the activity.

The policies apply to any account, whether an individual account or accounts with financial intermediaries, such as investment advisers and retirement plan administrators, commonly called omnibus accounts, where the intermediary holds Morgan Stanley Pathway Mutual Fund shares for a number of its customers in one account.

The Trust’s policies also require personnel, such as portfolio managers and investment staff, to report any abnormal or otherwise suspicious investment activity, and prohibit short-term trades by such personnel for their own account in mutual funds managed by the Manager and its affiliates, other than money market funds. Additionally, the Trust has adopted policies and procedures to prevent the selective release of information about the portfolio holdings held by Funds of the Trust, as such information may be used for market-timing and similar abusive practices.

Share certificates. Share certificates for the Funds will no longer be issued. If you currently hold share certificates of a Fund, such certificates will continue to be honored.

Account Termination. Either Morgan Stanley or you may terminate your account. If you terminate your advisory relationship, Morgan Stanley reserves the right to liquidate all Morgan Stanley Pathway Fund shares in your account.

Valuation of shares

Each Fund calculates its NAV once daily as of the close of regular trading on the NYSE (generally at 4:00 p.m. Eastern time) on each day the NYSE is open. The NYSE is closed on certain holidays listed in the SAI. If the NYSE closes early, the Funds may accelerate calculation of NAV.

The valuation of the securities of each Fund is determined in good faith by or under the direction of the Board. The Board has approved procedures to be used to value each Fund’s securities for the purposes of determining each Fund’s NAV. The Board has delegated certain valuation functions to the Manager. A Fund generally values its securities based on readily available market quotations determined at the close of trading on the NYSE. Debt obligations that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Debt obligations that will mature in more than 60 days are valued using valuations furnished by approved third-party pricing agents.

A Fund’s currency conversions, if any, are done as of the close of the New York Stock Exchange (“NYSE”). For securities that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange. In the case of securities not traded on an exchange, or if such closing prices are not otherwise available, the market price is typically determined by third-party pricing vendors using a variety of pricing techniques and methodologies. If vendors are unable to supply a price, or if the price supplied is deemed by the Manager to be unreliable, the Manager may determine the price, using quotations received from one or more broker/dealers that make a market in the security or by using fair value procedures approved by the Board. Certain Funds invest


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in emerging market securities and in securities rated below investment grade, some of which may be thinly traded, for which market quotations may not be readily available or may be unreliable; these Funds may use fair valuation procedures more frequently than funds that invest primarily in exchange-traded securities. A Fund also may use fair value procedures if the Manager determines that a significant event has occurred between when a market price is determined and when the Fund’s NAV is calculated. In particular, the value of foreign securities may be materially affected by events occurring after the close of the market on which they are valued, but before a Fund calculates its NAV.

For the International Equity Fund and the Emerging Markets Equity Fund, the Board has approved the use of a fair value model developed by a pricing service to price foreign equity securities on a daily basis.

Valuing securities using fair value procedures involves greater reliance on judgment than valuation of securities based on readily available market quotations. A Fund that uses fair value to price securities may value those securities higher or lower than another fund using market quotations or fair value to price the same securities. There can be no assurance that a Fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time the Fund determines its net asset value.

Additionally, international markets may be open, and trading may take place, on days when U.S. markets are closed. For this reason, the values of foreign securities owned by a Fund could change on days when shares of the Fund cannot be bought or redeemed.

More information about the valuation of the Funds’ holdings can be found in the SAI.

Dividends and distributions

Each Fund intends to distribute all or substantially all of its net investment income and realized capital gains, if any, for each taxable year. The Core Fixed Income Fund, High Yield Fund, Municipal Bond Fund, Inflation-Linked Fixed Income Fund and Ultra-Short Term Fixed Income Fund declare and pay dividends, if any, monthly from net investment income. The Morgan Stanley Pathway Large Cap Equity ETF, Morgan Stanley Pathway Small‑Mid Cap Equity ETF, International Equity Fund, Emerging Markets Equity Fund, International Fixed Income Fund and Alternative Strategies Fund declare and pay dividends, if any, annually from net investment income. All of the Funds declare and distribute realized net capital gains, if any, annually, typically in December. The equity oriented Funds expect distributions to be primarily from capital gains. The fixed income oriented Funds expect distributions to be primarily from income. All dividends and capital gains are reinvested in shares of the Fund that paid them unless the shareholder elects to receive them in cash.

Taxes

You should always consult your tax advisor for specific guidance regarding the federal, state and local tax effects of your investment in the Funds. This summary is based on

current tax laws, which may change. This summary does not apply to shares held in an individual retirement account or other tax‑qualified plans, which are generally not subject to current tax. Transactions relating to shares held in such accounts may, however, be taxable at some time in the future. The following is a summary of the U.S. federal income tax consequences of investing in the Funds.

