Morgan Stanley Investment Management has launched two sustainable fixed income funds.
The MS INVF Sustainable European Corporate Fund and the MS INVF Sustainable European Strategic funds will exclude issuers in controversial sectors – such as weapons, tobacco and coal – and with poor sustainable business practices. It will also focus on issuers whose ESG scores come within the top-80% in each sector, based on MSIM’s own proprietary ESG scoring methodology. Both funds are designed to be less carbon intensive than their respective indices, aiming to invest at least 10% of the portfolio in Green and other labelled Sustainable Bonds.
The Sustainable European Corporate Fund will focus exclusively on corporate credit, while the Sustainable European Stategic Fund will invest across the broad fixed income universe, including developed and emerging market treasury and sovereign bonds, bonds issued by supranationals and agencies, investment grade and high yield corporate credit as well as securitised products, allowing it to take advantage of the natural diversification offered by the fixed income universe.