(Hong Kong, July 2, 2020) Morgan Stanley Investment Management (MSIM) today announced the launch of a new fund to invest in the environmental market through a multi-asset solution.
The new fund, called Morgan Stanley Global Balanced Sustainable Fund, aims to offer investors the same returns, and measure of downside protection in volatile markets, that has been the hallmark of the company’s over more than a decade of running risk-controlled portfolios.
The fund will also allocate to global equity and fixed income securities, including impact equities and green bonds, as well as money market instruments and cash.
“Our approach is highly flexible and, when we anticipate volatility, we are able to adjust the exposure of the portfolio to a range of asset classes,” said Andrew Harmstone, head of the Global Balanced Risk Control team.
He said the Global Balanced Sustainable Fund brings exciting opportunities to deliver attractive risk-adjusted returns across a market cycle, whilst at the same time bringing tangible environmental and social benefits.
The fund will be managed by the Firm’s Global Balanced Risk Control (GBaR) team, the Fund combines the benefits of the team’s risk-controlled asset allocation process with a multi-dimensional framework for sustainable investing.
The GBaR team said it will aim both to manage exposure to risks and to seek out investment opportunities with the potential to generate a measurable, positive environmental and social impact, alongside a financial return.
Furthermore, the team said it will tilt the Fund’s equity exposures towards holdings that support the transition to a net-zero carbon economy, in line with the Paris-aligned target.
The portfolio team will also engage with selected companies through dialogue and proxy voting, to enhance the impact made by portfolio companies.
It is expected that 5% to 30% of assets will be invested with managers who explicitly aim for positive environmental and social outcomes.
Emily Chew, Global Head of Sustainability for Morgan Stanley Investment Management, said that although sustainable investing has grown rapidly, there remain few options for investors who need a multi-asset solution in the public market space.
“The Global Balanced Sustainable Fund combines the thoughtfulness of approach to multi-asset ESG integration, with the credibility of the Paris-aligned target – a goal that is ever more top of mind in an era of climate change,” she said, adding that continuing to incorporate sustainable investing principles is a key priority for the company.
“The launch of the Global Balanced Sustainable Fund is the latest development in our efforts to offer investors as much choice as possible in how they meet their sustainable investing goals.”
Morgan Stanley ranked No. 67 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
Its Morgan Stanley Investment Management has been at the forefront of sustainable investing as the business seeks to deliver clients sustainable products and solutions which offer long-term value.