Each Fund is treated as a separate entity for federal tax purposes and intends to qualify for special tax treatment afforded to regulated investment companies. So long as a Fund meets the requirements for being a tax‑qualified regulated investment company (“RIC”), the Fund will pay no federal income tax on the earnings and gains, if any, it distributes to shareholders in a timely manner. If a Fund fails to qualify as a RIC or fails to meet the distribution requirement, the Fund will be subject to federal income tax at regular corporate rates (without a deduction for distributions to shareholders). In addition, when distributed, income (including any distributions of net tax‑exempt income and net long-term capital gains) would also be taxable to shareholders as an ordinary dividend to the extent attributable to the Fund’s earnings and profits.

Distributions attributable to short-term capital gains are treated as dividends taxable at ordinary income rates. Distributions received by shareholders, other than in a tax‑deferred retirement account, are taxable whether received in cash or reinvested in shares. Income distributions other than distributions of qualified dividend income, and distributions of short-term capital gain are generally taxable at ordinary income tax rates. Distributions that are reported by the Funds as long-term capital gains distributions and qualified dividend income are generally taxable at the rates applicable to long-term capital gains currently set at a maximum tax rate for individuals at 20% (lower rates apply to individuals in lower tax brackets). “Qualified dividend income” generally consists of dividends received from U.S. corporations (other than dividends from tax‑exempt organizations and certain dividends from real estate investment trusts and RICs) and certain foreign corporations. In order for such dividends to be considered “qualified dividend income,” both the shareholders and a Fund must meet certain holding period requirements. Long-term capital gain distributions are taxable to you as long-term capital gain regardless of how long you have owned your shares. Certain of the Funds’ investment strategies may significantly limit their ability to make distributions that are eligible for treatment as qualified dividend income.

You may want to avoid buying shares when a Fund is about to declare a capital gain distribution or a taxable dividend, because the amount of the distribution received will be taxable to you even though it may actually be a return of a portion of your investment. This is known as “buying a dividend” and generally should be avoided by taxable investors.

A RIC that receives business interest income may pass through its net business interest income for purposes of the tax rules applicable to the interest expense limitations under Section 163(j) of the Internal Revenue Code of 1986, as amended (the “Code”). A RIC’s total “Section 163(j) Interest


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Dividend” for a tax year is limited to the excess of the RIC’s business interest income over the sum of its business interest expense and its other deductions properly allocable to its business interest income. A RIC may, in its discretion, designate all or a portion of ordinary dividends as Section 163(j) Interest Dividends, which would allow the recipient shareholder to treat the designated portion of such dividends as interest income for purposes of determining such shareholder’s interest expense deduction limitation under Section 163(j). This can potentially increase the amount of a shareholder’s interest expense deductible under Section 163(j). In general, to be eligible to treat a Section 163(j) Interest Dividend as interest income, you must have held your shares in a Fund for more than 180 days during the 361‑day period beginning on the date that is 180 days before the date on which the share becomes ex‑dividend with respect to such dividend. Section 163(j) Interest Dividends, if so designated by such Fund, will be reported to your financial intermediary or otherwise in accordance with the requirements specified by the Internal Revenue Service (“IRS”).

The Municipal Bond Fund expects to meet certain

requirements that will allow such fund to pay “exempt-interest” dividends with respect to income derived from interest earned on qualifying tax‑exempt obligations, which shareholders may exclude from their gross income for regular federal income tax purposes. Some of the Municipal Bond Fund’s income that is exempt from regular federal income taxation may be subject to the alternative minimum tax, for non‑corporate shareholders. For tax years beginning after December 31, 2022, exempt-interest dividends may be subject to the federal corporate alternative minimum tax for certain corporations. The Municipal Bond Fund may at times buy tax‑exempt securities at a discount from the price at which they were originally issued, especially during periods of rising interest rates. For federal income tax purposes, some or all of this market discount will be included in the Fund’s ordinary income and will be ordinary income when it is paid to you. The Municipal Bond Fund may not be an appropriate investment for individual retirement accounts, for other tax‑exempt or tax‑deferred accounts or for investors who are not sensitive to the federal income tax consequences of their investments. Income exempt from federal taxation may nevertheless be subject to state and local taxation.

In general, redeeming shares, exchanging shares and receiving dividends and distributions (whether in cash or additional shares) are all taxable events. The following table summarizes the tax status to you, if you are a U.S. shareholder, and hold your shares as a capital asset of certain transactions related to the Funds.

U.S. individuals with income exceeding $200,000 ($250,000 if married and filing jointly) are subject to a 3.8% tax on their “net investment income,” including interest, dividends, and capital gains (including capital gains realized on the sale or exchange of shares of the Funds). “Net investment income” does not include distributions of exempt interest.

