Morgan Stanley introduces smart beta ETF on LSE

Jun 24th, 2014 | By | Category: Equities

Morgan Stanley has launched its debut exchange-traded fund, the MS Scientific Beta Global Equity Factors UCITS ETF (GEF).

Morgan Stanley introduces smart beta ETF on London Stock Exchange

Morgan Stanley introduces smart beta ETF on London Stock Exchange.

The ETF, which was unveiled on the London Stock Exchange earlier this month, provides exposure to the Scientific Beta Developed Multi-Beta Multi-Strategy Equal Weight Index and is the first ETF to be launched between Morgan Stanley and smart beta index provider ERI Scientific Beta.

Rolled out under the investment bank’s FundLogic platform, the fund aims to meet the growing demand from institutional investors to access smart beta indices and factor indices through liquid and transparent products.

Hitendra Varsani, Head of the Quantitative and Derivative Strategies team at Morgan Stanley, said: “We are pleased to provide UCITS investors with access to the Scientific Beta Developed Multi-Beta Multi-Strategy Equal-Weight Index. The index was devised by ERI Scientific Beta, which is an innovative smart beta index provider and an affiliate of the EDHEC-Risk Institute. The ETF gives investors exposure to developed market equities and combines smart beta investing and risk factor investing into a single strategy.”

Professor Noël Amenc, Director of EDHEC-Risk Institute and CEO of ERI Scientific Beta, added: “We are excited to partner with Morgan Stanley in providing its institutional clients with transparent smart-beta index replication using a market-leading fund platform. Through Morgan Stanley’s FundLogic platform, UCITS ETF investors can get exposure to our Strategy in a very efficient way.”

Morgan Stanley Fundlogic becomes the 25th exchange-traded product issuer on the London Stock Exchange, which is now home to 687 ETFs and 354 ETCs/ETNs – more than any other European exchange.

Pietro Poletto, Head of Fixed Income & ETPs at the London Stock Exchange Group, said: “We’re delighted to welcome Fundlogic to the market. Their presence will build on the exciting growth we are seeing in this space as new issuers and index developers continue to innovate in the products and strategies on offer to investors. The growth in issuers and ETPs is being matched in trading with almost £12bn turnover in May this year.”

The fund has a total expense ratio of 0.40%.

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