This fund is a new addition to the Super 60 investments. Find out more
| Asset Group | Asset Sub-Group | Investment Category |
| Equities | Global equity income | Income |
The fund aims to deliver an enhanced income yield, with income delivered from two sources; dividends from a portfolio of high quality stocks and equity index call option premiums. The natural income from the equity portfolio is enhanced by the call overlay to meet the overall yield target of 4%. The call option overlay is managed by the Solutions and Multi Asset team who calculate the required option overwrite exposure in order to achieve the target income. Their approach is quantitative and systematic and as a team they have extensive derivatives experience, particularly with respect to income enhancement. The equity portion of the fund is managed by Morgan Stanley’s Global Equity group led by William Lock. Lock is a seasoned and skilled investor who joined Morgan Stanley in 1994. Lock's approach is straightforward and effective. He targets quality firms, defined as those with high unleveraged returns on capital, high gross margins, predictable cash flow, modest balance-sheet leverage, and capital-light business models. The team look for company managements that are willing to balance reinvestment into franchises and brands with stable dividend payments The approach leads to significant deviations from the MSCI World Index at the sector level, with an overweight to consumer staples that has persistently been +300% the index allocation. Risk is considered risk from an absolute return perspective, which has resulted in the fund delivering excellent performance during periods of market weakness but can mean that it fails to keep pace during market rallies. Opinion January 2023 | ||
New addition
On 20/07/20 the Investment Selection Committee decided to add the Morgan Stanley Global Brands Equity Income fund to ii’s Super 60 rated list, making it the first new addition since the launch of the Super 60. In-line with our stated methodology, we have conducted rigorous quantitative analysis on the fund and met the investment team before making our final decision. The fund, which is featured as the ‘Income’ option in the Global Equity Income category, showed exceptional qualities in terms of investment process, performance and capital protection, income generation, strength of the team, transparency, and value for money. All this helped us to build conviction in the fund during our due diligence process.
(20 July 2020)
Risk warnings
Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.
Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.
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