To the extent a Fund invests in foreign securities, it may be subject to foreign withholding taxes with respect to dividends or

interest the Fund receives from sources in foreign countries. If more than 50% of the total assets of a Fund consists of foreign securities, such Fund will be eligible to elect to treat some of those taxes as a distribution to shareholders, which may allow shareholders to offset some of their U.S. federal income tax. A Fund (or its administrative agent) will notify you if it makes such an election and provide you with the information necessary to reflect foreign taxes paid on your income tax return. Foreign tax credits, if any, received by a Fund as a result of an investment in another RIC (including an ETF which is taxable as a RIC) will not be passed through to you unless the Fund qualifies as a “qualified fund‑of‑funds” under the Code. If a Fund is a “qualified fund‑of‑funds” it will be eligible to file an election with the IRS that will enable the Fund to pass along these foreign tax credits to its shareholders. A Fund will be treated as a “qualified fund‑of‑funds” under the Internal Revenue Code if at least 50% of the value of the Fund’s total assets (at the close of each quarter of the Fund’s taxable year) is represented by interests in other RICs.


TRANSACTIONS		FEDERAL TAX STATUS
Redemptions or exchange of shares		Usually taxable as capital gain or loss; long-term only if shares owned more than one year
Distributions of long-term capital gain		Taxable as long-term capital gain
Distribution of short-term capital gain		Generally taxable as ordinary income
Dividends from net investment income		Taxable as ordinary income, but potentially taxable at long-term capital gain rates for equity oriented Funds if the dividends qualify for treatment as qualified dividend income
Exempt-interest dividends from Municipal Bond Fund		Generally not taxable, may be subject to alternative minimum tax
Any of the above received by a qualified retirement account		Not currently taxable, provided purchase of shares not debt-financed

After the end of each year, the Funds (or their administrative agent) will provide you with information about the distributions and dividends you received and any redemption of shares during the previous year. If you do not provide the Funds with your correct taxpayer identification number and any required certifications, you may be subject to backup withholding on your Fund’s distributions, dividends and redemption proceeds. Since each shareholder’s circumstances are different and special tax rules may apply, you should consult your tax adviser about the federal, state, and local tax effects of your investment in a Fund. The Funds (or their administrative agent) must report to the IRS and furnish to Fund shareholders the cost basis information for Fund shares. In addition to reporting the gross proceeds from the sale of Fund shares, each Fund (or its administrative agent) is also required to report the cost basis information for such shares and indicate whether these shares have a short-term or long-term holding period. For each


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sale of its shares, each Fund will permit its shareholders to elect from among several IRS‑accepted cost basis methods, including the average cost basis method. In the absence of an election, each Fund will use a default cost basis method. The cost basis method elected by shareholders (or the cost basis method applied by default) for each sale of a Fund’s shares may not be changed after the settlement date of each such sale of a Fund’s shares. Shareholders should consult their tax advisors to determine the best IRS‑accepted cost basis method for their tax situation and to obtain more information about cost basis reporting. Shareholders also should carefully review any cost basis information provided to them by a fund and make any additional basis, holding period or other adjustments that are required when reporting these amounts on their federal income tax returns.

As noted above, investors, out of their own assets, will pay an advisory service fee in connection with their investment in the applicable Morgan Stanley-sponsored investment advisory program. This fee is separate and apart from the fees and expenses incurred by the Fund, which are indirectly borne by shareholders. For most investors who are individuals, this advisory service fee that is directly charged to them will be treated as a “miscellaneous itemized deduction.” Miscellaneous itemized deductions are not deductible.

The above discussion is applicable to shareholders who are U.S. persons. If you are a non‑U.S. person, please consult your own tax adviser with respect to the tax consequences to you of an investment in a Fund. If you have a tax‑advantaged retirement account, you will generally not be subject to federal taxation on income and capital gain distributions until you begin receiving your distributions from your retirement account. You should consult your tax advisor regarding the rules governing your own retirement plan.

For more information about taxes please see the SAI.


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Financial Highlights

The financial highlights tables are intended to help you understand the performance of each Fund for the past five years or since inception if the Fund has commenced operations within the last five years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in each Fund (assuming reinvestment of all dividends and distributions). The information below has been derived from the financial statements audited by Deloitte & Touche LLP, an independent registered public accounting firm, whose report, along with each Fund’s financial statements, is incorporated by reference in the SAI. The Annual Report to Shareholders and each Fund’s financial statements, as well as the SAI, are available at no cost from the Fund at the toll free number noted on the back cover to this Prospectus.

On December 9, 2024, the Large Cap Equity Predecessor Fund was reorganized into the Morgan Stanley Pathway Large Cap Equity ETF. Accordingly, the Morgan Stanley Pathway Large Cap Equity ETF adopted the operating history of the Large Cap Equity Predecessor Fund for financial reporting purposes. Therefore, the financial highlights shown below prior to December 9, 2024, are those of the Large Cap Equity Predecessor Fund.

