Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (n-q)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-06515

 

 

Morgan Stanley Global Fixed Income Opportunities Fund

(Exact name of registrant as specified in charter)

 

 

 

522 Fifth Avenue, New York, New York		10036
(Address of principal executive offices)		(Zip code)

 

 

John Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 212-296-0289

Date of fiscal year end: October 31, 2013

Date of reporting period: July 31, 2013

 

 

 

Item 1. Schedule of Investments.

The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited)

 

PRINCIPAL AMOUNT (000)						COUPON RATE				MATURITY DATE		VALUE
				Corporate Bonds (45.7%)
				Australia (0.8%)
				Finance
$	250			Goodman Funding Pty Ltd. (a)			6.375	%		04/15/21		$	277,722
	325			Macquarie Group Ltd. (a)(b)			6.00			01/14/20			349,065
				Total Australia									626,787
				Brazil (1.0%)
				Finance
	450			Banco BTG Pactual SA (a)			4.00			01/16/20			387,000
	500			Caixa Economica Federal (b)			3.50			11/07/22			420,000
				Total Brazil									807,000
				Canada (0.7%)
				Basic Materials
	60			Barrick Gold Corp. (a)			4.10			05/01/23			51,129
	275			Goldcorp, Inc.			3.70			03/15/23			247,613
													298,742
				Energy
	250			PetroBakken Energy Ltd. (a)			8.625			02/01/20			245,000
				Total Canada									543,742
				Cayman Islands (0.1%)
				Finance
CNY	500			Shui On Land Ltd.			4.50			09/29/15			81,417
				Chile (0.1%)
				Finance
CLP	50,000			Banco Santander Chile			6.50			09/22/20			96,332
				China (0.8%)
				Diversified
HKD	2,000			Wharf Finance 2014 Ltd.			2.30			06/07/14			264,003
				Finance
$	100			Billion Express Investments Ltd.			0.75			10/18/15			102,775
HKD	2,000			Tong Jie Ltd.			0.00	(c)		02/18/18			256,589
													359,364
				Total China									623,367
				Czech Republic (0.2%)
				Utilities
$	210			CEZ AS (a)			4.25			04/03/22			207,619
				Denmark (0.0%)
				Finance
DKK	(d)			Nordea Kredit Realkreditaktieselskab, Series ANN			5.00			07/01/29			6
	92			Realkredit Danmark A/S			6.00			10/01/29			18,917
				Total Denmark									18,923
				France (1.1%)
				Consumer, Non-Cyclical
EUR	250			Europcar Groupe SA			11.50			05/15/17			379,150
				Finance
	200			AXA SA			5.25	(e)		04/16/40			277,096
$	225			Societe Generale SA (a)			5.20			04/15/21			240,133
													517,229
				Total France									896,379

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

				Germany (2.9%)
				Consumer, Non-Cyclical
EUR	140			Celesio Finance B.V.			4.00	%		10/18/16		$	194,327
				Finance
	100			Aabar Investments PJSC			4.00			05/27/16			145,673
	200			Allianz Finance II BV			5.75	(e)		07/08/41			297,788
	400			Commerzbank AG			7.75			03/16/21			556,352
AUD	1,000			KFW, MTN			3.75			07/18/18			896,365
EUR	100			Muenchener Rueckversicherungs AG			6.25	(e)		05/26/42			155,755
													2,051,933
				Utilities
GBP	100			RWE AG			7.00	(e)		(f)			162,421
				Total Germany									2,408,681
				Greece (0.2%)
				Industrials
$	148			DryShips, Inc.			5.00			12/01/14			140,045
				India (0.7%)
				Basic Materials
	200			Vedanta Resources PLC (a)(b)			7.125			05/31/23			195,500
				Communications
	200			Bharti Airtel International Netherlands BV (a)(b)			5.125			03/11/23			187,000
				Finance
	200			Bank of India (a)			3.625			09/21/18			193,460
				Total India									575,960
				Indonesia (0.5%)
				Energy
	520			Indo Energy Finance II BV (a)(b)			6.375			01/24/23			442,000
				Italy (2.2%)
				Communications
EUR	150			Telecom Italia Finance SA			7.75			01/24/33			216,228
$	250			Wind Acquisition Finance SA (a)(b)			11.75			07/15/17			265,000
													481,228
				Energy
EUR	200			Eni SpA, Series GALP			0.25			11/30/15			276,260
				Finance
$	300			Intesa Sanpaolo SpA (a)(b)			6.50			02/24/21			304,527
EUR	250			UniCredit SpA			4.875			03/07/17			351,845
													656,372
				Utilities
$	375			Enel Finance International N.V. (a)			5.125			10/07/19			387,720
				Total Italy									1,801,580
				Japan (0.3%)
				Technology
JPY	23,000			Nomura Research Institute Ltd., Series 1			0.00	(c)		03/31/14			244,012
				Korea, Republic of (0.1%)
				Technology
$	100			SK Hynix, Inc.			2.65			05/14/15			109,200
				Luxembourg (0.4%)
				Consumer, Cyclical
EUR	100			Bormioli Rocco Holdings SA			10.00			08/01/18			141,350
				Industrials
	150			Ardagh Glass Finance PLC			8.75			02/01/20			209,031
				Total Luxembourg									350,381

