Morgan Stanley Mortgage Securities Trust Class A is a mutual fund that primarily invests in mortgage-related securities with the objective of generating a high level of current income. The fund typically allocates at least 80% of its assets to mortgage-backed securities, including pass-through securities, collateralized mortgage obligations, and commercial mortgage-backed securities. It is categorized as an intermediate core-plus bond fund, meaning it can also diversify into other fixed-income sectors such as corporate high-yield bonds and asset-backed securities to enhance yield and manage risk exposure. The fund utilizes a value-driven investment approach focused on managing five principal risk factors: prepayment, convexity, volatility, spread, and interest rate. By actively managing these risks, the fund aims to balance income generation with capital preservation. Managed by an experienced team and established in 1997, the fund regularly pays monthly dividends and has maintained a robust presence in the U.S. securitized debt market. Its role in the financial markets is to provide individual and institutional investors access to a diversified portfolio of mortgage-backed securities, facilitating liquidity and risk sharing within the mortgage finance sector.
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