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

Morgan Stanley Pathway Large Cap Equity ETF


	2025⁽¹⁾			2024⁽¹⁾			2023⁽¹⁾			2022⁽¹⁾			2021⁽¹⁾

Net Asset Value, Beginning of Year	$	48.03		$	40.96		$	39.05		$	51.52		$	40.39


Income (Loss) from Operations:

Net investment income⁽²⁾		0.47			0.46			0.42			0.36			0.41

Net realized and unrealized gain (loss)		6.46			9.06			4.83			(7.39	)		12.12


Total Income (Loss) from Operations		6.93			9.52			5.25			(7.03	)		12.53


Less Distributions from:

Net investment income		(0.41	)		(0.40	)		(0.34	)		(0.38	)		(0.33	)

Net realized gain		(1.51	)		(2.05	)		(3.00	)		(5.06	)		(1.07	)


Total Distributions		(1.92	)		(2.45	)		(3.34	)		(5.44	)		(1.40	)


Net Asset Value, End of Year	$	53.04		$	48.03		$	40.96		$	39.05		$	51.52


Total Return^†⁽³⁾⁽⁴⁾		14.69	%		24.57	%		14.71	%		(15.44	)%		31.79	%

Net Assets, End of Year (millions)	$	3,293		$	2,647		$	1,815		$	1,685		$	2,175

Ratios to Average Net Assets:

Gross expenses		0.64	%		0.69	%		0.70	%		0.69	%		0.68	%

Net expenses⁽⁵⁾		0.39			0.41			0.47			0.48			0.47

Net investment income		0.96			1.07			1.12			0.82			0.91

Portfolio Turnover Rate		13	%⁽⁶⁾		25	%		34	%		20	%		15	%

(1)

The Morgan Stanley Pathway Cap Equity ETF/Small-Mid Cap Equity ETF (the “Fund”) acquired all the assets and liabilities of the Large Cap Equity Fund/Small-Mid Cap Equity Fund (the “Predecessor Fund”) in a reorganization that occurred on December 9, 2024 (the “Reorganization”). The Predecessor Fund ceased operations immediately following the Reorganization. As a result, all financial information prior to the Reorganization reflects that of the Predecessor Fund and has been retroactively adjusted to reflect the Reorganization.

(2)	Per share amounts have been calculated using the average shares method.

(3)

Performance figures may reflect fee waivers and/or expense reimbursements and assume reinvestment of dividend distribution. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. Applicable advisory program charges, which may be up to 2.00%, are not reflected in the performance data and would reduce the total returns. Past performance is no guarantee of future results.

(4)	The Predecessor Fund was designated as the accounting survivor in the Reorganization. As a result, the Fund assumed the Predecessor Fund’s historical performance and the performance information reflects that of the Predecessor Fund.

(5)	Reflects fee waivers and/or expense reimbursements.

(6)	In-kind transactions are not included in portfolio turnover calculations.

†	Calculated based on the net asset value as of the last business day of the period.


MORGAN STANLEY \| 2026		119

On December 9, 2024, the Small‑Mid Cap Equity Predecessor Fund was reorganized into the Morgan Stanley Pathway Small‑Mid Cap Equity ETF. Accordingly, the Morgan Stanley Pathway Small‑Mid Cap Equity ETF adopted the operating history of the Small‑Mid Cap Equity Predecessor Fund for financial reporting purposes. Therefore, the financial highlights shown below prior to December 9, 2024, are those of the Small‑Mid Cap Equity Predecessor Fund.

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

Morgan Stanley Pathway Small‑Mid Cap Equity ETF


	2025⁽¹⁾			2024⁽¹⁾			2023⁽¹⁾			2022⁽¹⁾			2021⁽¹⁾

Net Asset Value, Beginning of Year	$	51.10		$	44.79		$	46.75		$	68.74		$	50.84


Income (Loss) from Operations:

Net investment income⁽²⁾		0.37			0.40			0.44			0.34			0.38

Net realized and unrealized gain (loss)		3.61			6.35			2.25			(9.18	)		20.03


Total Income (Loss) from Operations		3.98			6.75			2.69			(8.84	)		20.41


Less Distributions from:

Net investment income		(0.35	)		(0.44	)		(0.30	)		(0.22	)		(0.39	)

Net realized gain		(4.80	)		—			(4.35	)		(12.93	)		(2.12	)


Total Distributions		(5.15	)		(0.44	)		(4.65	)		(13.15	)		(2.51	)


Net Asset Value, End of Year	$	49.93		$	51.10		$	44.79		$	46.75		$	68.74


Total Return^†⁽³⁾⁽⁴⁾		7.67	%		15.19	%		6.47	%		(15.89	)%		41.14	%

Net Assets, End of Year (millions)	$	674		$	479		$	490		$	542		$	677

Ratios to Average Net Assets:

Gross expenses		0.90	%		0.95	%		0.94	%		0.93	%		0.92	%

Net expenses⁽⁵⁾		0.62			0.60			0.60			0.59			0.58

Net investment income		0.79			0.86			0.99			0.63			0.61

Portfolio Turnover Rate		45	%⁽⁶⁾		56	%		23	%		41	%		29	%

(1)

The Morgan Stanley Pathway Small-Mid Cap Equity ETF (the “Fund”) acquired all the assets and liabilities of the Small-Mid Cap Equity Fund (the “Predecessor Fund”) in a reorganization that occurred on December 9, 2024 (the “Reorganization”). The Predecessor Fund ceased operations immediately following the Reorganization. As a result, all financial information prior to the Reorganization reflects that of the Predecessor Fund and has been retroactively adjusted to reflect the Reorganization. See Note 1 of the Notes to Financial Statements for additional information on the Fund’s Reorganization.

(2)	Per share amounts have been calculated using the average shares method.

(3)

(4)	The Predecessor Fund was designated as the accounting survivor in the Reorganization. As a result, the Fund assumed the Predecessor Fund’s historical performance and the performance information reflects that of the Predecessor Fund.

(5)	Reflects fee waivers and/or expense reimbursements.

(6)	In-kind transactions are not included in portfolio turnover calculations.

†	Calculated based on the net asset value as of the last business day of the period.


120		MORGAN STANLEY \| 2026

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

International Equity Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	15.04		$	12.98		$	11.19		$	15.54		$	12.27


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.29			0.29			0.25			0.27			0.21

Net realized and unrealized gain (loss)		1.30			2.05			2.11			(3.34	)		3.30


Total Income (Loss) from Operations		1.59			2.34			2.36			(3.07	)		3.51


Less Distributions from:

Net investment income		(0.36	)		(0.28	)		(0.21	)		(0.33	)		(0.24	)

Net realized gain		(0.50	)		—			(0.36	)		(0.95	)		—


Total Distributions		(0.86	)		(0.28	)		(0.57	)		(1.28	)		(0.24	)


Net Asset Value, End of Year	$	15.77		$	15.04		$	12.98		$	11.19		$	15.54


Total Return^†⁽²⁾		11.53	%		18.36	%		21.72	%		(21.37	)%		28.93	%

Net Assets, End of Year (millions)	$	1,194		$	1,310		$	1,176		$	1,148		$	1,458

Ratios to Average Net Assets:

Gross expenses		0.83	%		0.83	%		0.86	%		0.85	%		0.84	%

Net expenses⁽³⁾		0.60			0.61			0.68			0.67			0.67

Net investment income		2.04			2.12			2.01			2.01			1.50

Portfolio Turnover Rate		29	%		26	%		33	%		38	%		52	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.

Emerging Markets Equity Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	14.03		$	12.70		$	12.39		$	17.44		$	14.67


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.25			0.26			0.23			0.30			0.20

Net realized and unrealized gain (loss)		1.89			1.38			0.31			(4.65	)		2.90


Total Income (Loss) from Operations		2.14			1.64			0.54			(4.35	)		3.10


Less Distributions from:

Net investment income		(0.28	)		(0.31	)		(0.23	)		(0.29	)		(0.33	)


Net realized gain		—			—			—			(0.41	)		—


Total Distributions		(0.28	)		(0.31	)		(0.23	)		(0.70	)		(0.33	)


Net Asset Value, End of Year	$	15.89		$	14.03		$	12.70		$	12.39		$	17.44


Total Return^†⁽²⁾		15.58	%		13.27	%		4.64	%		(25.82	)%		21.28	%

Net Assets, End of Year (millions)	$	656		$	499		$	491		$	481		$	563

Ratio to Average Net Assets:

Gross expenses		1.11	%		1.10	%		1.15	%		1.15	%		1.12	%

Net expenses⁽³⁾		0.75			0.76			0.82			0.81			0.80

Net investment income		1.75			2.03			1.87			2.10			1.18

Portfolio Turnover Rate		20	%		26	%		12	%		14	%		53	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.


