N-Q 1 a19-8790_1nq.htm 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

811-07377

 

Morgan Stanley Insight 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 H. 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:

November 30,

 

 

Date of reporting period:

February 28, 2019

 

 


 

Item 1.  Schedule of Investments.

 

The Registrant’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:

 


 

Morgan Stanley Insight Fund

 

Portfolio of Investments · February 28, 2019 (unaudited)

 

NUMBER OF
SHARES

 

 

 

VALUE

 

 

 

Common Stocks (91.5%)

 

 

 

 

 

Biotechnology (1.0%)

 

 

 

64,853

 

Alnylam Pharmaceuticals, Inc. (a)

 

$

5,512,505

 

7,643

 

Bluebird Bio, Inc. (a)

 

1,186,347

 

49,412

 

Editas Medicine, Inc. (a)

 

1,019,370

 

64,925

 

Intellia Therapeutics, Inc. (a)

 

988,808

 

108,720

 

Intrexon Corp. (a)

 

866,498

 

173,369

 

Moderna, Inc. (a)(b)

 

3,918,139

 

 

 

 

 

13,491,667

 

 

 

Entertainment (7.9%)

 

 

 

121,197

 

Netflix, Inc. (a)

 

43,400,646

 

424,360

 

Spotify Technology SA (a)

 

59,469,810

 

 

 

 

 

102,870,456

 

 

 

Health Care Equipment & Supplies (9.9%)

 

 

 

286,190

 

DexCom, Inc. (a)

 

39,874,853

 

112,245

 

Intuitive Surgical, Inc. (a)

 

61,466,484

 

123,455

 

LivaNova PLC (a)

 

11,506,006

 

116,298

 

Penumbra, Inc. (a)

 

15,545,554

 

 

 

 

 

128,392,897

 

 

 

Health Care Providers & Services (7.7%)

 

 

 

638,602

 

Covetrus, Inc. (a)

 

22,849,180

 

421,489

 

Guardant Health, Inc. (a)

 

28,088,027

 

610,076

 

HealthEquity, Inc. (a)

 

49,098,916

 

 

 

 

 

100,036,123

 

 

 

Health Care Technology (6.5%)

 

 

 

10,234

 

Agilon Health Topco, Inc. (a)(c)(d)(e)
(acquisition cost - $3,870,089; acquired 11/07/18)

 

3,870,089

 

336,007

 

Inspire Medical Systems, Inc. (a)

 

20,832,435

 

512,218

 

Veeva Systems, Inc., Class A (a)

 

60,395,624

 

 

 

 

 

85,098,148

 

 

 

Information Technology Services (20.4%)

 

 

 

24,006

 

Adyen N.V. (a)

 

18,021,702

 

626,457

 

MongoDB, Inc. (a)

 

63,622,973

 

530,461

 

Okta, Inc. (a)

 

45,025,530

 

242,171

 

Shopify, Inc., Class A (a)

 

45,806,645

 

575,870

 

Square, Inc., Class A (a)

 

46,783,679

 

384,332

 

Twilio, Inc., Class A (a)

 

46,769,361

 

 

 

 

 

266,029,890

 

 

 

Interactive Media & Services (3.8%)

 

 

 

1,604,004

 

Twitter, Inc. (a)

 

49,371,243

 

 

 

 

 

 

 

 

 

Internet & Direct Marketing Retail (12.3%)

 

 

 

58,176

 

Amazon.com, Inc. (a)

 

95,398,750

 

832,148

 

Farfetch Ltd., Class A (a)

 

20,387,626

 

52,349

 

MercadoLibre, Inc. (a)

 

24,017,198

 

1,029,492

 

Overstock.com, Inc. (a)(b)

 

20,394,236

 

 

 

 

 

160,197,810

 

 

 

Life Sciences Tools & Services (5.3%)

 

 

 

204,382

 

Illumina, Inc. (a)

 

63,924,558

 

197,021

 

NanoString Technologies, Inc. (a)

 

5,018,125

 

 

 

 

 

68,942,683

 

 

 

Pharmaceuticals (0.1%)

 

 

 

15,972

 

Nektar Therapeutics (a)

 

647,505

 

 

 

 

 

 

 

 

 

Software (16.6%)

 

 

 

