Morgan Stanley Investment Management has launched a new equity fund designed to invest in both emerging and frontier market stocks, Citywire understands.
The Morgan Stanley Breakout Nations fund was launched as a Luxembourg-domiciled vehicle on July 31.
This marks the further branching out of Morgan Stanley’s Ucits-compliant fund range. In March of this year, the group handed a long-only Asian fixed income fund to the team led by Citywire AAA-rated Michael Kushma.
The new fund will focus on stocks drawn from both the emerging and frontier markets, or those which at the time of purchase, generated at least 50% of their revenues from the developing world, as well as ETFs.
In addition, the fund will be able to invest in the currencies of both emerging and frontier market countries. It may also invest in convertible bonds on an ancillary basis.
While Morgan Stanley would not confirm the fund manager, ‘breakout nations’ is the name of a book on the developing world published by Citywire A-rated Ruchir Sharma.