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

				Mexico (0.2%)
				Industrials
$	150			Cemex Finance LLC (a)(b)			9.375	%		10/12/22		$	168,750
				Netherlands (1.0%)
				Finance
EUR	250			ABN AMRO Bank N.V.			6.375			04/27/21			373,865
$	475			Cooperatieve Centrale Raiffeisen-Boerenleenbank BA			3.95			11/09/22			457,168
				Total Netherlands									831,033
				Norway (0.2%)
				Diversified
	200			Siem Industries, Inc., Series SUBC			1.00			09/12/19			192,760
				Portugal (0.5%)
				Utilities
	425			EDP Finance BV (a)			6.00			02/02/18			441,694
				Russia (2.3%)
				Communications
	480			Vimpel Communications Via VIP Finance Ireland Ltd., OJSC			7.748			02/02/21			513,600
				Energy
	100			Lukoil International Finance BV			2.625			06/16/15			108,250
				Finance
	230			Credit Bank of Moscow Via CBOM Finance PLC (a)			8.70			11/13/18			224,825
RUB	20,600			Gazprombank OJSC Via GPB Eurobond Finance PLC			7.875			07/25/16			619,659
$	200			Russian Standard Bank Via Russian Standard Finance SA (a)			10.75			04/10/18			213,000
													1,057,484
				Industrials
	200			TMK OAO Via TMK Capital SA (a)(b)			6.75			04/03/20			194,750
				Total Russia									1,874,084
				Singapore (0.6%)
				Consumer, Non-Cyclical
	200			Global A&T Electronics Ltd. (a)			10.00			02/01/19			209,500
	200			Golden Agri-Resources Ltd.			2.50			10/04/17			186,050
	100			Olam International Ltd.			6.00			10/15/16			97,400
				Total Singapore									492,950
				Spain (1.7%)
				Communications
	300			Nara Cable Funding Ltd. (a)			8.875			12/01/18			312,000
				Finance
EUR	200			CaixaBank			3.25			01/22/16			270,426
	200			Santander International Debt SAU			4.625			03/21/16			279,412
													549,838
				Industrials
EUR	200			Ferrovial Emisiones SA			3.375			01/30/18			272,886
				Utilities
$	225			Iberdrola Finance Ireland Ltd. (a)			5.00			09/11/19			235,785
				Total Spain									1,370,509
				Switzerland (0.5%)
				Basic Materials
EUR	117			INEOS Group Holdings SA			7.875			02/15/16			157,980
				Finance
	150			Cloverie PLC for Zurich Insurance Co., Ltd.			7.50	(e)		07/24/39			243,406
				Total Switzerland									401,386

 

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

				Turkey (0.4%)
				Finance
$	300			Finansbank AS			5.50	%			05/11/16			$	301,500
				United Kingdom (2.4%)
				Consumer, Cyclical
	325			British Airways PLC (a)			4.625				06/20/24				328,250
				Finance
EUR	250			Barclays Bank PLC			6.00				01/14/21				374,022
GBP	200			Derwent London Capital No. 2 Jersey Ltd., Series DLN			1.125				07/24/19				306,036
EUR	225			Lloyds TSB Bank PLC			6.50				03/24/20				335,463
$	320			Royal Bank of Scotland Group PLC (b)			6.125				12/15/22				310,274
															1,325,795
				Industrials
	300			CEVA Group PLC (a)(b)			8.375				12/01/17				303,000
				Total United Kingdom											1,957,045
				United States (23.8%)
				Basic Materials
	150			American Gilsonite Co. (a)			11.50				09/01/17				158,625
	200			Prince Mineral Holding Corp. (a)			11.50				12/15/19				216,250
	83			United States Steel Corp.			4.00				05/15/14				84,971
															459,846
				Communications
	265			CCO Holdings LLC/CCO Holdings Capital Corp.			6.50				04/30/21				273,612
	200			CSC Holdings LLC (b)			8.625				02/15/19				235,000
	250			GXS Worldwide, Inc.			9.75				06/15/15				257,344
	350			Harron Communications LP/Harron Finance Corp. (a)			9.125				04/01/20				388,500
	250			inVentiv Health, Inc. (a)(b)			9.00				01/15/18				259,375
	151			Priceline.com, Inc. (a)(b)			0.35				06/15/20				148,641
															1,562,472
				Consumer, Cyclical
	250			Ameristar Casinos, Inc.			7.50				04/15/21				268,125
	275			Caesars Entertainment Operating Co., Inc.			8.50				02/15/20				256,953
	400			CCM Merger, Inc. (a)(b)			9.125				05/01/19				426,000
	250			Chrysler Group LLC/CG Co-Issuer, Inc.			8.00				06/15/19				274,063
	200			Exide Technologies (b)(g)(h)			8.625				02/01/18				119,750
	300			HD Supply, Inc. (a)			7.50				07/15/20				318,750
	52			Iconix Brand Group, Inc.			2.50				06/01/16				63,343
	441			INTCOMEX, Inc.			13.25				12/15/14				429,975
	86			International Game Technology (b)			3.25				05/01/14				95,621
	400			Logan’s Roadhouse, Inc.			10.75				10/15/17				381,500
	200			MGM Resorts International			7.75				03/15/22				222,500
	3,904			Resort at Summerlin LP, Series B (g)(h)(i)(j)(k)			13.00				12/15/07				0
	345			Rite Aid Corp. (a)(b)			6.75				06/15/21				347,587
	400			RSI Home Products, Inc. (a)			6.875				03/01/18				414,000
	250			Scientific Games International, Inc. (b)			9.25				06/15/19				273,125
	100			US Airways 2013-1 Class A Pass-Through Trust			3.95				11/15/25				95,500
															3,986,792
				Consumer, Non-Cyclical
	243			Archer-Daniels-Midland Co. (b)			0.875				02/15/14				248,923
	545			Armored Autogroup, Inc.			9.25				11/01/18				504,125
	200			Jaguar Holding Co., I (a)(i)			9.375				10/15/17				215,500
	106			Jarden Corp. (a)(b)			1.875				09/15/18				125,477
	480			Kindred Healthcare, Inc.			8.25				06/01/19				507,600
	227			PHH Corp.			4.00				09/01/14				248,423
	44			Salix Pharmaceuticals Ltd. (b)			1.50				03/15/19				56,458
	300			ServiceMaster Co. (b)			8.00				02/15/20				294,750
															2,201,256

