Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Video special: what Scottish DFMs think of SNP election flop

Video special: what Scottish DFMs think of SNP election flop

As delegates gathered for Citywire Scotland, we asked them their take on the election.

Play Keith Skeoch: 'passive has a part to play'

Keith Skeoch: 'passive has a part to play'

In the third part our series, Skeoch outlines his vision for Standard Aberdeen.

2 Comments Play Keith Skeoch: why I believe markets will make 'substantial returns'

Keith Skeoch: why I believe markets will make 'substantial returns'

In an exclusive interview, Standard Life CEO Keith Skeoch tells us why he takes an optimistic view on markets just about everywhere.

Read More
Your Business: Cover Star Club

Profile: Rathbones' fund boss on spotting emerging talent

1 Comment Profile: Rathbones' fund boss on spotting emerging talent

A great fund manager is really easy to spot, says Mike Webb, chief executive of Rathbones Unit Trust Management

Wealth Manager on Twitter