MSIM adds new sustainable fixed income fund

Morgan Stanley Investment Management has announced the UK Sustainable Fixed Income Opportunities Fund.

Managed by MSIM’s Global Fixed Income Investment team, the fund invests in fixed income asset classes including investment grade, high yield, emerging markets, convertible, securitised and government bonds. The fund is designed to be less carbon intensive than its index and will maintain a net positive alignment with the UN SDGs.

MSIM says the top-down selection process allows the fund to:

• Reduce exposure to material ESG risk and negative sustainability impacts, through restriction screening of controversial sectors such as weapons, tobacco, and some fossil fuels, as well as international norms violations.
• Tilt the portfolio in favour of the 80% strongest sustainability performers across sovereigns and corporates, by sub-sector, as defined by MSIM Fixed Income’s proprietary ESG assessment methodologies and:
• Contribute to positive outcomes based on key sustainability themes, with a particular focus on low carbon footprint.