Morgan Stanley Investment Management Partners with Opportunity Finance Network on the Newly Launched Impact Class of Money Market Fund Shares

Rhea-AI Summary

Morgan Stanley Investment Management (MSIM) has partnered with Opportunity Finance Network (OFN) to address the affordable housing crisis through its newly launched Impact Class. This initiative allows MSIM to contribute at least 0.02% of net annualized assets from the Impact Class shares to diversity, equity, and inclusion (DE&I) initiatives, particularly affordable housing. OFN aims to raise $1 billion for its Finance Justice Fund to support underinvested communities. The Impact Classes are available to direct institutional investors in MSIM's liquidity funds, enhancing both investment returns and social impact.

Positive

• Partnership with Opportunity Finance Network supports affordable housing and DE&I initiatives.
• MSIM commits to contribute at least 0.02% of net annualized assets to support these initiatives.
• Impact Classes align investment objectives with social impact goals, appealing to socially conscious investors.

Negative

• None.

Supporting organizations key to addressing the affordable housing crisis

NEW YORK--(BUSINESS WIRE)-- Morgan Stanley Investment Management (MSIM) announced today it has selected Opportunity Finance Network (OFN) as its diversity and inclusion partner for MSIM’s charitable contribution related to the newly launched Impact Class. OFN is a leading national network of 370 community development finance institutions (CDFIs) that works to ensure communities underserved by mainstream finance have access to affordable, responsible financial products and services.

The Impact Classes are share classes available in two of MSIM’s institutional money market funds. They contain a contribution feature in which MSIM, out of its own profits from managing the Impact Classes, provides support to organizations that focus on affordable housing, children’s health and nutrition and education among other diversity, equity and inclusion (DE&I) initiatives. Under this new partnership, MSIM will make an annual contribution to OFN’s Finance Justice Fund, an OFN initiative that aims to bring $1 billion in capital from corporate and philanthropic partners to historically underinvested communities.

“MSIM chose OFN as a partner because it is uniquely positioned to help money flow to people and places where traditional financing doesn’t reach,” said Navindu Katugampola, MSIM’s Head of Sustainable Investing.

“We are deeply grateful for Morgan Stanley Investment Management’s support of our Finance Justice Fund,” said Beth Lipson, interim CEO and Chief Financial Officer of Opportunity Finance Network. “Its contributions will help us achieve the goal of the Finance Justice Fund, which is to close the racial wealth gap and accelerate the work of our member CDFIs investing in affordable housing, health centers, schools, and other anchors of the vibrant communities where we all wish to live.”

The Impact Classes are available to direct institutional investors in Morgan Stanley Institutional Liquidity Funds Government (IMPXX) and Prime (IMPTXX) portfolios. They are designed to help institutional liquidity investors achieve their primary investment objectives of principal stability, liquidity, and income while at the same time advancing their DE&I goals. MSIM will contribute at least 0.02% of the net annualized assets under management in the Impact Class shares to support DE&I initiatives.

The Impact Classes represent the latest in the series of innovative share classes and product structures across the Morgan Stanley Institutional Liquidity Funds money market fund lineup that are designed to assist DE&I and environmental, social and governance (ESG) conscious liquidity investors. Investors interested in the Impact Class may also be interested in the CastleOak Shares which were launched last year in partnership with CastleOak Securities, L.P., a leading minority-owned boutique investment bank, whose giving back philanthropy focuses on community, professional development and education.

About Opportunity Finance Network
Opportunity Finance Network (OFN) is a leading national network of more than 370 community development financial institutions (CDFIs), specialized lenders that provide affordable, responsible financial products and services in low-income rural, urban, and Native communities nationwide. As a trusted intermediary between CDFIs and the public and private sectors, OFN works with its partners – banks, philanthropies, corporations, government agencies and others – to create economic opportunity for all by strengthening and investing in CDFIs. Since its founding in 1986 and through 2020, the network has originated $91.2 billion in financing in rural, urban, and Native communities, helping to create or maintain more than 2.2 million jobs, start or expand 535,550 businesses and microenterprises, and support the development or rehabilitation of more than 2.2 million housing units and more than 13,270 community facility projects.

About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 1,200 investment professionals around the world and $1.3 trillion in assets under management or supervision as of September 30, 2022. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, client 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 http://www.morganstanley.com/im.

Please consider the investment objectives, risks, charges and expenses of the portfolios carefully before investing. The prospectus contains this and other information about the portfolios. To obtain a prospectus, download one at www.morganstanley.com/liquidity or call 1.800.236.0992. Please read the prospectus carefully before investing.

Morgan Stanley Institutional Liquidity Funds Government (IMPXX)
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Prime (IMPTXX)
You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Morgan Stanley Distribution, Inc. serves as distributor for the Morgan Stanley Institutional Liquidity Funds. Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221021005372/en/

Opportunity Finance Network Media Contact:

Lisa Chensvold

Phone: 202-516-8238

Email: lchensvold@OFN.org

Morgan Stanley Media Contact:

Jessica Ong

Phone: 212-762-0801

Email: jess.ong@morganstanley.com

Source: Morgan Stanley Investment Management

FAQ

What is MSIM's new partnership with OFN about?

MSIM has partnered with Opportunity Finance Network to support affordable housing and DE&I initiatives through its new Impact Class.

How much will MSIM contribute to the Finance Justice Fund?

MSIM will contribute at least 0.02% of net annualized assets from the Impact Class shares to support the Finance Justice Fund.

What is the goal of the Finance Justice Fund?

The Finance Justice Fund aims to raise $1 billion to support historically underinvested communities.

Who can invest in MSIM's Impact Classes?

The Impact Classes are available to direct institutional investors in the Morgan Stanley Institutional Liquidity Funds.

What are the primary objectives of the Impact Classes?

The Impact Classes aim to provide principal stability, liquidity, income, and advance DE&I goals.