CAF - Morgan Stanley China A Share Fund

What this means for you

City of London specializes in closed-end funds trading below the value of their holdings - not a bank or an index fund holding shares for clients - and has told the regulator it is not seeking changes. 2 other large investors own more than 5% of this fund and have said the same; that is common for banks, brokers and index funds that hold shares for their clients.

Nothing is required of you. If an investor changes its mind, it must file a new notice within days, and it will show up here.

Email me if this changes

What happened, and when

In the fund's last buy-back (results filed April 2, 2026), holders offered 85.8% of all shares and the fund bought about 23 of every 100 shares offered, so holders who took part got only part of what they offered. Results of the last buy-back →

1. Aug 14, 2026

   Lazard Asset Management LLC raised its stake to 13.1% (from 11.5%), as a passive investor.

   Original document →

2. July 24, 2026

   City of London cut its stake to 34.4% (from 36.2%), as a passive investor.

   Original document →

3. May 15, 2026

   Lazard Asset Management LLC cut its stake to 11.5% (from 13.7%), as a passive investor.

   Original document →

4. April 2, 2026

   The buy-back ended; holders offered 85.8% of all shares and the fund paid $19.1287 a share.

   Original document →

5. April 1, 2026

   The buy-back ended; an early count says holders offered 85.8% of all shares.

   Original document →

About this fund

• Run by Morgan Stanley Investment Management Inc. Part of the Morgan Stanley fund family. As of Dec 31, 2025, from the fund's yearly report. Original document →
• Size: about $337 million of holdings, as of June 30, 2026. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• Borrowing: the fund does not borrow. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• Costs: 1.2% a year in management fees; 1.5% a year in total, including interest on borrowed money. Fiscal year ended Dec 31, 2025. As of Dec 31, 2025, from the fund's yearly report. Original document →
  Among the 13 funds we follow that invest outside the U.S., 12 charge a lower management fee and 9 charge less in total, at their last yearly reports. Both numbers are measured against the fund's own money, not the money it borrows on top, so a fund that borrows more shows higher costs on both counts.
• Payouts: last fiscal year (ended Dec 31, 2025) the fund paid $0.26 a share, all of it income. Most funds announce their monthly or quarterly payout on their own website, not in a filing with the regulator, so a cut or a raise there does not show up here until the next yearly report. A few funds do file a notice about a fixed payout; those appear under What happened, and when. As of Dec 31, 2025, from the fund's annual report. Original document →
• Value of holdings per share at the last fiscal year end (Dec 31, 2025): $19.62. The shares traded at $17.36, about 11.5% below that. As of Dec 31, 2025, from the fund's yearly report. Original document →
• How the holdings did: up 20.2% over the last three months we have (April-June 2026), before the share price is taken into account. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• First reported to the regulator in 2006.

How this has changed

• Payouts per share: $0.26 in the fiscal year ended Dec 31, 2025; $0.33 in the year ended Dec 31, 2024; $0.12 in the year ended Dec 31, 2023.As of Dec 31, 2025, from the fund's annual report. Original document →
• None of those payouts was your own money back; all of it was income or gains.As of Dec 31, 2025, from the fund's annual report. Original document →
• Costs, including interest on borrowed money: 1.52% a year in the fiscal year ended Dec 31, 2025; 1.63% a year in the year ended Dec 31, 2024; 1.67% a year in the year ended Dec 31, 2023.As of Dec 31, 2025, from the fund's annual report. Original document →
• Size of the holdings: about $330 million at Dec 31, 2025; $269 million at Dec 31, 2024; $323 million at Dec 31, 2023. From the fund's quarterly holdings reports. Original documents: Dec 31, 2025 →, Dec 31, 2024 →, Dec 31, 2023 →.
• Borrowing: none at Dec 31, 2025; none at Dec 31, 2024; none at Dec 31, 2023. From the fund's quarterly holdings reports. Original documents: Dec 31, 2025 →, Dec 31, 2024 →, Dec 31, 2023 →.
• The fund had about 16.8 million shares at Dec 31, 2025, down 22.5% from Dec 31, 2023.As of Dec 31, 2025, from the fund's annual report. Original document →

What these lines mean: a payout that is your own money back, what a fund costs, borrowing.

What a holder made

• The year ended Dec 31, 2025: the shares returned +41.4%, counting payouts; the holdings +27%. The holdings figure is what the fund's investments earned, before the share price is taken into account. As of Dec 31, 2025, from the fund's annual report. Original document →
• The year ended Dec 31, 2024: the shares returned +0.4%, counting payouts; the holdings +8.2%. As of Dec 31, 2024, from the fund's annual report. Original document →
• The year ended Dec 31, 2023: the shares returned -9.4%, counting payouts; the holdings -12%. As of Dec 31, 2023, from the fund's annual report. Original document →
• The year ended Dec 31, 2022: the shares returned -30.4%, counting payouts; the holdings -26.2%. As of Dec 31, 2022, from the fund's annual report. Original document →
• The year ended Dec 31, 2021: the shares returned -1.8%, counting payouts; the holdings -1.8%. As of Dec 31, 2021, from the fund's annual report. Original document →
• Those five years together: the shares returned -12.2%. $10,000 of shares bought at the start (Jan 1, 2021) would have become about $8,780 by Dec 31, 2025, with every payout counted, before tax. As of Dec 31, 2025, from the fund's annual report. Original document →
• The holdings over the last twelve months we have, to June 30, 2026: +55%. The quarterly reports carry no share price, so this is the holdings alone. As of June 30, 2026, from the fund's quarterly holdings report. Original document →
• Of the 10 funds that invest in outside the U.S. with a fiscal year ending within six months of this one, 4 reported a higher share return for that year and 5 a lower one. As of Dec 31, 2025, from the fund's annual report. Original document →
• A past year says nothing about the next one. All figures are the fund's own, from its reports to the regulator.

Why the shares and the holdings can differ: the gap between price and value. Why payouts count: a payout that is your own money back.

What the fund holds

All shares (100%). About 0% issued in the U.S.

1. Zhongji Innolight - 6%
2. Advanced Micro-Fabrication Equipment Inc China - 5.4%
3. Hua Hong Grace Semiconductor - 5%
4. Contemporary Amperex Technology - 4.4%
5. Montage Technology - 4.2%
6. NAURA Technology Group - 4.1%
7. Eoptolink Technology - 4%
8. China Merchants Bank - 2.6%
9. JCET Group - 2.6%
10. CITIC Securities - 2.5%

As of June 30, 2026, from the fund's quarterly holdings report. Original document →