Known as the Global Quality Portfolio (Global Quality), the new fund invests in companies with a robust and sustainable competitive advantage, healthy intangible assets including strong brands and distribution networks, high return on operating capital and an experienced management team.
Global Quality managing director and portfolio manager Christian Derold said that the core aim of the company is to compound its investors’ assets over time.
"By investing in high quality companies with an inherent economic robustness, we aim to deliver returns to investors at a time when they need them most, during difficult and challenging market environments," Derold added.
Using certain parameters, including a resilient top line, attractive margins and sustainable cross-cycle returns on capital, the portfolio managers scrutinizes companies to build the portfolio and identify quality.
To have a better understanding of the corporate culture and long-term business strategy, the team regularly meets with company management, which also help them to determine a company’s sustainability and resilience of returns.
The final step concentrates on valuation, which should be attractive in order to justify an investment.
Along with its investment advisory affiliates, Morgan Stanley Investment Management, has more than 550 investment professionals globally and $347bn in assets under management as of 30 June 2013.
