Analyses

Overview of the trends and developments in the muni bond markets.

The latest government program may be on track to accomplish its goal of tightening agency MBS spreads as Fannie and Freddie are likely to support any dips in the market, but mortgage rates may not drop significantly unless Treasury yields decrease.

In-depth review of fundamentals and valuations across emerging markets debt.

Overview of the current landscape across equity markets.

The Broad Markets Fixed Income team discusses Key Themes and where they see value for 2026.

Insight on loan market fundamentals and the role of floating-rate loans within portfolios.

An in-depth review of the US and European High Yield markets.

Amid market uncertainty, investors may be seeking ways to add resilience to their portfolios. Long-short equity strategies have the potential to deliver steady returns in volatile markets.

The landscape for sustainable investing has become fragmented and complex. In this article the Morgan Stanley Sustainability team filters the noise and shares our view of 5 key themes that we believe will influence the long-term direction of sustainable investing.

Geopolitical risk and trade policy pressures could influence macro outcomes more directly than in past cycles. Mike Rosborough and the Broad Markets Fixed Income Team explores.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Advances in artificial intelligence are bringing humanoid robots closer to real-world deployment. The paper examines the technological breakthroughs, economic drivers, and challenges shaping this emerging frontier—and why humanoids could redefine productivity across industries in the years ahead.

As organizations navigate the rapidly evolving landscape of artificial intelligence (AI), recent research from Counterpoint Global highlights pivotal strategies for identifying long-term winners and maximizing profitability.

The world is broadening economically, geopolitically, technologically and monetarily. How will this impact the investment landscape in 2026? Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets Equity ; Portfolio Manager, Passport Equity, outlines her Key Themes for the upcoming year.

Use The BEAT as your timely resource for the markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

A number of financial, economic and policy factors are lining up as a potentially favorable tailwind for floating-rate loans in 2026. Peter Campo and Christopher Remington explain how this can benefit investors.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon presents a timely discussion regarding his team’s stock picking techniques and ‘trifecta stocks.'

The municipal bond market has a lot going for it in 2026, with after-tax yields that look especially compelling compared with other fixed-income sectors. Craig R. Brandon, Co-Head of Municipals, explains.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

In his 2026 Equity Outlook, Senior Portfolio Manager Andrew Slimmon suggests the Bull Market Isn’t Done Yet. Despite being late-cycle, 2026 looks positive for US equities—thanks to rate cuts, fiscal stimulus, and cautious sentiment.

Signs of excess in the AI space are appearing – and the market may be ripe for creative destruction in 2026. Thus far, vast amounts of capital have been spent funding a to-be-determined future revenue. We question how long the appetite for funding the hopes of future revenue will persist. Learn why in our 2026 Hedge Funds outlook.

The proliferation of data centers and their related power needs are the two most important trends we are seeing right now. We want to focus on corresponding secondary and tertiary themes that offer better risk adjusted return profiles. Learn why in our 2026 Infrastructure outlook.

India’s recent relative underperformance has investors questioning its “mojo.”   Amay Hattangadi and Saurabh Mishra argue that India’s recent lag versus emerging market peers has less to do with fundamentals and more with a global rotation into AI-linked markets. History suggests the odds of comeback remain compelling.

A combination of motivated sellers, increasingly engaged buyers, and greater availability of debt is creating favorable conditions for a rebound in transaction activity and asset values. Learn why in our 2026 Real Estate outlook.

We believe the present cycle has several more years to run, leading to healthier exits and distributions to PE investors. Learn why in our 2026 Private Equity outlook.

We expect new deal demand and a large refinancing wave to gradually overtake private credit supply allowing lenders to preserve discipline, strengthen terms, and capture the illiquidity premium to public markets. Learn why in our 2026 Private Credit outlook.

In “When every data business looks like a target” we assessed the impact of Advanced AI on Financial Information Services. This month we look at high quality niches within the Industrials sector, particularly our Professional Services holdings. Our analysis suggests that these very different businesses should continue to have high barriers to entry and, in many instances, have already been embracing the Advanced AI opportunity.

With global central banks progressing further into the easing cycle, fixed income markets are entering a more nuanced phase.

Discover what key trends are shaping the commodity sectors in 2026 and setting up an optimistic outlook for commodities.

Discover what key trends are shaping the commodity sectors in 2026 and setting up an optimistic outlook for commodities.

In The BEAT 2026 Outlook we highlighted key themes that we see across the global investment landscape. Watch the video to find out.

Head of Morgan Stanley Capital Partners (MSCP), Aaron Sack, joined Churchill’s Private Capital Call podcast with host Randy Schwimmer to share his insights on the evolving private equity landscape. He discusses how MSCP drives operational value, partners with founders, and empowers small and midsize businesses to thrive in a crowded market. He also reflects on his 30 years of experience in the industry and offers key guidance for young professionals looking to establish their own private equity careers.

As investors seek to diversify their portfolio exposures beyond traditional assets, alternative lending may offer attractive absolute and risk-adjusted return characteristics.

A generational shift is transforming the global economy. Millennials and Gen Z are gaining economic influence with their distinct preferences for technology, sustainability and different consumption patterns, while Baby Boomers are increasing their share of healthcare spending and financial assets. In this video, Amy Oldenburg, head of Emerging Markets Equity team examine the opportunities.

Faced with an uncertain world, Morgan Stanley Infrastructure Partners’ Markus Hottenrott explains the importance of long-term value creation in infrastructure investing.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

In this quarter’s webinar, our investment leaders provided a comprehensive view of the private markets landscape, shared strategic asset class insights—including a health check on private credit—and delivered an in-depth analysis of the evolving dynamics in private equity.

Tariffs don’t just hit abroad, they hit at home. In our latest Big Picture video, Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group breaks down the limitations of country-driven tariff policy given complex global dependencies in sectoral manufacturing supply chains.

The accelerating demand for power driven by AI has become a dominant narrative in energy markets. However, there are several factors that may suggest reasons for scepticism.

Is AI fueling a new productivity supercycle or facing structural limits in a rapidly evolving market? Eaton Vance’s equity teams explore both views in their “Bull vs. Bear” debate.

Introducing the Morgan Stanley Private Markets ELTIF - unlocking private markets for professional investors.

Discover the key factors supporting a strong PE market in India that have captured the attention of investors for its significant contribution to global growth.

In this paper Lauren Hochfelder, Co-CEO of MSREI and Head of MSREI Americas, shares her thoughts on how longevity impacts our housing needs.

In the 2025 season Calvert maintained a consistent, principles-based approach to proxy voting, aligning decisions with long-term financial and sustainability goals despite a shifting landscape.

Global fixed income markets are entering a more uncertain phase following the Fed’s second consecutive rate cut and delayed U.S. data releases. Watch our latest video to observe how investors can stay flexible and focused on income in our November outlook.

Planted for long-term investors seeking steady appreciation, our Global Brands Fund has proven hardy and fruitful since the year 2000. Join us in commemorating 25 years of high quality investing.

Within the broader private credit space lies an underexplored but increasingly relevant strategy: growth credit. Explore the strategic rationale for growth credit, its market dynamics, and its role within a well-diversified portfolio.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon discusses why less liquidity could have the effect of extending the Euphoria stage in this late stage of the current equity bull market.

At the time of writing, the sell-off in financial information companies has been swift and indiscriminate, reflecting a growing fear that Advanced AI could erode these companies’ competitive advantages. We believe financial information services are not easily replicated, with moats built on several interlocking defences including data ownership, the ecosystem effect and their integration into client workflows. Advanced AI, rather than undermining incumbents, may ultimately strengthen them.

With policy visibility constrained, disciplined security selection, sector diversification, and a focus on quality will be essential as investors navigate the transition toward 2026.

