# Morgan Stanley income fund posts 6.15% yield, 5‑star rating

**Published:** 2026-07-17T02:32:56.765Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/ac711c8d-5809-4228-b16a-cbffb31bb0a4

Morgan Stanley’s Eaton Vance Strategic Income Fund (ETSIX) earns a 6.15% SEC yield, outperforms its category by 2.2 points and holds a 34% agency MBS

Morgan Stanley’s Eaton Vance Strategic Income Fund posted a 6.15% subsidized 30‑day SEC yield and retained its Morningstar 5‑star rating, signaling a strong position in a still‑attractive but late‑cycle fixed‑income market【2】.

| At a glance | |
|---|---|
| SEC Yield | 6.15% (subsidized 30‑day) |
| Expense Ratio | 1.46% (net), 1.02% (adjusted) |
| Agency MBS Allocation | ~34% of portfolio (as of Jan 31) |
| Category Outperformance | +2.2 pp annualized over 10 years |

## Fund performance and fee profile  
The fund’s A‑share class (ETSIX) has delivered a 10‑year annualized return 2.2 percentage points above its category average, a result that helped secure its 5‑star Morningstar rating【2】. However, the fund’s fees sit in the second‑highest quintile among peers, with a net expense ratio of 1.46% and a net‑adjusted expense ratio of 1.02%【2】. The high‑yielding SEC yield of 6.15% reflects the fund’s emphasis on higher‑yielding, investment‑grade securities while still maintaining a barbell construction that balances quality assets with riskier positions.

## Portfolio composition and market outlook  
Agency mortgage‑backed securities (MBS) represent the fund’s largest holding, accounting for roughly 34% of assets as of January 31【2】. The remaining allocation spans emerging‑market bonds, high‑yield bonds, floating‑rate loans, and a modest 4% exposure to commercial MBS—a sector the manager previously avoided but now sees value in after pandemic‑driven price corrections【2】. Manager Andrew Szczurowski notes that the macro environment for fixed income remains “OK” but is approaching the end of the cycle, prompting active managers to look beyond traditional Treasuries and investment‑grade corporates for opportunities【2】.

## What to watch
- Upcoming U.S. Treasury and Fed data releases that could shift the “late‑cycle” fixed‑income narrative.  
- Changes in agency MBS pricing or supply that would affect the fund’s largest sector exposure.  
- Any adjustment to the fund’s expense ratios or rating in the next Morningstar review cycle.

The fund’s solid yield and outperformance suggest it remains a viable option for investors seeking income, yet its relatively high fees and reliance on agency MBS mean performance will hinge on how the broader credit market evolves.

## Sources
1. Investopedia — [Morgan Stanley Revenue: Institutional, Wealth, and Investment Management](https://www.investopedia.com/articles/markets/082515/how-morgan-stanley-makes-its-money-ms.asp)
2. CNBC — [This Morgan Stanley income fund is rated 5 stars by Morningstar. Where its manager is investing right now](https://www.cnbc.com/2026/02/27/morgan-stanley-income-fund-rated-5-stars-by-morningstar-.html)

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Cite as: TrendWatcher, "Morgan Stanley income fund posts 6.15% yield, 5‑star rating", https://www.trendwatcher.in/article/ac711c8d-5809-4228-b16a-cbffb31bb0a4