Morgan Stanley IM plans $10 billion municipal mutual fund-to-ETF conversions

Morgan Stanley Investment Management launched a plan to convert eight municipal bond mutual funds into ETFs, covering nearly $10 billion in assets.

• Seven funds would shift into newly created actively managed municipal ETFs.
• One fund would reorganize into the existing Eaton Vance Short Duration Municipal Income ETF.
• Conversions require shareholder votes for each fund; closing also depends on customary conditions.
• Assets are measured as of Aug. 31, 2026; the firm is positioning the move as an expansion of its ETF platform.