 

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

				Energy
$	150			Continental Resources, Inc. (b)			4.50	%		04/15/23		$	146,250
	150			Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. (b)			7.75			04/01/19			157,500
	400			PetroQuest Energy, Inc. (a)(b)			10.00			09/01/17			414,000
													717,750
				Finance
	104			Annaly Capital Management, Inc.			5.00			05/15/15			105,365
	99			Ares Capital Corp. (b)			5.75			02/01/16			108,281
	250			DPL, Inc. (b)			7.25			10/15/21			260,000
	150			Genworth Holdings, Inc.			7.20			02/15/21			174,330
	455			Goldman Sachs Group, Inc. (The)			6.75			10/01/37			480,194
	435			HSBC Finance Corp.			6.676			01/15/21			492,589
	325			ING US, Inc. (a)(b)			5.65	(e)		05/15/53			306,313
	350			Jefferies Finance LLC/JFIN Co-Issuer Corp. (a)			7.375			04/01/20			355,250
	300			Jefferies LoanCore LLC/JLC Finance Corp. (a)			6.875			06/01/20			301,500
	400			KCG Holdings, Inc. (a)			8.25			06/15/18			391,000
	250			Kennedy-Wilson, Inc.			8.75			04/01/19			272,500
	200			Merrill Lynch & Co., Inc.			6.11			01/29/37			200,497
	125			Nationwide Financial Services, Inc. (a)			5.375			03/25/21			135,413
	275			Nuveen Investments, Inc. (a)			9.125			10/15/17			279,813
	395			Prudential Financial, Inc.			5.625	(e)		06/15/43			384,137
													4,247,182
				Industrials
	200			Atkore International, Inc.			9.875			01/01/18			218,000
	250			Cequel Communications Holdings I LLC/Cequel Capital Corp. (a)(b)			6.375			09/15/20			259,375
	300			Consolidated Container Co., LLC/Consolidated Container Capital, Inc. (a)			10.125			07/15/20			315,000
EUR	375			GE Capital Trust II			5.50	(e)		09/15/67			514,157
$	116			General Cable Corp.			4.50	(l)		11/15/29			130,573
	200			Kratos Defense & Security Solutions, Inc.			10.00			06/01/17			217,000
	400			Marquette Transportation Co./Marquette Transportation Finance Corp. (b)			10.875			01/15/17			430,000
	300			Navios Maritime Holdings, Inc./Navios Maritime Finance II US, Inc.			8.125			02/15/19			286,875
	400			Nuverra Environmental Solutions, Inc. (b)			9.875			04/15/18			413,000
	150			Pretium Packaging LLC/Pretium Finance, Inc.			11.50			04/01/16			162,000
	250			Sequa Corp. (a)			7.00			12/15/17			251,250
	400			Tekni-Plex, Inc. (a)			9.75			06/01/19			448,000
	79			Trinity Industries, Inc. (b)			3.875			06/01/36			91,788
				Technology
	250			Zachry Holdings, Inc. (a)(b)			7.50			02/01/20			259,375
													3,996,393
	400			First Data Corp. (a)			10.625			06/15/21			408,000
	200			First Data Corp. (a)			11.25			01/15/21			208,000
	300			Infor US, Inc.			9.375			04/01/19			336,750
	112			Intel Corp. (b)			2.95			12/15/35			120,610
	123			Lam Research Corp. (b)			1.25			05/15/18			143,756
	41			Nuance Communications, Inc. (b)			2.75			11/01/31			41,974
	217			ON Semiconductor Corp., Series B			2.625			12/15/26			250,906
	119			Salesforce.com, Inc. (a)(b)			0.25			04/01/18			118,554
	75			SanDisk Corp.			1.50			08/15/17			95,391
													1,723,941
				Utilities
	250			AES Corp.			7.375			07/01/21			283,750
	325			Puget Energy, Inc.			6.50			12/15/20			371,044
													654,794
				Total United States									19,550,426
				Total Corporate Bonds (Cost $40,562,845)									37,555,562

