- Morgan Stanley is introducing a new portfolio for investors tied to the most prominent sports leagues.
- It will target high net worth sports fans and will carry a minimum investment of $250,000.
- Sports have proven to be an attractive and growing asset class as valuations have skyrocketed over the past decade.
Morgan Stanley is introducing a new portfolio for investors tied to the most prominent sports leagues.
The investment bank's wealth management division on Thursday announced the launch of what it is calling Parametric Custom Core Sports League strategy. The portfolio, aimed at high net worth sports fans, will allow them to invest in a curated index of companies with strong sponsorship, media and advertisement ties to the most prominent sports leagues.
There is a $250,000 investment minimum to participate.
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Sports have proven to be an attractive and growing asset class as valuations have skyrocketed over the past decade. That has left those who are still on the sidelines wanting to get in. But for most Americans, owning a pro sports team is financially well out of reach. Morgan Stanley is hoping to change that.
The idea for the new offering first came about when a Morgan Stanley client asked the bank to design a portfolio made up of the companies that support a specific sport.
"We saw that there was a bigger opportunity to do something here," said Sandra Richards, managing director and head of Morgan Stanley's Global Sports and Entertainment Division. "This one person represents many, and multiples of many that are looking to invest in sports as a fan looking to get engaged."
Money Report
The portfolio's holdings are selected from large-cap U.S. equities and will consist of between 250 and 400 securities from companies that you may see on the sidelines, in the tickers or among the advertisers of major sporting events.
Morgan Stanley says the portfolio will mimic the risk characteristics of the S&P 500.
The bank, which has $516 billion of assets under management, will tap into Nielsen Sports as its data source to track the activity, spending and visibility of the companies with exposure to professional sports leagues.
"We see the demand from our clients that are asking about ways to invest in sports," said Richards. "And it's going to continue."