The latest edition of Engage, the International Equity Team’s semi-annual update on their ESG engagement activity.

Our Emerging Markets Equity stewardship report details our active proxy voting and company engagements.

By reviving the Value-Up initiative, South Korea’s new government has restored confidence after a turbulent 2024. While it’s tempting to credit the reform initiative for the current market rally, the substance of the rally also lies in technology leadership and supply-chain realignment.  Amay Hattangadi and Rose Kim explore how Korea’s trump card remains its structural strengths in technology, artificial intelligence and new energy supply chains.

In The BEAT for November we highlighted four important themes, amongst others, that we see across the global investment landscape.

Within the private alternatives universe, private equity is one of the most rapidly growing asset classes. With a range of strategies, private equity investing offers distictive qualitative characteristics that differentiate the asset class.

Explore how shifting interest rates are driving changes in insurance product design and portfolio allocation, with practical insights on the challenges and strategies facing life and P&C carriers in today’s evolving market landscape.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Capital allocation is a vital part of creating value and one of management’s prime responsibilities, yet not all do it well. In this updated report, we extend the analysis back to 1970 and through 2024, including capital allocation and return on invested capital (ROIC) data. We review the alternatives closely and offer a guide for thinking about value creation. We end with a framework for assessing capital allocation skills, which includes past behavior, ROIC, incentives, and key principles.

The prevailing tariff playbook still assumes that trade can be neatly reshaped along national boundaries, but the world is organized by sectors, not countries. In "Tariffs: Illusion Versus Reality," Jitania Kandhari and Saumya Jain explain that it’s time to move beyond the illusion that country tariffs can deliver self-sufficiency.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Counterpoint Global Voting FOR Tesla's Proposed Compensation Plan for Elon Musk

Counterpoint Global explores how founder-led and owner-operated companies translate aligned incentives into long-term business success.

We see a tug of war within markets, between the bull argument that AI will be visibly transformational to corporate profitability in the near term and/or the U.S. economy sharply accelerates, and the bear argument where these high expectations are not met. The International Equity Team discusses.

For 15 years, U.S. stocks dominated while emerging markets suffered from repeated crises, leaving their assets deeply discounted. EM reforms have now rebuilt credibility while U.S. policy has grown more volatile. Paul Psaila, Co-lead PM, EM Core Strategies, posits that while a softer U.S. dollar is compressing U.S. premiums, EMs appear poised to outperform once the U.S. AI-led rally cools.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

The expansive One Big Beautiful Bill Act is impacting every sector; Morgan Stanley Infrastructure Partners’ Chris Ortega participated in an Infrastructure Investors roundtable to discuss.

We highlight a landscape of cautious optimism in fixed income sectors, driven by central bank policies and market dynamics. While opportunities exist, particularly in emerging markets and corporate credit, investors must navigate a complex environment marked by macroeconomic uncertainties and policy divergences. Watch this video to find out more.

The quarter ahead and top asset allocation ideas from our investment specialists moderated by Alex Brunson, Head of Nordics Business, MSIM.

While challenging, market crosscurrents reveal opportunity. The Global Macro team looks for mispricings across 130+ countries, going beyond benchmarks to uncover value others often miss.

As we enter the final quarter of 2025, the outlook across fixed income sectors reflects cautious optimism amid evolving macro conditions and central bank policy shifts.

In The BEAT for October we highlighted three important themes, amongst others, that we see across the global investment landscape.

In its annual Engagement Report, the Fixed Income organisation provides details on how their investment teams are working with bond issuers on Environmental, Social, and Governance (ESG) issues to help generate better financial and sustainability outcomes.

Join us for our new Bright Prospects Podcast, exploring the world of global equity investing with Global Stars PM, Alex Gabriele and Portfolio Specialist, Sarah Hudson. In our first episode we get to know Alex a bit better, as he takes us through his career journey, from lab to investment management, with a detour via some Korean Petrochemicals. Alex shares how influential his heritage has been in making him the investor he is today; a cynical optimist, comfortable reconciling diverse perspectives and focused on the Keynesian philosophy of continuous improvement. The first of many discussions exploring quality growth investing in the exciting world of global equities.

In this paper on tech diffusion, Jitania Kandhari examines how as artificial intelligence creates operational efficiencies on a global scale, its impact on global productivity and growth could exceed that of even the internet or mobile phone and create a $40 trillion opportunity.

Overview of the trends and developments in the muni bond markets.

Insight on loan market fundamentals and the role of floating-rate loans within portfolios.

In-depth review of fundamentals and valuations across emerging markets debt.

An in-depth review of the US and European High Yield markets.

Overview of the trends and developments in the Agency MBS and Housing Markets.

Overview of the current landscape across equity markets.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Use The BEAT as your timely resource for this month’s markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

The Emerging Markets Debt team explains how the UK’s ability to generate productivity and growth is being undermined by government policies that disable and demotivate the workforce.

Solutions and Multi-Asset Group CIO Rui de Figueiredo joins Ben to discuss how to think about asset allocation in 2025. See how AI, inflation and private-market products are making their way into investors' decisions.

Morgan Stanley’s Portfolio Solutions Group reassesses popular investor assumptions about performance fee netting in private investment portfolios. By understanding the nuanced effects of catch-up provisions and other factors, investors can make more informed decisions about their investment strategies.

As geopolitical tensions threaten the cohesion of the global economy, building more resilient supply chains has become a strategic imperative. The International Equity Team explains why they consider supply chain resilience to increasingly be a marker of operational excellence, pricing power, and strategic foresight—hallmarks of the quality companies they favour.

A generational shift is reshaping the global economy. Millennials and Gen Z are fueling value-driven e-commerce, sustainable travel and experiences, while aging populations spur demand for healthcare innovation and eldercare. As Jitania Kandhari and Audrey Muhirwa note, portfolios must align not only with economic cycles but with human timelines.

Alors que les tensions géopolitiques menacent la cohésion de l’économie mondiale, la mise en place de chaînes d’approvisionnement plus résilientes est devenue un impératif stratégique. L’équipe International Equity explique pourquoi elle estime que la résilience des chaînes d’approvisionnement constitue de plus en plus un marqueur d’excellence au niveau opérationnel, du pouvoir de fixation des prix et des prévisions stratégiques, autant de facteurs qui caractérisent les entreprises de qualité qu’elle privilégie.

Loans can have higher yields and wider spreads than other bond sectors – a sign of good value. Peter Campo and Christopher Remington outline the reasons they are constructive on the asset class.

Following a seemingly calm summer, we believe there is a compelling case for more active portfolio management amid rising term premia, increasing political volatility and changing leadership in central bank policy cycles . Watch our latest video to find out more.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Faced with tariffs from its biggest trading partner, Vietnam is undergoing a quiet revolution promoting the private sector as the engine of economic growth, reducing the size of the bureaucracy and initiating massive infrastructure projects. Amy Oldenburg explains why the reforms have led to unbridled optimism on the ground.

While health care is the most obvious place to look for investment opportunities related to GLP-1 trends, we believe some of the most interesting investment opportunities, and risks, are uncovered when considering the second- and third-order effects, particularly related to the alcohol industry.

The bond market remains in a fragile equilibrium—caught between persistent growth concerns, as reflected in U.S. employment data, and stubborn inflation pressures. The Broad Markets Fixed Income team explains.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Stablecoins are reshaping global finance by combining fiat stability with blockchain speed. Regulatory clarity will boost institutional adoption, improve efficiency and reinforce the dollar’s dominance.

In The BEAT for September we highlighted three important themes, amongst others, that we see across the global investment landscape.

