Morgan emerging market debt fund bows

Morgan Stanley Investment Management has launched the Morgan Stanley Emerging Markets Domestic Debt Fund Inc., the first U.S. registered closed-end fund to invest principally in emerging markets sovereign debt denominated in the local currency of the issuer. The fund will invest primarily in sovereign debt obligations but may also invest in debt obligations of non-governmental issuers located in emerging markets, including bonds, convertible securities and commercial paper. Distributed by the Wealth Management division, the fund is managed by MSIM's Emerging Markets Debt team, which is made up of Abigail McKenna, Eric Baurmeister, and Federico Kaune. The fund, which trades on the New York Stock Exchange under the symbol "EDD" has issued 63.75 million shares of its common stock at $20 per share for a total of $1.275 billion. With the full exercise of the underwriters' over-allotment, the proceeds of the fund could rise to $1.466 billion. New York-based Morgan Stanley under wrote the offering and the co-managers were St. Louis-based A.G. Edwards Inc., Toronto-based Oppenheimer Holdings Inc. and Raymond James Financial Inc of St. Petersburg, Fla. Morgan Stanley Investment Management, together with its investment advisory affiliates manages $500 billion in assets under management as of Feb. 28.