Morgan Stanley Investment Management is bringing its Applied Equity Advisors team to European investors for the first time, with the launch of its US Active Factor Equity fund.
The Morgan Stanley Investment Funds US Active Factor Equity fund will be made available to European, UK and International advisers using the SICAV fund format.
The launch will add to Morgan Stanley Investment Management’s existing equity investment capabilities in the region, broadening the firm’s product offering to address an increasing client demand for concentrated and core products globally and in the US.
Run by Andrew Slimmon, one of the firm’s post popular managers in the US, the firm sad that it is looking capitalise on appetite for US investments from UK and European pension funds and IFAs, following the impact on UK equity funds and the plummeting pound, due to the UK’s decision to leave the European Union.
The US Active Factor Equity Fund seeks to deliver alpha, by capturing outperformance versus the benchmark regardless of which investment style – value or growth – is in favour.
Typically 100% US
The US Active Factor Equity fund’s allocation is typically 100% US with the flexibility to invest up to 20 percent in non-US equities. A global core version of the portfolio, based on the same truly active management approach, is also tabled for release later this month. The Global Core Portfolio will generally consist of 30 to 60 stocks and typically invest at least 40 percent in non-US equities under normal market conditions.
Chicago-based Andrew Slimmon and Phillip Kim will be the key portfolio managers, leading a team established in 2004. The Applied Equity Advisors team manages assets under management of US $5.1bn across its strategies according to Morgan Stanley figures, as of March 31, 2016.
The US Active Factor Equity fund, registered in Luxembourg, is not yet widely available for sale and is awaiting registration in various markets.
Andrew Slimmon, senior portfolio manager, said: “We believe our team’s investment style and philosophy offer European investors extremely attractive added value, especially in the current market environment. Equity markets are returning to an era when experienced and high conviction stock pickers are the most effective and efficient way for investors to obtain strong, long lasting results.”
Factor based analysis
Paul Price, global head of client coverage added: “We are now in a world where the dialogue has shifted towards the use of factor based analysis. We believe there is demand for a differentiated style of investing that offers a distinct approach that falls between pure smart beta and pure fundamental equity investing.”
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 590 investment professionals, with offices in more than 43 countries around the world and US$405bn in assets under management or supervision as of March 31, 2016.