Morgan Stanley Investment Management has launched an actively managed mutual fund called Morgan Stanley Commodities Alpha Fund that caters to high-net-worth investors.
“The Commodities Alpha Fund gives investors the potential to capture the returns of a global, diverse and growing market that has a low correlation with equity and bond market returns,” Justin Simpson, global head of the quantitative and structured solutions team and lead portfolio manager, said in a company statement. ”For investors seeking to diversify their portfolio, we believe this strategy may be an attractive opportunity for direct, actively managed exposure to the commodities asset class with the potential for incremental returns.”
The fund aims to generate the returns of the Dow Jones AIG Commodity Index 1 and yield incremental returns from an actively managed multi-strategy alpha engine. The fund pursues exposure to the commodities market via investments in commodities-linked instruments and fixed-income securities, including money market instruments. The fund is aiming for above-market returns from a number of proprietary quant trading strategies developed to exploit inefficiencies or anomalies in the commodities market,
such as price curves, price change and volatility.
The Quantitative and Structured Solutions Group is managing the fund.
