Morgan Stanley Investment Management (MSIM) today announced the launch of two funds in the UK, the Morgan Stanley OEIC Global Balanced Sustainable Fund and the Morgan Stanley OEIC Global Balanced Income Fund.
Morgan Stanley Investment Management’s two new funds are being managed by the experienced Global Balanced Risk Control Team who focus on maintaining a stable risk profile, whilst making tactical allocations across regions and sub-asset classes to add further value.
The objective of both funds is to provide investors with attractive total returns, while offering a consistent, stable level of risk, including relative downside protection during times of market volatility.
The Global Balanced Sustainable Fund invests in a multi-asset portfolio consisting of equity securities, fixed income securities and money market instruments.
The portfolio team combines volatility-targeting asset allocation with a multi-dimensional approach to sustainable investing and will invest in companies that contribute to the realisation of a low-carbon economy, with the goal to decarbonise the portfolio’s core equity exposures according to a 1.5°C scenario, targeting net zero by 2050.
The Fund also has the explicit intention of generating a measurable positive environmental and social impact alongside a financial return through SDG alignment, engagement, and proxy voting.
The Global Balanced Income Fund manages a broad asset mix, targeting a specific level of volatility and a yield of 4% p.a. It invests in a diverse set of liquid global asset classes, whilst dynamically adjusting weights to meet risk targets as market conditions change.
The team follows a top-down, macro-driven process, targeting optimal allocation, for best risk-adjusted returns and will continuously add value adjusting sub-asset class exposures within its broader allocation.
By selling put options on major equity indices to enhance the income received from equities and bonds, the Fund aims to generate capital growth and consistent income, without relying on potentially overvalued asset classes.
These fund launches represent a key milestone for MSIM, with the business having now launched 10 OEICs for UK investors, demonstrating a continued focus on the UK market.
Andrew Harmstone, Head of the Global Balanced Risk Control strategy at MSIM said,
“At the core of both the Global Balanced Sustainable Fund and the Global Balanced Income Fund is the delivery of long-term growth and attractive returns for investors. Through the Global Balanced Sustainable Fund, we have also sought to positively impact society by targeting investments with the explicit intention of generating a measurable positive environmental and social impact, aligned with 11 of the UN SDGs, a focus on decarbonisation and an effective engagement approach to deliver value to our stakeholders.”
Richard Lockwood, MSIM’s Head of Distribution for Northern Europe continued,
“This is another example of the importance and commitment MSIM places on the UK market for future growth. With its £18bn in AUM, the Global Balanced Risk Control team has a strong track-record across their funds, delivering attractive returns and stable income whilst providing downside protection in volatile markets. Both funds aim to invest actively across the broad investment universe, which allows the team to make use of tactical opportunities and achieve attractive returns in comparison to its benchmark-constrained peers. We know that investors want to invest in solutions to the world’s sustainability challenge while simultaneously seeking consistent income in a low yielding environment. This makes both funds ideal solutions for investors in the UK.”
