NPORT-EX 2 NPORT_MGGA_92612326_0322.htm

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)

(Showing Percentage of Total Value of Investments)

 

   Face
Amount
(000)		   Value
(000)		 
FIXED INCOME SECURITIES  (90.2%)          
Angola  (1.7%)          
Sovereign  (1.7%)          
Angolan Government International Bond,          
 8.00%, 11/26/29  $800   $806 
 8.00%, 11/26/29  (a)   1,400    1,411 
 9.38%, 5/8/48  (a)(b)   1,010    996 
         3,213 
Argentina  (1.2%)          
Sovereign  (1.2%)          
Argentine Republic Government International Bond,          
 0.50%, 7/9/30  (c)   887    299 
 1.00%, 7/9/29   167    57 
 1.13%, 7/9/35  (c)   1,625    498 
 2.00%, 1/9/38  (c)   3,840    1,454 
         2,308 
Armenia  (0.5%)          
Sovereign  (0.5%)          
Republic of Armenia International Bond,          
 3.60%, 2/2/31   500    397 
 3.95%, 9/26/29   550    468 
         865 
Azerbaijan  (1.0%)          
Sovereign  (1.0%)          
Republic of Azerbaijan International Bond,          
 3.50%, 9/1/32   1,928    1,803 
           
Bahrain  (1.3%)          
Sovereign  (1.3%)          
Bahrain Government International Bond,          
 7.50%, 9/20/47   2,500    2,458 
           
Belarus  (0.1%)          
Sovereign  (0.1%)          
Republic of Belarus International Bond,          
 6.20%, 2/28/30 (a)   400    66 
Republic of Belarus Ministry of Finance,          
 6.38%, 2/24/31 (a)   710    110 
         176 
Benin  (0.5%)          
Sovereign  (0.5%)          
Benin Government International Bond,          
 4.95%, 1/22/35  EUR1,000    906 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Brazil  (3.5%)        
Corporate Bonds  (1.0%)        
Braskem Netherlands Finance BV,          
 4.50%, 1/31/30 (a)  $1,150   1,115 
MARB BondCo PLC,          
 3.95%, 1/29/31 (a)   660    587 
Suzano Austria GmbH,          
 3.75%, 1/15/31   225    212 
         1,914 
Sovereign  (2.5%)          
Brazilian Government International Bond,          
 3.88%, 6/12/30   590    545 
 4.50%, 5/30/29   470    462 
 5.00%, 1/27/45   2,288    2,042 
 6.00%, 4/7/26   1,610    1,747 
         4,796 
         6,710 
Chile  (1.4%)          
Corporate Bond  (0.5%)          
Colbun SA,          
 3.15%, 3/6/30 (a)   1,110    1,031 
           