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

				Sovereign (30.0%)
				Bermuda (0.6%)
$	530			Bermuda Government International Bond			4.854	%		02/06/24		$	533,649
				Brazil (1.5%)
BRL	3,100			Brazilian Government International Bond			8.50			01/05/24			1,273,917
				Canada (1.4%)
CAD	1,090			Canadian Government Bond			3.25			06/01/21			1,132,895
				Germany (2.2%)
EUR	1,000			Bundesrepublik Deutschland			4.25			07/04/39			1,787,152
				Greece (0.5%)
	600			Hellenic Republic Government Bond			2.00	(l)		02/24/25			413,888
				Indonesia (1.7%)
$	170			Majapahit Holding BV			7.75			01/20/20			190,400
	230			Majapahit Holding BV			7.75			01/20/20			257,600
	352			Pertamina Persero PT (a)(b)			4.875			05/03/22			335,280
	600			Perusahaan Listrik Negara PT (b)			5.50			11/22/21			597,000
				Total Indonesia									1,380,280
				Ireland (1.1%)
EUR	660			Ireland Government Bond			3.90			03/20/23			880,524
				Italy (3.3%)
	500			Italy Buoni Poliennali Del Tesoro			4.00			09/01/20			678,295
	400			Italy Buoni Poliennali Del Tesoro			4.50			03/01/19			560,754
	1,000			Italy Buoni Poliennali Del Tesoro			5.50			11/01/22			1,445,425
				Total Italy									2,684,474
				Kazakhstan (1.1%)
$	450			KazMunayGas National Co., JSC (a)			5.75			04/30/43			397,642
	140			KazMunayGas National Co., JSC (a)			6.375			04/09/21			152,600
	350			KazMunayGas National Co., JSC			6.375			04/09/21			381,500
				Total Kazakhstan									931,742
				Korea, Republic of (0.3%)
	200			Korea Finance Corp.			4.625			11/16/21			212,716
				Mexico (3.3%)
MXN	9,500			Mexican Bonos			5.00			06/15/17			750,255
	13,400			Mexican Bonos			7.50			06/03/27			1,155,446
$	750			Petroleos Mexicanos (b)			4.875			01/24/22			772,500
				Total Mexico									2,678,201
				Poland (2.4%)
PLN	5,600			Poland Government Bond			5.75			10/25/21			1,969,251
				Portugal (2.9%)
EUR	625			Portugal Obrigacoes do Tesouro OT (a)			3.35			10/15/15			819,545
	1,270			Portugal Obrigacoes do Tesouro OT (a)			5.65			02/15/24			1,582,814
				Total Portugal									2,402,359
				Russia (2.1%)
RUB	22,000			Russian Federal Bond - OFZ			8.15			02/03/27			695,808
$	1,000			Vnesheconombank Via VEB Finance PLC (a)(b)			6.025			07/05/22			1,055,000
				Total Russia									1,750,808
				Slovenia (0.3%)
	290			Slovenia Government International Bond			5.85			05/10/23			275,622
				South Africa (1.2%)
	850			Eskom Holdings SOC Ltd. (a)			5.75			01/26/21			837,250
ZAR	1,500			South Africa Government Bond			7.75			02/28/23			151,441
				Total South Africa									988,691
				Spain (0.8%)
EUR	500			Spain Government Bond (a)(b)			4.40			10/31/23			652,337
				Ukraine (0.9%)
$	630			Ukraine Government International Bond (a)(b)			7.50			04/17/23			553,612

