Global asset management organization Morgan Stanley Investment Management (MSIM) has unveiled its Morgan Stanley Investment Funds (MS INVF) Global Premier Credit Fund.
Designed to help manage risk for investors against excessive business cycle shifts, the fund seeks to generate attractive risk-adjusted returns by investing in ‘Premier Credit’.
MSIM Credit global head Christian Roth said that the lack of transparency 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," Roth added.
In order to create the portfolio and identify Premier Credit, the portfolio managers use fundamental research from MSIM’s Global Fixed Income team.
The newly launched fund also utilizes quantitative tools to screen the credit universe and continually monitor high quality issuers, resulting in a strong platform from which to assess credit quality.
MSIM credit European head Richard Ford said the new fund will help investors looking 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," Ford added.
Trading in 43 nations, Morgan Stanley operates 1,200 offices and offers numerous investment banking, securities, investment management and wealth management services.