Sovereign  (0.9%)          
Chile Government International Bond,          
 3.50%, 1/25/50   1,570    1,441 
 3.86%, 6/21/47   250    244 
         1,685 
         2,716 
China  (3.5%)          
Sovereign  (3.5%)          
Sinopec Group Overseas Development 2012 Ltd.,          
 4.88%, 5/17/42   970    1,035 
Sinopec Group Overseas Development 2013 Ltd.,          
 4.38%, 10/17/23   3,040    3,114 
Sinopec Group Overseas Development 2018 Ltd.,          
 2.95%, 11/12/29 (a)   1,770    1,701 
Three Gorges Finance I Cayman Islands Ltd.,          
 3.70%, 6/10/25 (a)   780    792 
         6,642 
Colombia  (2.5%)          
Corporate Bonds  (0.3%)          
Millicom International Cellular SA,          
 4.50%, 4/27/31 (a)   384    358 
Termocandelaria Power Ltd.,          
 7.88%, 1/30/29 (a)   272    274 
         632 
Sovereign  (2.2%)          
Colombia Government International Bond,          
 3.00%, 1/30/30  (b)   1,791    1,545 
 4.13%, 5/15/51  (b)   1,000    757 
 5.00%, 6/15/45  (b)   2,230    1,885 
         4,187 
         4,819 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Costa Rica  (0.8%)        
Sovereign  (0.8%)        
Costa Rica Government International Bond,          
 6.13%, 2/19/31  (a)   505   512 
 7.00%, 4/4/44   340    337 
 7.16%, 3/12/45   710    707 
         1,556 
Dominican Republic  (3.9%)          
Sovereign  (3.9%)          
Dominican Republic International Bond,          
 4.88%, 9/23/32  (a)   710    644 
 5.30%, 1/21/41  (a)   550    479 
 5.50%, 2/22/29  (a)   490    485 
 5.88%, 1/30/60   500    430 
 5.88%, 1/30/60  (a)   1,190    1,024 
 6.00%, 7/19/28  (a)   560    570 
 6.85%, 1/27/45  (a)   1,252    1,244 
 6.88%, 1/29/26  (a)   1,605    1,709 
 7.45%, 4/30/44  (a)   666    706 
         7,291 
Ecuador  (2.2%)          
Sovereign  (2.2%)          
Ecuador Government International Bond,          
 0.00%, 7/31/30 (a)   351    196 
 0.50%, 7/31/40 (a)(c)   1,421    816 
 0.50%, 7/31/40 (c)   522    300 
 1.00%, 7/31/35 (a)(c)   2,302    1,511 
 1.00%, 7/31/35 (c)   550    361 
 5.00%, 7/31/30 (a)(c)   1,184    994 
         4,178 
Egypt  (3.1%)          
Sovereign  (3.1%)          
Egypt Government International Bond,          
 4.75%, 4/16/26   480    491 
 6.38%, 4/11/31 (a)   1,610    1,531 
 7.50%, 2/16/61 (a)   1,030    821 
 7.90%, 2/21/48 (a)   490    399 
 8.15%, 11/20/59 (a)   2,000    1,657 
 8.88%, 5/29/50 (a)   430    374 
 8.88%, 5/29/50 (a)   750    651 
         5,924 
El Salvador  (0.5%)          
Sovereign  (0.5%)          
El Salvador Government International Bond,          
 6.38%, 1/18/27   1,785    892 
 8.63%, 2/28/29  (a)   250    122 
         1,014 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Gabon  (0.4%)          
Sovereign  (0.4%)          
Republic of Gabon,          
 6.95%, 6/16/25 (a)   740   753 
           
Ghana  (1.8%)          
Sovereign  (1.8%)          
Ghana Government International Bond,          
 7.75%, 4/7/29   1,350    994 
 7.88%, 2/11/35   460    322 
 8.63%, 6/16/49  (a)   690    483 
 8.88%, 5/7/42  (a)   910    640 
 8.95%, 3/26/51  (a)   1,340    940 
         3,379 
Guatemala  (0.9%)          
Sovereign  (0.9%)          
Guatemala Government Bond,          
 4.65%, 10/7/41 (a)   400    374 
 4.88%, 2/13/28   970    996 
 6.13%, 6/1/50  (a)   380    401 
         1,771 
Honduras  (0.7%)          
Sovereign  (0.7%)          
Honduras Government International Bond,          
 5.63%, 6/24/30   635    578 
 5.63%, 6/24/30  (a)(b)   230    209 
 6.25%, 1/19/27   565    540 
         1,327 
Hungary  (1.0%)          
Sovereign  (1.0%)          
Hungary Government International Bond,          
 5.38%, 3/25/24   1,250    1,311 
 7.63%, 3/29/41   454    661 
         1,972 
India  (0.4%)          
Sovereign  (0.4%)          
Export-Import Bank of India,          
 3.38%, 8/5/26 (a)   800    784 
           