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

$	220			Ukraine Railways via Shortline PLC (a)			9.50	%		05/21/18		$	207,350
				Total Ukraine									760,962
				United Kingdom (1.8%)
GBP	845			United Kingdom Gilt			4.25			09/07/39			1,462,463
				Venezuela (0.6%)
$	500			Petroleos de Venezuela SA			8.50			11/02/17			461,250
				Total Sovereign (Cost $25,702,196)									24,633,181
				Agency Fixed Rate Mortgages (0.4%)
	3			Federal Home Loan Mortgage Corporation, Gold Pools:			6.50			02/01/29–10/01/32			2,837
				Federal National Mortgage Association,
				Conventional Pools:
	135						6.50			05/01/28–09/01/32			151,984
	10						7.00			08/01/29–11/01/32			10,708
				Government National Mortgage Association,
				Various Pools:
	27						7.50			07/20/25			31,154
	132						8.00			01/15/22–05/15/30			144,670
				Total Agency Fixed Rate Mortgages (Cost $310,351)									341,353
				Asset-Backed Security (0.5%)
	397			GSAA Home Equity Trust (Cost $386,767)			5.545	(e)		06/25/34			421,897
				Mortgages - Other (15.5%)
				Alternative Loan Trust
	308						5.50			11/25/35			263,836
	83						5.50			02/25/36			68,586
	302						6.00			04/25/36			247,295
	166						6.00			05/25/36			134,795
	244						6.00			12/25/36			180,647
	121						6.00			01/25/37			89,391
	548						6.00			07/25/37			472,920
				PAC
	48						5.50			02/25/36			39,384
	444						5.50			04/25/37			330,410
	155						6.00			04/25/36			127,278
	341			American Home Mortgage Investment Trust (a)			6.10			01/25/37			225,429
				Banc of America Alternative Loan Trust
	580						5.913	(e)		10/25/36			425,304
	707						6.226			10/25/36			529,149
	184			Banc of America Funding Trust			6.00			07/25/37			145,832
	497			BCAP LLC Trust			0.33	(e)		04/25/37			421,737
				Chase Mortgage Finance Trust
	469						6.00			10/25/36			421,103
	441						6.00			11/25/36			376,405
	331			CHL Mortgage Pass-Through Trust			0.49	(e)		04/25/46			69,292
	1,199			CSMC Mortgage-Backed Trust			5.837	(e)		04/25/37			730,836
				First Horizon Alternative Mortgage Securities Trust
	117						6.00			08/25/36			101,986
	210						6.25			08/25/36			176,849
	251			GSMSC Pass-Through Trust (a)			7.50	(e)		09/25/36			226,429
				GSR Mortgage Loan Trust
	81						2.779	(e)		05/25/35			72,707
	192						2.794	(e)		10/25/35			166,318
	548			IndyMac INDX Mortgage Loan Trust			5.065	(e)		12/25/35			459,908
				JP Morgan Alternative Loan Trust
	114						6.00			12/25/35			99,362
	600						6.00			12/25/35			524,917
	622						6.00			08/25/36			558,229
				Lehman Mortgage Trust
	118						5.50			11/25/35			115,509
	363						5.50			02/25/36			358,624

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

$	602						6.50	%		09/25/37		$	519,873
	246			Luminent Mortgage Trust			0.36	(e)		10/25/46			84,284
	315			Opteum Mortgage Acceptance Corp. Trust			0.49	(e)		04/25/36			250,714
				RALI Trust
	631						0.37	(e)		12/25/36			432,744
	284						0.69	(e)		03/25/35			203,287
	294						6.00			04/25/36			232,192
	424						6.00			08/25/36			333,040
	124						6.00			01/25/37			94,662
				PAC
	161						6.00			04/25/36			127,456
	465			STARM Mortgage Loan Trust			5.637	(e)		10/25/37			420,539
				Washington Mutual Mortgage Pass-Through Certificates
	914						0.45	(e)		12/25/35			672,114
	1,035						0.929	(e)		04/25/47			696,464
	725						1.003	(e)		05/25/47			534,071
				Total Mortgages - Other (Cost $12,180,878)									12,761,907
				Commercial Mortgage-Backed Securities (0.9%)
	136			CGBAM Commercial Mortgage Trust			3.041	(e)		05/15/16			136,000
	202			Commercial Mortgage Pass Through Certificates (a)			4.403	(e)		07/10/45			185,415
	400			GS Mortgage Securities Corp. II (a)			3.795	(e)		11/08/29			401,173
				Total Commercial Mortgage-Backed Securities (Cost $722,815)									722,588
				Collateralized Mortgage Obligation - Agency Collateral Series (0.6%)
	1,962			Federal National Mortgage Association, IO REMIC (Cost $337,572)			6.36	(e)		08/25/41			485,033
NUMBER OF SHARES
				Convertible Preferred Stocks (0.7%)
				Aerospace & Defense
	2,550			United Technologies Corp. (Units) (b)(m)									163,532
				Commercial Banks
	103			Wells Fargo & Co., Series L									119,789
				Electric Utilities
	2,900			NextEra Energy, Inc.									168,577
	2,150			PPL Corp.									117,132
													285,709
				Total Convertible Preferred Stocks (Cost $527,325)									569,030
NUMBER OF SHARES (000)
				Short-Term Investments (15.0%)
				Securities held as Collateral on Loaned Securities (12.7%)
				Investment Company (10.4%)
	8,498			Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (n) (Cost $8,497,658)									8,497,658

