Morgan Stanley Investment Management is making available to European investors its Morgan Stanley Investment Funds US Active Factor Equity Fund via a Sicav fund format.
This is the first time any of the company’s Applied Equity Advisors investment team’s strategies have been made available in this way.
As a factor-based strategy, the fund seeks to deliver alpha regardless whether value or growth is in favour. The strategy sets out to captur up to 70% of market returns via factor-based investing, with the remaining 30% coming from use of a stock selection overlay.
The US fund allocates 100% to US equity, but can invest up to 20% in non-US equity. A global version of the strategy – Global Core Portfolio – will be launched later in July, typically investing in 30-60 stocks, with at least 40% in non-US equities under normal market conditions.
Portfolio managers on the US strategy are Chicago-based Andrew Slimmon and Phillip Kim. The Applied Equity Advisors team they are part of oversees some $5.1bn across different strategies, as of 31 March.
The US Sicav fund is registered in Luxembourg.