Indonesia  (5.8%)          
Sovereign  (5.8%)          
Indonesia Government International Bond,          
 3.85%, 7/18/27   450    470 
 4.13%, 1/15/25   2,670    2,759 
 4.45%, 4/15/70   700    724 
 4.75%, 1/8/26  (a)   1,360    1,447 
 5.13%, 1/15/45  (a)   1,014    1,124 
 5.35%, 2/11/49  (b)   200    230 
Pertamina Persero PT,          
 4.30%, 5/20/23   2,540    2,579 
 6.45%, 5/30/44  (a)   310    363 
 6.50%, 11/7/48  (a)   1,070    1,274 
         10,970 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Ivory Coast  (1.3%)          
Sovereign  (1.3%)          
Ivory Coast Government International Bond,          
 4.88%, 1/30/32   870   850 
 4.88%, 1/30/32  (a)  EUR1,710    1,671 
         2,521 
Jamaica  (0.8%)          
Sovereign  (0.8%)          
Jamaica Government International Bond,          
 7.88%, 7/28/45  $740    958 
 8.00%, 3/15/39   420    548 
         1,506 
Jordan  (0.5%)          
Sovereign  (0.5%)          
Jordan Government International Bond,          
 7.38%, 10/10/47 (a)   950    868 
           
Kazakhstan  (1.3%)          
Sovereign  (1.3%)          
Kazakhstan Government International Bond,          
 5.13%, 7/21/25  (a)   520    541 
 5.13%, 7/21/25   1,100    1,145 
 6.50%, 7/21/45   680    786 
         2,472 
Kenya  (0.7%)          
Sovereign  (0.7%)          
Kenya Government International Bond,          
 8.00%, 5/22/32 (a)   1,440    1,400 
           
Lebanon  (0.2%)          
Sovereign  (0.2%)          
Lebanon Government International Bond,          
 6.85%, 3/23/27 – 5/25/29 (d)(e)   3,490    429 
          
Malaysia  (1.5%)          
Sovereign  (1.5%)          
Petronas Capital Ltd.,          
 3.50%, 3/18/25 – 4/21/30   2,810    2,857 
          
Mexico  (6.9%)          
Corporate Bond  (0.3%)          
Cemex SAB de CV,          
 5.13%, 8/6/26 (a)(g)   520    511 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Sovereign  (6.6%)          
Banco Nacional de Comercio Exterior SNC,          
 2.72%, 8/11/31 (a)   800   762 
Mexico Government International Bond,          
 3.75%, 1/11/28   960    978 
 4.15%, 3/28/27   1,096    1,154 
 4.50%, 4/22/29   470    497 
 4.60%, 2/10/48   1,000    955 
Petroleos Mexicanos,          
 6.35%, 2/12/48   979    771 
 6.70%, 2/16/32   3,263    3,103 
 6.95%, 1/28/60   718    584 
 7.69%, 1/23/50   4,250    3,720 
         12,524 
         13,035 
Mongolia  (0.7%)          
Sovereign  (0.7%)          
Mongolia Government International Bond,          
 4.45%, 7/7/31  (a)(b)   530    479 
 5.13%, 4/7/26  (a)   310    307 
 5.63%, 5/1/23   506    510 
         1,296 
Morocco  (0.4%)          
Sovereign  (0.4%)          
Morocco Government International Bond,          
 4.00%, 12/15/50 (a)   820    660 
           
Nigeria  (3.0%)          
Corporate Bond  (0.6%)          
IHS Netherlands Holdco BV,          
 8.00%, 9/18/27 (a)   1,100    1,101 
           