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

PRINCIPAL AMOUNT (000)
				Repurchase Agreements (2.3%)
$	481			Barclays Capital, Inc. (0.07%, dated 07/31/13, due 08/01/13; proceeds $481,360; fully collateralized by a U.S. Government Obligation, 0.50% due 08/15/14; valued at $490,989)								$	481,359
	1,203			Barclays Capital, Inc. (0.24%, dated 07/31/13, due 08/01/13; proceeds $1,203,406; fully collateralized by various Common Stocks and Exchange Traded Funds; valued at $1,300,986)									1,203,398
	241			BNP Paribas Securities Corp. (0.06%, dated 07/31/13, due 08/01/13; proceeds $240,680; fully collateralized by various U.S. Government Obligations, 0.13% - 3.13% due 04/30/15 - 01/31/20; valued at $245,494)									240,680
				Total Repurchase Agreements (Cost $1,925,437)									1,925,437
				Total Securities held as Collateral on Loaned Securities (Cost $10,423,095)									10,423,095
NUMBER OF SHARES (000)
				Investment Company (2.3%)
	1,878			Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (n) (Cost $1,877,529)									1,877,529
				Total Short-Term Investments (Cost $12,300,624)									12,300,624
				Total Investments (Cost $93,031,373) (o)(p)			109.3	%					89,791,175
				Liabilities in Excess of Other Assets			(9.3	)					(7,676,630	)
				Net Assets			100.0	%				$	82,114,545

 

IO	Interest Only.

MTN	Medium Term Note.

OJSC	Open Joint Stock Company.

PAC	Planned Amortization Class.

PJSC	Public Joint Stock Company.

REMIC

Real Estate Mortgage Investment Conduit.

(a)	144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)

All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at July 31, 2013 were $10,553,419 and $10,787,438, respectively. The Fund received cash collateral of $10,423,095 which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class as reported in the Portfolio of Investments. As of July 31, 2013, there was uninvested cash of $364,343 which is not reflected in the Portfolio of Investments. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

(c)	Capital appreciation bond.

(d)	Par less than $500.

(e)	Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on July 31, 2013.

(f)	Perpetual — Security does not have a predetermined maturity date. Rate for this security is fixed for a period of time then reverts to a floating rate. The interest shown is the rate in effect at July 31, 2013.

(g)	Issuer in bankruptcy.

(h)	Non-income producing security; bond in default.

(i)	Payment-in-kind security.

(j)	At July 31, 2013, the Fund held a fair valued security valued at $0, representing 0.0% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.

(k)	Acquired through exchange offer.

(l)	Step Bond — Coupon rate increases in increments to maturity. Rate disclosed is as of July 31, 2013. Maturity date disclosed is the ultimate maturity date.

(m)	Consists of one or more classes of securities traded together as a unit.

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

(n)

The Fund invests in the Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (the “Liquidity Funds”), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by the Liquidity Funds with respect to assets invested by the Fund in the Liquidity Funds.

(o)	Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreements.

(p)	The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

Foreign Currency Forward Exchange Contracts Open at July 31, 2013:

 

COUNTERPARTY		CONTRACTS TO DELIVER				IN EXCHANGE FOR				DELIVERY DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Commonwealth Bank of Australia		AUD	100,000			$	91,614			08/07/13		$	1,759
Commonwealth Bank of Australia		AUD	180,000			$	164,618			08/07/13			2,880
Commonwealth Bank of Australia		JPY	80,000,000			$	797,311			08/07/13			(19,786	)
Commonwealth Bank of Australia		NOK	1,500,000			$	246,359			08/07/13			(8,142	)
Commonwealth Bank of Australia		$	165,667			AUD	180,000			08/07/13			(3,930	)
Credit Suisse London Branch (GFX)		CHF	960,000			$	1,017,251			08/07/13			(20,099	)
Credit Suisse London Branch (GFX)		HKD	4,054,145			$	522,661			08/07/13			(88	)
Credit Suisse London Branch (GFX)		JPY	5,096,500			$	51,875			08/07/13			(180	)
Credit Suisse London Branch (GFX)		ZAR	128,007			$	12,607			08/07/13			(359	)
Deutsche Bank AG		NOK	5,030,000			$	805,809			08/07/13			(47,618	)
Deutsche Bank AG		$	251,234			JPY	25,000,000			08/07/13			4,109
Deutsche Bank AG		ZAR	1,420,000			$	138,879			08/07/13			(4,956	)
Goldman Sachs International		$	2,928,374			NOK	17,904,720			08/07/13			109,473
HSBC Bank PLC		MXN	21,888,371			$	1,656,679			08/07/13			(56,162	)
HSBC Bank PLC		NZD	1,359,718			$	1,055,306			08/07/13			(30,324	)
HSBC Bank PLC		$	432,914			CLP	216,586,867			08/07/13			(11,730	)
HSBC Bank PLC		$	166,356			PLN	540,000			08/07/13			2,543
JPMorgan Chase Bank		$	222,124			BRL	500,000			08/07/13			(3,190	)
JPMorgan Chase Bank		$	204,596			EUR	157,073			08/07/13			4,370
JPMorgan Chase Bank		$	1,516,235			GBP	990,469			08/07/13			(9,538	)
JPMorgan Chase Bank		$	192,732			MXN	2,500,000			08/07/13			2,901
JPMorgan Chase Bank		$	652,365			NZD	835,568			08/07/13			14,772
State Street Bank London		$	330,413			BRL	740,000			08/07/13			(6,392	)
State Street Bank London		$	411,667			EUR	320,000			08/07/13			14,052
State Street Bank London		$	415,649			MXN	5,250,000			08/07/13			(4,818	)
UBS AG		AUD	676,371			$	626,536			08/07/13			18,788
UBS AG		BRL	3,370,000			$	1,526,337			08/07/13			50,728
UBS AG		CLP	215,000,000			$	422,879			08/07/13			4,780
UBS AG		EUR	517,097			$	682,206			08/07/13			(5,725	)
UBS AG		GBP	202,631			$	310,666			08/07/13			2,424
UBS AG		MYR	709,003			$	218,727			08/07/13			230
UBS AG		RUB	43,550,000			$	1,319,317			08/07/13			(779	)
UBS AG		$	338,900			EUR	260,000			08/07/13			6,997
UBS AG		$	230,604			MXN	2,920,897			08/07/13			(2,034	)
UBS AG		$	221,273			MYR	709,003			08/07/13			(2,776	)
UBS AG		$	469,601			SEK	3,170,369			08/07/13			16,736
Wells Fargo Bank		CAD	463,327			$	441,543			08/07/13			(9,494	)
Wells Fargo Bank		PLN	7,975,435			$	2,386,354			08/07/13			(108,161	)
Wells Fargo Bank		$	4,617,436			JPY	451,426,880			08/07/13			(6,687	)
Westpac Banking Corporation		$	249,020			EUR	190,000			08/07/13			3,751
State Street Bank London		$	430,393			COP	810,000,000			08/08/13			(3,171	)
UBS AG		COP	810,000,000			$	419,667			08/08/13			(7,555	)
Deutsche Bank AG		$	663,154			PLN	2,120,000			08/09/13			(153	)
			Net Unrealized Depreciation									$	(112,554	)