652,139

 

Coupa Software, Inc. (a)

 

61,424,972

 

202,703

 

Elastic N.V. (a)(b)

 

18,356,784

 

 


 

189,594

 

ServiceNow, Inc. (a)

 

45,396,387

 

1,189,110

 

Smartsheet, Inc., Class A (a)

 

45,471,566

 

229,650

 

Workday, Inc., Class A (a)

 

45,454,625

 

 

 

 

 

216,104,334

 

 

 

Total Common Stocks (Cost $957,751,345)

 

1,191,182,756

 

 

 

 

 

 

 

 

 

Preferred Stocks (1.9%)

 

 

 

 

 

Electronic Equipment, Instruments & Components (0.2%)

 

 

 

82,075

 

Magic Leap, Series C (a)(c)(d)(e)
(acquisition cost - $1,890,434; acquired 12/22/15)

 

2,216,025

 

 

 

 

 

 

 

 

 

Internet & Direct Marketing Retail (0.8%)

 

 

 

58,155

 

Airbnb, Inc., Series D (a)(c)(d)(e)
(acquisition cost - $2,367,666; acquired 04/16/14)

 

7,022,216

 

77,181

 

Uber Technologies, Series G (a)(c)(d)(e)
(acquisition cost - $3,764,289; acquired 12/03/15)

 

3,560,360

 

 

 

 

 

10,582,576

 

 

 

Life Sciences Tools & Services (0.9%)

 

 

 

901,243

 

10X Genomics, Inc., Series B (a)(c)(d)(e)
(acquisition cost - $2,947,065; acquired 12/19/14)

 

11,283,562

 

 

 

 

 

 

 

 

 

Software (0.0%)

 

 

 

197,427

 

Lookout, Inc., Series F (a)(c)(d)(e)
(acquisition cost - $2,255,228; acquired 06/17/14)

 

481,722

 

 

 

Total Preferred Stocks (Cost $13,224,682)

 

24,563,885

 

 

 

 

 

 

 

NUMBER OF
SHARES
(000)

 

 

 

 

 

 

 

Short-Term Investments (10.2%)

 

 

 

 

 

Securities held as Collateral on Loaned Securities (3.5%)

 

 

 

 

 

Investment Company (2.8%)

 

 

 

35,881

 

Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (f)

 

35,880,904

 

 

 

 

 

 

 

PRINCIPAL
AMOUNT
(000)

 

 

 

VALUE

 

 

 

Repurchase Agreements (0.7%)

 

 

 

$

1,107

 

Barclays Capital, Inc. (2.55%, dated 02/28/19, due 03/01/19; proceeds $1,107,514; fully collateralized by a U.S. Government obligation; 3.63% due 02/15/44; valued at $1,129,597)

 

1,107,435

 

4,208

 

HSBC Securities USA, Inc. (2.55%, dated 02/28/19, due 03/01/19; proceeds $4,208,552; fully collateralized by a U.S. Government obligation; 0.00% due 11/15/19; valued at $4,292,419)

 

4,208,254

 

3,322

 

Merrill Lynch & Co., Inc. (2.57%, dated 02/28/19, due 03/01/19; proceeds $3,322,543; fully collateralized by a U.S. Government obligation; 2.75% due 11/15/42; valued at $3,388,759)

 

3,322,306

 

 

 

 

 

8,637,995

 

 

 

Total Securities held as Collateral on Loaned Securities (Cost $44,518,899)

 

44,518,899

 

 

 

 

 

 

 

NUMBER OF
SHARES
(000)

 

 

 

 

 

 

 

Investment Company (6.7%)

 

 

 

87,187

 

Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (f) (Cost $87,187,250)

 

87,187,250

 

 

 

Total Short-Term Investments (Cost $131,706,149)

 

131,706,149

 

 


 

 

 

Total Investments Excluding Purchased Options (Cost $1,102,682,177)

 

103.6

%

1,347,452,790

 

 

 

 

 

 

 

 

 

 

 

Total Purchased Options Outstanding (Cost $2,619,792)

 

0.0

%

603,727

 

 

 

 

 

 

 

 

 

 

 

Total Investments (Cost $1,105,301,968) (g)(h)

 

103.6

%

1,348,056,517

 

 

 

Liabilities in Excess of Other Assets

 

(3.6

)

(46,645,678

)

 

 

Net Assets

 

100.0

%

$

1,301,410,839

 

 


(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 February 28, 2019, were $42,669,160 and $45,572,410, respectively. The Fund received cash collateral of approximately $44,775,090, of which approximately $44,518,899 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Portfolio of Investments.  At February 28, 2019, there was uninvested cash collateral of $256,191, which is not reflected in the Portfolio of Investments.  The remaining collateral of approximately $797,320 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)

 

At February 28, 2019, the Fund held fair valued securities valued at $28,433,974, representing 2.2% 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.

