Morgan Stanley brings ‘applied equity’ fund to UK market

Morgan Stanley brings ‘applied equity’ fund to UK market

Morgan Stanley Investment Management (MSIM) has launched a US equity strategy for UK investors, bringing over ‘applied equity’ funds from the American market.

It will launch the MS INVF US Active Factor Equity fund, managed by Andrew Slimmon and Philip Kam, who are based in Chicago.

This is the first European fund launch for the applied equities team, headed by Mr Slimmon and Mr Kam, who run around $5.1bn (£3.9bn) of assets.

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The new Luxembourg-domiciled Sicav will use a factor-based investing approach to deliver 70 per cent of the market’s returns, while the remaining 30 per cent will come from active stock picking, MSIM said. It will have the ability to invest up to 20 per cent in non-US equities.

The team will also bring over a global version of the portfolio later in July.

Mr Slimmon said: “We believe our team’s investment style and philosophy offer European investors extremely attractive added value, especially in the current market environment. Equity markets are returning to an era when experienced and high conviction stock pickers are the most effective and efficient way for investors to obtain strong, long lasting results.”

The conflict between the rise of passive investing and stock picking has led to the rise of “factor based” investing, according to Paul Price, global head of client coverage.