Morgan Stanley Investment Management (MSIM) has unveiled a sustainable bond fund for UK investors.
The firm said that the Morgan Stanley UK Sustainable Fixed Income Opportunities Fund would reduce exposure to material ESG risk and “negative” sustainability impacts through the screening of certain sectors, such as weapons and tobacco.
The portfolio will tilt in favour of the 80% strongest sustainability performers across sovereign and corporate bonds by sub-sector and allocate capital across investment grade, high yield, securitised and government bonds in developed and emerging markets.
The fund is designed to be less carbon intensive than its index and will maintain a net positive alignment with the UN SDGs, while also investing in green and social bonds.
Navindu Katugampola, head of sustainable investing for fixed income and liquidity at MSIM, said: “We actively seek to identify holdings with a long-term competitive advantage by relying on a process that includes ESG integration, social and environmental impact assessment, and active engagement.”
© 2020 funds europe