Industry Updates

Alternative UCITS fund from Morgan Stanley and SLJ Macro Partners LLP

Monday, October 15, 2012

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Opalesque Industry Update - Morgan Stanley has announced the launch of a new fund under its Irish UCITS umbrella, FundLogic Alternatives Plc. The MS SLJ Macro UCITS Fund (the “Fund”), will provide investors with an opportunity to gain exposure to a global macro strategy focused, but not exclusively, on Foreign Exchange Markets. The Fund will be managed by SLJ Macro Partners LLP, a U.K. based asset manager co-founded by Stephen Jen and Fatih Yilmaz.

The Fund seeks to achieve absolute returns, which are expected to have a low correlation to traditional asset class returns, whilst limiting the potential for capital losses.

Commenting on the new launch, David Armstrong, Managing Director and Global Head of Fund- Linked business at Morgan Stanley said: “Our collaboration with SLJ is a major step towards the development of our FundLogic Platform as it allows us to expand our fund offering to new strategies”. He added: “We are confident that Stephen and Fatih’s impressive experiences and research backgrounds will prove a key element in the success of this new program as it brings together their expertise in deep analysis of macroeconomics and macro policies, along with rigorous quantitative modeling.”

“Although our core business is to actively manage our global macro strategy, we believe that our role as a provider of foreign exchange overlay services in combination with our macro research and advisory services sets us apart from others. Furthermore, it enables us to concentrate on long term directional opportunities that we see in the Foreign Exchange Markets”, Stephen Jen, co-Portfolio Manager of the MS SLJ Macro UCITS Fund commented.

“Our idea generation methodology combines a top-down discretionary investment process that aims to identify trades in the currency markets most likely to capture macro themes, and a systematic framework based on a proprietary bottom-up approach, to rank assets that fit into our broad macro investment theme”, Fatih Yilmaz, co-Portfolio Manager of the MS SLJ Macro UCITS Fund added.

“We see our sound risk management processes, which notably include diversification guidelines, maximum drawdown limits and stop-loss rules, augmented by the solid UCITS framework provided by Morgan Stanley - one of the leading providers of regulated alternative strategies - as great appeal to investors wanting to tap into the global macro sub-strategy.” FundLogic is the brand name for Morgan Stanley’s fund solutions platform launched in 2006. It offers both UCITS and non-UCITS funds.

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