MSIM Adds to ETF Platform with Conversion of Short Duration Income Mutual Fund to ETF
June 17 2024 - 8:30AM
Business Wire
Morgan Stanley Investment Management (“MSIM”) today announced it
has completed the conversion of a fixed income mutual fund to an
exchange-traded fund (“ETF”). The latest addition to the ETF
platform follows the conversion of two fixed income mutual funds to
ETFs in March 2024 and expands MSIM’s offering to eight active
fixed income ETFs.
The below strategy is available as an ETF as of today:
Mutual Fund
ETF
ETF Ticker
MSIFT Short Duration Income Portfolio
Eaton Vance Short Duration Income ETF
EVSD (NASDAQ)
EVSD seeks to primarily invest in a diversified portfolio of
fixed income securities, including U.S. government securities,
corporate bonds, and mortgage- and asset-backed securities and
seeks to maintain an average duration of approximately three years
or less.
With this conversion, the MSIM active fixed income ETF offering
now includes:
- Calvert Ultra-Short Investment Grade ETF (NYSE Arca: CVSB)
- Eaton Vance Ultra-Short Income ETF (NYSE Arca: EVSB)
- Eaton Vance High Yield ETF (NYSE Arca: EVHY)
- Eaton Vance Intermediate Municipal Income (NYSE Arca:
EVIM)
- Eaton Vance Floating-Rate ETF (NYSE Arca: EVLN)
- Eaton Vance Total Return Bond ETF (NYSE: EVTR)
- Eaton Vance Short Duration Municipal Income ETF (NYSE Arca:
EVSM)
- Eaton Vance Short Duration Income ETF (NASDAQ: EVSD)
MSIM’s ETF platform is comprised of 15 total products including
six Calvert-branded ETFs, one Parametric-branded alternative income
strategy, one Parametric-branded hedged equity strategy, and the
seven Eaton Vance-branded fixed income strategies. Launched in
early 2023, the platform has grown to over $2 billion in
assets.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its
investment advisory affiliates, has more than 1,400 investment
professionals around the world and $1.5 trillion in assets under
management or supervision as of March 31, 2024. Morgan Stanley
Investment Management strives to provide outstanding long-term
investment performance, service, and a comprehensive suite of
investment management solutions to a diverse client base, which
includes governments, institutions, corporations and individuals
worldwide. For further information about Morgan Stanley Investment
Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services
firm providing a wide range of investment banking, securities,
wealth management and investment management services. With offices
in 42 countries, the Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals.
For more information about Morgan Stanley, please visit
www.morganstanley.com.
Before investing carefully consider the Fund's objective,
risks, charges, and expenses available in the prospectus,
please download one at https://www.eatonvance.com. Read
carefully before investing.
Risk Considerations: There is no assurance that a
portfolio will achieve its investment objective. Portfolios are
subject to market risk, which is the possibility that the market
values of securities owned by the portfolio will decline. Market
values can change daily due to economic and other events (e.g.
natural disasters, health crises, terrorism, conflicts and social
unrest) that affect markets, countries, companies or governments.
It is difficult to predict the timing, duration, and potential
adverse effects (e.g. portfolio liquidity) of events. Accordingly,
you can lose money investing in this portfolio. Please be aware
that this portfolio may be subject to certain additional risks.
Fixed-income securities are subject to the ability of an
issuer to make timely principal and interest payments (credit
risk), changes in interest rates (interest-rate risk), the
creditworthiness of the issuer and general market liquidity (market
risk). In a rising interest-rate environment, bond prices may fall
and may result in periods of volatility and increased portfolio
redemptions. In a declining interest-rate environment, the
portfolio may generate less income. Longer-term securities may be
more sensitive to interest rate changes. Mortgage and
asset-backed securities are sensitive to early prepayment risk
and a higher risk of default and may be hard to value and difficult
to sell (liquidity risk). They are also subject to credit, market
and interest rate risks. Collateralized loan obligations
carry additional risks such as the Fund may invest in CLOs that are
subordinate to other classes and the complex structure may not be
fully understood at the time of investment and may produce disputes
with the issuer or unexpected investment results. When-Issued
Securities, Delayed Delivery Securities, TBAs and Forward
Commitments. These investments may result in a form of leverage
and may increase volatility in the Fund’s share price. They are
subject to risks such as failure of the counterparty to perform its
obligation to deliver the security, the characteristics of a
security delivered to the Fund may be less favorable than expected
and the security the Fund buys will lose value prior to its
delivery. Derivative instruments may disproportionately
increase losses and have a significant impact on performance. They
also may be subject to counterparty, liquidity, valuation,
correlation and market risks. Due to the possibility that
prepayments will alter the cash flows on Collateralized mortgage
obligations (CMOs), it is not possible to determine in advance
their final maturity date or average life. In addition, if the
collateral securing the CMOs or any third party guarantees are
insufficient to make payments, the strategy could sustain a loss.
Certain U.S. government securities purchased by the
portfolio, such as those issued by Fannie Mae and Freddie Mac, are
not backed by the full faith and credit of the U.S. It is possible
that these issuers will not have the funds to meet their payment
obligations in the future. Illiquid securities may be more
difficult to sell and value than publicly traded securities
(liquidity risk). High yield securities (“junk bonds”) are
lower rated securities that may have a higher degree of credit and
liquidity risk. Foreign securities are subject to currency,
political, economic and market risks. Investments in foreign
markets entail special risks such as currency, political,
economic, market and liquidity risks. In emerging countries, these
risks may be more significant. The portfolio may engage in active
and frequent trading of its portfolio securities. A high
portfolio turnover rate could result in high brokerage costs
and an increase in taxable capital gains distributions.
Preferred securities are subject to interest rate risk and
generally decreases in value if interest rates rise and increase in
value if interest rates fall. Active Management Risk. In
pursuing the Fund’s investment objective, the Adviser has
considerable leeway in deciding which investments to buy, hold or
sell on a day-to-day basis, and which trading strategies to use.
For example, the Adviser, in its discretion, may determine to use
some permitted trading strategies while not using others. The
success or failure of such decisions will affect the Fund’s
performance. Participant Concentration Risk. The Portfolio
has a limited number of intermediaries that act as authorized
participants and none of these authorized participants is or will
be obligated to engage in creation or redemption transactions. As a
result, shares may trade at a discount to net asset value (“NAV”)
and possibly face trading halts and/or delisting. Trading
Risk. The market prices of Shares are expected to fluctuate, in
some cases materially, in response to changes in the Portfolio's
NAV, the intra-day value of holdings, and supply and demand for
Shares. The Adviser cannot predict whether Shares will trade above,
below or at their NAV. Buying or selling Shares in the secondary
market may require paying brokerage commissions or other charges
imposed by brokers. Diversification does not eliminate the
risk of loss.
Eaton Vance, Parametric and Calvert are part of Morgan Stanley
Investment Management, the asset management division of Morgan
Stanley. Morgan Stanley Investment Management Inc. is the adviser
to the ETFs.
ETFs are distributed by Foreside Fund Services LLC.
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version on businesswire.com: https://www.businesswire.com/news/home/20240614288185/en/
Media Relations Contact: Lauren Bellmare
Lauren.Bellmare@MorganStanley.com
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