December 27, 2023, Morgan Stanley’s New York headquarters.
Angus Mordants | Bloomberg | Getty Images
Morgan Stanley A new investment portfolio is being launched for investors associated with the most prominent sports leagues.
The investment bank’s wealth management arm announced Thursday the launch of what it calls a parameter-tailored core sports league strategy. Aimed at high-net-worth sports fans, the portfolio will enable them to invest in a curated index of companies with strong sponsorship, media and advertising ties to the most prominent sports leagues.
The minimum investment to participate is $250,000.
With valuations soaring over the past decade, sports have proven to be an attractive and growing asset class. This makes those who are still on the fence want to join. Morgan Stanley wants to change that.
The idea for the new product first came about when a Morgan Stanley client asked the bank to design a portfolio composed of companies that supported a specific movement.
“We see a greater opportunity here to do something,” said Sandra Richards, managing director and head of Morgan Stanley’s global sports and entertainment group. “This guy represents a lot of people. “
The portfolio’s holdings are selected from large-cap U.S. stocks and include 250 to 400 securities from companies you might see on the sidelines, on the stock ticker, or in major sporting event advertisers.
Morgan Stanley says the portfolio will mimic risk characteristics S&P 500 Index.
The bank, which has $516 billion in assets under management, will use Nielsen Sports as its data source to track the activity, spending and visibility of companies that do business with professional sports leagues.
“We’re seeing demand from our clients, and they’re asking about ways to invest in sports,” Richards said. “And this will continue.”
