Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Morgan Stanley in double ‘alpha and alternative’ fund launch

Morgan Stanley in double ‘alpha and alternative’ fund launch

Morgan Stanley has launched two new funds to offer exposure to different types of alternative alpha strategies.

The Liquid Alpha Capture fund will be managed by Ryan Meredith and Janghoon Kim, and will seek to generate absolute returns through strategies derived from hedge funds.

The Morgan Stanley team will analyse a universe of around 22,000 hedge funds and identify a top tier of between 20 and 50. It will then conduct a bottom-up review of the publicly disclosed holdings of these stars in order to develop quantitative processes for capturing their ideas. The managers will also draw on hedge funds’ alternative beta ideas.

The fund’s annual management charge will be 0.75%, and it will only invest in assets liquid enough to enable daily dealing.

Morgan Stanley has also unveiled a Liquid Alternatives fund, which will invest ‘primarily in non-traditional asset classes’ both directly and through other funds.

As examples of the types of asset the fund will buy, Morgan Stanley cited emerging-market debt, high-yield debt, convertible bonds, real estate, commodities, frontier-market equity, insurance-linked strategies, mortgage-backed securities, infrastructure, private equity, and absolute-return funds.

The Liquid Alternatives fund will be managed by Meredith, Kim, Joseph McDonnell and Rui De Figueiredo. Its annual management charge will be 0.60%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter