Morgan Stanley Investment Management (MSIM) has announced the launch of the Morgan Stanley Funds (UK) American Resilience Equity Fund, following the launch of the Luxembourg vehicle in 2022.
The firm writes that the American Resilience Equity Fund is managed by the International Equity team, which has over 25 years of experience in managing high quality global equity portfolios and is known for its flagship Global Brands Fund. American Resilience offers UK investors seeking a high-quality US equity fund the opportunity to invest in a concentrated portfolio of 20-50 US-listed companies that the team believes have earnings resilience.
Using the team’s proven bottom-up high quality investment approach, the Fund seeks to invest exclusively in robust, well managed, reasonably priced businesses that can sustain their high returns on operating capital over the long term. The combination of these companies’ earnings visibility, pricing power and recurring revenues should help investors defend against challenging market environments and deliver resilient returns over the long term.
The team manages AuM of GBP41.6 billion across its strategies as of 30 September 2023.
William Lock, Head of MSIM’s International Equity team says: “We’re well-known advocates for a long-term approach to investing in ultra-quality equities. We believe the secret to compounding is steady growth at sustained high returns on operating capital over the long term, something lower quality companies are unable to do. Using the same time-tested investment process we’ve used to manage our Global Franchise strategy, we believe that the American Resilience strategy should deliver attractive long-term returns with resilience during testing times.”
Rob Lunn, MSIM’s Head of UK & Ireland Intermediary Distribution, says: “We are delighted to bring this compelling strategy to our UK clients. In today’s complex economic environment, investors are increasingly looking for funds that demonstrate long-term resilience. With a track record of over 25 years in quality investing, the investment team has proven experience in picking a portfolio of companies which can innovate, grow and adapt to market conditions during challenging times.”