NPORT-EX 2 NPORT_MGCD_93817907_0921.htm

 

Morgan Stanley Insight Fund

Consolidated Portfolio of Investments ▪ September 30, 2021 (unaudited)

 

NUMBER OF
SHARES
        VALUE  
        Common Stocks (95.5%)        
        Biotechnology (2.7%)        
  181,870     Alnylam Pharmaceuticals, Inc. (a)   $ 34,338,875  
  1,719,569     Ginkgo Bioworks Holdings, Inc. (a)(b)     19,929,805  
  244,836     Intellia Therapeutics, Inc. (a)     32,844,749  
  299,829     Moderna, Inc. (a)     115,392,189  
              202,505,618  
        Diversified Holding Companies (0.8%)        
  2,577,632     Altimeter Growth Corp., Class A SPAC (a)(b)(c)     26,343,399  
  2,994,000     BowX Acquisition Corp., Class A SPAC (a)(b)     29,940,000  
              56,283,399  
        Entertainment (6.6%)        
  3,581,644     ROBLOX Corp., Class A (a)     270,593,204  
  698,014     Sea Ltd. ADR (a)     222,478,002  
              493,071,206  
        Health Care Providers & Services (2.1%)        
  3,111,578     Agilon Health, Inc. (a)     81,554,459  
  614,325     Guardant Health, Inc. (a)     76,796,768  
              158,351,227  
        Health Care Technology (2.9%)        
  1,023,400     Agilon Health Topco, Inc. (a)(e)     26,286,848  
  653,559     Veeva Systems, Inc., Class A (a)     188,336,097  
              214,622,945  
        Information Technology Services (29.1%)        
  46,356     Adyen N.V. (a)     129,581,788  
  3,319,841     Cloudflare, Inc., Class A (a)     373,980,089  
  754,490     Fastly, Inc., Class A (a)     30,511,576  
  222,975     MongoDB, Inc. (a)     105,134,942  
  333,933     Shopify, Inc., Class A (a)     452,739,683  
  1,470,714     Snowflake, Inc., Class A (a)     444,788,035  
  1,667,847     Square, Inc., Class A (a)     400,016,424  
  737,820     Twilio, Inc., Class A (a)     235,401,471  
              2,172,154,008  
        Interactive Media & Services (15.2%)        
  2,794,052     Pinterest, Inc., Class A (a)     142,356,949  
  5,946,356     Snap, Inc., Class A (a)     439,257,318  
  6,043,113     Twitter, Inc. (a)     364,943,594  
  943,223     Zillow Group, Inc., Class C (a)     83,135,675  
  1,754,403     ZoomInfo Technologies, Inc., Class A (a)     107,351,920  
              1,137,045,456  
        Internet & Direct Marketing Retail (11.8%)        
  3,546,054     Coupang, Inc. (a)     98,757,604  
  1,811,256     DoorDash, Inc., Class A (a)     373,082,511  
  72,072     MercadoLibre, Inc. (a)     121,037,717  
  1,340,399     Overstock.com, Inc. (a)     104,443,890  
  709,930     Wayfair, Inc., Class A (a)     181,394,214  
              878,715,936  
        Life Sciences Tools & Services (1.3%)        
  644,524     10X Genomics, Inc., Class A (a)     93,829,804  
                 
        Metals & Mining (0.2%)        
  196,410     Royal Gold, Inc.     18,755,191  
 
        Pharmaceuticals (2.4%)        
  4,983,835     Royalty Pharma PLC, Class A (United Kingdom)     180,115,797  
                 
        Real Estate Management & Development (1.1%)        
  1,659,591     Redfin Corp. (a)     83,145,509  

 

 

 

 

Morgan Stanley Insight Fund

Consolidated Portfolio of Investments ▪ September 30, 2021 (unaudited) continued

 
      Software (16.7%)      
  1,015,988     Bill.Com Holdings, Inc. (a)     271,217,997  
  3,895,732     Cipher Mining Technologies, Inc. (a)(d)     35,649,454  
  823,708     Datadog, Inc., Class A (a)     116,431,126  
  7,321,373     IronSource Ltd., Class A (a)(d)     72,420,825  
  2,621,988     IronSource Ltd., Class A (a)     28,501,009  
  56,890     MicroStrategy, Inc., Class A (a)     32,905,176  
  2,652,800     Trade Desk, Inc. (The), Class A (a)     186,491,840  
  570,528     UiPath, Inc., Class A (a)     30,015,478  
  1,643,057     Unity Software, Inc. (a)     207,435,946  
  1,004,626     Zoom Video Communications, Inc., Class A (a)     262,709,699  
              1,243,778,550  
        Specialty Retail (2.6%)        
  633,496     Carvana Co. (a)     191,024,384  
        Total Common Stocks (Cost $5,369,646,448)     7,123,399,030

