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Morgan Stanley-Run ESG Fund Is Biggest Japan Debut in 20 Years

  • The new fund raised an initial amount of about $3.6 billion
  • About 44% of its holdings are in information technology stocks
Updated on

A bet on ESG and a rush among Japanese investors to own foreign stocks, particularly in the technology space, has proved to be a winning combination for a fund managed by Morgan Stanley Investment Management in the Asian nation.

Launched last month, the Global ESG High Quality Growth Equity Fund, run by the U.S. asset manager and owned by Japan’s Asset Management One Co., raised an initial amount of 383 billion yen ($3.6 billion), the most for a new offering in Japan in 20 years, according to data compiled by Bloomberg. That’s also the second-biggest launch ever among all stock funds in the nation, behind the Nomura Japan Equity Strategy Fund, which back in 2000 had an initial value of 792.5 billion yen.