MORGAN STANLEY \| 2026		121

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

Core Fixed Income Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	6.92		$	6.75		$	7.12		$	8.39		$	8.79


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.31			0.27			0.25			0.14			0.13

Net realized and unrealized gain (loss)		(0.12	)		0.20			(0.36	)		(1.20	)		(0.08	)


Total Income (Loss) from Operations		0.19			0.47			(0.11	)		(1.06	)		0.05


Less Distributions from:

Net investment income		(0.30	)		(0.30	)		(0.25	)		(0.16	)		(0.17	)

Tax return of capital		—			(0.00	)⁽²⁾		(0.01	)		—			—

Net realized gain		—			—			—			(0.05	)		(0.28	)


Total Distributions		(0.30	)		(0.30	)		(0.26	)		(0.21	)		(0.45	)


Net Asset Value, End of Year	$	6.81		$	6.92		$	6.75		$	7.12		$	8.39


Total Return^†⁽³⁾		3.03	%		6.97	%		(1.60	)%		(12.86	)%		0.58	%

Net Assets, End of Year (millions)	$	1,656		$	1,865		$	1,796		$	1,352		$	1,311

Ratios to Average Net Assets:

Gross expenses		0.56	%		0.53	%		0.55	%		0.56	%		0.56	%

Net expenses⁽⁴⁾		0.47			0.48			0.52			0.53			0.54

Net investment income		4.58			4.00			3.65			1.85			1.57

Portfolio Turnover Rate		136	%		229	%		254	%		238	%		227	%

(1)	Per share amounts have been calculated using the average shares method.

(2)	Amount is less than $0.005 per share.

(3)

(4)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.

High Yield Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	3.25		$	3.14		$	3.14		$	3.72		$	3.61


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.21			0.22			0.20			0.17			0.18

Net realized and unrealized gain (loss)		0.04			0.11			—			(0.56	)		0.11


Total Income (Loss) from Operations		0.25			0.33			0.20			(0.39	)		0.29


Less Distributions from:

Net investment income		(0.22	)		(0.22	)		(0.20	)		(0.19	)		(0.18	)


Total Distributions		(0.22	)		(0.22	)		(0.20	)		(0.19	)		(0.18	)


Net Asset Value, End of Year	$	3.28		$	3.25		$	3.14		$	3.14		$	3.72


Total Return^†⁽²⁾		7.86	%		10.96	%		6.71	%		(10.88	)%		8.61	%

Net Assets, End of Year (millions)	$	142		$	133		$	128		$	113		$	213

Ratios to Average Net Assets:

Gross expenses		1.02	%		1.05	%		1.17	%		1.07	%		0.96	%

Net expenses⁽³⁾		0.82			0.85			0.97			0.87			0.76

Net investment income		6.63			6.80			6.30			4.88			4.79

Portfolio Turnover Rate		76	%		44	%		25	%		46	%		117	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.


122		MORGAN STANLEY \| 2026

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

International Fixed Income Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	6.78		$	6.40		$	7.00		$	8.12		$	8.03


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.24			0.19			0.12			0.07			0.07

Net realized and unrealized gain (loss)		0.01			0.25			(0.13	)		(0.98	)		0.08


Total Income (Loss) from Operations		0.25			0.44			(0.01	)		(0.91	)		0.15


Less Distributions from:

Net investment income		(0.16	)		(0.03	)		(0.59	)		(0.12	)		—

Net realized gain		—			(0.03	)		—			(0.09	)		(0.06	)


Total Distributions		(0.16	)		(0.06	)		(0.59	)		(0.21	)		(0.06	)


Net Asset Value, End of Year	$	6.87		$	6.78		$	6.40		$	7.00		$	8.12


Total Return^†⁽²⁾		3.75	%		6.85	%		(0.15	)%		(11.54	)%		1.86	%

Net Assets, End of Year (millions)	$	180		$	179		$	182		$	171		$	156

Ratios to Average Net Assets:

Gross expenses⁽³⁾		1.23	%		0.97	%		0.95	%		0.93	%		0.97	%

Net expenses⁽³⁾⁽⁴⁾		1.18			0.92			0.90			0.88			0.92

Net investment income		3.46			2.90			1.86			0.95			0.92

Portfolio Turnover Rate		280	%		328	%		381	%		312	%		402	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Ratio includes interest expense on reverse repurchase agreements and/or sale-buyback transactions which represents 0.23%, 0.01%, 0.00%, 0.00% and less than 0.005%, respectively.

(4)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.

Municipal Bond Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	8.64		$	8.44		$	8.55		$	9.60		$	9.53


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.27			0.26			0.23			0.18			0.17

Net realized and unrealized gain (loss)		(0.35	)		0.24			(0.12	)		(1.03	)		0.12


Total Income (Loss) from Operations		(0.08	)		0.50			(0.11	)		(0.85	)		0.29


Less Distributions from:

Net investment income		(0.27	)		(0.26	)		(0.22	)		(0.18	)		(0.17	)

Tax return of capital		—			(0.00	)⁽²⁾		—			—			—

Net realized gain		—			(0.04	)		—			(0.02	)		(0.05	)


Total Distributions		(0.27	)		(0.30	)		(0.22	)		(0.20	)		(0.22	)


Net Asset Value, End of Year	$	8.29		$	8.64		$	8.44		$	8.55		$	9.60


Total Return^†⁽³⁾		(0.94	)%		6.02	%		1.35	%		(8.91	)%		3.07	%

Net Assets, End of Year (millions)	$	77		$	90		$	99		$	87		$	92

Ratios to Average Net Assets:

Gross expenses		0.70	%		0.69	%		0.76	%		0.71	%		0.73	%

Net expenses		0.70			0.69			0.76			0.71			0.73

Net investment income		3.16			3.01			2.66			1.99			1.79

Portfolio Turnover Rate		68	%		40	%		28	%		48	%		7	%

(1)	Per share amounts have been calculated using the average shares method.

