Mirroring the strategy of the Global Balanced Risk Control (GBaR) fund, the new multi-asset funds are the first in the range to incorporate environmental, social and governance factors into the investment process.
Andrew Harmstone, who will co-manage the fund alongside Manfred Hui in London, said he anticipates the integration of ESG concerns will “further improve potential returns and enhance risk management.”
“The new funds will be based on our established GBaR process, which in our view is the most effective way for investors to participate in rising markets while providing strong downside protection,” he explained.
“Clients now have greater choice in the implementation of GBaR’s risk-controlled approach and their preferred level of volatility,” added global head of client coverage, Paul Price.
The Global Balanced Fund has a slightly higher volatility range of 4 to 10%, whereas the Global Balanced Defensive Fund targets volatility between 2 and 6%.
The two funds, which are domiciled in Luxembourg, are not widely available for sale currently and are still awaiting registration in various markets, Morgan Stanley said.