Morgan Stanley receives Lonsec recommended rating

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Morgan Stanley Investment Management’s Global Quality Fund and Global Sustain Fund have been awarded a recommended rating by investment research consultancy, Lonsec.

The investment reports for both the hedged and unhedged versions of the funds cite the highly experienced investment teams and successful track record in implementing the respective investment philosophies.

The Global Quality Fund focuses on high-quality, well managed companies with the aim of compounding shareholder wealth at attractive rates over the long term.

The Lonsec investment report said: “Underpinning the rating is Lonsec’s conviction in the investment team…Lonsec has a positive regard for the senior members of the team and highlights their considerable tenure at the manager, while noting the strong investment culture and collaborative research process. Lonsec also considers the investment approach to be well-devised and structured.”

Similarly, Lonsec also noted the strength of the investment team in the report for the Global Sustain Fund, which invests in high quality companies at reasonable valuations that can sustain their high returns on operating capital over the long term. Its fundamental point of difference is its superior approach to environmental, social and governance (ESG) investing with a clearly defined process.

“The Fund explicitly excludes eight controversial sectors and the underlying companies as assessed by the manager, and avoids carbon-intensive industries,” said the report.

“The manager has articulated a commitment to the integration of ESG within their investment process with evidence of a policy framework and public positioning. The level of disclosure with respect to the manager’s proxy voting policy and voting outcomes is considered better than peers supported by an industry leading policy framework.

“…furthermore, the manager has a well-structured approach to the collection and use of ESG specific data, including the use of a proprietary data collection model. Overall, Lonsec considers the level of ESG integration within the Fund to be moderate to high on a peer relative basis,” it read.

Late last year, Melbourne-based boutique fund manager SG Hiscock & Company entered into a partnership arrangement to exclusively distribute both funds in Australia.

According to its chairman and managing director, Stephen Hiscock, the ratings provide further validation of the partnership, with both the Global Quality and Global Sustain funds continuing to draw strong interest from local investors.

“Despite the level of uncertainty over the past year, the funds have performed well during the relatively unusual nature of trading conditions.

“Investors continue to be attracted to investment products with a strong track record of delivering above-market returns, and these two funds deliver on that.

“The ability for local investors to access global equities capabilities in such a way will see the partnership strengthen even further over time, and we’re pleased to see the Lonsec rating support our business strategy,” he said.

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