Sovereign  (2.4%)          
Nigeria Government International Bond,          
 6.38%, 7/12/23   530    544 
 6.50%, 11/28/27 (a)   620    591 
 7.14%, 2/23/30 (a)   1,420    1,342 
 7.38%, 9/28/33 (a)(b)   220    200 
 8.25%, 9/28/51 (a)   490    428 
 8.38%, 3/24/29 (a)   300    304 
 9.25%, 1/21/49 (a)   1,200    1,147 
         4,556 
         5,657 
Oman  (2.9%)          
Sovereign  (2.9%)          
Oman Government International Bond,          
 6.00%, 8/1/29  (a)   2,950    3,085 
 6.25%, 1/25/31  (a)(b)   2,300    2,441 
         5,526 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Panama  (2.3%)          
Corporate Bond  (0.3%)          
AES Panama Generation Holdings SRL,          
 4.38%, 5/31/30 (a)   500   477 
           
Sovereign  (2.0%)          
Panama Government International Bond,          
 3.87%, 7/23/60   550    483 
 4.00%, 9/22/24   2,084    2,133 
 4.50%, 4/1/56   810    795 
 8.88%, 9/30/27   278    354 
         3,765 
         4,242 
Paraguay  (0.3%)          
Sovereign  (0.3%)          
Paraguay Government International Bond,          
 4.95%, 4/28/31  (a)   250    262 
 5.40%, 3/30/50  (a)   200    203 
         465 
Peru  (2.6%)          
Corporate Bonds  (0.5%)          
Fondo Mivivienda SA,          
 3.50%, 1/31/23 (a)   491    496 
Intercorp Peru Ltd.,          
 3.88%, 8/15/29   440    399 
         895 
Sovereign  (2.1%)          
Corporación Financiera de Desarrollo SA,          
 5.25%, 7/15/29 (a)   978    965 
Peruvian Government International Bond,          
 3.55%, 3/10/51  (b)   1,170    1,094 
 6.55%, 3/14/37   1,550    1,965 
         4,024 
         4,919 
Philippines  (2.0%)          
Sovereign  (2.0%)          
Philippine Government International Bond,          
 3.95%, 1/20/40   720    715 
 9.50%, 2/2/30   2,200    3,125 
         3,840 
Qatar  (4.2%)          
Sovereign  (4.2%)          
Qatar Government International Bond,          
 3.75%, 4/16/30  (a)   1,525    1,613 
 4.00%, 3/14/29   1,610    1,723 
 4.82%, 3/14/49   490    582 
 4.82%, 3/14/49  (a)   3,460    4,111 
         8,029 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Romania  (1.8%)          
Sovereign  (1.8%)          
Romanian Government International Bond,          
 1.75%, 7/13/30  (a)   420   395 
 2.00%, 4/14/33   420    375 
 3.00%, 2/27/27  (a)   866    844 
 3.75%, 2/7/34  (a)   830    859 
 4.00%, 2/14/51   1,100    959 
         3,432 
Saudi Arabia  (2.3%)          
Corporate Bond  (0.5%)          
SA Global Sukuk Ltd.,          
 2.69%, 6/17/31 (a)   1,040    987 
           
Sovereign  (1.8%)          
Saudi Government International Bond,          
 3.45%, 2/2/61  (a)   1,070    951 
 4.38%, 4/16/29   538    583 
 5.25%, 1/16/50  (a)   1,580    1,871 
         3,405 
         4,392 
Senegal  (0.8%)          
Sovereign  (0.8%)          
Senegal Government International Bond,          
 6.25%, 5/23/33 (a)   1,540    1,458 
           
Serbia  (0.6%)          
Sovereign  (0.6%)          
Serbia International Bond,          
 2.13%, 12/1/30  (a)   400    336 
 2.13%, 12/1/30   1,000    839 
         1,175 
South Africa  (1.5%)          
Sovereign  (1.5%)          
Eskom Holdings SOC Ltd.,          
 8.45%, 8/10/28   929    908 
Republic of South Africa Government International Bond,          
 4.30%, 10/12/28   2,000    1,938 
         2,846 
Sri Lanka  (1.3%)          
Sovereign  (1.3%)          
Sri Lanka Government International Bond,          
 6.20%, 5/11/27   2,250    1,069 
 7.55%, 3/28/30   2,740    1,294 
         2,363 
Suriname  (0.3%)          
Sovereign  (0.3%)          
Suriname Government International Bond,          
 9.25%, 10/26/26   610    509 

