Morgan Stanley Wealth Management’s global investment division has rolled out its latest implementation that’s aimed at assisting financial advisors and their clients to spot single stock risk factors in the markets before the price drops. 

The Equity Vulnerability Score is a risk management tool that provides valuable insights into the stock market for investors who hold “concentrated equity positions,” which is considered five or fewer stocks that generate more than 30% of the risk in a portfolio, according to Morgan Stanley. 

Additionally, the tool will help flag the probability that a stock may soon drop in its valuation, and the tool can be utilized to accompany the firm’s existing Tactical Equity Framework, which is a structure that plays a key role in identifying short-term opportunities to provide stronger performance.  

Morgan Stanley’s Tactical Equity Framework is part of the firm’s investment strategies, within its exchange-traded funds model portfolios. The framework, alongside its Dynamic Allocation Framework, aims to provide “unbiased top-down” and “bottom-up” viewpoints on equity exposures. 

In May, Morgan Stanley Investment Management released its first registered evergreen private equity fund, dubbed the North Haven Private Assets Fund, for high-net-worth clients. The fund builds on the firm’s Private Equity Solutions, which is part of its $240 billion alternatives platform.