Morgan Stanley Investment Management, which launched its ETF platform in February, is planning its first two mutual fund-to-ETF conversions, a filing with the Securities and Exchange Commission showed.
Two open-end mutual funds, each a series of the Morgan Stanley Institutional Fund Trust, are slated to be reorganized into two newly created ETFs, according to the Oct. 2 filing.
The planned reorganizations call for the Eaton Vance Total Return Bond ETF to acquire the $552 million Core Plus Fixed Income Portfolio and for the Eaton Vance Short Duration Municipal Income ETF to acquire the $187 million Short Duration Municipal Income Portfolio.
A joint special meeting of shareholders of each of the two mutual funds is set for Dec. 15, the filing said. If shareholders of a fund slated for acquisition approve the reorganization and certain other closing conditions are met or waived, shareholders of the acquired fund will become shareholders of the corresponding ETF, according to the filing.
Shareholders of record as of close of business Oct. 25 are entitled to vote, the filing said.
On Feb. 1, MSIM announced the launch its ETF platform with the listing of six Calvert ETFs, a much-anticipated move that came almost 30 years after Morgan Stanley helped to pioneer the ETF market.
Morgan Stanley, MSIM's parent company, acquired Calvert Research and Management as part of its acquisition of Eaton Vance, which was completed in 2021.
MSIM had $1.4 trillion assets under management as of June 30.
An MSIM spokesperson declined to comment on the planned conversions beyond the filing.