Morgan Stanley Investment Management has announced the launch of two new multi-asset funds, the Morgan Stanley Investment Funds (MS INVF) Global Balanced Fund and the MS INVF Global Balanced Defensive Fund.
The underlying investment process for the two funds will mirror that of the US financial giant’s existing Global Balanced Risk Control (GBaR) strategy, which is designed to maintain a stable risk profile. The funds are also the first in the GBaR suite to incorporate environmental, social and governance (ESG) factors into the process.
The chief difference between the two funds will be their targeted volatility. The Global Balanced fund targets a volatility range of 4-10%. The Global Balanced Defensive Fund has a lower target volatility range of 2-6%.
Both funds, set to be registered in Luxembourg, are not yet widely available for sale as they are are awaiting registration and regulatory approval in various markets. They are intended for “sophisticated and diversified investors or those who take investment advice,” the firm said in a statement released earlier today.
The funds will be managed by Morgan Stanley IM managing director and lead portfolio manager Andrew Harmstone and Manfred Hui from its London offices.
“The new funds will be based on our established GBaR process,” said Harmstone. “We expect the integration of ESG considerations into the process to enhance risk management.”
Paul Price, global head of client coverage, at Morgan Stanley IM, said that the two variations of the fund will give investors “greater choice in the implementation of GBaR’s risk-controlled approach and their “preferred level of volatility.”
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 590 investment professionals around the world and US$406bn in assets under management or supervision as of 30 June.