 

NUMBER OF
WARRANTS
           
      Warrant (0.0%) (f)      
      Biotechnology (0.0%) (f)      
  343,914     Ginkgo Bioworks Holdings, Inc. expires 12/31/27 (a) (Cost $1,145,233)     1,165,868  

 

NUMBER OF
SHARES
           
        Preferred Stocks (0.9%)        
        Electronic Equipment, Instruments & Components (0.0%)        
  82,075     Magic Leap, Series C (a)(d)(g)
(acquisition cost — $1,890,434; acquired 12/22/15)
     
 
        Internet & Direct Marketing Retail (0.1%)        
  149,242     Overstock.com, Inc., Series A-1     10,708,113  
 
        Software (0.8%)        
  253,991     Databricks, Inc. (a)(d)(g)
(acquisition cost — $55,992,926; acquired 8/31/21)
    55,992,926  
  197,427     Lookout, Inc., Series F (a)(d)(g)
(acquisition cost — $2,255,228; acquired 6/17/14)
    900,267  
              56,893,193  
        Total Preferred Stocks (Cost $60,960,105)     67,601,306  
 
        Investment Company (0.7%)        
  1,520,549     Grayscale Bitcoin Trust (a) (Cost $66,340,465)     51,470,584  

 

NUMBER OF
SHARES
(000)
        
     Short-Term Investments (3.9%)     
     Securities held as Collateral on Loaned Securities (0.7%)     
     Investment Company (0.6%)     
 39,658   Morgan Stanley Institutional Liquidity Funds -  Treasury Securities Portfolio - Institutional Class (h) (Cost $39,657,581)   39,657,581 

 

 

 

 

Morgan Stanley Insight Fund

Consolidated Portfolio of Investments ▪ September 30, 2021 (unaudited) continued

 

PRINCIPAL
AMOUNT
(000)
           
        Repurchase Agreements (0.1%)        
$ 2,073     HSBC Securities USA, Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $2,072,699; fully collateralized by U.S. Government obligations; 0.00%-0.13% due 10/7/21-12/31/22; valued at $2,114,156)     2,072,696  
  7,047     Merrill Lynch & Co., Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $7,047,176; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $7,188,116)     7,047,166  
        Total Securities held as Collateral on Loaned Securities (Cost $48,777,443)     48,777,443  

 

NUMBER OF
SHARES
(000)
            
     Investment Company (3.2%)          
 238,508   Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (h) (Cost $238,507,853)        238,507,853 
     Total Short-Term Investments (Cost $287,285,296)        287,285,296 
     Total Investments Excluding Purchased Options (Cost $5,785,377,547)   101.0%   7,530,922,084 
     Total Purchased Options Outstanding (Cost $36,974,302)    0.1%   8,141,433 
     Total Investments (Cost $5,822,351,849) Including $46,724,054 of Securities Loaned (i)(j)(k)(l)   101.1%   7,539,063,517 
     Liabilities in Excess of Other Assets   (1.1)   (79,602,038)
     Net Assets   100.0%  $7,459,461,479 

 

The Fund had the following Derivative Contracts -  PIPE open at September 30, 2021:

 

Counterparty  Referenced
Obligation
  Notional
Amount
   Settlement
Date
  Unrealized
Depreciation
   % of
Net Assets
 
Altimeter Growth Corp.  Grab Holdings Inc.(a)(d)(g)(m)(p)  $61,828,080   12/31/21  $(4,958,612)   (0.06)%
Athena Technology Acquisition Corp.    Heliogen, Inc.   (a)(d)(g)(n)(p)   36,220,370   12/31/21   (4,224,722)   (0.06)
Reinvent Technology Partners Y  Aurora Innovation,Inc. (a)(d)(g)(o)(p)   25,619,650   12/31/21   (3,613,780)   (0.05)
              $(12,797,114)   (0.17)%

 

(a) Non-income producing security.
(b) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were $46,724,054 and $49,021,870 respectively. The Fund received cash collateral of $49,021,870, of which $48,777,443 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Consolidated Portfolio of Investments. At September 30, 2021, there was uninvested cash of $244,427 which is not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(c) For the three months ended September 30, 2021, the cost of purchase and proceeds from sale of Altimeter Growth Corp., Common Stock, and its affiliated broker-dealers, which may be deemed affiliates of the Adviser/Administrator and Distributor under the Investment Company Act of 1940, were approximately $35,303,268 and $958,330, respectively, including net realized gain of approximately $253,571.

