Morgan Stanley IM launches global brands equity income fund
Morgan Stanley Investment Management has launched the Morgan Stanley Investment Funds (MS INVF) and the Morgan Stanley Funds UK (MS Funds UK) Global Brands Equity Income Fund.
Both are an enhanced income version of the Global Brands Fund, in both Luxembourg Sicav and UK domiciled Oeic fund formats.
The fund consists of a portfolio of high quality stocks in line with that of the MS INVF Global Brands Fund.
Annual yield targeted is currently of 4%, from a combination of dividends from high quality stocks and premiums from index option overwriting.
The international equity team manages the Global Brand Equity Income fund, supported by the solutions & multi asset team, and includes London based portfolio managers William Lock, Bruno Paulson and Dirk Hoffmann-Becking.
The international equity team managed AUM of $34bn (€30bn) across four strategies as of 30 June 2016.
William Lock, Head of MSIM’s international equity team said: “We believe the GBEI portfolio’s high quality bias offers a far more robust approach to income generation than that typically offered by high dividend or income funds.
“We focus on the underlying company fundamentals and free cash flows, which means dividends are more likely to be sustainable and growing. The companies in GBEI make a high return on capital and are capital light.
“This means they can afford to pay out, and keep paying out, dividends to shareholders. We would argue ours is “income, the right way”, as it offers sustainable dividends in addition to compounding of capital.”
Morgan Stanley Investment Management had $405bn (€358.5bn) in assets under management or supervision as of 30 June 2016.