Morgan Stanley Investment Management Expands ETF Platform with Eaton Vance Floating-Rate Strategy
08 Février 2024 - 2:30PM
Business Wire
Morgan Stanley Investment Management (“MSIM”) today announced
the launch of its latest ETF, Eaton Vance Floating-Rate ETF
(Ticker: “EVLN”), an actively managed senior loan strategy. EVLN is
the twelfth ETF strategy brought to market since the launch of
MSIM’s ETF platform in February 2023 and is listed on the NYSE.
“We are pleased to expand MSIM’s ETF Platform with EVLN and
continue to deepen our offering with strategies that reflect our
differentiated investment capabilities and client-focused
approach,” said Anthony Rochte, Global of Head of ETFs at MSIM. “A
pioneer in senior loan investment management, the industry-leading
team established its loan platform thirty-five years ago and today
manages over $30 billion in client assets globally. This strategy
makes use of that deep loan market expertise and the in-demand ETF
structure to meet the needs of a broader range of income
clients.”
The actively managed EVLN will seek to provide a high level of
current income through a portfolio comprised no less than 80% in
floating-rate credit investments, the majority of which are
expected to be the floating-rate corporate term loans at the center
of the team’s investment capability. Supporting allocations to
high-yield bonds and collateralized loan obligation debt tranches
will broaden the opportunity set. The strategy will be managed by
MSIM’s investment team dedicated exclusively to loan management,
delivering the same approach to credit management and portfolio
construction employed in the team’s mutual funds and other
vehicles.
“EVLN delivers our longstanding approach to loan investing in a
tradable format,” said Andrew Sveen, portfolio manager, Head of
Floating-Rate Loans and Chairman of MSIM Fixed Income. "The
strategy combines our time-tested bottom-up approach with the
additional tax benefits and intra-day liquidity that the ETF
structure provides.”
This latest ETF complements the existing MSIM active fixed
income ETF offering which includes: Calvert Ultra-Short Investment
Grade ETF (CVSB), Eaton Vance Ultra-Short Income ETF (EVSB), Eaton
Vance High Yield ETF (EVHY) and Eaton Vance Intermediate Municipal
Income (EVIM.) MSIM launched its ETF platform in February 2023 with
six Calvert-branded ETFs and expanded the platform in October 2023
with one Parametric-branded alternative income strategy, one
Parametric-branded hedged equity strategy, and the three Eaton
Vance-branded fixed income strategies. The platform has over $600
million in assets under management as of February 2, 2024.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its
investment advisory affiliates, has more than 1,400 investment
professionals around the world and $1.5 trillion in assets under
management or supervision as of December 31, 2023. Morgan Stanley
Investment Management strives to provide outstanding long-term
investment performance, service, and a comprehensive suite of
investment management solutions to a diverse client base, which
includes governments, institutions, corporations and individuals
worldwide. For further information about Morgan Stanley Investment
Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services
firm providing a wide range of investment banking, securities,
wealth management and investment management services. With offices
in 41 countries, the Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals.
For more information about Morgan Stanley, please visit
www.morganstanley.com.
Before investing carefully consider the Fund's objective,
risks, charges, and expenses available in the prospectus,
please download one at https://www.eatonvance.com. Read
carefully.
Risk Considerations: There is no assurance that a
portfolio will achieve its investment objective. Portfolios are
subject to market risk, which is the possibility that the market
values of securities owned by the portfolio will decline. Market
values can change daily due to economic and other events (e.g.
natural disasters, health crises, terrorism, conflicts and social
unrest) that affect markets, countries, companies or governments.
It is difficult to predict the timing, duration, and potential
adverse effects (e.g. portfolio liquidity) of events. Accordingly,
you can lose money investing in this portfolio. Please be aware
that this portfolio may be subject to certain additional risks.