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

Futures Contracts Open at July 31, 2013:

 

NUMBER OF CONTRACTS		LONG/ SHORT		DESCRIPTION, DELIVERY MONTH AND YEAR		UNDERLYING FACE AMOUNT AT VALUE				UNREALIZED APPRECIATION (DEPRECIATION)
49		Long		U.S. Treasury 2 yr. Note, Sep-13		$	10,795,312			$	766
29		Long		U.S. Treasury Ultra Long Bond, Sep-13			4,183,250				(252,391	)
7		Long		U.S. Treasury Long Bond, Sep-13			938,438				(45,992	)
3		Long		U.S. Treasury 5 yr. Note, Sep-13			364,102				(3,586	)
41		Short		U.S. Treasury 10 yr. Note, Sep-13			(5,183,938	)			(3,744	)
				Net Unrealized Depreciation						$	(304,947	)

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

Credit Default Swap Agreements Open at July 31, 2013:

 

SWAP COUNTERPARTY & REFERENCE OBLIGATION		BUY/SELL PROTECTION		NOTIONAL AMOUNT (000)				INTEREST RATE				TERMINATION DATE		UNREALIZED APPRECIATION (DEPRECIATION)				UPFRONT PAYMENTS				VALUE				CREDIT RATING OF REFERENCE OBLIGATION†
Barclays Bank Alcoa, Inc.		Buy		$	400				1.00	%		9/20/18		$	(6,479	)		$	41,823			$	35,344			BBB-
JPMorgan Chase CDX.NA.IG. 20		Sell			180				1.00			6/20/18			255				2,111				2,366			NR
JPMorgan Chase CDX.NA.IG. 20		Sell			2,000				1.00			6/20/18			15,249				11,047				26,296			NR
JPMorgan Chase Kohl’s Corporate		Buy			475				1.00			6/20/18			(21,937	)			26,996				5,059			BBB+
Total Credit Default Swaps				$	3,055									$	(12,912	)		$	81,977			$	69,065

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Portfolio of Investments ⁿ July 31, 2013 (unaudited) continued

 

Interest Rate Swap Agreements Open at July 31, 2013:

 

SWAP COUNTERPARTY		NOTIONAL AMOUNT (000)				FLOATING RATE INDEX		PAY/ RECEIVE FLOATING RATE		FIXED RATE				TERMINATION DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Bank of America		$	1,480			3 Month LIBOR		Receive			2.04	%		02/13/23		$	73,384
CME Group Inc.*			10,337			3 Month LIBOR		Receive			0.48			08/01/15			256
Deutsche Bank		NZD	22,440			3 Month NZBBR		Pay			4.14			07/27/16			(40,467	)
Deutsche Bank		$	1,085			3 Month LIBOR		Receive			2.80			05/01/43			166,629
Goldman Sachs			1,960			3 Month LIBOR		Receive			2.09			02/15/23			88,379
Royal Bank of Canada			2,080			3 Month LIBOR		Receive			2.06			02/06/23			98,283
UBS AG			1,100			3 Month LIBOR		Receive			2.90			05/13/43			148,371
						Net Unrealized Appreciation										$	534,835

 

LIBOR

London Interbank Offered Rate.