(d)

 

Illiquid security.

(e)

 

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 (excluding 144A holdings) at February 28, 2019 amounts to $28,433,974 and represents 2.2% of net assets.

(f)

 

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 February 28, 2019, advisory fees paid were reduced by $22,648 relating to the Fund’s investment in the Liquidity Funds.

(g)

 

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 three months ended February 28, 2019, the Fund did not engage in any cross-trade transactions.

(h)

 

At February 28, 2019, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $276,721,037 and the aggregate gross unrealized depreciation is $33,966,488, resulting in net unrealized appreciation of $242,754,549

 

Call Options Purchased:

 

The Fund had the following call options purchased open at February 28, 2019:

 

Counterparty

 

Description

 

Strike
Price

 

Expiration
Date

 

Number of
Contracts

 

Notional
Amount
(000)

 

Value

 

Premiums
Paid

 

Unrealized
Depreciation

 

Royal Bank of Scotland

 

USD/CNH

 

CNH

1.00

 

Jan-20

 

189,470,483

 

189,470

 

$

471,213

 

$

969,925

 

$

(498,712

)

Royal Bank of Scotland

 

USD/CNH

 

CNH

7.78

 

Jul-19

 

149,520,469

 

149,520

 

33,642

 

728,526

 

(694,884

)

Royal Bank of Scotland

 

USD/CNH

 

CNH

8.00

 

Oct-19

 

156,690,646

 

156,691

 

98,872

 

921,341

 

(822,469

)

 

 

 

 

 

 

 

 

 

 

 

 

$

603,727

 

$

2,619,792

 

$

(2,016,065

)

 

Currency Abbreviations:

 

CNH

 

Chinese Yuan Renminbi Offshore.

 


 

USD

 

United States Dollar.

 


 

Summary of Investments

 

INDUSTRY

 

VALUE

 

PERCENT OF
TOTAL
INVESTMENTS

 

Information Technology Services

 

$

266,029,890

 

20.4

%

Software

 

216,586,056

 

16.6

 

Internet & Direct Marketing Retail

 

170,780,386

 

13.1

 

Health Care Equipment & Supplies

 

128,392,897

 

9.8

 

Entertainment

 

102,870,456

 

7.9

 

Health Care Providers & Services

 

100,036,123

 

7.7

 

Investment Company

 

87,187,250

 

6.7

 

Health Care Technology

 

85,098,148

 

6.5

 

Life Sciences Tools & Services

 

80,226,245

 

6.2

 

Interactive Media & Services

 

49,371,243

 

3.8

 

Biotechnology

 

13,491,667

 

1.0

 

Electronic Equipment, Instruments & Components

 

2,216,025

 

0.2

 

Pharmaceuticals

 

647,505

 

0.1

 

Purchased Options

 

603,727

 

0.0

+

 

 

$

1,303,537,618

++

100.0

%

 


+

Amount is less than 0.05%.

++

Does not reflect the value of securities held as collateral on loaned securities.

 


 

Morgan Stanley Insight Fund

 

Notes to Portfolio of Investments · February 28, 2019 (unaudited)

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) - Disclosures Framework - Changes to Disclosure Requirements of Fair Value Measurement (“ASU 2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years; however, management has elected to early adopt ASU 2018-13 as permitted by the standard. The impact of the Fund’s adoption was limited to changes in the Fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy and disclosure of the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, when applicable.

 

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. 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; and (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.

