Morgan Stanley Investment Management is launching a portfolio aiming to create risk-adjusted returns by holding high-quality credits.

The Global Premier Credit Fund holds “premier credit”: corporate debt issued by businesses characterised by dominant franchises or leading industry positions, low capital intensity, and strong balance sheets. It is designed to manage risk against excessive business cycle shifts for investors, by drawing upon research from MSIM’s global fixed income team, the firm said in a statement.

“The Global Premier Credit Fund aims to be an effective strategy to help investors wanting to diversify from government debt, by seeking higher yields through capturing the credit premium of the highest-quality credits with limited volatility and default risk,” said Richard Ford, European head of credit for Morgan Stanley Investment Management.

“For investors looking for a customised approach to corporate credit, this fund can be the principal allocation of a global credit portfolio, with a more opportunistic credit allocation to take advantage of market dislocations,” said Ford.

Additionally, the fund employs proprietary quantitative tools to screen the credit universe and monitor high-quality issuers, the firm said.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 560 investment professionals around the world and $331 billion in assets under management or supervision, as of 30 September 2012.