Finance & Capital Market

Morgan Stanley global sustain strategy hits $1bn

Morgan Stanley Investment Management (MSIM) said that its Global Sustain strategy has attracted investor assets of $1 billion.

Launched in 2018, the rapid growth of the strategy demonstrates strong investor demand for high quality ESG-integrated investment strategies managed by proven active managers. Since inception, the strategy has delivered an annualised net return of 6.27% vs MSCI World Index -4.18%.

Managed by the highly experienced International Equity Team, Global Sustain aims to offer investors a high quality, carbon light portfolio. The portfolio also appeals to those seeking tobacco-free, alcohol free, and fossil fuel free solution. The portfolio’s carbon footprint is 95% lighter than MSCI World, per $1mn invested.   The team integrates material ESG factors – both threats and opportunities to long-term return on operating capital – in its investment process.

William Lock, Head of MSIM’s International Equity team said: “As bottom-up investors, we offer our clients a genuinely long-term perspective, a commitment to analyse material ESG issues by our Portfolio Managers within the team, deep sector and company expertise to isolate and analyse the key issues and a history of direct engagement with the companies we own.”

The International Equity team manages assets under management (AUM) of $39.1 billion across its strategies as of March 31, 2020. This includes $25.7 billion in the well-known Global Franchise/Brands strategy.

Richard Lockwood, MSIM’s Head of Distribution for Northern Europe, said: “With decarbonisation a pressing concern, we continue to see increasing investor interest across markets in ESG-integrated strategies that also demonstrate a low-carbon track record. The market reception to the strategy in just two years demonstrates our clients’ appetite for a high quality ESG-integrated global equity strategy from a proven team.  We are delighted that so many investors have chosen to partner with us.”

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 718 investment professionals around the world and $584 billion in assets under management or supervision as of March 31, 2020. – TradeArabia News Service