HONG KONG: Morgan Stanley Investment Management (MSIM) has raised over US$4bil in assets for the new Global Change Strategy, which was developed with Mizuho Securities.
This innovative equity strategy seeks to maximise long-term capital appreciation by investing in high quality companies with strong ESG alignment.
The fund avoids businesses operating in industries with material environmental and social externalities and/or corporate governance issues, in a highly-concentrated portfolio of 20-40 names.
The strategy, available in Japan through the Asset Management One (AMOne) Global ESG High Quality Growth Equity Fund, is the biggest Japanese mutual fund launch in two decades raising its substantial assets in its first four weeks.
Global Change follows previous launches of AMOne funds based on MSIM’s Global Opportunity, Developing Opportunity and Established Opportunity strategies and is the first ESG investment for many Mizuho retail investors.
Kristian Heugh, head of the Global Opportunity team said Global Change has resonated so strongly with investors.
“Our close partnership with Mizuho enables us to work together to develop customised solutions that respond to the evolving aspirations of clients, to make a positive difference for the world and their own investment returns.
“We look for companies that act in the best long-term interest of shareholders with an open culture towards innovation and big new ideas, while working to earn the trust of their communities, eco-systems and shareholders to reap these rewards, ” said Heugh, who is managing the fund.
Global Change identifies investment opportunities in businesses that are innovating to positively impact humanity’s health, environment, liberty and productivity consistent with the United Nations Sustainable Development Goals.
The team believes that companies have an opportunity to benefit from growing demand for their products and services, lower costs and lower disruptive threats to their business models as ESG alignment is prioritised by customers, suppliers, employees, regulators and ultimately shareholders over time.
Emily Chew, head of sustainability for MSIM, said the successful launch of the Global Change strategy reflects MSIM's commitment to generate long-term value for its business and clients, as well as the strong and growing demand in Asia for ESG-integrated products.