Morgan Stanley Investment Management (MSIM) Fixed Income has implemented a targeted engagement program focusing on environmental, social, and governance (ESG) issues. This approach is integrated into their research and investment processes to identify opportunities for better risk management and potential returns through dialogues with issuers.
Anuj Gulati, Head of Strategic and Thematic Research at the Global Fixed Income Team, along with Rachel Smith, Associate Fixed Income ESG Strategy Specialist, are involved in this initiative. They aim to encourage issuers to pursue positive sustainability outcomes.
The program acknowledges that ESG ratings are subjective and not absolute standards of quality. These ratings apply only to portfolio holdings and do not eliminate the risk of loss. Market risks can cause fluctuations in security values due to various economic events. It is noted that there is no assurance that ESG strategies will lead to favorable investment performance.
Fixed-income securities carry several risks including credit risk, interest rate risk, market liquidity risk, and more. For instance, U.S. government securities purchased by the strategy may not be backed by full faith and credit of the U.S., potentially affecting payment obligations in the future.
Investors should evaluate their ability to invest long-term as no investment strategy guarantees success under all market conditions. A separately managed account may not suit all investors; thus they should consider objectives, risks, and fees before investing.
The material stresses that views expressed are those of the authors or investment team as of its preparation date and might change without notice due to market conditions. These views do not reflect opinions across all Morgan Stanley Investment Management personnel or products offered by the firm.
Forecasts provided are speculative and based on available data but may not predict future performance accurately due to changing economic conditions.
This communication is intended for informational purposes only and does not constitute an offer or recommendation for any specific security or strategy. Investors should seek independent advice before making decisions.
Distribution restrictions apply depending on jurisdictional regulations where MSIM operates through various entities like MSIM Fund Management (Ireland) Limited in Europe or Morgan Stanley Asia Limited in Hong Kong among others globally.