Morgan Stanley Investment Management (MSIM) has launched the MS INVF Systematic Liquid Alpha Fund which aims to provide investors with an attractive level of total return while offering low correlation to traditional asset classes.

The UK and Luxembourg-registered fund, run by the MSIM Hedge Funds team, leverages a diversified set of investment strategies across different asset classes, including equity, fixed income, cash equivalents, currencies and commodities, targeting market neutral performance at an annualised volatility of 8% over the long-term.

Eban Cucinotta, portfolio manager and head of portfolio construction and quantitative analytics for the MSIM Hedge Funds team said: “We have used systematically driven, academically-based alternative sources of return in our custom portfolio solutions for many years and believe them to be an integral part of an investor’s toolkit.

"We are excited to bring to market the Systematic Liquid Alpha strategy which we believe offers efficient access to these potentially diversifying exposures, in a daily dealing UCITS wrapper after managing the strategy live since August 2018 in offshore vehicles.”

MSIM’s Hedge Funds team has over 20 years experience leveraging their size, scale, and expertise to deliver a unique set of exposures and portfolio solutions to a global client base. With over $25B in assets under management/advisement, the team seeks to generate attractive, uncorrelated risk-adjusted returns to meet evolving investor objectives.

Rob Lunn, head of UK distribution at MSIM added: “We are delighted to bring this compelling strategy to the UK market. Designed for investors interested in gaining access to alternative asset classes, the Systematic Liquid Alpha Fund’s multi-asset approach and experienced management team make it an appealing option for investors looking to diversify their portfolios and reduce volatility. By focusing outside of traditional asset classes, the Fund offers investors seeking portfolio diversification broad exposure to market neutral factors in a liquid format.”

The fund is registered in the UK & Luxembourg and will be available in other markets in the coming days/weeks.