MSIM launches OEIC to bring Developing Opportunity Strategy to UK market
Morgan Stanley Investment Management (MSIM) has launched the Morgan Stanley Funds (UK) OEIC Developing Opportunity Fund.
This follows the December 2019 launch of the Morgan Stanley Investment Funds (MS INVF) Developing Opportunity Fund amidst strong UK investor demand for opportunities to diversify and invest in high quality companies in emerging markets.
Developing Opportunity is a high-conviction, concentrated portfolio that invests in perceived undervalued, high quality companies located or operating in developing market countries. The fund will offer UK investors access to several sectors and geographies including China, India and Brazil.
The fund is managed by the Global Opportunity team, part of MSIM’s Counterpoint Global platform. The team is renowned for its expertise in generating long-term capital appreciation through its investments in unique companies whose market value have the potential to increase significantly due to their strong underlying fundamentals.
The investment process integrates analysis of sustainability with respect to disruptive change, financial strength, environmental and social externalities and governance (also referred to as ESG). The Fund invests primarily in companies with capitalisations within the range of companies included in the MSCI Emerging Markets Net Index.
Kristian Heugh, Managing Director and Head of the Global Opportunity team says: “We have been very pleased with the interest shown in Developing Opportunity since its launch in Japan in 2017, and are excited to bring this new vehicle to our UK investors following strong demand. Our aim in choosing companies for the portfolio is monetising their uniqueness over the long term, succeeding even in the most challenging of equity market cycles. While COVID-19 has had a dramatic impact on Global markets, our model is designed to select companies with diverse business drivers, so we can capture opportunities which are not tied to any particular market environment.”
Richard Lockwood, MSIM’s Head of Distribution for Northern Europe continued, “We have seen increased interest for emerging and developing markets, an area which UK investors are turning to as they seek to diversify in the fallout of the pandemic. Kristian and his team have finessed their investment technique, as seen with the highly rated Global Opportunity Fund, and are applying the same rigorous selection principles specifically to developing markets – a skill in extraordinary demand.”