(2)	Amount is less than $0.005 per share.

(3)

†	Calculated based on the net asset value as of the last business day of the period.


MORGAN STANLEY \| 2026		123

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

Inflation-Linked Fixed Income Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	8.27		$	8.12		$	9.17		$	11.16		$	11.13


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.32			0.31			0.25			0.87			0.56

Net realized and unrealized gain (loss)		0.12			0.20			(0.65	)		(1.54	)		0.07


Total Income (Loss) from Operations		0.44			0.51			(0.40	)		(0.67	)		0.63


Less Distributions from:

Net investment income		(0.29	)		(0.30	)		(0.37	)		(0.93	)		(0.60	)

Net realized gain		—			(0.06	)		(0.28	)		(0.39	)		—


Total Distributions		(0.29	)		(0.36	)		(0.65	)		(1.32	)		(0.60	)


Net Asset Value, End of Year	$	8.42		$	8.27		$	8.12		$	9.17		$	11.16


Total Return^†⁽²⁾		5.29	%		6.44	%		(4.51	)%		(6.55	)%		5.87	%

Net Assets, End of Year (millions)	$	138		$	147		$	127		$	102		$	148

Ratios to Average Net Assets:

Gross expenses⁽³⁾		2.32	%		2.54	%		2.35	%		1.08	%		0.93	%

Net expenses⁽³⁾⁽⁴⁾		2.27			2.49			2.30			1.03			0.88

Net investment income		3.92			3.82			2.96			8.43			5.08

Portfolio Turnover Rate		112	%		121	%		56	%		57	%		104	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Ratio includes interest expense on reverse repurchase agreements and/or sale-buyback transactions which represents 1.51%, 1.67%, 1.32%, 0.17% and 0.03%, respectively.

(4)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.

Ultra-Short Term Fixed Income Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	9.73		$	9.61		$	9.69		$	9.89		$	9.99


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.45			0.48			0.32			0.08			0.05

Net realized and unrealized gain (loss)		0.06			0.11			0.14			(0.17	)		0.01


Total Income (Loss) from Operations		0.51			0.59			0.46			(0.09	)		0.06


Less Distributions from:

Net investment income		(0.46	)		(0.33	)		(0.54	)		(0.11	)		(0.16	)

Tax return of capital		—			(0.14	)		—			—			—


Total Distributions		(0.46	)		(0.47	)		(0.54	)		(0.11	)		(0.16	)


Net Asset Value, End of Year	$	9.78		$	9.73		$	9.61		$	9.69		$	9.89


Total Return^†⁽²⁾		5.23	%		6.28	%		4.95	%		(0.92	)%		0.61	%

Net Assets, End of Year (millions)	$	410		$	315		$	309		$	506		$	442

Ratios to Average Net Assets:

Gross expenses⁽³⁾		0.68	%		0.69	%		0.81	%		0.67	%		0.67	%

Net expenses⁽³⁾⁽⁴⁾		0.53			0.54			0.76			0.62			0.62

Net investment income		4.65			4.98			3.34			0.79			0.50

Portfolio Turnover Rate		123	%		87	%		42	%		86	%		55	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Ratio includes interest expense on reverse repurchase agreements and/or sale-buyback transactions which represents 0.04%, 0.01%, 0.14%, 0.02%, and less than 0.005% respectively.

(4)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.


124		MORGAN STANLEY \| 2026

For a share of beneficial interest outstanding throughout each year ended August 31, unless otherwise noted:

Alternative Strategies Fund


	2025			2024			2023			2022			2021

Net Asset Value, Beginning of Year	$	10.77		$	10.24		$	10.69		$	10.99		$	10.04


Income (Loss) from Operations:

Net investment income⁽¹⁾		0.37			0.34			0.38			0.20			0.13

Net realized and unrealized gain (loss)		(0.02	)		0.52			(0.17	)		(0.42	)		0.91


Total Income (Loss) from Operations		0.35			0.86			0.21			(0.22	)		1.04


Less Distributions from:

Net Investment Income		(0.26	)		(0.33	)		(0.64	)		(0.07	)		(0.09	)

Net realized gain		—			—			(0.02	)		(0.01	)		—


Total Distributions		(0.26	)		(0.33	)		(0.66	)		(0.08	)		(0.09	)


