Income, the Right Way

Global Brands Equity Income seeks reliable
income without sacrificing capital growth.


Dividend is an output of our thinking, not an input

“Income, the right way” is how we seek to offer sustainable dividends in addition to compounding of capital; the focus of our stock selection is investing in long-term compounders


Specialists focus on what they do best

Combining the expertise from two highly experienced teams to deliver the full benefits of our thinking: The International Equity Team selects stocks and the Solutions & Multi Asset Team implements the systematic call option overwrite strategies.


Consistent track record

Gain more insight into our fund’s high conviction approach and performance.

Factsheet >

The Global Brands Equity Income Fund seeks to provide investors with attractive and sustainable income alongside long-term compounding of capital and reduced downside participation. We are currently targeting a 4% annual dividend yield, paid quarterly.

  • Quality Income
  • Capital Growth
  • Relative Downside Participation
  • c4% p.a.^
    Target Yield

^ The current overall income objective is c.4% per annum but is subject to change depending on market factors, including the current income and volatility of general equity markets, the current income of the underlying equity strategy, inflation and interest rates. The relative contributions to the overall income objective of the two income components (dividends and call option premiums) may vary. The target is less likely to be achieved in periods of strong markets and very low volatility.

^ The current overall income objective is c.4% per annum but is subject to change depending on market factors, including the current income and volatility of general equity markets, the current income of the underlying equity strategy, inflation and interest rates. The relative contributions to the overall income objective of the two income components (dividends and call option premiums) may vary. The target is less likely to be achieved in periods of strong markets and very low volatility.

Current target yield: 4% p.a.

The Global Brands Equity Income Fund generates income from two sources: dividend income from the portfolio holdings selected by the International Equity team and income received from call option premiums – the options overwrite - implemented by the Portfolio Solutions Group.

Short-dated call options are written on six equity indices, rather than on the portfolio holdings. By selling options on indices rather than individual stocks, our clients retain full exposure to our high conviction equity positions.

  • Dividends from high quality stocks
  • Equity index call option premiums
  • Total yield

The premiums received from the sale of index call options enhance the yield. This dynamic yet conservative options strategy is designed to help meet the yield target.

For information purposes only, not to be construed as a recommendation to invest in or trade any securities or asset classes mentioned herein.

* 2% post withholding tax.

^ The current overall income objective is c.4% per annum but is subject to change depending on market factors, including the current income and volatility of general equity markets, the current income of the underlying equity strategy, inflation and interest rates. The relative contributions to the overall income objective of the two income components (dividends and call option premiums) may vary. The target is less likely to be achieved in periods of strong markets and very low volatility.

Historical Yield

Past performance is not a reliable indicator of future results.

DATE MS FUNDS (UK)
GLOBAL BRANDS EQUITY INCOME FUND
30/06/2022 4.46%
31/03/2022 4.33%
31/12/2021 4.24%
30/09/2021 4.24%
30/06/2021 4.23%
31/03/2021 4.07%
31/12/2020 4.21%
30/09/2020 4.19%
30/06/2020 4.09%
31/03/2020 4.46%
31/12/2019 4.21%
30/09/2019 4.39%
31/06/2019 4.33%
31/03/2019 4.18%
31/12/2018 4.33%
30/09/2018 4.19%
30/06/2018 4.29%
31/03/2018 4.19%

Returns may increase or decrease as a result of currency fluctuations. All performance data is calculated NAV to NAV, net of fees, and does not take account of commissions and costs incurred on the issue and redemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management. Distributed yield shown is for the four quarters to the date shown in the first column.

Learn More

TEAM PROFILE
Meet the International Equity Team
Led by William Lock
The International Equity team follows a disciplined investment process based on fundamental analysis and bottom-up stock selection.
Fund
MS Funds (UK)
Global Brands Equity Income Fund
Income, the Right Way
Insights
International Equity Team Insights
Keep abreast of the fast changing world and look ahead for investment opportunities with the team's insight papers and videos.
Fund
MS Funds (UK)
Global Brands Fund
Capital growth. Earnings resilience. Reduced downside participation.

Interested in learning more? Please contact us today.

Contact Us
 

For Professional Clients Use only

Calendar Year Returns (%) 2021 2020 2019 2018 2017 2016
Class I ACC Shares 21.07 8.11 21.47 2.38 11.50 -
MSCI World Net Index 22.94 12.32 22.74 -3.04 11.80 -

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. All performance data is calculated NAV to NAV, net of fees, and does not take account of commissions and costs incurred on the issue and redemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management.

RISK CONSIDERATIONS

  • The value of financial derivative instruments are highly sensitive and may result in losses in excess of the amount invested by the Sub-Fund.
  • The fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Investment in China A-Shares via Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs may also entail additional risks, such as risks linked to the ownership of shares.
  • The derivative strategy aims to increase the income paid to investors, but there is potential for the fund to suffer losses.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.

The fund’s performance is compared against the MSCI World (Net) Index. This index has been chosen for performance comparison purposes because it is a broad global equity index that represents large and medium sized company performance across developed countries. The fund is actively managed and does not base its investment process upon, and is not otherwise constrained by, the Index, so will not hold every company in this index and may also hold companies that do not form part of it.

This is a marketing communication. Applications for shares in the Fund should not be made without first consulting the current Prospectus and the Key Investor Information Document (“KIID”), which are available in English and in the official language of your local jurisdiction at morganstanleyinvestmentfunds.com or free of charge from the Registered Office of Morgan Stanley Investment Funds, European Bank and Business Centre, 6B route de Trèves, L-2633 Senningerberg, R.C.S. Luxemburg B 29 192. A summary of investor rights is available in English at the same website.

Information in relation to sustainability aspects of the Fund and the summary of investor rights is available at the aforementioned website.

If the management company of the relevant Fund decides to terminate its arrangement for marketing that Fund in any EEA country where it is registered for sale, it will do so in accordance with the relevant UCITS rules.

This communication is only intended for and will only be distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

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IMPORTANT INFORMATION

EMEA: This marketing communication has been issued by Morgan Stanley Investment Management Limited (MSIM Ltd) is authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 1981121. Registered Office: 25 Cabot Square, Canary Wharf, London E14 4QA.

This document contains information relating to the sub-funds of Morgan Stanley Funds (UK). Morgan Stanley Funds (UK), an investment company with variable capital incorporated in England and Wales under registered number, IC000012. The Company is an Undertaking for Collective Investment in Transferable Securities ("UCITS"). Applications for shares in Morgan Stanley Funds (UK) should not be made without first consulting the current Prospectus, Key Investor Information Document (KIID), Annual Report and Semi-Annual Report ('Offering Documents'), or other documents available in your local jurisdiction, which are available free of charge from the Registered Office: 25 Cabot Square, Canary Wharf, London E14 4QA.

In addition, all Italian investors should refer to the ‘Extended Application Form’, and all Hong Kong investors should refer to the ‘Additional Information for Hong Kong Investors’ section, outlined within the Prospectus. Copies of the Prospectus, KIID, the Articles of Incorporation and the annual and semiannual reports, in German, and further information can be obtained free of charge from the representative in Switzerland. The representative in Switzerland is Carnegie Fund Services S.A., 11, rue du Général-Dufour, 1204 Geneva. The paying agent in Switzerland is Banque Cantonale de Genève, 17, quai de l’Ile, 1204 Geneva. The document has been prepared solely for informational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy.

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