Jeff Mueller and Stephen Fitzsimmons recently joined Insurance AUM's podcast to discuss how insurers can adapt their fixed income strategies amid steepening yield curves, tightening spreads, and shifting NAIC regulations. The conversation covers ALM alignment, CLO tranche selection, and the growing interplay between public and private credit—all with a focus on execution and portfolio resilience.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon discusses the current dichotomy between company results and investor sentiment.

Use The BEAT as your timely resource for this month’s markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

In this quarter's webinar, our investment leaders talked about the private markets environment, shared current asset class views, and explored the dynamics investors face in private credit.

Dans le webinaire de ce trimestre, nos responsables des investissements ont examiné l'environnement des marchés privés, partagé leurs points de vue actuels sur les classes d'actifs et exploré les dynamiques auxquelles les investisseurs sont confrontés dans le domaine du crédit privé.

Nuclear fusion is nearing commercial reality and could offer an unlimited, clean, and sustainable alternative to fossil fuels. In this paper, Counterpoint Global examines how nuclear fusion is moving from science fiction to reality, the challenges that remain, and its potential to transform energy generation.

Amid historic market concentration, Atlanta Capital sees opportunities to deliver strong risk-adjusted performance with their disciplined approach to investing in high quality companies.

Elevated market volatility and a slowing economy favor net lease investments. However, it is critical that investors truly understand the residual value of the underlying real estate and the credit of the tenant in assessing the attractiveness of a net lease investment.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

With concern about tariffs easing, investors can focus in the second half of 2025 on growth, earnings and a potential boost in the U.S. from deregulation and passage of tax legislation.

Innovation protects the moat around existing competitive advantage, supports product development, and enables the creation of brand-new sources of value. Company leaderships that nurture an environment of innovation embed creativity, continuous improvement and calculated risk-taking into the fabric of everyday work. The International Equity Team explains why they value a culture of innovation in the high quality companies they invest in.

Bond markets are reacting to U.S. tariff and tax policy with rates moving higher in July and credit sectors rallying. Still, the August jobs report paints an uncertain economic outlook, and persistent deficits could exert upward pressure on real interest rates across the curve. Watch our latest video to find out more.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon discusses ways the equity market could still surprise, whether further to the upside or offering an opportunity to put money to work.

Twin uncertainties—economic and structural—have stalled capex, with AI the outlier. In the second half of the year, we see renewed business investment that could drive growth across the value chain.

With structural reform momentum and the right fiscal course, Brazil stands on the brink of redefining its economic future. Join Amy Oldenburg, Head of Emerging Markets Equity, as she delves into Brazil's potential to unlock growth and fortify market resilience.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

As is typical for mid-summer, market activity was subdued and liquidity, thin. The Broad Markets Fixed Income team reviews and explores what may be coming ahead.

Comme chaque été sur les marchés, l’activité a été atone et la liquidité faible. L’équipe Broad Markets Fixed Income analyse la situation actuelle et nous présente ses perspectives.

Our Portfolio Solutions Group introduces their proprietary Private Markets Asset Allocation Framework (PMAAF) designed to help investors think about how to allocate their dry powder.

In The BEAT for August we highlighted three important themes, amongst others, that we see across the global investment landscape.

The Emerging Markets Debt Team outlines the bullish case for the sector, in light of a weakening U.S. dollar and an increasingly attractive opportunity set.

L'équipe Emerging Markets Debt présente un scénario haussier pour cette classe d’actifs à la lumière de la dépréciation du dollar et d’un ensemble d'opportunités de plus en plus attrayantes.

Use The BEAT as your timely resource for this month’s markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

Lisez The BEAT pour une information mensuelle actualisée sur les marchés. Chaque édition vous propose des idées et des analyses pour vous aider à appréhender l’environnement d’investissement actuel.

Consilient Research's report examines the optimal amount of cash to hold for maximizing value, covering trends, theories, and capital deployment strategies.

Morgan Stanaley's Portfolio Solutions Group presents their proprietary quantitative approach to deciding whether to keep or drop underperforming managers.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Learn how combining U.S. and European private credit allocations may enhance diversification, resilience and return potential for investors.

Même dans un contexte d’anticipation des spreads de pic, nous restons encouragés par la poursuite de niveaux de qualité de crédit proches de leurs records, car les rendements du marché du haut rendement restent historiquement attractifs. Avec la volatilité continue qui alimente une période concurrentielle pour le haut rendement, nous sommes à l’affût de la valeur relative. Regardez notre vidéo pour en savoir plus.

The Morgan Stanaley Real Estate Investing team reviews the current state of the real estate market within a volatile macroeconomic environment.

Anthony Eames, Managing Director of Responsible Investment Strategy at Calvert Research and Management, discusses what sets responsible investing apart. He emphasizes that integrating environmental, social, and governance factors into investment decisions can lead to better long-term performance and risk management. Anthony highlights how responsible investing aligns with evolving investor priorities and values as well as regulatory trends, and how Calvert’s proprietary research and active engagement with companies help drive positive change. He also notes that responsible investing is not just ethical but increasingly essential for identifying resilient, forward-looking companies in a rapidly changing global economy.

Despite the improvement in the environment since early April, the current euphoric atmosphere, with stretched valuations and record retail inflows, seems tough to justify given the modest growth outlook and multiple sources of uncertainty. As Bruno Paulson explains, we see a sharp disconnect between the state of the markets and the state of the real world.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon discusses ways the equity market could still surprise, whether further to the upside or offering an opportunity to put money to work.

Uncertainty continues to create potential opportunities for longer-duration assets in developed markets and value in emerging markets debt and securitized credit. Watch our latest video to find out more.

Investing success isn’t just about process—it’s about people. Eaton Vance Equity’s teams use a structured approach that fosters open ideas and limits behavioral bias. Chris Dyer explains.

Despite near-term headwinds, health care remains a promising long-term opportunity, supported by strong fundamentals and trends like AI and an aging demographic.

June was marked by a continuation of the risk on sentiment that began earlier in the quarter, supported by resilient economic data, a modest decline in volatility, and easing geopolitical tension. Will this continue? The Broad Market Fixed Income Team explores.

As fixed income investors, we view the integration of ESG factors into the evaluation of sovereign bonds as a critical component of our investment process. Read more.

Insight on loan market fundamentals and the role of floating-rate loans within portfolios.

In-depth review of fundamentals and valuations across emerging markets debt.

Overview of the trends and developments in the muni bond markets.

Overview of the current landscape across equity markets.

Morgan Stanley a le plaisir de présenter le fonds Dette Privée Europe, offrant aux investisseurs particuliers l’opportunité d'investir dans cette classe d'actifs attractive.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Passive investing, “short-termism,” and lottery-style behavior have led to valuation distortions in small caps, which may now offer a potentially “generational” opportunity. Griff Noble explains.

Use The BEAT as your timely resource for this month’s markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

Lisez The BEAT pour une information mensuelle actualisée sur les marchés. Chaque édition vous propose des idées et des analyses pour vous aider à appréhender l’environnement d’investissement actuel.

Brazil has quietly implemented structural reforms over the past decade that are now beginning to reshape the country’s long-term economic trajectory. Eric Carlson and Ravi Jain explain.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

After the dominance of U.S. equity markets for the past 15 years, it is time to rebalance portfolios. As global leadership rotates, Jitania Kandhari, Deputy CIO of the Solutions and Multi-Asset Group, explains the framework needed for an international allocation and what investors should consider owning.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Fundamental equity investing is the art of dealing in uncertainty. It involves forming a view on the earnings trajectory of a company, analysing its prospects for growth, understanding the strength of its competitive moats, and assessing potential risks to the sustainability of its returns – whether self-inflicted or external. It is an art rather than a precise science; only some of these risks can be quantified with others firmly in the Knightian uncertainty camp.

