The launch builds on the success of the £683m Morgan Stanley Global Brands Fund, which Derold co-manages with five other members of the global equities team.
The Global Brands Oeic was launched in 2003 and has top quartile performance across three and five years (see the graph below).
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Morgan Stanley said the Global Quality Fund will seek to generate attractive returns by investing in high quality companies characterised by an ability to compound value, a strong competitive advantange, an experienced management team and robust intangible assets, including strong brands and distribution networks.
Derold said: “Our primary goal is to compound our investors’ assets over time. By investing in high quality companies with an inherent economic robustness, we aim to deliver returns to investors at a time when they need them most, during difficult and challenging market environments.
The team screens companies on criteria including a resilient top line, attractive margins and sustainable cross-cycle returns. It then meets with company management to develop an understanding of its culture and the long-term business strategy.
Finally it looks at valuation, which needs to be attractive in order to justify an investment.
