Morgan Stanley Investment Management has launched the Global Mortgage Securities Fund to invest in mortgages and securitised debt instruments issued by government agencies and private institutions.

“The global mortgage market is a broad and dynamic landscape,” said Sheila Huang, head of the firm’s mortgage team.

“Over time, investor preferences and convictions can change due to such factors as regulatory constraints, asset values and the availability of credit,” she said. “These changes result in dislocations in relative value and solid opportunities for mortgage-related investments.”

The global mortgage research team seeks to identify opportunities across all areas of the securitised market, with portfolio construction taking place over three stages: value identification, implementation and evaluation. The firm said the fund applies a consistent and thematic bottom-up investment approach, combining global macro analysis with research and analysis of industry trends to formulate a diversified portfolio.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has $338 billion in assets under management or supervision, as at December 31 2012.