https://www.sec.gov/Archives/edgar/data/882381/000110465925061763/tm2516660d25_497k.htm497K 1 tm2516660d25_497k.htm 497K
Filed by: Morgan Stanley ETF Trust
Pursuant to Rule 425 under the Securities Act of 1933 and
deemed filed under Rule 14a-12(b) under the Securities Exchange Act of 1934.
Subject Company: Morgan Stanley Income Opportunities Fund
SEC File No. 811-06515 and 033-44782
SUPPLEMENT DATED JUNE 23, 2025 TO THE SUMMARY PROSPECTUSES, PROSPECTUSES,
AND STATEMENT OF ADDITIONAL INFORMATION OF
Morgan Stanley Income Opportunities Fund, dated February 28, 2025, as amended June 23, 2025
As previously announced, at a meeting held on April 23-24, 2025, the Board of Trustees (the “Board”) of Morgan Stanley Income Opportunities Fund (formerly, Morgan Stanley Global Fixed Income Opportunities Fund) (the “Acquired Fund”) unanimously approved the reorganization of the Acquired Fund into an exchange-traded fund (“ETF”), which will be managed by Morgan Stanley Investment Management Inc. (“MSIM”), which is also the investment adviser to the Acquired Fund. The Board, which is comprised solely of Trustees who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the Acquired Fund, determined that participation in the Reorganization (defined below) is in the best interests of the Acquired Fund and the interests of existing shareholders of the Acquired Fund (“Acquired Fund Shareholders”) will not be diluted as a result of the Reorganization.
Subject to shareholder approval, the Acquired Fund will be reorganized into the Eaton Vance Income Opportunities ETF (the “Acquiring Fund” and together with the Acquired Fund, the “Funds”), a series of Morgan Stanley ETF Trust (the “Acquiring Fund Trust”) (the “Reorganization”).
In addition, Michael Kushma will no longer be a portfolio manager of the Funds effective December 31, 2025. Accordingly, all references to Mr. Kushma will be removed from the Summary Prospectuses, Prospectuses and Statement of Additional Information on December 31, 2025.
If approved by Acquired Fund Shareholders, the Reorganization would be accomplished in accordance with an Agreement and Plan of Reorganization (the “Plan”). Subject to shareholder approval, the Reorganization is anticipated to occur (after the close of trading) on or about November 7, 2025 (the “Closing Date”). This supplement is not a solicitation of proxy.
The Plan provides for the transfer of substantially all of the assets of the Acquired Fund to the Acquiring Fund in exchange for the assumption by the Acquiring Fund of the Acquired Fund’s stated liabilities and shares of the Acquiring Fund (“Acquiring Fund Shares”) having an aggregate net asset value (“NAV”) equal to the aggregate NAV of the Acquired Fund followed immediately by the distribution by the Acquired Fund to Acquired Fund Shareholders of the portion of Acquiring Fund Shares to which the Acquired Fund Shareholder is entitled (and cash with respect to any fractional shares), in accordance with the Plan and except as noted below. Following the Reorganization, the Acquired Fund will be liquidated.
Acquired Fund Shareholders of record on July 17, 2025 will receive a combined Proxy Statement and Prospectus that contains important information about the Reorganization and the Acquiring Fund, including information regarding the Acquiring Fund’s investment strategies and risks, fees and expenses.
If Acquired Fund Shareholders approve the Reorganization, and certain other closing conditions are satisfied or waived, Acquired Fund Shareholders who own shares of the Acquired Fund (“Acquired Fund Shares”) through a brokerage account that can accept shares of an ETF will become shareholders of the Acquiring Fund (which will operate as an ETF) receiving Acquiring Fund Shares with an aggregate value equal to the aggregate NAV of their Acquired Fund Shares held immediately prior to the Reorganization, except with respect to cash received in lieu of fractional Acquiring Fund Shares, which cash payment may be taxable...
