Morgan Stanley Investment Management Launches New Ultra-Short Income Fund
May 10 2016 - 9:00AM
Business Wire
Conservatively managed fund that may be appropriate for cash
investors
Morgan Stanley Investment Management today announced the launch
of its new Morgan Stanley Institutional Fund Trust (MSIFT)
Ultra-Short Income Portfolio, a conservatively managed fund that
may be appropriate for cash investors.
The reforms to SEC Rule 2a-7 which govern money market funds and
are effective this October will require institutional Prime money
market funds to operate with a floating net asset value (NAV) and
face the possible imposition of liquidity fees and/or redemption
gates. As a result of these reforms, investors in prime money
market funds who are concerned about the potential imposition of
liquidity fees and gates will be forced to re-evaluate their
current cash investment strategies. Conservatively managed
ultra-short funds are being considered by many cash investors as a
potentially intriguing vehicle for cash investments.
“This is a member of a new category of funds, Conservative
Ultra-Short,” said Jonas Kolk, Managing Director and Chief
Investment Officer for Global Liquidity. “Because the ‘ultra-short’
category lacks specificity – with some funds managed very
conservatively and others aggressively, with durations close to a
year and credit quality that dips into the high yield space – `it
is critical for investors to look under the hood of ultra-short
funds to see how their investment engines run. Not all ultra-short
funds are created equal.”
The MSIFT Ultra-Short Income Portfolio provides a compelling
alternative for cash investors. It focuses on capital preservation
and liquidity, has an initial NAV of $10.00 that may float, a
maximum weighted average maturity of 90 days, a conservative
investment approach, daily liquidity, a diversified portfolio,
AAA/V1 rating1 and the same experienced and specialized team that
manages the Morgan Stanley Institutional Liquidity Funds.
“In many ways, a very conservatively managed ultra-short income
fund can provide great utility to a cash investor” said Fred
McMullen, Managing Director and Head of Client Engagement for
Global Liquidity. “We’re advising clients to expedite their
analysis and expedite their decision-making timeframe, because a
lot is going to change between now and October.”
The MSIFT Ultra Short Income Portfolio is not a money market
fund and does not seek to maintain a stable net asset value.
Morgan Stanley Investment Management's Global Liquidity
Solutions business offers a unique value proposition to its clients
to navigate the evolving cash investment landscape – direct and
easy access to a combination of expertise, resources and investment
solutions, including money market, ultra-short and short duration
products.
Morgan Stanley Investment Management, together with its
investment advisory affiliates, has more than 590 investment
professionals around the world and $405 billion in assets under
management or supervision as of March 31, 2016. 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.
Morgan Stanley (NYSE:MS) is a leading global financial services
firm providing investment banking, securities, wealth management
and investment management services. With offices in more than 43
countries, the Firm’s employees serve clients worldwide including
corporations, governments, institutions and individuals. For
further information about Morgan Stanley, please visit
www.morganstanley.com.
Please consider the investment objective, risks, charges and
expenses of the fund carefully before investing. The prospectus
contains this and other information about the fund. To obtain a
prospectus, download one at morganstanley.com/im or call
1-800-236-0992. Please read the prospectus carefully before
investing.
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. Accordingly, you can lose money
investing in these portfolios Please be aware that these portfolios
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 the current rising
interest-rate environment, bond prices may fall and may result in
periods of volatility and increased portfolio redemptions.
Longer-term securities may be more sensitive to interest rate
changes. In a declining interest-rate environment, the portfolio
may generate less income. The Portfolio is more susceptible to any
economic, business, political, regulatory or other developments
that adversely affect issuers in the financial services industry
than a fund that does not concentrate its investments in the
financial services industry. See the Fund’s prospectus for complete
details on risks.
CRC 1492765 05/16
1 As of 4/29/16, Fitch Ratings has assigned an 'AAA/V1' Fund
Credit Quality Rating (FCQR) and Fund Volatility Rating based the
fund's investment and credit guidelines, the portfolio's expected
credit quality, maturities and diversification, and Morgan Stanley
Investment Management Inc.'s capabilities as investment
advisor.
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Morgan StanleyMedia RelationsMatt Burkhard, 212-761-2444
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