In fixed income, the case for active management is clear. Read our latest insight to find out how our team strives to deliver repeatable, risk-adjusted returns.

Automakers will need to evolve their approaches to talent management and data security to help grow their AI capabilities. We believe companies that keep these considerations in mind are best positioned for long-term value creation.

Risk assets are rebounding, and the global economy is generally weathering the storm of uncertainty. How will the outcome of tariffs impact the near future? Listen to our latest video to find out more.

Despite ongoing trade policy uncertainty, the economy has shown resilience. The Broad Markets Fixed Income team explores how this dynamic affected bonds over the last month, and how it could impact future markets.

Given protectionism and tariffs, the short-term outlook for electric vehicles may seem uncertain, yet China and South Korea are quietly accelerating in emerging markets and beyond. Amy Oldenburg explains.

The Value team has long believed that all investors are subject to behavioral biases. In view of market volatility, the team used a portfolio exercise designed to temper behavioral bias toward loss aversion to bolster their buy-and-sell decisions.

Recent tweets by President Trump have revived talk of privatizing the two mortgage finance giants, but many hurdles remain.

Use The BEAT as your timely resource for this month’s markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

Lisez The BEAT pour une information mensuelle actualisée sur les marchés. Chaque édition vous propose des idées et des analyses pour vous aider à appréhender l’environnement d’investissement actuel.

The Morgan Stanley Private Credit team sat down with Private Debt Investor to discuss the dynamic landscape of mid-market direct lending.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Markets remain volatile in the wake of tariff shocks, but economic data is keeping steady. The only sure thing is that investors crave clarity that may take time to come. We explore the implications for fixed income.

Dans les secteurs matures caractérisés par des taux de pénétration élevés, comme la consommation de base, pérenniser la croissance et le pouvoir de fixation des prix nécessite des innovations régulières qui répondent aux besoins des consommateurs, avec l’appui d’investissements massifs en marketing et d’une solide stratégie d’exécution. Dans cet article, nous vous parlons des entreprises du secteur de la consommation de base figurant dans nos portefeuilles et qui innovent de manière régulière.

In mature and well penetrated industries like consumer staples, achieving growth and maintaining pricing power requires a steady pipeline of innovations that address consumer needs, supported by sustained marketing investment and best-in-class execution. In this piece we look at the consumer staples companies we hold that demonstrate sustained innovation.

Despite the ongoing impact of weakened cargo volume due to elevated tariff rates amid policy uncertainty and a weaker consumer, U.S. municipal ports have strong credit fundamentals, high essentiality and varying revenue levers that will allow them to weather the uncertain policy outlook

While some investors may be pricing in a political risk premium, Harvard University maintains a high credit rating of AAA from Standard & Poor's and Moody's.

The emergence of China’s DeepSeek poses a significant challenge to U.S. dominance in artificial intelligence. The flurry of new startups emerging from the country’s low-cost AI sector will lead to new investment opportunities. In this video, Amy Oldenburg, Head of Emerging Markets Equity, examines the impact of wider adoption of AI.

In this webinar, our investment leaders provided a high-level overview on private markets, discussed U.S policy impacts, and shared an in-depth analysis on private real estate opportunities.

Au cours de ce webinaire, nos responsables des investissements ont présenté une vue d'ensemble des marchés privés, évoqué l'impact de la politique américaine et partagé une analyse approfondie des opportunités dans le secteur de l'immobilier privé.

Our investigation of price declines from peak to trough, or drawdowns, for stocks and mutual funds yields some provocative results. We examine overall base rates, point out the persistence of drawdowns even in a world with perfect foresight into long-term returns, provide two case studies, review academic work, and give guidelines for considering which stocks may recover. The best investors and stocks suffer large drawdowns, which can be considered a cost of doing business over the long haul.

A new wave of discontent marked by the rise of anti-elitism, anti-incumbency and anti-immigration reveals deep seated frustrations with traditional power structures. Jitania Kandhari examines these forces that will reshape politics, economics and markets.

Active investment strategies are making a comeback amid rising market volatility, higher rates and greater dispersion—signaling a paradigm shift. Amy Oldenburg and Timothy Kuznetsov of the Emerging Markets Equity team discuss.

April had a rough start, but by the end of the month, it looked a bit unremarkable, at least as measured by market movements. The Broad Markets Fixed Income team explains.

Le mois d’avril avait très mal commencé, mais la performance mensuelle s’est avérée anodine, du moins à l’aune des violents mouvements de marché. Les explications de l’équipe Broad Markets Fixed Income.

Emerging markets debt and emerging markets equities continue to offer potential opportunities due to increased diversification, higher yields, relatively attractive valuations and positive reforms throughout the region, as investors wait anxiously for clarity over U.S. economic policy.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon reviews the dangers of certainty and overconfidence that caught so many flat-footed over the past month.

Jim Caron, CIO of the Portfolio Solutions Group, is joined by Thomas Kamei of Counterpoint Global to explore how artificial intelligence and automation may reshape workforces and to highlight surprising investment opportunities in companies poised to adopt these technologies.

We believe demand for the high yield municipal market will remain strong as investors anticipate potential changes in monetary policy, stimulus of the U.S. economy through tax cuts and inflationary impacts.

In an environment with yields in their widest quartile and spreads in the context of their long-term median, we believe there is opportunity to generate historically attractive long-term returns.

Counterpoint Global shares their proprietary research on artificial intelligence (AI) and automation’s potential impact on the business landscape and society, including the beneficiaries of second order effects.

The Middle East and North Africa (MENA) countries are engaged in a flurry of activity to deliver on a series of ambitious plans that will encourage strategic investments, enact reforms and transform the region’s economy. In this video, Amy Oldenburg, Head of Emerging Markets Equity, explores the new face of MENA.

Chris Ortega, head of Americas at Morgan Stanley Infrastructure Partners, discusses what the next four years might have in store and the implications of all this volatility on infrastructure assets and the industry at large.

We believe ongoing macroeconomic uncertainty creates a wide range of investment opportunities across residential mortgages, commercial real estate, and both consumer and business-focused asset-backed lending. As volatility persists, MBS and ABS currently represent the highest sector allocation across Morgan Stanley’s multi-sector fixed income portfolios. Watch this video to find out more.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Use The BEAT as your timely resource for this month’s markets. Each edition gives you ideas and insights that show you how to navigate the current investment environment.

The rapid pace at which markets and the macro environment are shifting can make it difficult for investors to determine where, when and how to allocate capital. We believe that being “long flexibility” is key to navigating these turbulent times.

Fixed income investors play an important role in pursuing positive sustainability outcomes through a constructive dialogue with issuers around ESG. The MSIM Global Fixed Income Team explains how they incorporate engagement throughout their investment process.

We do not categorically exclude any industries from our investment universe; instead, we focus on identifying financially disciplined corporate leaders that are successfully managing their financially material risks and opportunities.

While the short-term outlook for electric vehicles globally may seem uncertain, the transition is quietly accelerating in emerging markets.

President Trump’s executive order to dismantle the U.S. Department of Education (DOE) may be impacting the K-12 sector, but we believe in-depth credit analysis will remain fundamental to choosing issuers that will perform well.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Les droits de douane étant potentiellement un obstacle à la croissance et aux bénéfices, l’équipe International Equity explique pourquoi le fait de ne pas être investi pourrait continuer d’être positif.

With tariffs potentially a headwind for growth and earnings, the International Equity Team explain why being in the “not owning” bucket may continue to be a positive.

As an asset manager and long-term investor, Calvert believes identifying financially material climate-related risks and opportunities is critical to make informed decisions and help direct large-scale capital towards the goals of climate change mitigation, adaptation and resilience while pursuing investment performance. By allocating capital thoughtfully and engaging with companies, policymakers and stakeholders, we seek to drive innovation, accountability and progress.

