Morgan Stanley Investment Management (MSIM) has announced the launch of its Diversified Alpha Plus fund under UCITS III.

The fund allows investors to hold a multi-asset class investment portfolio while maintaining a high degree of overall diversification uncorrelated to global risk factors.

Its strategy is in line with Morgan Stanley’s quantitative Global Tactical Asset Allocation (GTAA) investment strategy, which aims to exploit market inefficiencies across global asset classes.

James Dilworth, head of MSIM Europe, Middle East and Africa, says, ‘The Morgan Stanley Quantitative GTAA Strategy team is well established in the field of quantitative investing. We believe they are well positioned to deliver stable and consistent absolute returns.’

The Diversified Alpha Plus Fund seeks to act as a diversifier to an existing portfolio or as a stand-alone investment. The fund will hold currencies via forward and non-deliverable forward contracts; equities via futures and total return swaps; and fixed-income via swaps. Commodities exposure is obtained via a long position in an in-house Morgan Stanley commodities investment.

The fund has an annual management charge of 1.6 per cent. For more information, visit www.morganstanley.com.