Investment Insight
Head to Head: Global Brands and Global Quality
 
 

Investment Insight

Head to Head: Global Brands and Global Quality

 

Portfolio Specialist Laura Bottega poses some topical questions to Portfolio Manager Bruno Paulson.

Laura Bottega (LB): Back to basics first. What are the key benefits that concentrated global equity portfolios MS INVF Global Brands Fund and MS INVF Global Quality Fund offer to investors?

BRUNO PAULSON (BP): What they both offer is a collection of steadily compounding companies at reasonable valuations. The point is, these companies have earnings which have been really robust in tough times. For Global Brands, the earnings for the holdings within the portfolio actually increased during the global financial crisis, a time when the earnings for the market halved.[1]

Because these companies have historically been able to compound even in tough times, we believe that over the whole cycle the companies (and therefore the portfolios) can compound well, better than the market. We believe that this is why, over the cycle, our strategies have delivered strong absolute and relative returns.  

LB: So could you sum it up by saying that you believe the strategies offer capital growth, and earnings visibility?

BP: Yes, and a measure of downside protection, relative to the benchmark.

 
Managing Director
 
 
Managing Director
 
 

[1] Period covered: 31 October 2000 to 31 October 2017; market represented by the MSCI World Index. Source: FactSet, MSCI, Morgan Stanley Investment Management.

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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.

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Index Definition

The MSCI World Index is a free float adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed markets. The term “free float” represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends.

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