The Fixed Income team actively engages with Green Bond market players to promote robust sustainable financing frameworks that help effectively catalyse capital towards environmentally and socially impactful projects, transparent disclosures, and reporting.

Critical industrial and manufacturing processes depend on the availability and quality of freshwater. As a result, disruptions in freshwater availability may pose financially material risks to investors. However, corporate disclosure and data remain a challenge due to lack of standardization and difficulties collecting data. In light of these limitations, Calvert utilizes a proprietary method to assess water risks at the sector and company level, while encouraging companies to coalesce to develop water reporting protocol similar to the Greenhouse Gas reporting protocol.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Heightened volatility has impacted the global financial markets, whilst awaiting clarity on U.S. trade policy. Watch our latest global fixed income video, analysing the affects on global trade, monetary policy and raised stagflation worries.

The Middle East and North Africa (MENA) countries are engaged in a flurry of activity to deliver on a series of ambitious plans that will encourage strategic investments, enact reforms and transform the region’s economy. Amy Oldenburg, Head of Emerging Markets Equity, explores the new face of MENA.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon responds to the question whether the tariff induced selloff is an opportunity to be bold and add cash to equities or better to hunker down and wait for a more attractive entry point?.

Insight on loan market fundamentals and the role of floating-rate loans within portfolios.

Overview of the trends and developments in the muni bond markets.

In-depth review of fundamentals and valuations across emerging markets debt.

The Broad Markets Fixed Income Team reflects on the events of March, but also discusses the market movements that transpired the first few days of April.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Utilisez The BEAT comme votre ressource efficace pour les marchés de ce mois-ci. Chaque édition vous donne des idées et des connaissances qui vous montrent comment naviguer dans l’environnement d’investissement actuel.

The Trump Administration has imposed a 25% additional tariff on automotive imports effective April 3, claiming it will fuel domestic manufacturing. But critics fear it may put the brakes on automakers that depend on global supply chains.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Craig Brandon, co-head of municipals at Morgan Stanley Investment Management, joins CNBC The Exchange to discuss views about how the municipal bond market can potentially weather volatility during times of uncertainty, how a slowdown could impact the sector, and much more.

The emergence of China’s DeepSeek poses a significant challenge to U.S. dominance in artificial intelligence and signals a dual-track approach to AI development. While a handful of companies lead the cutting edge research, a low-cost AI sector is beginning to take shape. Amay Hattangadi and Samson Hung explore potential investment opportunities in emerging markets driven by the wider adoption of AI.

Amid risk of an escalating global trade war and ongoing geopolitical instability, we examine how fading U.S. exceptionalism, robustness of credit spreads and rising market volatility impact global fixed income markets in our latest video.

Things are changing fast and remain fluid. Whether it is for better or worse we do not know. The Broad Markets Fixed Income Teams explores the implications for investors.

The Morgan Stanley Private Credit team defines Private Credit, the growth drivers propelling the asset class and why investors should consider adding European Private Credit to their portfolios.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Dans cette vidéo, nous soulignons trois thèmes importants, entre autres, que nous voyons dans le paysage mondial de l'investissement

Semi-liquid evergreen private equity vehicles may provide individual investors access to many of the benefits of private equity investing with a better user experience and the potential for long-term compounded returns.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Michael Occi, President for Morgan Stanley Private Credit's BDCs joined the Insurance AUM podcast to discuss how BDCs can be used to optimize direct lending investing.

Le nombre croissant de décrets concernant les droits de douane marque un net changement de politique. À l’heure actuelle, nous pensons que la plupart des entreprises de nos portefeuilles typés qualité devraient être confrontées à un impact direct limité des droits de douane, étant donné leur biais pour les services. En parallèle, la production manufacturière locale, les marges brutes élevées et le pouvoir de fixation des prix pourraient atténuer l’impact sur les producteurs de biens détenus en portefeuille. En cas de ralentissement économique, les bénéfices de nos portefeuilles qualité devraient mieux résister que ceux du reste du marché.

Utilisez The BEAT comme votre ressource efficace pour les marchés de ce mois-ci. Chaque édition vous donne des idées et des connaissances qui vous montrent comment naviguer dans l’environnement d’investissement actuel.

The increasing number of tariff-related executive orders marks a distinct shift in policy. At this time, we believe most of the companies in our quality portfolios should face limited direct impact from tariffs, given their skew towards services, while local manufacturing, high gross margins and pricing power may dampen the impact for the portfolios’ goods producers. In the event of any economic slowdown, we would expect our quality portfolios’ earnings to prove more resilient than the market’s.

This white paper discusses how climate risks and three secular trends in commercial real estate are driving new capital strategies in the industry.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

In his most recent TAKE, Senior Portfolio Manager Andrew Slimmon presents reasons why market volatility in the third year of an equity bull market is a normal and healthy signal.

What are the key themes that will shape the global economy in 2025? From shifting trade dynamics to industrial innovations, demographic transitions, and space exploration - every trend holds opportunities. Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets Equity; Portfolio Manager, Passport Equity, outlines her ten (plus bonus) Key Themes.

The mega trends transforming the U.S. are also providing global opportunities for savvy investors but at better prices. Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets Equity; Portfolio Manager, Passport Equity, explores the global edge in her 10 Key Themes for 2025.

While we wait for the White House to clarify policies that may influence financial conditions, we look in depth at why tariffs, monetary policy and credit fundamentals matter to global fixed income markets in our latest video.

The Morgan Stanley Private Credit team traces the rise of direct lending from its small, early origins to its present role as a mainstay of the $1.8 trillion private credit industry.

While financial markets had a good January, the future remains quite murky. The Broad Markets Fixed Income Team explores.

Investors seek opportunities with gaps between price and value. A common approach to estimate value is to consider expected value, the sum of the products of various payoffs and their associated probabilities. We discuss some of the issues with the calculation of expected value, what the payoff picture means for investing, the implications of volatility drag, the psychology of dealing with probabilities and payoffs, and how these ideas can be helpful for investing in various asset classes.

In today’s fast-evolving economy, technology transcends sector classifications. It’s re-shaping growth trajectories and redefining operational excellence as digital integration, AI and cloud computing have become essential engines of competitive advantage.

Dans l’économie actuelle en rapide évolution, la technologie transcende les classifications sectorielles. Elle redéfinit les trajectoires de croissance et l’excellence opérationnelle, l’intégration numérique, l’IA et le cloud computing étant devenus les facteurs essentiels de tout avantage concurrentiel.

Explore key insights on the outlook for emerging markets debt, including which trends to watch and why a focus on fundamentals may matter more in 2025.

While the US economy continues to look healthier than other developed markets, we think positive surprises may be tougher to find than in the last two years. Elevated equity multiples, modest VIX and BBB-rated bond spreads at their lowest levels this century suggest the market doesn’t share those doubts. As investors, we prefer steady compounding through decent top-line growth and resilient earnings at a reasonable multiple.

L’économie américaine reste plus dynamique que celles des autres pays développés, mais elle pourrait réserver de moins bonnes surprises que lors des deux dernières années. Le marché ne semble pas partager ces doutes, comme l’illustrent les valorisation élevées des actions, le niveau modeste du VIX et un niveau de spread historiquement bas des obligations notées BBB. En tant qu’investisseurs, nous préférons les entreprises qui capitalisent sur le long terme via une croissance de leur chiffre d’affaires et des bénéfices résilients, ainsi que des multiples de valorisation raisonnables.

The true winners of the U.S.-China tug-of-war may turn out to be a number of overlooked frontier and small emerging market countries that are benefiting from historically low valuations. Amy Oldenburg, Head of Emerging Markets Equity, takes a closer look.

