Morgan Stanley Asset Management and Miller Anderson & Sherrerd have launched the Morgan Stanley Universal funds, which will be used as underlying investments for variable annuity and variable insurance products, said Jeff Margolis, principal, Morgan Stanley Asset Management.
Morgan Stanley bought Miller Anderson last year.
The funds will be clones of up to 17 existing institutional mutual funds of both firms. Initially eight to 12 funds will be offered.
Initially, the funds will be distributed by the insurance companies using them, typically alongside other investment firms' portfolios, but down the road, Morgan Stanley might offer a variable insurance or annuity product distributed by its own brokers, he said.