 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Turkey  (2.6%)          
Sovereign  (2.6%)          
Turkey Government International Bond,          
 4.88%, 4/16/43   1,300   929 
 5.75%, 3/22/24   2,140    2,124 
 5.88%, 6/26/31   1,070    917 
 6.88%, 3/17/36   1,000    894 
         4,864 
Ukraine  (1.7%)          
Corporate Bond  (0.2%)          
NPC Ukrenergo,          
 6.88%, 11/9/26 (a)   690    276 
           
Sovereign  (1.5%)          
Ukraine Government International Bond,          
 6.75%, 6/20/26   2,200    1,027 
 6.88%, 5/21/29   1,500    635 
 7.75%, 9/1/23   2,310    1,188 
         2,850 
         3,126 
United Arab Emirates  (3.5%)          
Corporate Bond  (0.6%)          
Galaxy Pipeline Assets Bidco Ltd.,          
 3.25%, 9/30/40 (a)   1,265    1,147 
           
Sovereign  (2.9%)          
Abu Dhabi Government International Bond,          
 2.50%, 9/30/29  (a)   1,950    1,915 
 2.70%, 9/2/70  (a)   1,300    1,025 
3.13%, 5/3/26 – 4/16/30   1,531    1,564 
DP World Crescent Ltd.,          
 4.85%, 9/26/28   930    992 
         5,496 
         6,643 
Uruguay  (1.6%)          
Sovereign  (1.6%)          
Uruguay Government International Bond,          
 4.38%, 10/27/27   1,260    1,339 
 5.10%, 6/18/50   1,385    1,637 
         2,976 
Uzbekistan  (0.3%)          
Sovereign  (0.3%)          
Republic of Uzbekistan International Bond,          
 3.70%, 11/25/30 (a)   550    480 
           
Venezuela  (0.6%)          
Sovereign  (0.6%)          
Petroleos de Venezuela SA,          
 6.00%, 11/15/26 (d)(e)   15,570    1,148 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Zambia  (1.0%)          
Sovereign  (1.0%)          
Zambia Government International Bond,          
 5.38%, 9/20/22   865   599 
 8.97%, 7/30/27   1,850    1,326 
         1,925 
TOTAL FIXED INCOME SECURITIES (COST $196,896)        170,594 

 

    No. of
Warrants		      
WARRANT  (0.0%) (f)          
Venezuela  (0.0%) (f)          
Venezuela Government International Bond, Oil-Linked Payment Obligation, expires 4/15/20 (h) (Cost $—)   5,450    43 

 

   Shares     
SHORT-TERM INVESTMENTS  (9.8%)          
Securities held as Collateral on Loaned Securities  (3.8%)          
Investment Company  (3.6%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Securities Portfolio - Institutional Class (i)   6,754,871    6,755 

 

  Face
Amount
(000)		    
Repurchase Agreements  (0.2%)         
HSBC Securities USA, Inc., (0.30%, dated 3/31/22, due 4/1/22; proceeds $352; fully collateralized by U.S. Government obligations; 0.00%-3.75% due 4/30/22-5/15/51; valued at $359) $352    352 
Merrill Lynch & Co., Inc., (0.20%, dated 3/31/22, due 4/1/22; proceeds $32; fully collateralized by a U.S. Government obligation; 0.63% due 10/15/24; valued at $33)  32    32 
        384 
TOTAL SECURITIES HELD AS COLLATERAL ON LOANED SECURITIES (COST $7,139)       7,139 

 

  Shares    
Investment Company  (6.0%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (i) (Cost $11,357)   11,356,810    11,357 
TOTAL SHORT-TERM INVESTMENTS (COST $18,496)        18,496 
TOTAL INVESTMENTS (100.0%) (COST $215,392) Including $8,917 of Securities Loaned (j)(k)(l)        189,133 
LIABILITIES IN EXCESS OF OTHER ASSETS        (8,382)
NET ASSETS       $180,751 

