Morgan Stanley Investment Management China (MSIM China), strives to provide diverse investment management services to a full spectrum of clients across both individual and institutional investors. Established as a joint venture in 2008, MSIM China became fully owned by Morgan Stanley Investment Management in 2023.
Benefiting from the global perspective and risk management capability of Morgan Stanley, MSIM China has established a variety of mutual fund and private fund portfolios covering fixed income, active equity, quantitative equity, multi-asset and sustainable investing strategies. Our portfolios have won many prestigious awards, including Morningstar Awards and Golden Bull Awards, which is a testament to our expertise and capabilities.
Established in 1975 as a subsidiary of Morgan Stanley Group Inc, Morgan Stanley Investment Management offers a broad range of innovative and specialized solutions across public and private investment capabilities to a diverse client base that includes governments, institutions, corporations and individuals worldwide. The total AUM of Morgan Stanley Investment Management globally exceeds $1.4 trillion as of end of Q1 in 2023.
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The Nobel prize-winning economist Robert Shiller said, "Finance is not 'making money to make money', it exists to help achieve the goal of a better life." Innovations in financial markets can make a significant contribution to improving the quality of life, such as mortgage systems, insurance, pension systems, etc. The aim of the financial services industry is to build an effective platform for capital providers and capital needs, in which fund investment is the most effective channel for investors to share economic achievements.
With nearly 30 years of experience in the mutual fund industry, we have experienced numerous bull and bear markets—and history always repeats itself. We have learned that a focus on fundamental value analysis wins in the long run. Based on our fundamental analysis, we have deep confidence in the long-term development of domestic capital markets. From the perspective of domestic and foreign capital markets, the overseas market is dominated by institutional investors, while the domestic market has a large proportion of individual investors, which leads to a gap between the investment goals and the ability to manage risk.
As China’s financial markets opens up, the capital market has become more highly developed through internationalization and institutionalization. Market values have also increased for foreign-owned shares. From the Shanghai-Hong Kong Stock Connection, Shenzhen-Hong Kong Stock Connect and Bond Connect, to A-shares being included under MSCI, FTSE Russell and other important foreign indices to the approval of the setup of foreign-owned financial institutions and the complete removal of QFII and RQFII investment quotas — the introduction of such foreign elements has energized the domestic capital market, improved its institutionalization, and enhanced the international status of China's capital market.
The internationalization and institutionalization of A-shares should encourage more rational trading, reduce speculative behaviors and promote wider participation in value investing. At the same time, market competition will increase, and financial institutions will be more dynamic, allowing them to provide more diversified financial services, and form a sustainable financial market system.The internationalization and institutionalization of A-shares should encourage more rational trading, reduce speculative behaviors and promote wider participation in value investing. At the same time, market competition will increase, and financial institutions will be more dynamic, allowing them to provide more diversified financial services, and form a sustainable financial market system.
At present, public funds play an important role in participating in the construction of the third pillar system of pensions. On one hand, public funds use investment management to provide professional services for residents' pension management. On the other hand, having long-term capital, such as pension funds investing into the market through public funds, will also mean more solid implementation and materialization of value investing.
Having been in the market for many years and witnessing many ups and downs, history has demonstrated that among fund companies and industry professionals, only those who adhere to their "fiduciary responsibilities" of upholding the interests of investors as their highest priority can endure into the future. Morgan Stanley Investment Management China observes the investment management principles of Morgan Stanley, where risk management considerations come first. This means we are prepared to sacrifice short-term gain if we believe it is not in the best interests of investors in the longer term. The interests of our existing stakeholders are our priority and we may actively seek to limit fund sizes in order to avoid diluting our investors’ interests.
In the future, our aim is to create value for customers by promoting and developing a variety of businesses, focusing on the fundamentals of asset management, practicing strict and effective risk management, and doing the right thing. With a global perspective, and a long-term focus to create sustainable alpha, we believe we can support real economic development for the benefit of more investors.
Mandy Wang, General Manager, Morgan Stanley Investment Management China
We adhere to a strict set of investment decision making procedures:
As a part of Morgan Stanley’s global operation, we strive to provide efficient and effective risk management as one of our core competencies by combining internationally advanced risk management techniques and local practices in China. The company has developed a prudent risk culture over years of business practice. We’ve established a risk governance framework with clearly defined roles and responsibilities, and deployed a risk management organization under Three Lines of Defense model. Our comprehensive Enterprise Management Framework encompasses investment risk, operational risk, legal and compliance risk, information technology risk and franchise risk etc.
The company sticks to safeguarding the fund share holders’ interests as the starting point, by deeply embedding risk management into the whole life-cycle of our fund products and front-to-back business processes, which includes the risk identification, assessment, reporting, control, mitigation and independent oversight. We plant multidimensional risk management responsibility into all business goals and employee objectives. The development and enhancement of robust risk policies and procedures plays a foundational role, while the execution and testing of such policies and procedures ensures the effectiveness, in a set-up that allows collaboration as well as checks-and-balances. In combining comprehensive and specialized risk management policies and procedures, with advanced and practical risk management models and tools, as well as a prudent and agile risk decision making mechanism, we strive to serve our clients’ best interests with professionalism and integrity, while seeking the healthy long term development of the company.
