Morgan Stanley Investment Management (MSIM) has launched the multi-asset Diversified Alpha Plus fund to tap into investor demand for absolute return vehicles.
The UCITS III fund's investment universe includes currencies through forward and non-deliverable forward contracts, equities via futures and total return swaps and fixed-income by swaps.
Long and short positions will also be taken and commodities exposure via a long position in a Morgan Stanley commodities strategy.
The fund seeks to insulate returns from global risk factors by using a series of proprietary investment signals that seek out alpha-generating strategies across a broad investment universe.
The fund will be managed by the Quantitative Global Tactical Asset Allocation (GTAA) Strategy team which uses an approach designed to exploit market inefficiencies.
Bernd Scherer, global head of Morgan Stanley GTAA, says: “Our proprietary investment strategies allow us to employ a systematic quantitative process to seek out and forecast uncorrelated sources of alpha, identifying and exploiting market-neutral opportunities within each asset class.”
He believes the firm is well positioned to deliver stable and consistent absolute returns.
“Using valuation, momentum and carry-driven strategies, the Diversified Alpha Plus Strategy searches for alpha across equities, fixed income, foreign exchange and commodity markets,” he says.
The fund is designed to act as a diversifier to an existing portfolio or stand-alone investment, according to MSIM.
It is a Luxembourg-domiciled SICAV with management fees of 1.6% pa for class A and B shares and 2.4% for Class C, plus performance fees of 20% on returns above the euro overnight index average.IFAonline
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards