Opalesque Industry Update – Morgan Stanley and Equinox Fund
Management LLC (“Equinox”), a U.S.-based multi-manager, have announced their partnership
with Longchamp Asset Management, (“Longchamp”) a French asset management company,
together “the parties”, in the European regulated CTA space. Through this partnership with
Longchamp, Morgan Stanley and Equinox will drive the offering of Commodity Trading Advisor
(CTA) strategies forward after successfully launching four CTA strategies on Morgan Stanley’s
FundLogic Alternatives Platform in recent months. The four funds offer exposure to complementary
strategies implemented by highly talented and renowned managed futures trading advisors including
Winton Capital Management, Quantitative Investment Management, Mesirow Financial and Quest
Through this collaboration, the parties are leveraging their respective expertise by which Morgan Stanley provides its expertise in prime brokerage and futures clearing merchant as well as the fund infrastructure while Equinox contributes its strong CTA expertise and Longchamp their deep knowledge of the European investor base. As such, Longchamp will work jointly with Morgan Stanley to distribute the CTA offering throughout Europe.
“Our collaboration with Equinox and Longchamp and the launch of the first four strategies was an important milestone for our Funds business. It has provided us with the opportunity to expand our product range and offer investors access to this diversifying asset class”, commented Stephane Berthet, Head of FundLogic Alternatives UCITS Platform at Morgan Stanley. “CTAs are a key asset class in portfolio construction given their diversification benefits and potentially contrarian behavior in adverse market environments. We are looking forward to further expanding our capabilities through the partnership with Longchamp.”
David Armstrong, President and Founder of Longchamp commented: “We are thrilled to make concrete our long lasting ties with Morgan Stanley and Equinox through the creation of Longchamp. Equinox’s investment in Longchamp is a further evidence of their commitment to making the distribution of CTA strategies in a UCITS format a huge success.” He added: “We believe Morgan Stanley’s leadership and expertise will prove key factors in successfully making CTA strategies accessible in a UCITS fund format.”
Michel Serieyssol, Managing Director at Equinox and Member of the Advisory Board of Longchamp, added: “Our venture with Longchamp allows us to implement our longstanding aspiration to establish ourselves in Europe. Morgan Stanley’s financial engineering team has been successful in the design of a unique solution through which CTA managers are able to access both the U.S. and European regulated markets leveraging the same technology.”
FundLogic is the brand name for Morgan Stanley’s fund solutions platform launched in 2006. It offers both UCITS and non-UCITS funds. The platform delivers fund solutions to clients by combining the financial expertise, innovation and resources of Morgan Stanley, and offers a range of products including passive index funds, structured funds and the more recently launched third party manager- UCITS funds.