Morgan Stanley Investment Management (MSIM) has launched the Morgan Stanley Investment Funds Global Premier Credit Fund.
The fund seeks to generate attractive risk-adjusted returns by investing in “Premier Credit,” the corporate debt issued by businesses characterised by dominant franchises or leading industry positions, low capital intensity and strong balance sheets.
It is designed to help manage risk for investors against excessive business cycle shifts.
Christian Roth (pictured), global head of credit for MSIM, says: “The lack of clarity on the outlook for the global economy continues to generate volatility in the financial markets. With global sovereign debt now under intense scrutiny from investors, we believe there is scope for a product with the potential to provide investors with modest relative returns over the business cycle while protecting them from market pressures and extreme downside moves.”
To build the portfolio and identify Premier Credit, the portfolio managers leverage fundamental research from MSIM’s global fixed income team. Additionally, the new fund employs proprietary quantitative tools to screen the credit universe and continually monitor high quality issuers, resulting in a strong platform from which to assess credit quality.
Richard Ford, European head of credit for MSIM, says: “The Global Premier Credit Fund aims to be an effective strategy to help investors wanting to diversify from government debt, by seeking higher yields through capturing the credit premium of the highest quality credits with limited volatility and default risk. For investors looking for a customised approach to corporate credit, this fund can be the principal allocation of a global credit portfolio, with a more opportunistic credit allocation to take advantage of market dislocations.”
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