The investment management arm of US bank Morgan Stanley has launched a new global equity strategy focused on sustainability.
Morgan Stanley Investment Funds’ Global Sustain Fund is being marketed as a “concentrated, high quality global equity portfolio with a low carbon impact”. The company says it will be measuring companies in the portfolio against key environmental, social and governance factors.
It also has restrictions on investments in companies with tobacco, alcohol, adult entertainment, bulk commodities and fossil fuels as their core business.
In a statement announcing the launch, William Lock, head of Morgan Stanley Investment Management’s International Equity team said a focus on high quality, sustainable returns is the best way to compound shareholder wealth over the long-term.
He explained: “We believe that investing with a conscience is fully compatible with generating attractive long-term returns.
“Focusing on ESG factors is crucial, as material social and environmental risks to the sustainability of high returns are more important than ever, given political and technological change.”
As at the end of March 2018, the company had some $469 billion in assets under management.
In launching this latest fund, Lock added that leading the way on ESG issues can be a positive force for corporate success, if it drives consumer and/or employee engagement.
He said: “We have engaged directly with companies on material issues of sustainability and governance for over 20 years. With Global Sustain we believe we offer compounding without compromise, the full integration of ESG while maintaining our commitment to investing only in high quality compounders.”