The true winners of the U.S.-China tug-of-war may turn out to be a number of overlooked frontier and small emerging market countries that are benefiting from historically low valuations. Steven Quattry points out that these economies, which are not in the direct crosshairs of trade wars, present unique uncorrelated investment opportunities and might be poised for rapid growth.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Stay informed on the evolving fixed income landscape in 2025 with our latest video, where we explore the role policy divergence, rising dispersion and volatility will likely play in shaping coming risks and opportunities.

Discover trends for high yield bonds, including their potential suitability to help investors meet their income and total returns goals in 2025 and beyond.

What are the forces that will shape 2025? Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets Equity ; Portfolio Manager, Passport Equity, outlines her ten Key Themes for the upcoming year.

The Global Opportunity team shares its annual update on integrating ESG within the investment process, the carbon intensity of the portfolios and company engagement activity.

Dispersion, duration and yield curve shifts can be pivotal to returns in the agency MBS market. In our latest insight, we dig into the detail on these factors and more to show why they matter.

In his January TAKE, Senior Portfolio Manager Andrew Slimmon questions whether the 2025 equity market will be consistent with the third year of a bull market, which tends to be mediocre at best. Or will 2025 be led by a technology revolution and a gateway like the roaring late-1990s?

Saudi Arabia is pulsing with activity as it reaches the half way point of an ambitious plan to transform its economy and reshape its global image by 2030. Amy Oldenburg, Head of Emerging Markets Equity, examines the Kingdom’s progress.

Curious about the future of monetary policy, government debt and credit markets? Watch our latest video on the outlook for global fixed income markets in the coming year.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Beijing has unveiled a series of stimulus packages aimed at revitalizing China’s economy. However, Jitania Kandhari, Deputy CIO of the Solutions and Multi-Asset Group, believes China’s structural weaknesses which include significant debt, a property bubble, underwhelming domestic consumption and trade pressures, cannot be resolved by stimulus measures alone.

Malaysia’s recent stability and steady growth are paving the way for its government to implement critical reforms. The country is well-positioned for increased investments, particularly in its expanding data center sector, capitalizing on the ongoing “tech war” between the U.S. and China.

"As we gain information about property damage, we are evaluating variables such as potential revenue loss, level of cash reserves available to bridge lost revenue, and, most importantly, the insurance coverage a facility has for both property and business interruption."

Direct lending continues to offer compelling relative value compared to other asset classes and offers attractive diversification alternative to public fixed income. Further, when considered in the context of public markets, direct lending has significant room to grow.

With the game-changing 2024 election victory of South African president Cyril Ramaphosa setting the stage for a new political and economic era, Amy Oldenburg, Head of Emerging Markets Equity, focuses on a report by Paul Psaila on how the new political landscape may impact the country’s economic future.

The last five years have been full of surprises. In their Bulletin, the Broad Markets Fixed Income Team reviews the past month and looks ahead to 2025.

Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.

Insight on loan market fundamentals and the role of floating-rate loans within portfolios.

Overview of the trends and developments in the muni bond markets.

In-depth review of fundamentals and valuations across emerging markets debt.

As we enter 2025, the Broad Markets Fixed Income Team provides a comprehensive analysis of anticipated trends in fixed income markets, highlighting key areas of opportunity and caution for investors.

Ashwin Krishnan, co-head of North America private credit and the head of opportunistic credit at Morgan Stanley, met with Shubham Saharan at 9fin to discuss opportunistic credit strategies within the private credit market in 2025 as investors look to continue diversifying their holdings. Krishnan explains the growing interest in capital solutions, private markets distressed debt, and asset-based credit strategies and how it has become a core focus of the alternatives platform at Morgan Stanley Investment Management.

We publish some of our favorite charts that have gone unused or overlooked. We place the pictures in five categories: overall valuation, empirical regularities, capital intensity of big energy versus big technology, corporate performance, and investment management. Some challenge conventional wisdom, others address empirical observations that remain unexplained, and a handful compel a nuanced view.

Today’s new interest rate and inflation regime deviates significantly from the past 40 years. As such we believe investment professionals should consider modifying their investment process.

Geothermal energy can supply reliable, sustainable, baseload power offering significant potential as an energy source, but commercial deployment has been limited. Our 1GT team co-hosted a roundtable during Climate Week to discuss future pathways.

Strategy explains how a firm builds a moat around its business to pursue sustainable value creation. We begin by showing why strategy matters while also distinguishing between industry and company life cycles. We turn next to industry analysis as we get the lay of the land. We then discuss industry structure and disruption and dis-integration. We finish with firm analysis. We examine the sources of added value and review pricing decisions, regulation, and brands. We include a checklist.

We own a leading elevator company that services over 2 million elevators globally—which typically remain in service for decades. As the installed base of elevators around the world continues to grow steadily, this creates a very reliable profit stream that illustrates our preference for long-term compounders for long-term investors.

One of our holdings has been around since 1892 and is enjoyed 2 billion times a day. With a strong brand, entrenched intangible assets, high returns on operating capital and significant pricing power, it’s exactly what we look for.

Vishal Khanduja joined CNBC Squawk Box Asia to discuss his view that the U.S economy is on track for a soft landing and how that impacts his fixed-income strategy.

The MSIM Hedge Fund Team explores the ways in which hedge funds may directly benefit from a higher cash yield environment making them compelling options as sources of returns and diversification.

With Indian public markets having experienced a strong run-up since 2020, global allocators have been turning to Indian private equity. In this paper, we aim to examine the promising performance potential of Indian private equity.

Mark van der Zwan, Chief Executive Officer for Morgan Stanley Investment Management's Hedge Fund team, appears on Resonanz Spotlight to explore the past, present, and future of hedge fund investing

Discover why the current market is conducive to market-neutral strategies, with the ability to generate alpha on both the long and short sides of portfolios.

Head of Morgan Stanley Capital Partners, Aaron Sack, discusses how to build a successful middle market buyout strategy, and the role of private equity in market growth.

In recent years, multi-manager platforms (Multi-PMs) have completely transformed the hedge fund world. In this FAQ, we answer fundamental questions about these Multi-PMs. What are they and why are they attracting so many investors?

Consilient Research considers the phenomenon of companies that both issue and retire shares around the same time. This behavior may fail the central goal of capital allocation, which is to buy low and sell high. Which one is it?

Learn why our Hedge Fund Team believes the shift in the alternative investment space has evolved alpha, and how multiple ARP strategies are critical components of systematic liquid alternatives.

Our Emerging Markets Equity annual stewardship report illustrates our proactive engagement with portfolio companies to navigate operating landscapes and assist them in their growth. Discover how we initiate progress in the global energy transition, tackle regulatory challenges and encourage greater corporate transparency and disclosures, especially with regards to executive compensation issues.

While the fundamentals and investment thesis for senior housing are compelling, the subtleties of different care segments and the service-oriented nature of caring for elderly residents create operational risk, requiring a nuanced investment strategy and dedicated operating expertise.

David Miller, Morgan Stanley Investment Management's Head of Global Private Credit & Equity, speaks on "Markets Today" from SuperReturn International. David speaks to some of the concern around the rapid growth of private market investments and explains why it's important to look upon that growth in the context of overall public market caps.

Stock market concentration has risen sharply over the past decade, creating a tough environment for active managers. In this report, we look at concentration over the past 75 years to see where we stand. We review which companies have been the largest and how that has changed. We ask if there is a correct level of concentration by studying other global markets and by presenting the possibility it was too low before. We then examine whether corporate performance supports the current increase.

