Morgan Stanley Investment Management (MSIM) has launched a new Global Balanced Sustainable fund, which will seek to achieve a "positive impact" alongside "financial returns".
Managed by the global balanced risk control team, the Paris Agreement-aligned fund will invest in global equities, fixed income securities, money market instruments and cash, while seeking to offer the same "attractive" returns and downside protection that are the "hallmark" of the team's risk-controlled portfolios.
The fund will invest 5-30% of assets in managers who "explicitly aim for positive environmental and social outcomes", while also engaging with companies through dialogue and proxy voting to "enhance" the impact the firms make.
Lead manager Andrew Harmstone described the team's approach as "highly flexible" and able to adjust exposure to a range of asset classes when volatility is anticipated.
He said: "The Global Balanced Sustainable fund brings exciting opportunities to deliver attractive risk-adjusted returns across a market cycle, whilst at the same time bringing tangible environmental and social benefits."
Emily Chew, global head of sustainability at MSIM, added: "Although sustainable investing has grown rapidly, there remain few options for investors who need a multi-asset solution in the public markets space.
"The Global Balanced Sustainable fund combines thoughtfulness of approach to multi-asset ESG integration, with the credibility of the Paris-aligned target - a goal that is ever more top of mind in an era of climate change."
Richard Lockwood, head of distribution for Northern Europe, MSIM, said: "Continuing to incorporate sustainable investing principles is a key priority for us. The launch of the Global Balanced Sustainable fund is the latest development in our efforts to offer investors as much choice as possible in how they meet their sustainable investing goals."