Morgan Stanley IM launches 2020 maturity bond fund
Morgan Stanley Investment Management has launched the Morgan Stanley Investment Funds Global Buy and Hold 2020 Bond Fund.
Structured as a Luxembourg-domiciled Sicav, the fund will be available to investors in the UK, France, Spain and Italy with euro as base currency.
It will invest in a globally diversified portfolio of government bonds, investment grade, high yield corporate bonds and emerging market debt, with an expected maturity of around four years, measured from the start of the principal investment period.
The fund will be managed in three distinct phases : the asset gathering period from 21 October to 9 December 2016; the principal investment period from 2016 to 2020 and the post-investment period from January to June 2021.
The non-benchmarked strategy will rely on a two-pillar approach combining quantitative modeling and fundamental analysis.
The Global Buy and Hold 2020 Fund is co-managed by Jim Caron, Marco Spaltro, Leon Grenyer and Joseph Mehlman from the Morgan Stanley IM’s global fixed income team.
Commenting on the launch, Caron said : “For investors seeking a stable source of income in the current climate of lower yields that is vulnerable to bouts of higher volatility, we believe this fund is very attractive because it can serve to reduce volatility and increase diversification of income in one’s portfolio.”
“In the current low interest-rate environment, the search for yield from fixed income products has intensified, and this fund may provide a solution to meet the demand from investors looking for an alternative to European government bonds or other kinds of non-diversified fixed income exposure.”
Morgan Stanley IM had $417bn (€381.7bn) in assets under management or supervision as of 30 September 2016.