Morgan Stanley Investment Management has expanded its international offering with the addition of a Global Brands Equity Income fund to be rolled out through its Luxembourg SICAV range.
In a statement released today the firm announced the launch of the Morgan Stanley Investment Funds and the Morgan Stanley Funds UK Global Brands Equity Income fund (GBEI), offering an “enhanced income” version of the firm’s Global Brands fund, in both Luxembourg SICAV and UK domiciled OEIC fund formats.
The GBEI offering invests in a portfolio of high quality stocks in line with that of the MS INVF Global Brands Fund and generates income, currently targeting a yield of 4% per annum, from a combination of dividends from high quality stocks and premiums from index option overwriting.
Morgan Stanley’s International Equity team manages GBEI, supported by the Solutions & Multi Asset team, specialists in the implementation of option strategies. The International Equity team manages AUM of US$34bn (€30bn) across its four strategies as of June 30, according to Morgan Stanley figures.
London-based portfolio managers William Lock, Bruno Paulson and Dirk Hoffmann-Becking are the portfolio managers for GBEI.
“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,” said Lock. “We focus on the underlying company fundamentals and free cash flows, which means dividends are more likely to be sustainable and growing.
In addition to the launch of Global Brands Equity Income, the International Equity Strategy celebrates its 30 year anniversary and the company Global Franchise Strategy marks its 20th year.
Morgan Stanley Investment Management had US$405bn (€358.5bn) in assets under management or supervision as of 30 June.