Morgan Stanley Investment Management has today announced the launch of a Global Brands Equity Income fund, which will target an annual yield of 4 per cent.
It says the “enhanced income version” of its Global Brands fund will be available in Luxembourg Sicav and UK-domiciled Oeic fund formats and will generate income from a combination of dividends from high quality stocks and premiums from index option overwriting.
It will be managed by London-based portfolio managers William Lock, Bruno Paulson and Dirk Hoffmann-Becking.
Lock, who is head of MSIM’s International Equity team, says: “We focus on the underlying company fundamentals and free cash flows, which means dividends are more likely to be sustainable and growing.
“The companies in GBEI make a high return on capital and are capital light. This means they can afford to pay out, and keep paying out, dividends to shareholders.”
At the end of June, the Global Brands Fund had delivered 10.3 per cent net annualised total returns vs the MSCI World Net Index, which delivered 3.8 per cent since the Fund’s inception in October 2000.