Morgan Stanley is pushing further into the alternative assets arena with the launch of 130/30 and po...
Morgan Stanley is pushing further into the alternative assets arena with the launch of 130/30 and portable alpha funds.
The group has launched currency and commodities funds in recent months and plans to follow these with more offerings in the alternative space next year.
Richard Lockwood, executive director at Morgan Stanley, said the group wants to exploit its reputation as a leader in alternative assets.
"We are looking at private equity, real estate, infrastructure, currency and commodities," he added.
"The move is a reaction to the retail market recognising the need to diversify its portfolios away from equities and bonds."
One fund the group is actively looking to bring to the retail market is a Portable Alpha product based on a successful institutional vehicle.
This sophisticated product uses a swap to gain equity exposure, where beta is generated, and then overlays this with an uncorrelated alpha source, such as a fund of hedge fund or currency strategy.
The 130/30 fund is still in the early stages of development and the group has yet to decide whether to run the fund as a quant or actively managed vehicle.
Alex Brunton, who heads up intermediary sales at Morgan Stanley, said the group will continue to market its regional equity funds to investors, which were launched in two waves in 2005.
"We are also continuing our search for a high-profile UK equity manager," he added.