Rohanjit Chaudhry, Executive Director of Morgan Stanley Capital Partners, joined BDO Private Equity PErspectives podcast to discuss how private equity continues to approach economic challenges, like the current high cost of capital, through a lens of cautious optimism

Lauren Hochfelder, Co-Chief Executive Officer for Morgan Stanley Real Estate Investing, appears on Bloomberg Surveillance to discuss her outlook on commercial real estate and sectors where she sees potential opportunity.

Lauren Hochfelder on Yahoo Finance: Morgan Stanley's Top Real Estate Investing 'Megatrends'

In this paper, the Portfolio Solutions Group explains how they counter adverse impact to returns in this new regime through a new management approach with the goal of achieving stable target returns.

As the 2024 proxy season kicks off, the Morgan Stanley Investment Management Global Stewardship Team highlights three key themes: Natural Capital and Biodiversity, Workers’ Rights, and Artificial Intelligence (AI) that we believe will be high on the agenda for investors.

Most investors “price” the stocks of companies by using valuation multiples instead of “valuing” them based on future cash flows and fundamentals. We address what multiples miss and why they have become less informative. We examine how the two most popular multiples, P/E and EV/EBITDA, can provide different signals about a stock’s relative attractiveness. We then take a deep look at EV/EBITDA. We do not discourage the use of multiples, but users should understand the underlying value drivers.

India is undergoing a significant transformation to strike a balance between economic growth and sustainability, revamping its environmental reputation. India’s energy security and consumption growth is a significant investment theme for the coming decade as the country adds green capacity. Eric Carlson and Candy Chao explain.

Lauren Hochfelder discusses real estate opportunities and supply chain on CNBC's The Exchange.

In 2022, the 60/40 portfolio suffered its worst loss since 1937, prompting many market participants to question its value. Analyzing 200 years of data, Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group, evaluates the renewed relevance of the 60/40 portfolio.

Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets; Portfolio Manager, Passport Equity, examines the return of the 60/40 portfolio strategy in 2024.

Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets; Portfolio Manager, Passport Equity, believes oil is an underappreciated, underinvested and undervalued commodity in 2024.

The Eaton Vance Equity Global Team seeks to illustrate the merits of a "sustainable" equity investing approach.

All humans have behavioral biases, those blind spots that can impact decision-making. To address investment bias, the Eaton Vance Equity Global Team has integrated proprietary Portfolio Exercises into their investment process, a differentiator in the way they manage money and an important element of their success.

Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets; Portfolio Manager, Passport Equity, outlines her Ten Key Themes for 2024.

We examine the counterintuitive behavior of U.S. public companies in the recent regime of “easy money” marked by below-average interest rates.

Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets; Portfolio Manager, Passport Equity, outlines her Key Themes for 2024.

The Global Opportunity Team believes India offers an attractive hunting ground to find ideas that meet our criteria for long-term value creation and explains the broad areas where we see opportunities.

Understanding the five areas of micro and macroeconomics where increasing returns applies and show their relevance to investors.

The U.S. dollar has been the prominent global currency for more than 80 years, but its dominance is coming under pressure in the face of evolving geopolitical shifts and increasing twin deficits in the United States. Digital assets such as bitcoin, stablecoins in addition to the promise of Central Bank Digital Currencies (CBDCs), have potential to significantly alter the currency landscape. These innovations, while still in their nascent stages, hold opportunities to both erode and reinforce the dollar’s hegemony in global finance, Andrew Peel of Digital Asset Markets explains.

Explore the powers and perils of pattern recognition, which investors often credit. We define it, discuss when it works better, and offer ways to improve it.

We study the sources of total shareholder return (TSR) and tie them to underlying economic principles. This is useful to assess the prospective returns of a stock and to create a framework for flagging value traps. The analysis reveals that few investors in the stocks of companies that pay dividends earned the TSR and refutes the common belief that dividends contribute to capital accumulation. This framework gives investors a checklist of drivers and the tools to assess them.

The life cycle captures the stages of a company’s existence, from birth to growth to maturation to decline. Knowing where a company is in its life cycle is helpful for assessing capital allocation, financing costs, governance, and valuation. In this report, we use the cash flow statement to place companies in the proper stage. We then show the average characteristics of companies in each stage, their rates of transition between stages, and the past shareholder returns of each transition cohort.

Morgan Stanley Investment Management’s Head of Climate Private Equity Investment Vikram Raju joins ION Analytics’ Giovanni Amodeo to talk about climate investing opportunities for the ION Influencers fireside chat series.

Nigeria's new reform minded president looks to accelerate economic growth for Africa's largest economy, leading to investment opportunities targeting the rising consumer.

We examine the demographics of public companies and their patterns of wealth creation. We focus on the last half century in the U.S. and review the “births” and “deaths” of public companies. We also discuss changes in market composition. Nearly 60 percent of companies have failed to create value, and 2 percent have created 90 percent of the aggregate wealth. This suggests two strategies for portfolio construction: seek broad diversification or aim to own the wealth creators.

This report extends our analysis of the ROICs for public companies in the U.S. and updates the data to cover the years 1990 to 2022. We start by providing the latest ROIC figures, then examine the link between changes in ROICs and total shareholder returns (TSRs), and finish by reviewing elements of competitive strategy as well as persistence of ROIC by sector.

U.S. companies are increasingly paying employees with stock-based compensation (SBC) rather than cash. We begin with data showing overall trends, then turn to the accounting issues, and wrap up by evaluating the strengths and weaknesses of SBC. Ongoing shareholders typically realize more dilution with young companies than with old ones because SBC tends to be more significant, and buybacks less significant, for young companies. Research is equivocal on the benefits commonly cited for SBC.

Post-pandemic, untangling global supply chains through reshoring, friend-shoring and nearshoring has created opportunities for emerging markets like India, Vietnam, Thailand, Indonesia and Mexico. Jitania Kandhari and Saumya Jain of the Emerging Markets Equity Team explain.

Probability and confidence are distinct concepts, and we believe it is useful for investors to separate them. For example, the price of two potential investments may present the same discount to expected value, but confidence in the probabilities for one may exceed those of the other. That nuance may be relevant for determining the appropriate weighting of securities or evaluating diversification.

This is a guide to estimating the cost of capital, a measure of both expected return and the discount rate. For example, investors discount future free cash flows at the cost of capital to come up with a present value. Our goal is to find a figure that reflects opportunity cost sensibly, is economically sound, and gives the investor and businessperson a practical solution. We recommend settling on a reasonable cost of capital and then allocating the bulk of time thinking about future cash flows.

Jitania Kandhari, Deputy CIO, Solutions & Multi Asset Group; Head of Macro & Thematic Research, Emerging Markets; Portfolio Manager, AIA, outlines her Key Themes for 2023.

Vietnam’s large, young and tech-savvy middle class, makes it one of a few countries to benefit from globalizing in a deglobalizing world and usher in the next generation of investments in emerging markets. Emerging Markets Equity team explain.

We extend the analysis from our recent report, “Return on Invested Capital,” by adjusting ROIC for all companies to reflect intangible investment. While the median and aggregate ROIC for the adjusted figures is similar to the traditional one, the main result is that extremely high and low ROICs regress toward the mean. We believe these adjustments represent a step toward a more accurate view of the magnitude and return on investment.

We discuss how to calculate return on invested capital (ROIC) and show how it is connected to free cash flow, economic profit, and growth. We work through the challenges in estimating it, present empirical data, review how adjusting for intangible investments can reshape the figures, and include a case study.

We examine whether a study of market share and related concepts can help us determine if a company has a sustainable competitive advantage. This takes us on a journey that includes life cycles, market share, concentration, markups, intangibles, and "superstars". We study the link between some of these variables and return on investment and provide some analytical tools along the way. We finish with some case studies to see how these ideas apply to a handful of industries.