Loans are generally associated with fixed income securities
risk and are traded in a private, unregulated inter-dealer or
inter-bank resale market and are generally subject to contractual
restrictions that must be satisfied before a loan can be bought or
sold. These restrictions may impede the Fund's ability to buy or
sell loans (thus affecting their liquidity) and may negatively
impact the transaction price. It may take longer than seven days
for transactions in loans to settle; therefore the Fund may hold
cash, sell investments or temporarily borrow from banks or other
lenders to meet short-term liquidity needs. Loans to entities
located outside of the U.S. may have substantially different lender
protections and covenants as compared to loans to U.S. entities and
may involve greater risks. Loans may be structured such that they
are not securities under securities law, and in the event of fraud
or misrepresentation by a borrower, lenders may not have the
protection of the anti-fraud provisions of the federal securities
laws. Loans are also subject to risks associated with other types
of income investments. Fixed-income securities are subject
to the ability of an issuer to make timely principal and interest
payments (credit risk), changes in interest rates
(interest-rate risk), the creditworthiness of the issuer and
general market liquidity (market risk). In a rising
interest-rate environment, bond prices may fall and may result in
periods of volatility and increased portfolio redemptions. In a
declining interest-rate environment, the portfolio may generate
less income. In addition to fixed income securities risk,
asset-backed securities are subject to the risk that various
federal and state consumer laws and other legal and economic
factors may result in the collateral backing the securities being
insufficient to support payment on the securities. Some also entail
prepayment risk and extension risk, and may become more volatile in
certain interest rate environment. Collateralized loan
obligations carry additional risks such as the Fund may invest
in CLOs that are subordinate to other classes and the complex
structure may not be fully understood at the time of investment and
may produce disputes with the issuer or unexpected investment
results. Distressed and defaulted securities are speculative
and involve substantial risks in addition to the risks of investing
in high yield securities, which are lower rated securities
that may have a higher degree of credit and liquidity risk. The
Fund will generally not receive interest payments on the distressed
securities and the repayment of principal may also be at risk.
These securities may present a substantial risk of default or may
be in default at the time of investment, requiring the Fund to
incur additional costs. Mezzanine investments are
subordinated debt securities, thus they carry the risk that the
issuer will not be able to meet its obligations and that the
mezzanine investments may lose value. Investments in foreign
markets entail special risks such as currency, political,
economic, and market risks. The risks of investing in emerging
market countries are greater than the risks generally
associated with investments in foreign developed countries.
Currency fluctuations could erase investment gains or add to
investment losses. Illiquid securities may be more
difficult to sell and value than publicly traded securities
(liquidity risk). Derivative instruments may
disproportionately increase losses and have a significant impact on
performance. They also may be subject to counterparty, liquidity,
valuation, correlation and market risks. Portfolio Turnover.
Consistent with its investment policies, the Fund will purchase and
sell securities without regard to the effect on portfolio turnover.
Higher portfolio turnover will cause the Fund to incur additional
transaction costs. Active Management Risk. In pursuing the
Portfolio’s investment objective, the Adviser has considerable
leeway in deciding which investments to buy, hold or sell on a
day-to-day basis, and which trading strategies to use. The success
or failure of such decisions will affect performance. ETF
Structure Risks. Authorized Participant Concentration Risk. The
Portfolio has a limited number of intermediaries that act as
authorized participants and none of these authorized participants
is or will be obligated to engage in creation or redemption
transactions. As a result, shares may trade at a discount to net
asset value (“NAV”) and possibly face trading halts and/or
delisting. Cash Transactions Risk. Unlike certain ETFs, the Fund
may effect creations and redemptions in cash or partially in cash.
Therefore, it may be required to sell portfolio securities and
subsequently recognize gains on such sales that the Fund might not
have recognized if it were to distribute portfolio securities
in-kind. As such, investments in shares may be less tax-efficient.
Trading Risk. The market prices of Shares are expected to
fluctuate, in some cases materially, in response to changes in the
Portfolio's NAV, the intra-day value of holdings, and supply and
demand for Shares. The Adviser cannot predict whether Shares will
trade above, below or at their NAV. may pay significantly more or
receive significantly less than the Fund’s NAV per share during
periods when there is a significant premium or discount. Buying or
selling Shares in the secondary market may require paying brokerage
commissions or other charges imposed by brokers as determined by
that broker. New Fund Risk. A new portfolio's performance
may not represent how the portfolio is expected to or may perform
in the long term. In addition, there is a limited operating history
for investors to evaluate and the portfolio may not attract
sufficient assets to achieve investment and trading
efficiencies.
Eaton Vance, Parametric and Calvert are part of Morgan Stanley
Investment Management, the asset management division of Morgan
Stanley. Morgan Stanley Investment Management Inc. is the adviser
to the ETFs.
ETFs are distributed by Foreside Fund Services LLC.
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version on businesswire.com: https://www.businesswire.com/news/home/20240208123732/en/
Media Contact: Lauren Bellmare
Lauren.Bellmare@MorganStanley.com
Morgan Stanley (NYSE:MS)
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