MSIM’s Global Sustain Strategy Reaches $1 billion

LONDON - Marking the second anniversary of its launch, Morgan Stanley Investment Management (MSIM)’s Global Sustain strategy has attracted investor assets of USD $1 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% vs MSCI World Index -4.18%[1]. 

Managed by the highly experienced 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% lighter than MSCI World, per $1mn invested.[2]  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 commented: “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 $39.1 billion across its strategies as of 31 March 2020. This includes $25.7 billion in the well-known Global Franchise/Brands strategy. 

Richard Lockwood, MSIM’s Head of Distribution for Northern Europe, commented: “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.” 

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 718 investment professionals around the world and $584 billion in assets under management or supervision as of 31 March 2020. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.  

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services.  With offices in more than 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals.  For more information about Morgan Stanley, please visit www.morganstanley.com. 

[1] Source: Morgan Stanley Investment Management.Performance shown is for the Global Sustain composite, as at 31 March 2020, in USD. Inception of strategy 30 April 2018.

[2] Data as of 31 March 2020 for the Global Sustain representative account. MSCI ESG Research defines a portfolio’s carbon footprint as the carbon emissions (Scope 1 and 2) per $1 million invested or per $1 million of portfolio companies’ sales. They sum up all emissions in a portfolio based on the investor’s ownership share, using reported or estimated emissions data.