Morgan Stanley Investment Management has launched the first fund for UK investors from its Applied Equity Advisors unit, which uses quantitative strategies.
The Applied Equity Advisors unit has launched the US Active Factor Equity fund, which aims to capitalise on increasing demand for US equity products.
The team use quantitive macro measures alongside fundamental bottom-up analysis to form their portfolios. The fund will be run by US-based managers Andrew Slimmon and Phillip Kim.
The new fund aims to capture 70 per cent of the market returns using factor-based investing, with the remaining 30 per cent coming from stock selection “to drive high active share”.
Up to 20 per cent of the fund can be invested in non-US equities, although the allocation will typically be entirely in US equities.
Slimmonsays: “We believe our team’s investment style and philosophy offer European investors extremely attractive added value, especially in the current market environment.
“Equity markets are returning to an era when experienced and high conviction stock pickers are the most effective and efficient way for investors to obtain strong, long lasting results.”
The team also plans to launch a Global Core version of the fund later this month, which will have a greater allocation to global stocks, with at least 40 per cent in non-US equities.