Morgan Stanley Investment Management (MSIM)’s Global Sustain strategy has attracted investor assets of USD $1 billion as it reaches its second anniversary.

Launched on 30 April 2018, the growth of the strategy suggests investor demand for ESG-integrated investment strategies managed by active managers.

Since inception, the strategy has performed well, delivering an annualised net return of 6.27 percent vs its benchmark, the MSCI World Index, loss of 4.18 percent^.

Global Sustain aims to offer investors a high quality, carbon light portfolio. The portfolio also appeals to those seeking a tobacco-free, alcohol free, and fossil fuel free solution. According to the firm, the portfolio’s carbon footprint is 95 percent lighter than MSCI World, per $1 million invested.

William Lock, Head of MSIM’s International Equity team said in a statement: “As bottom-up investors, we offer our clients a genuinely long-term perspective, a commitment to analyse material ESG issues by our Portfolio Managers within the team, deep sector and company expertise to isolate and analyse the key issues and a history of direct engagement with the companies we own”.

The International Equity team manages assets of $39.1 billion across its strategies as of 31 March 2020. This includes $25.7 billion in the Global Franchise/Brands strategy.

Richard Lockwood, MSIM’s Head of Distribution for Northern Europe, added: “With decarbonisation a pressing concern, we continue to see increasing investor interest across markets in ESG-integrated strategies that also demonstrate a low-carbon track record. The market reception to the strategy in just two years demonstrates our clients’ appetite for a high quality ESG-integrated global equity strategy from a proven team. We are delighted that so many investors have chosen to partner with us.”