Morgan Stanley makes US factor fund available to Europeans

Morgan Stanley Investment Management is making available to European investors its Morgan Stanley Investment Funds US Active Factor Equity Fund via a Sicav fund format.

This is the first time any of the company’s Applied Equity Advisors investment team’s strategies have been made available in this way.

As a factor-based strategy, the fund seeks to deliver alpha regardless whether value or growth is in favour. The strategy sets out to captur up to 70% of market returns via factor-based investing, with the remaining 30% coming from use of a stock selection overlay.

The US fund allocates 100% to US equity, but can invest up to 20% in non-US equity. A global version of the strategy – Global Core Portfolio – will be launched later in July, typically investing in 30-60 stocks, with at least 40% in non-US equities under normal market conditions.

Portfolio managers on the US strategy are Chicago-based Andrew Slimmon and Phillip Kim. The Applied Equity Advisors team they are part of oversees some $5.1bn across different strategies, as of 31 March.

The US Sicav fund is registered in Luxembourg.

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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