 

 

 

 

Morgan Stanley Insight Fund

Consolidated Portfolio of Investments ▪ September 30, 2021 (unaudited) continued

 

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules (“restricted security”). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities . Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities and derivative contracts (excluding 144A holdings) at September 30, 2021 amounts to $152,166,358 and represents 2.0% of net assets.
(e) Security has been deemed by the investment manager to be illiquid and is subject to restrictions on resale. At September 30, 2021, this security amounted to approximately $26,286,848, which represents 0.4% of net assets of the Fund.
(f) Amount is less than 0.05%.
(g) At September 30, 2021, the Fund held fair valued securities and derivative contracts valued at $44,096,079, representing 0.6% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.
(h) 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 nine months ended September 30, 2021, advisory fees paid were reduced by $140,916 relating to the Fund's investment in the Liquidity Funds.
(i) The approximate fair value and percentage of net assets, $129,581,788 and 1.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Consolidated Portfolio of Investments.
(j) 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 Trustees 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(k) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $2,076,840,602 and the aggregate gross unrealized depreciation is $372,926,048, resulting in net unrealized appreciation of $1,703,914,554.
(l) Securities are available for collateral in connection with securities purchased on a forward commitment basis.
(m) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 6,182,808 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.
(n) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 3,622,037 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Heliogen, Inc., and Athena Technology Acquisition Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Athena Technology Acquisition Corp., and Heliogen, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Athena Technology Acquisition Corp., and Heliogen, Inc. The investment is restricted from resale until the settlement date.
(o) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 2,561,965 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Aurora Innovation, Inc., and Reinvent Technology Partners Y, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Reinvent Technology Partners Y, and Aurora Innovation, Inc., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Reinvent Technology Partners Y, and Aurora Innovation, Inc. The investment is restricted from resale until the settlement date.
(p) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.
ADR American Depositary Receipt.
PIPE Private Investment in Public Equity.
SPAC Special Purpose Acquisition Company.

 

 

 

 

Morgan Stanley Insight Fund

Consolidated Portfolio of Investments ▪ September 30, 2021 (unaudited) continued

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:

 

Counterparty  Description  Strike
Price
  Expiration
Date
  Number of
Contracts
   Notional
Amount
(000)
   Value   Premiums
Paid
   Unrealized
Depreciation
 
BNP Paribas  USD/CNH  CNH 7.45  Jan-22   1,415,479,829    1,415,480   $121,731   $7,555,803   $(7,434,072)
BNP Paribas  USD/CNH  CNH 7.64  Nov-21   1,137,180,586    1,137,181    2,274    6,175,633    (6,173,359)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar-22   1,458,081,129    1,458,081    562,819    7,242,384    (6,679,565)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul-22   1,715,752,843    1,715,753    4,347,718    7,993,418    (3,645,700)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug-22   790,635,623    790,636    2,040,631    5,369,997    (3,329,366)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul-22   497,090,986    497,091    1,066,260    2,637,067    (1,570,807)
                      $8,141,433   $36,974,302   $(28,832,869)

 

 

CNH Chinese Yuan Renminbi Offshore
USD United States Dollar

 

 

 

 

INDUSTRY  VALUE   PERCENT OF
TOTAL
INVESTMENTS
 
Information Technology Services  $2,172,154,008    28.9%
Software   1,300,671,743    17.3 
Interactive Media & Services   1,137,045,456    15.1 
Internet & Direct Marketing Retail   889,424,049    11.9 
Entertainment   493,071,206    6.6 
Investment Companies   289,978,437    3.9 
Health Care Technology   214,622,945    2.9 
Biotechnology   203,671,486    2.7 
Specialty Retail   191,024,384    2.6 
Pharmaceuticals   180,115,797    2.4 
Health Care Providers & Services   158,351,227    2.1 
Life Sciences Tools & Services   93,829,804    1.3 
Real Estate Management & Development   83,145,509    1.1 
Diversified Holding Companies   56,283,399    0.8 
Metals & Mining   18,755,191    0.3 
Call Options Purchased   8,141,433    0.1 
Electronic Equipment, Instruments & Components   ††   0.0 
   $7,490,286,074††   100.0%*

 

Does not reflect the value of securities held as collateral on loaned securities.
†† Includes a security valued at zero.
*Does not include open PIPE contracts with total unrealized depreciation of $12,797,114.

