Morgan Stanley IM launches three new active funds under Article 8 of SFDR

Calvert Research and Management, part of Morgan Stanley Investment Management, has launched three new active funds, the MS INVF Calvert Global Equity Fund, the MS INVF Calvert Global High Yield Bond Fund and the MS INVF Calvert US Equity Fund.

In a statement on 25 January, it said the new funds are Article 8 under SFDR and bring the total number of Calvert funds available in Europe to eleven.

All three funds are actively managed.  The investment teams consider ESG and sustainability factors as an integral part of the research process, and an assessment of sustainability-related risks and opportunities are incorporated into the investment approach. The investment teams will also look to engage company management to seek to influence their approach on financially material ESG issues.

Vittorio Ambrogi, head of European distribution at MSIM said, "We continue to see strong investor demand for sustainable funds, which is why we are delighted to bring these strategies to the market. The addition of these funds demonstrates our continued focus on delivering best-in-class products and solutions that align investor values with financial outcomes, while also providing investors with a flexible, active approach.”

The strategies are:

• The Calvert Global Equity Fund seeks to invest in companies exhibiting sound management of financially material ESG characteristics as assessed through the Calvert Principles and demonstrating sustainable business models, with the ability to generate sustainable financial performance to compound returns for investors over the long-term. Additionally, the Calvert Global Equity Fund will look to maintain over 50% of the Portfolio allocated to sustainable investment holdings.
• The Calvert Global High Yield Bond Fund seeks to generate total returns by investing primarily in global high-yield corporate bonds, issued by companies exhibiting sound management of financially material ESG characteristics, determined by Calvert’s principles-based ESG materiality assessment.
• The Calvert US Equity Fund seeks to invest in high quality companies that, through business operations and practices, exhibit strong management of ESG characteristics as assessed through the Calvert Principles.

Chris Dyer, co-head of Eaton Vance Equity at MSIM said, "I am excited to launch the Calvert Global Equity Fund, which offers investors a unique opportunity to access a concentrated and balanced portfolio of companies which reflect Calvert’s principles for responsible investment: a focus on environmental sustainability and resource efficiency; equitable societies and respect for human rights; and accountable governance with transparent operations. The companies in our portfolio embody sustainable business models with the propensity to compound value for shareholders and deliver attractive sustainable returns over the long-term.”

Jeff Mueller, Co-Head of Fixed Income at MSIM added, "It’s my pleasure to introduce our latest fund offering, the Calvert Global High Yield Bond Fund. Investing only in issuers that meet Calvert’s Principles of Responsible Investment, the Fund integrates a principles-based ESG materiality assessment and targets a lower carbon intensity than the benchmark. By maintaining a minimum of 30% of its NAV in sustainable investments, the High Yield Bond Fund demonstrates our continued commitment to delivering robust returns while championing environmental and social responsibility.”

Joe Hudepohl, Lead Portfolio Manager on the Calvert US Equity Fund concluded, “We are very pleased to offer this new fund to our European clients. We believe companies with a demonstrated history of consistent growth and stability in earnings provide attractive returns with moderate risk over the long-term. Through our active, bottom-up fundamental investment approach, our team seeks to construct a conviction-weighted portfolio of quality, sustainable, growth companies trading at or below intrinsic value.”