NZBBR

New Zealand Bank Bill Rate.

NR	Not Rated.

†	Credit rating as issued by Standard & Poor’s.

*	Centrally Cleared Swap Agreement.

Currency Abbreviations:

 

AUD		Australian Dollar.
BRL		Brazilian Real.
CAD		Canadian Dollar.
CHF		Swiss Franc.
CLP		Chilean Peso.
CNY		Chinese Yuan Renminbi.
COP		Colombian Peso.
DKK		Danish Krone.
EUR		Euro.
GBP		British Pound.
HKD		Hong Kong Dollar.
JPY		Japanese Yen.
MXN		Mexican New Peso.
MYR		Malaysian Ringgit.
NOK		Norwegian Krone.
NZD		New Zealand Dollar.
PLN		Polish Zloty.
RUB		Russian Ruble.
SEK		Swedish Krona.
ZAR		South African Rand.

 

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Morgan Stanley Global Fixed Income Opportunities Fund

Notes to Portfolio of Investments ⁿ July 31, 2013 (unaudited)

 

Valuation of Investments - (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund’s Board of Trustees (the “Trustees”). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolio securities valued by such pricing service; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (3) all other equity portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked prices. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the “Adviser”) or Morgan Stanley Investment Management Limited (the “Sub-Adviser”), each a wholly owned subsidiary of Morgan Stanley, determines that the last sale price or the mean between the last reported bid and asked prices are not reflective of a security’s fair value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the New York Stock Exchange (“NYSE”). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) futures are valued at the latest price published by the commodities exchange on which they trade; (6) swaps are marked-to-market daily based upon quotations from market makers; (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; (8) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities’ market value, in which case these securities will be valued at their fair market value determined by the Adviser; and (9) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE.

Under procedures approved by the Trustees, the Fund’s Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund’s valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

 

---

Fair Valuation Measurements

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs); and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Fund’s investments as of July 31, 2013.

 

Investment Type		Level 1 Unadjusted quoted prices				Level 2 Other significant observable inputs				Level 3 Significant unobservable inputs				Total
Assets:
Fixed Income Securities
Corporate Bonds		$	—			$	37,555,562			$	—	†		$	37,555,562
Sovereign			—				24,633,181				—				24,633,181
Agency Fixed Rate Mortgages			—				341,353				—				341,353
Asset-Backed Security			—				421,897				—				421,897
Mortgages - Other			—				12,761,907				—				12,761,907
Commercial Mortgage-Backed Securities			—				722,588				—				722,588
Collateralized Mortgage Obligation - Agency Collateral Series			—				485,033				—				485,033
Total Fixed Income Securities			—				76,921,521				—	†			76,921,521
Convertible Preferred Stocks			569,030				—				—				569,030
Short-Term Investments
Investment Company			10,375,187				—				—				10,375,187
Repurchase Agreements			—				1,925,437				—				1,925,437
Total Short-Term Investments			10,375,187				1,925,437				—				12,300,624
Foreign Currency Forward Exchange Contracts			—				261,293				—				261,293
Futures Contracts			766				—				—				766
Credit Default Swap Agreements			—				15,504				—				15,504
Interest Rate Swap Agreements			—				575,302				—				575,302
Total Assets			10,944,983				79,699,057				—	†			90,644,040
Liabilities:
Foreign Currency Forward Exchange Contracts			—				(373,847	)			—				(373,847	)
Futures Contracts			(305,713	)			—				—				(305,713	)
Credit Default Swap Agreements			—				(28,416	)			—				(28,416	)
Interest Rate Swap Agreements			—				(40,467	)			—				(40,467	)
Total Liabilities			(305,713	)			(442,730	)			—				(748,443	)
Total		$	10,639,270			$	79,256,327			$	—	†		$	89,895,597

 

†	Includes one security which is valued at zero.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of July 31, 2013, the Fund did not have any investments transfer between investment levels.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

		Corporate Bond
Beginning Balance		$	—	†
Purchases			—
Sales			—
Amortization of discount			—
Transfers in			—
Transfers out			—
Change in unrealized appreciation/depreciation			—
Realized gains (losses)			—
Ending Balance		$	—	†
Net change in unrealized appreciation/depreciation from investments still held as of July 31, 2013		$	—

 

†	Includes one security which is valued at zero.

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Item 2. Controls and Procedures.

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 3. Exhibits.

(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Global Fixed Income Opportunities Fund

 

/s/ John Gernon

John Gernon

Principal Executive Officer

September 17, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

/s/ John Gernon

John Gernon

Principal Executive Officer

September 17, 2013

/s/ Francis Smith

Francis Smith

Principal Financial Officer

September 17, 2013