Investors must look past simple measures of profits to understand a business’s true ability to create value. The rise of intangibles means more investments are expensed versus capitalized, which makes financial statements appear distorted versus those of the past. Academics distinguish between GAAP losers, companies that have losses but a high return on investment, and real losers, or those that have expenses unrelated to investment that exceed sales. Evidence from recent decades shows GAAP losers produced attractive shareholder returns relative to the real losers and profitable companies.

Blockchain technologies have unique capabilities that can enable an interoperable marketplace for voluntary carbon offsets – solving a number of issues with the existing market, such as significant variance in underlying quality of offsets – and thus have an opportunity to play a role in decarbonizing the global economy.

Burgeoning industries often follow the same developmental pattern as a child’s brain, with an overproduction of options followed by a pruning of those that are not useful. This appears wasteful but is in fact an elegant solution. We discuss this pattern for companies, describe why investors should care, and offer some current examples of where this pattern of entry and exit is playing out.

Climate concerns and geopolitical events will revive policy makers support for nuclear power: a safe, reliable and carbon-free source of energy.  Emerging Markets Equity team explain.

The goal of capital allocation is to put resources to their best use to create long-term value per share for ongoing shareholders. The first major part of capital allocation is investing in the business. The second is transacting with mispriced securities, which introduces the potential for wealth transfers between stakeholders. Astute investors appropriately focus on a management's ability to make investments in the business, but they should also pay attention to management actions with regard to buying and selling the company’s stock.

Company culture is essential to unleashing the ingenuity that drives intangible investments, yet it continues to defy quantification. Counterpoint Global identified employee retention as a significant indicator of culture. They show how it correlates with attractive stock returns and how this analysis is integrated into their Sustainability Research process.

The shift from tangible to intangible investments has complicated the ability to interpret financial statements. One solution is to record intangible investments on the balance sheet and then amortize them over their useful lives. These adjustments recast profitability for some companies and are inconsequential for others. Overall, we estimate that earnings for the S&P 500 would be about 10 percent higher with these changes. This suggests great caution in comparing earnings or valuation multiples over time.

Continuous process improvement is essential to achieving outstanding long-term outcomes. Receiving timely and accurate feedback—information used as a basis for improvement—can enhance the process and make you a better forecaster. We discuss multiple facets of process improvement, including getting the right people and helping them thrive, the role of organizational structure in fostering good decision making, and specific mechanisms to sharpen execution. We draw on principles from other fields but focus primarily on the investment management industry.

Organisms allocate energy between growth and maintenance and repair. They stop growing when maintenance requires all of the energy. Substitute capital for energy and companies appear to follow a similar trajectory. This is important because you can anticipate a company’s growth only if you understand how much capital it spends on growth versus maintenance. Most executives and investors likely underestimate maintenance spending. Steps toward better understanding include a proper assessment of maintenance capital expenditures and a separation of SG&A into investment and maintenance components.

After decades of development in garages and hobby shops, small drones are finally ready to make an impact in the enterprise. We discuss the evolution of enterprise drones and how the technology could disrupt small package delivery and aerial data collection. We also discuss the regulatory and societal challenges facing the enterprise drone industry today and highlight recent progress towards overcoming those challenges.

Accounting has not kept pace with the changing economics of businesses, which has created a huge gap between what companies report in their financial statements and what an investor needs to understand a business. To better categorize activities, we suggest making adjustments within the statement of cash flows pertaining to stock-based compensation, leases, and intangible investments. We believe these adjustments substantially improve the description of a business. We share a case study of Amazon for 2020 to make the concepts more concrete.

This report examines the barriers to change for organizations. We use sports as the prime example but then apply the lessons to investment management. Organizations can be slow to adopt certain approaches even when they add value due to loss aversion, a preference for the status quo, and the fear of poor outcomes in the short run. Organizations may overcome these challenges by aligning behind a commitment to improvement, learning, transparency, and accountability. Good long-term results require developing and executing strategies that add value.

We suggest the mantra “everything is a DCF model.” Whenever investors value a stake in a cash-generating asset, they should recognize they are using a discounted cash flow (DCF) model. The topic deserves attention because many market participants don’t think DCF models are relevant, and many use heuristics for value without recognizing the purpose and limitations of the shorthands. The intrinsic value, determined by the present value of future cash flows, attracts the price like a magnetic force. This means it is useful for investors to keep in mind the value drivers of a discounted cash flow model.

The shift in investments from tangible to intangible assets has important implications for how investors should think about corporate growth rates. Companies with more intangible assets can grow faster, but they can also become irrelevant and shrink faster. Our analysis of historical sales growth rates for U.S. companies reveals both of these results: higher growth and more dispersion, on average, for companies and industries with the highest intangible asset intensity. Skillful investors may be able to identify the companies that will grow faster than expected, hence providing the potential for attractive returns.

This report focuses on the customer as the basic unit of analysis in understanding value. The idea of customer lifetime value has been around for decades, but we believe our discussion is richer and more nuanced than what many companies and analysts present. We discuss a framework called customer-based corporate valuation, which links customer economics to shareholder value and offers a more robust way to forecast revenues. We also show the limitations of common ratios such as customer lifetime value to customer acquisition cost (LTV/CAC), explore how companies can create consumer and supplier surplus, provide a case study, examine trade-offs in the drivers of value, and explore common errors.

This report describes market-expected return on investment (MEROI), which measures the return at which the present value of a company’s profits equals the present value of its investments. This allows executives and investors to see how high the bar is set. Measuring returns has become harder as investments have shifted from being mostly tangible to intangible. We gain a clearer view of returns and expectations by separating expenses and investments properly. We break new ground by connecting valuation and accounting.

How to record ESG company risks and opportunities in a consistent and comparable way? The International Equity Team explains the Material Risk Indicator.

The weighted average cost of capital (WACC) and volatility (vol) generally move in lockstep, but 2020 is unusual because the cost of capital is well below its historical average and volatility is well above its historical average. The prime beneficiaries of these patterns are companies rich with real options. In this report, we define real options, discuss what businesses are likely to have them, review the valuation implications, and finish with a way to use real options analysis with traditional valuation.

Quantum computers store and process information using the quantum mechanical properties of matter. Counterpoint Global investigates the impact this new hardware could have on processing speeds and its potential to tackle previously unsolvable computing problems.

CAR-T cell therapy has been a huge breakthrough in curing blood cancers. MSIM’s Counterpoint Global explores how recent advances in the technology could improve its safety and lower its cost while expanding CAR-T cell therapy’s addressable market.

Over the past quarter century there has been a marked shift in U.S. equities from public markets to private markets controlled by buyout and venture capital firms. This change has had reverberations for asset managers, investors, executives, and policy makers.

We show how corporate valuations change as we vary assumptions about growth, return on incremental invested capital, and the discount rate.

Counterpoint Global discusses how Sustainability Research is additive to their existing investment process and converges the pursuit of profits and purpose.

We address four myths or popular delusions in the investment industry.

An investor’s success requires both skill and opportunity. We look at how investors can express skill and use dispersion to measure the opportunity set.

To improve your forecasting skills, try decreasing noise. Analyzing superforecasters reveals forecasters can be trained to more effectively update their views, reduce bias, and reduce noise.

Counterpoint Global examines Blockchain, the technology behind it and its potentially disruptive power.

Counterpoint Global researches autonomous vehicles, which use a suite of sensors, actuators and a central computer to "perceive" the environment and automate the driving process. This technology could change our perception of personal transportation.

Counterpoint Global examines machine learning, a new way to train computer systems to generate insights from data and apply those insights to new situations.

Counterpoint Global analyzes clustered regularly interspaced short palindromic repeats (CRISPR), a tool for genetic research that could birth new industries and disrupt existing medical treatments.