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Morgan Stanley Sterling Corporate Bond Class F - Income (GBP)

Sell:96.94p Buy:96.94p Change: 0.02p (0.02%)
Prices as at 21 February 2024
Sell:96.94p
Buy:96.94p
Change: 0.02p (0.02%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 21 February 2024
Sell:96.94p
Buy:96.94p
Change: 0.02p (0.02%)
Prices as at 21 February 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Richard Ford is an experienced corporate bond investor and has the support of a strong team at Morgan Stanley.

The managers mainly invest in higher quality bonds, believing that this will drive superior long-term returns.

The fund has performed well over the long-term, delivering good returns to patient investors.

Our view on the sector

Funds in this sector invest mainly in 'investment grade bonds'. These are issued by companies that are more likely to be able to repay their debts to bondholders. As such, they tend to offer lower yields than bonds issued by companies that are less likely to be able to pay off their debts. While they tend to offer lower yields than bonds issued by higher risk companies, prices of these bonds tend to be less volatile over time. We think a corporate bond fund could be a good addition to a diversified portfolio invested to generate income.

Performance Analysis

The fund's relatively defensive approach means it has tended to perform broadly in-line with a rising market and provided some shelter during tougher periods. The fund has done well for investors whove patiently stayed invested over the long-term and we think the managers have the potential to continue doing so going forward. But there are no guarantees and past performance is not a guide to the future.

Investment Philosophy

The managers think superior long-term returns are generated by holding better quality bonds. Although they could provide a lower return than riskier ones when the economy's doing well, they feel these higher-quality bonds will more than make up for this by falling less when bond markets sell off.

Process and Portfolio Construction

The managers start by forming their outlook for the wider global economy, considering the prospects for growth, interest rates, inflation and more.

Then they carry out detailed research on individual companies and bonds. They try to make sure companies have the ability to pay the full interest on their bonds and make the capital repayments too. They also take account of valuations to avoid bonds that could be too expensive, or where the yield is too low to offset the risks they've identified. We think this analysis of individual companies and bonds is one of the team's strengths.

The fund invests heavily in the UK, but includes some global bonds too. Where they invest in overseas bonds, the managers remove the effect of currency exchange rate changes by using derivatives, which can add risk. They also have the freedom to invest in high yield bonds which also adds risk. They never invest more than 20% of the fund in these types of bonds.

question mark Manager Track Record Based on HL Quantitative Research

  • Morgan Stanley Sterling...
  • Morgan Stanley Sterling...
  • IA £ Corporate Bond
FROM: TO:


Source: Refinitiv Lipper

Fund Track Record

21/02/19 to 21/02/20 21/02/20 to 21/02/21 21/02/21 to 21/02/22 21/02/22 to 21/02/23 21/02/23 to 21/02/24
Annual return 10.20% 3.32% -4.65% -10.96% 7.03%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Morgan Stanley was established in 1935 and has grown to become one of the world's leading financial services companies, with market leading positions in the US, Europe, Asia and emerging markets. The company operates under three principal divisions: Wealth Management, Investment Management and Investment Banking.

Morgan Stanley Investment Management (MSIM) was established in 1975 and is the asset management division of Morgan Stanley. Headquartered in New York City, but with portfolio management teams based across the world, MSIM offers investment expertise and products across a broad spectrum of global equities, fixed income, liquidity, alternatives and private markets.

Information about the fund

Fund manager biography

Manager Name: Dipen Patel
Manager start date: 1 December 2018
Manager located in: TBC

Dipen is a portfolio manager for the Global Fixed Income team. He joined Morgan Stanley in 2009 and has five years of investment experience. During his time at the firm he has worked in the Financial Control Group, before joining Morgan Stanley Investment Management in 2014. Dipen received a B.Sc. (Hons) in investment and financial risk management from the Cass Business School and is a qualified Chartered Management Accountant.

manager photo
Manager Name: Richard Ford
Manager start date: 1 December 2005
Manager located in: London

Ric is global head of Credit on the Global Fixed Income team. He joined Morgan Stanley in 1991 and has 28 years of investment experience. During his time at the firm he has worked as a risk manager and as a proprietary trader before joining MSIM in 2002. In addition to his experiences at Morgan Stanley, Ric was a chartered accountant with Ernst and Young and a portfolio manager with Pimco. Ric received a B.Com. in business studies from Edinburgh University and is a qualified Chartered Accountant.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account