Morgan Stanley ETFs Surpass $1 Billion Post Fund Conversions

Morgan Stanley ETFs achieve remarkable milestone, surpassing US$1 billion after fund conversions

Morgan Stanley Investment Management (MSIM) has achieved a significant milestone by surpassing US$1 billion in assets under management with the conversion of two mutual funds into exchange-traded funds (ETFs). This accomplishment marks a notable success for MSIM's ETF platform, which was launched just last year and now boasts a total of 14 ETFs.

The two converted funds, the MSIFT Core Plus Fixed Income Portfolio and the MSIFT Short Duration Municipal Income Portfolio, are now available as the Eaton Vance Short Duration Municipal Income ETF (EVSM) and the Eaton Vance Total Return Bond ETF (EVTR), respectively. These ETFs trade on the NYSE and NYSE Arca platforms, offering investors tax efficiency, transparency, value, and trading flexibility.

Anthony Rochte, Global Head of ETFs at MSIM, expressed satisfaction with the platform's growth, attributing the success to strong demand for MSIM's distinctive investment capabilities within the ETF structure. The conversions of EVTR and EVSM allow investors to benefit from MSIM's established approach to income investing while also gaining the benefits of an ETF vehicle.

The new ETFs complement MSIM's active fixed income ETF offering, which includes the Calvert Ultra-Short Investment Grade ETF (CVSB), Eaton Vance Ultra-Short Income ETF (EVSB), Eaton Vance High Yield ETF (EVHY), Eaton Vance Intermediate Municipal Income (EVIM), and Eaton Vance Floating Rate ETF (EVLN). The platform, which was launched in 2023, features a diverse range of products, including six Calvert-branded ETFs, one Parametric-branded alternative income strategy, one Parametric-branded hedged equity strategy, and six Eaton Vance-branded fixed income strategies.

Morgan Stanley Investment Management, along with its investment advisory affiliates, employs over 1,400 investment professionals globally and manages or supervises US$1.5 trillion in assets as of December 31, 2023. The firm is committed to delivering outstanding long-term investment performance and a comprehensive suite of investment management solutions to a diverse client base, including governments, institutions, corporations, and individuals worldwide.

The ETF market has seen substantial growth in recent years, with investors increasingly drawn to the liquidity, cost-effectiveness, and tax advantages that ETFs offer. MSIM's successful conversion of mutual funds to ETFs reflects a broader industry trend where traditional investment vehicles are being restructured to meet evolving investor preferences and market demands.

As MSIM continues to expand its ETF offerings, the firm is well-positioned to cater to the growing appetite for innovative and accessible investment solutions. The milestone of surpassing US$1 billion in assets under management is not only a testament to the firm's strategic vision but also signals the potential for further growth and development within the ETF sector. Investors and industry observers alike will be watching closely as MSIM builds on this momentum to shape the future of investment management.