Morgan Stanley’s global sustain strategy reaches USD1bn

Marking the second anniversary of its launch, Morgan Stanley Investment Management’s Global Sustain strategy has attracted investor assets of USD1 billion.

Launched on 30 April 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 per cent vs MSCI World Index -4.18 per cent. 

Managed by the International Equity Team, Global Sustain aims to offer investors a high quality, carbon light portfolio. The portfolio also appeals to those seeking a tobacco-free, alcohol free, and fossil fuel free solution. The portfolio’s carbon footprint is 95 per cent lighter than MSCI World, per USD1 million 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, comments: “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 AUM of USD39.1 billion across its strategies as of 31 March 2020. This includes USD25.7 billion in the well-known Global Franchise/Brands strategy. 

Richard Lockwood, MSIM’s head of distribution for Northern Europe, comments: “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.”