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

 

(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 March 31, 2022, were approximately $8,917,000 and $9,121,000, respectively. The Fund received cash collateral of approximately $7,139,000, 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. The remaining collateral of approximately $0 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Portfolio of Investments.  The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(c) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2022. Maturity date disclosed is the ultimate maturity date.
(d) Issuer in bankruptcy.
(e) Non-income producing security; bond in default.
(f) Amount is less than 0.05%.
(g) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2022.
(h) Perpetual maturity date. Date disclosed is the last expiration date.
(i) The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the three months ended March 31, 2022, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.
(j) Securities are available for collateral in connection with purchase of open foreign currency forward exchange contract.
(k) At March 31, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $3,962,000 and the aggregate gross unrealized depreciation is approximately $30,244,000, resulting in net unrealized depreciation of approximately $26,282,000.
(l) The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the three months ended March 31, 2022, the Fund did not engage in any cross-trade transactions.

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

Portfolio of Investments

First Quarter Report

March 31, 2022 (unaudited)(cont’d)

 

Foreign Currency Forward Exchange Contracts:  

 

The Fund had the following foreign currency forward exchange contracts open at March 31, 2022:

 

Counterparty  Contracts
to
Deliver
(000)		   In
Exchange
For
(000)		   Delivery
Date		  Unrealized
Appreciation
(Depreciation)
(000)		 
Bank of America NA  EUR1,000   $1,115   5/20/22  $7 
Bank of America NA  EUR760   $836   5/20/22   (6)
Bank of America NA  $1,220   EUR1,100   5/20/22   (1)
BNP Paribas SA  EUR6,130   $6,975   5/20/22   183 
Citibank NA  EUR740   $818   5/20/22   (2)
JPMorgan Chase Bank NA  MXN21,600   $1,042   5/20/22   (35)
UBS AG  $1,068   MXN21,600   5/20/22   9 
                $155 

 

EUR — Euro
MXN — Mexican Peso

 

 

 

Portfolio Composition*
 
Classification  Percentage of
Total Investments		 
Sovereign   88.8%
Short-Term Investments   6.2 
Others**   5.0 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2022.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include open foreign currency forward exchange contracts with unrealized appreciation of approximately $155,000.

 

 

 

Morgan Stanley Emerging Markets Debt Fund, Inc.

 

Notes to the Portfolio of Investments ▪ March 31, 2022 (unaudited)

 

Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service/vendor. The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the “Adviser”) determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security’s fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (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), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security’s market 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 Fund's Board of Directors (the "Directors"). 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 of 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 Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (4) 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; and (5) 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.

 

The Directors have responsibility for determining in good faith the fair value of the investments, and the Directors may appoint others, such as the Fund's Adviser or a valuation committee, to assist the Directors in determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Fund's Adviser has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Fund’s valuation policies and procedures, which are reviewed at least annually by the Directors. 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.

 

 

 

Fair Value Measurement: Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM ("ASC") 820, "Fair Value Measurement" (“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 March 31, 2022:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Assets:                    
Fixed Income Securities                    
Corporate Bonds  $—   $8,971   $—   $8,971 
Sovereign   —    161,623    —    161,623 
Total Fixed Income Securities   —    170,594    —    170,594 
Warrant   —    43    —    43 
Short-Term Investments                    
Investment Company   18,112    —    —    18,112 
Repurchase Agreements   —    384    —    384 
Total Short-Term Investments   18,112    384    —    18,496 
Foreign Currency Forward Exchange Contracts   —    199    —    199 
Total Assets   18,112    171,220    —    189,332 
Liabilities:                    
Foreign Currency Forward Exchange Contracts   —    (44)   —    (44)
Total  $18,112   $171,176   $—   $189,288 

 

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.