Net Asset Value, End of Year	$	10.86		$	10.77		$	10.24		$	10.69		$	10.99


Total Return^†⁽²⁾		3.31	%		8.65	%		2.14	%		(2.06	)%		10.39	%

Net Assets, End of Year (millions)	$	186		$	163		$	157		$	147		$	119

Ratios to Average Net Assets:

Gross expenses		1.38	%		1.39	%		1.50	%		1.59	%		1.56	%

Net expenses⁽³⁾⁽⁴⁾		0.38			0.39			0.50			0.59			0.56

Net investment income (loss)		3.43			3.22			3.70			1.83			1.24

Portfolio Turnover Rate		29	%		13	%		27	%		18	%		18	%

(1)	Per share amounts have been calculated using the average shares method.

(2)

(3)	Does not reflect the Fund’s proportionate share of income and expenses from the Underlying Fund.

(4)	Reflects fee waivers and/or expense reimbursements.

†	Calculated based on the net asset value as of the last business day of the period.


MORGAN STANLEY \| 2026		125

For More Information

You may visit the Trust’s website at www.morganstanley.com/wealth-investmentsolutions/cgcm for a free copy of this Prospectus, or an annual or semi-annual report, or to request other information.

Annual and Semi-annual Reports

Additional information about the Funds’ investments is available in the Funds’ annual and semi-annual reports to shareholders. The Funds’ annual report contains a discussion of the market conditions and investment strategies that significantly affected the Funds’ performance during their last fiscal year.

The Trust sends only one report to a household if more than one account has the same address. Contact your Morgan Stanley financial advisor or the transfer agent if you do not want this policy to apply to you.

Statement of Additional Information (“SAI”)

The SAI provides more detailed information about the Funds and is incorporated into this Prospectus by reference.

Morgan Stanley Financial Advisor

Your Morgan Stanley financial advisor (“Financial Advisor”) is available to answer questions about the Funds or the investor’s overall asset allocation program.

Investors can obtain free copies of the annual and semi-annual reports, request the SAI, or request other information, including Fund Financial Statements, and discuss their questions about the Funds by contacting their Financial Advisor. Investors may also obtain free copies of these documents or request other information by calling:

1‑800‑869‑3326 or by writing to the Funds at:

MS Pathway Funds 2000

Westchester Avenue

Purchase, NY 10577

or at the Funds’ website at www.morganstanley.com/wealth-investmentsolutions/cgcm

Reports and other information about the Funds are available on the EDGAR Database on the SEC’s Internet site at http://www.sec.gov. Copies of this information may be obtained for a duplicating fee by electronic request at the following e‑mail address: [email protected], or by writing the SEC’s Public Reference Section, Washington, D.C. 20549-1520.

If someone makes a statement about the Funds that is not in this Prospectus, you should not rely upon that information. Neither the Funds nor their respective distributors are offering to sell shares of the Funds to any person to whom the Funds may not lawfully sell their shares.

Investment Company Act File No. 811‑06318

^®2025 Morgan Stanley.

CGAS is an affiliate of Morgan Stanley.

TK2088 1/26


		Prospectus » January 1, 2026 ● Morgan Stanley Pathway Large Cap Equity ETF (MSLC) Principal Listing Exchange: NYSE Arca, Inc. ● Morgan Stanley Pathway Small‑Mid Cap Equity ETF (MSSM) Principal Listing Exchange: NYSE Arca, Inc. ● International Equity Fund (TIEUX) ● Emerging Markets Equity Fund (TEMUX) ● Core Fixed Income Fund (TIIUX) ● High Yield Fund (THYUX) ● International Fixed Income Fund (TIFUX) ● Municipal Bond Fund (TMUUX) ● Inflation-Linked Fixed Income Fund (TILUX) ● Ultra-Short Term Fixed Income Fund (TSDUX) ● Alternative Strategies Fund (TALTX)

		INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE


		Fund Summaries

1		Morgan Stanley Pathway Large Cap Equity ETF

6		Morgan Stanley Pathway Small‑Mid Cap Equity ETF

11		International Equity Fund

15		Emerging Markets Equity Fund

20		Core Fixed Income Fund

26		High Yield Fund

31		International Fixed Income Fund

36		Municipal Bond Fund

40		Inflation-Linked Fixed Income Fund

45		Ultra-Short Term Fixed Income Fund

50		Alternative Strategies Fund

55		Fund details

55		Investment objectives, strategies and risks

86		About the Funds

86		The multi-manager strategy

86		About the Morgan Stanley-sponsored investment advisory programs

87		Portfolio holdings

88		Fund Management

111		Investment and account information

111		Information Concerning the Morgan Stanley Pathway ETFs

114		Account transactions

115		Valuation of shares

116		Dividends and distributions

116		Taxes

119		Financial Highlights