Morgan Stanley Investment Funds (MS INVF)

Global Brands
Equity Income Fund

We offer our investors access to high-quality income with long-term capital growth and relative downside protection.

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Income, the right way

The Global Brands Equity Income Fund provides our investors with the opportunity to invest in our Global Brands investment process with the added benefit of enhanced income. We are currently targeting a 4% annual dividend yield, paid quarterly.

 
 

A focus on quality

The search for income has led many traditional equity income funds to focus on high-yielding sectors like Utilities, Telecoms, Energy and Financials. In such funds, long-term capital growth is neglected at the expense of higher dividends.

In contrast, our Global Brands Equity Income (GBEI) Fund uses our time-tested Global Brands investment process to ensure that we only invest in high-quality companies with sustainably high returns and strong free cash flows that easily fund their dividends.
Our Advantage
We believe that the Global Brands Equity Income Fund offers the opportunity for reliable income without sacrificing capital growth.

High-quality
stock selection

In the 16-year history of the Global Brands Fund, the Fund's dividends have grown faster than the market and shown resilience during the market downturns. GBEI builds on the history and experience of Global Brands but includes a capital growth component, which can provide a steady and reliable source of income.

Historically Superior Dividend Growth

MS INVF Global Brands Trailing Dividends per 100k initial fund investment

Source: Factset. Data updated annually, as of 31 March 2017. Past performance is not a guarantee of future performance.The inception date of the MS INVF Global Brands Fund is 30 October 2000.

Current target yield: 4% p.a.

To achieve our income target, we combine dividends generated by the underlying Global Brands portfolio of high-quality stocks with premiums from selling index call options on six liquid global indices.

Optimized Yield Enhancement

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

Our Global Brands Fund has over 15 years' track record of high-quality investing. As a team, we aim to offer our investors attractive long-term returns, capital preservation and a degree of downside protection.

Learn more about the International Equity Team >

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FOR PROFESSIONAL CLIENTS ONLY
This communication is a marketing communication. The document has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The material contained herein has not been based on a consideration of any individual client circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

Except as otherwise indicated herein, the views and opinions expressed herein are those of the portfolio management team, are based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date hereof.

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RISK WARNINGS
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market value of securities owned by the portfolio will decline. Accordingly, you can lose money investing in this strategy. Please be aware that this strategy may be subject to certain additional risks. Changes in the worldwide economy, consumer spending, competition, demographics and consumer preferences, government regulation and economic conditions may adversely affect global franchise companies and may negatively impact the strategy to a greater extent than if the strategy's assets were invested in a wider variety of companies. In general, equity securities values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, and market risks. Stocks of small-capitalization companies carry special risks, such as limited product lines, markets and financial resources, and greater market volatility than securities of larger, more established companies. The risks of investing in emerging market countries are greater than risks associated with investments in foreign developed markets. Non-diversified portfolios often invest in a more limited number of issuers. As such, changes in the financial condition or market value of a single issuer may cause greater volatility. Option writing strategy. Writing call options involves the risk that the Portfolio may be required to sell the underlying security or instrument (or settle in cash an amount of equal value) at a disadvantageous price or below the market price of such underlying security or instrument, at the time the option is exercised. As the writer of a call option, the Portfolio forgoes, during the option's life, the opportunity to profit from increases in the market value of the underlying security or instrument covering the option above the sum of the premium and the exercise price, but retains the risk of loss should the price of the underlying security or instrument decline. Additionally, the Portfolio's call option writing strategy may not fully protect it against declines in the value of the market. There are special risks associated with uncovered option writing which expose the Portfolio to potentially significant loss.

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

There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. Prior to investing, investors should carefully read the relevant offering document(s).

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