Morgan Stanley targets uk by adding distributor status to lux sicavs
Morgan Stanley Investment Management is adding distributor share classes to 26 of its Luxembourg Sicav funds in February, making them available to the UK market.
This is the second part of a UK strategy, which saw it put retail share classes on 11 funds in May 2005. This second tranche will take the total number available to 37.
In addition, the group last month launched a 21-stock unconstrained American Franchise fund, complete with distributor status.
This mirrors the approach taken by Morgan Stanley's $6bn Global Brands strategy that has closed due to capacity constraints.
Managed by Hasson Elmasry, it seeks to produce positive returns in any market conditions with lower volatility than the market. It is targeted at investors with real liabilities who do not want to lose money.
While Morgan Stanley will not reveal fund inflows, it reports that top sellers have included its Emerging Europe, Middle East and North Africa offerings run by Paul Psaila, and its US and European property securities vehicles.
The house, which aims its products at multi-managers, hopes the Asian Property fund headed by Angelina Ho, among one of the additional offerings, will prove equally as popular.
Richard Lockwood, executive director at the house, said: "Morgan Stanley has a long history of running property securities funds and the team behind them has been together for close to 10 years. Most funds of funds managers and intermediaries want to choose their region themselves and therefore want regional vehicles."
Also among the additional offerings is the house's previously troubled US Equity Growth fund, which will join the US Value Equity portfolio that took distributor status earlier in the year.
The Growth product did extremely well during the tech boom but has struggled since the bubble burst in 2000.
This prompted Morgan Stanley to hand over management to its small-cap team headed by Dennis Lynch 18 months ago.
Lockwood believes sentiment towards US equity is shifting and, while funds of funds managers are not shifting large amounts into the sector, some are looking for an extra manager or so to bolster exposure.
The remaining gap in Morgan Stanley's range is in UK equities. The group has hired former Goldman Sachs Asset Management CIO, Hywel George, as managing director and CIO, London equity to examine opportunities on this front.
Morgan Stanley adds a distributor share class to its Luxembourg Sicav.
26 funds affected.
Targeted at multi-managers.
Sentiment towards US equity is improving.
Morgan Stanley trying to strengthen UK equity team.
£92bn transferred since 2015
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