 

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

 

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 February 28, 2019:

 

Investment Type

 

Level 1
Unadjusted
quoted
prices

 

Level 2
Other
significant
observable
inputs

 

Level 3
Significant
unobservable
inputs

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

Biotechnology

 

$

13,491,667

 

$

 

$

 

$

13,491,667

 

Entertainment

 

102,870,456

 

 

 

102,870,456

 

Health Care Equipment & Supplies

 

128,392,897

 

 

 

128,392,897

 

Health Care Providers & Services

 

100,036,123

 

 

 

100,036,123

 

Health Care Technology

 

81,228,059

 

 

3,870,089

 

85,098,148

 

Information Technology Services

 

266,029,890

 

 

 

266,029,890

 

Interactive Media & Services

 

49,371,243

 

 

 

49,371,243

 

Internet & Direct Marketing Retail

 

160,197,810

 

 

 

160,197,810

 

Life Sciences Tools & Services

 

68,942,683

 

 

 

68,942,683

 

Pharmaceuticals

 

647,505

 

 

 

647,505

 

Software

 

216,104,334

 

 

 

216,104,334

 

Total Common Stocks

 

1,187,312,667

 

 

3,870,089

 

1,191,182,756

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

Electronic Equipment, Instruments & Components

 

 

 

2,216,025

 

2,216,025

 

Internet & Direct Marketing Retail

 

 

 

10,582,576

 

10,582,576

 

Life Sciences Tools & Services

 

 

 

11,283,562

 

11,283,562

 

Software

 

 

 

481,722

 

481,722

 

Total Preferred Stocks

 

 

 

24,563,885

 

24,563,885

 

Call Options Purchased

 

 

603,727

 

 

603,727

 

Short-Term Investments

 

 

 

 

 

 

 

 

 

Investment Company

 

123,068,154

 

 

 

123,068,154

 

Repurchase Agreements

 

 

8,637,995

 

 

8,637,995

 

Total Short-Term Investments

 

123,068,154

 

8,637,995

 

 

131,706,149

 

Total Assets

 

$

1,310,380,821

 

$

9,241,722

 

$

28,433,974

 

$

1,348,056,517

 

 

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

 

Beginning Balance

 

$

3,870,089

 

$

22,014,195

 

Purchases

 

 

 

Sales

 

 

 

Amortization of discount

 

 

 

Transfers in

 

 

 

Transfers out

 

 

 

Corporate actions

 

 

 

Change in unrealized appreciation (depreciation)

 

 

2,549,690

 

Realized gains (losses)

 

 

 

Ending Balance

 

$

3,870,089

 

$

24,563,885

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation) from investments still held as of February 28, 2019

 

$

 

$

2,549,690

 

 

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 February 28, 2019. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

 

 

 

Fair Value at February 28,
2019

 

Valuation Technique

 

Unobservable Input

 

Amount or Range/Weighted Average

 

Impact to
Valuation from
an Increase in
Input +

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

3,870,089

 

Market Transaction Method

 

Precedent Transaction

 

$378.16

 

Increase

 

 

 

 

 

 

 

 

 

 

 

Preferred Stocks

 

$

24,563,885

 

Market Transaction Method

 

Precedent Transactions

 

$12.73 - $48.77 / $22.11

 

Increase

 

 

 

 

Discounted Cash Flow

 

Weighted Average Cost of Capital

 

14.0% - 27.0% / 17.44%

 

Decrease

 

 

 

 

 

 

Perpetual Growth Rate

 

3.0% - 4.0% / 3.50%

 

Increase

 

 

 

 

Market Comparable Companies

 

Enterprise Value/Revenue

 

1.1x - 11.6x / 5.94x

 

Increase

 

 

 

 

 

 

Discount for Lack of Marketability

 

9.0% - 20.0% / 16.98%

 

Decrease

 

 

 

 

Comparable Transactions

 

Enterprise Value/Revenue

 

2.2x - 22.5x / 5.7x

 

Increase

 


+ 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.

 


 

Item 2.  Controls and Procedures.

 

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant 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 registrant’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 registrant’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.

 


 

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 Insight Fund

 

/s/ John H. Gernon

 

John H. Gernon

Principal Executive Officer

April 18, 2019

 

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 H. Gernon

 

John H. Gernon

 

Principal Executive Officer

 

April 18, 2019

 

 

 

/s/ Francis Smith

 

Francis Smith

 

Principal Financial Officer

 

April 18, 2019