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

DATE MS FUNDS (UK)
GLOBAL BRANDS EQUITY INCOME FUND
31/03/2021 3.92%
31/12/2020 4.00%
30/09/2020 3.95%
30/06/2020 3.86%
31/03/2020 4.14%
31/12/2019 3.96%
30/09/2019 4.08%
31/06/2019 4.04%
31/03/2019 4.00%
31/12/2018 4.12%
30/09/2018 3.98%
30/06/2018 3.97%
31/03/2018 3.70%
31/12/2017 3.94%
30/09/2017 4.09%

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. 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 (%) 2020 2019 2018 2017 2016
Class I ACC Shares 8.11 21.47 2.38 11.50 -
MSCI World Net Index 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 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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