Morgan Stanley has launched a lower-volatility version of its giant multi-asset fund, which is managed by Citywire A-rated star Cyril Moulle-Berteaux.
The Morgan Stanley Diversified Alpha Plus Low Volatility fund will target a positive return in all market conditions, with less volatility than its sister Diversified Alpha Plus fund, by investing in equities, bonds, exchange-traded funds, derivatives, currencies, and structured products.
The original Diversified Alpha Plus, which now contains £5.3 billion, has been the best performer in the Citywire Alternative Ucits Multi Strategy sector over the past three years.
In that time it has returned 29.6%, compared with a peer-group average of 10.7%; the second-placed fund in the sector, Standard Life Investments’ Gars, has generated 19.2% through the same period.
Diversified Alpha Plus also boasts the sector’s best Sharpe ratio through both one and three-year timeframes.
However, its volatility as measured by standard deviation places it below Gars over both one and three years.
The new low-volatility fund will have an ongoing charges ratio of 1.95%, according to its key investor information document, compared with 2.05% on the equivalent A share class of the original fund.