 

 

 

 

Morgan Stanley Insight Fund

Notes to Consolidated Portfolio of Investments ▪ September 30, 2021 (unaudited)

 

Valuation of Investments - (1) 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; (2) all other equity portfolio securities for which over-the-counter (“OTC”) market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets 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 markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley 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 Trustees (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; (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; (5) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (6) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trustees. 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 the Adviser, a wholly-owned subsidiary of Morgan Stanley, 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; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (8) 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 Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Fund’s Adviser or a valuation committee, to assist the Trustees in determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Trustees. Under procedures approved by the Trustees, the Fund's Adviser has formed a Valuation Committee whose members are approved by the Trustees. 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.

 

Fair Valuation Measurements

 

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 September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
   Level 2
Other
significant
observable
inputs
   Level 3
Significant
unobservable
inputs
   Total 
                 
Assets:        
Common Stocks                    
Biotechnology  $202,505,618   $   $   $202,505,618 
Diversified Holding Companies   56,283,399            56,283,399 
Entertainment   493,071,206            493,071,206 
Health Care Providers & Services   158,351,227            158,351,227 
Health Care Technology   188,336,097    26,286,848        214,622,945 
Information Technology Services   2,042,572,220    129,581,788        2,172,154,008 
Interactive Media & Services   1,137,045,456            1,137,045,456 
Internet & Direct Marketing Retail   878,715,936            878,715,936 
Life Sciences Tools & Services   93,829,804            93,829,804 
Metals & Mining   18,755,191            18,755,191 
Pharmaceuticals   180,115,797            180,115,797 
Real Estate Management & Development   83,145,509            83,145,509 
Software   1,135,708,271    108,070,279        1,243,778,550 
Specialty Retail   191,024,384            191,024,384 
Total Common Stocks   6,859,460,115    263,938,915        7,123,399,030 
Warrant   1,165,868            1,165,868 
Preferred Stocks                    
Electronic Equipment, Instruments & Components              
Internet & Direct Marketing Retail   10,708,113            10,708,113 
Software           56,893,193    56,893,193 
Total Preferred Stocks   10,708,113        56,893,193   67,601,306
Investment Company   51,470,584            51,470,584 
Call Options Purchased       8,141,433        8,141,433 
Short-Term Investments                    
Investment Company   278,165,434            278,165,434 
Repurchase Agreements       9,119,862        9,119,862 
Total Short-Term Investments   278,165,434    9,119,862        287,285,296 
Total Assets   7,200,970,114    281,200,210    56,893,193   7,539,063,517
Liabilities:                
Derivative Contracts — PIPE           (12,797,114)   (12,797,114)
Total  $7,200,970,114   $281,200,210   $44,096,079  $7,526,266,403

 

Includes a security 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.

 

 

 

 

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

 

   COMMON
STOCK
   PREFERRED
STOCKS
   DERIVATIVE
CONTRACTS —
PIPE
 
Beginning Balance  $6,032,738   $612,024  $- 
Purchases   -    55,992,926    - 
Sales   -    -    - 
PIPE transactions   -    -    (12,797,114)
Amortization of discount   -    -    - 
Transfers in   -    -    - 
Transfers out   (6,032,738)††   -    - 
Corporate actions   -    -    - 
Change in unrealized appreciation (depreciation)   -    288,243    - 
Realized gains (losses)   -    -    - 
Ending Balance  $-   $56,893,193  $(12,797,114)
                
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $-   $288,243   $(12,797,114)

 

Includes a security valued at zero.
†† A security transferred out of level 3 due to an Initial Public Offering.

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The Fund calculated the weighted averages of the unobservable inputs relative to each investment’s fair value as of September 30, 2021.

 

   Fair Value at
September 30,
2021
   Valuation
Technique
  Unobservable
Input
  Amount or Range/
Weighted Average*
   Impact to
Valuation from
an Increase
in Input**
Preferred Stocks  $56,893,193   Market Transaction Method  Precedent Transaction   $220.45   Increase
        Discounted Cash Flow  Weighted Average Cost of Capital   12.5%   Decrease
           Perpetual Growth Rate   3.5%   Increase
        Market Comparable Companies  Enterprise Value/Revenue   8.0x   Increase
           Discount for Lack of Marketability   12.0%   Decrease
PIPE  $(12,797,114)  Market Implied  Discount for Lack of Marketability and Transaction Risk   10.0% - 13.5% / 11.0%   Decrease

 

 

* Amount is indicative of the weighted average.
** Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.