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Morgan Stanley Rolls Out Six ESG Investing Portfolios

By Alex Padalka June 18, 2019

In a bid to address the growing interest in environmental, social and governance (ESG) investing, Morgan Stanley has introduced a suite of new portfolios the company says align with the United Nations’ sustainable development goals.

Morgan Stanley’s six so-called “Impact Portfolios” have a $10,000 minimum and will include mutual funds, ETFs or all-equity options, selected by the firm’s wealth management investment resources team, Morgan Stanley says in a press release. The “intentional focus” of the portfolios is what’s known as the UN’s sustainable development goal (SDG) 14, which is related to ocean conservation, Matthew Slovik, head of global sustainable finance at the firm, says in the press release. Other possible alignments include other UN SDGs, such as clean water and sanitation, affordable and clean energy, decent worth and economic growth, reduced inequalities and climate action, Morgan Stanley says.

The new portfolios are part of Morgan Stanley’s Investing with Impact Platform, launched in 2012, which offers more than 120 investment strategies and portfolio solutions across issues such as climate change, community economic development and diversity and inclusion, among others, according to the press release. The platform has already attracted over $28 billion in assets, Morgan Stanley says.

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“At Morgan Stanley we are committed to integrating environmental, social and governance factors across our core businesses, and we use our platform as a global financial services provider to mobilize and scale capital in ways that deliver sustainable growth and long-term value,” Lisa Shalett, chief investment officer for Morgan Stanley Wealth Management, says in the press release. “We’ve seen impact investing can deliver competitive market returns when investors choose to integrate positive environmental and social impact over the long term, and this new suite addresses heightened investor demand to align values with their portfolios.”