Investments  

Morgan Stanley launches income version of Global Brands fund

Morgan Stanley launches income version of Global Brands fund

Morgan Stanley Investment Management (MSIM) has launched an enhanced income version of its £764m Global Brands fund.

The Morgan Stanley Funds UK Global Brands Equity Income Oeic invests in a portfolio of consumer staples and other low-volatility equities, and will target an income yield of 4 per cent a year.

This income will come from a mixture of dividend payments and premiums made from selling index options.

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The fund has an ongoing charges figure of 1 per cent and is run by London-based managers William Lock, Bruno Paulson and Dirk Hoffmann-Becking.

The original Global Brands fund, which launched in 2003 and has capitalised on investors’ current preference for quality stocks, has returned 215 per cent over 10 years compared with an average 92 per cent return for funds in its IA Global peer group.

Mr Lock, head of MSIM’s international equity team, said: “We believe the Global Brands Equity Income portfolio’s high-quality bias offers a far more robust approach to income generation than that typically offered by high dividend or income funds.

“We focus on the underlying company fundamentals and free cash flows, which means dividends are more likely to be sustainable and growing.”