In plain terms — Morgan Stanley Emerging Markets Domestic Debt Fund
Shares currently cost about 5.4% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 4.9% discount, so today's level is not wide for this fund (Z-score -0.8). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 15.6% a year of the share price (14.8% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.06 of assets — a ReinvestCapture™ rate of 16.5%, more than the payout rate itself. That is buying power, not a return.
The assets themselves grew 14.9% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -2.19% | 2.67% | -1.95 | 55 |
| 6 months | -4.18% | 3.33% | -0.96 | 108 |
| 1 year | -4.93% | 2.88% | -0.85 | 206 |
| 3 years | -8.60% | — | — | — |
| 5 years | -10.86% | — | — | — |
Current contemporaneous premium/discount -7.38% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -11.81% to +1.87%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -9.08% | -11.09% | -4.05% | -1.33% | +5.95% | -2.46% |
| Market price total return | -5.45% | -7.54% | +6.72% | +12.35% | +18.50% | +7.29% |
| NAV return | -4.21% | -3.40% | -3.40% | +1.61% | +3.99% | -2.75% |
| NAV total return | -0.65% | +0.20% | +6.86% | +14.91% | +15.34% | +5.99% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
The Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. is a closed-end investment vehicle dedicated to fixed-income assets. Established and overseen by Morgan Stanley Investment Management Inc., its mandate involves allocating capital to the debt markets of developing nations worldwide. A primary focus of its portfolio is sovereign debt, specifically government bonds issued in the domestic currencies of these emerging economies. For performance evaluation, the fund measures its results against the JPMorgan Government Bond Index - Emerging Markets Global Diversified Index. This fund was constituted on January 25, 2007, and maintains its domicile in the United States.
CEF Explorer research page for Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.