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Morgan Stanley Investment Management (MSIM) has announced the launch of its Global Balanced Sustainable Fund.

The fund will be managed by the firm’s Global Balanced Risk Control team, which uses a risk-controlled asset allocation process with a multi-dimensional framework for sustainable investing.

The team will aim both to manage exposure to ESG risks, and to seek out investment opportunities with the potential to generate a measurable, positive environmental and social impact, alongside a financial return.

Led by Andrew Harmstone, head of the Global Balanced Risk Control strategy, the fund will allocate to global equity and fixed income securities, including impact equities and green bonds, as well as money market instruments and cash.

The fund aims to offer investors attractive returns, and measure of downside protection in volatile markets..

“Our approach is highly flexible and, when we anticipate volatility, we are able to adjust exposure of the portfolio to a range of asset classes. The Global Balanced Sustainable Fund brings exciting opportunities to deliver attractive risk-adjusted returns across a market cycle, whilst at the same time bringing tangible environmental and social benefits,” said Mr Harmstone.

As part of its ESG mandate, the portfolio team will also engage with selected companies through dialogue and proxy voting, to enhance the impact made by portfolio companies. It is expected that 5 percent to 30 percent of assets will be invested with managers who explicitly aim for positive environmental and social outcomes.