Insight Article Desktop Banner
 
 
Insight Article
  •  
November 01, 2022

Managed Futures as a Potential Solution to Market Volatility

Insight Video Mobile Banner
 
November 01, 2022

Managed Futures as a Potential Solution to Market Volatility


Insight Article

Managed Futures as a Potential Solution to Market Volatility

Share Icon

November 01, 2022

 
 

For more than a decade, global market volatility was generally constrained, largely attributed to the quantitative easing and low-to-negative interest rate policies of most central banks around the world. Combined with a bearish cycle across the broad spectrum of commodity markets, the global investment marketplace experienced one of the most prolonged equity bull markets ever. As many times before, this period of buoyancy ultimately resulted in higher inflation, being tackled now by governments globally. Investors are experiencing further uncertainties as geopolitics are combining with fundamental forces to create a surge of volatility across a wide array of market sectors. In periods of such volatility, particularly following a period of extended high equity valuations, clients may be looking for an alternative investment which may not only provide potential protection to market fluctuations, but also potentially capitalize on this increase in volatility.

 
 

Historically, managed futures investments have offered low correlation not only to traditional portfolio investments such as stocks and bonds, but to other alternative hedge fund investments as well. Viewed as an absolute return alternative investment strategy, managed futures typically have a low beta to risky assets and are uncorrelated to long-biased hedge funds, private equity, and others. Moreover, managed futures have no inherent long bias to any asset class, and at periods may be short any number of markets. That could make managed futures an important part of a retail or institutional investor’s portfolio in the current environment which may continue for some time.

Managed futures have historically performed well in periods of extended equity drawdowns. This “crisis alpha,” as it is often referred to, can offer a key component of portfolio insurance in such a period. This is represented by Display 1 which plots the performance of the Barclay CTA Index during periods of stock market drawdowns represented by the performance of the S&P 500 Total Return Index. Importantly, managed futures index’s strong performance includes not only an initial drawdown period but recovery to the “high water mark” as well.

 
 
DISPLAY 1
 
Display CTA Index vs. S&P 500 TR Drawdown
 

Data: January 1980- August 2022 Barclay CTA Index and S&P 500 TR Index. Data for Indices were provided by EurekaHedge. Past performance is not indicative of future results.

 
 

Why the Current Macro Environment May Favor Managed Futures

The current global economic environment is exhibiting widespread volatility which has not been experienced in many years.

Many of the current macro and micro impacts experienced by investors may not be transitory and, in fact, could persist for an extended period of time. Below is a partial list of some of the major fundamental drivers of the volatility we are currently experiencing.

While certain volatility can be a danger to a traditional portfolio, it may also provide trading opportunities for the “right” investment vehicle. Looking forward into the remainder of the year and beyond, there are a number of factors that could point to longer-term volatility that managed futures investments have historically been able to capture.

INFLATION VERSUS CENTRAL BANK POLICIES IN THE U.S. AND INTERNATIONALLY

  • Rising rates and tightening of central bank balance sheets have and will likely continue to rattle global bonds and currencies.
  • Directionality driven by central bank interest rate policies has recently been a major profit driver for the managed futures strategy in general.
  • We expect prolonged inflationary pressures to continue into 2023.

Quantitative tightening, relative to a decade of quantitative easing, has practically just begun, and global money supply is still elevated. Thus, current interest rate policies and other anti-inflationary government actions may continue for the foreseeable future.

RECESSION EXPECTATION AND CONTINUING EQUITY MARKET VOLATILITY

One of the other major factors is the potential for recession and even a prolonged economic slowdown, having a negative impact on global equities and other risky assets. Managed futures is one of the few alternative investment strategies that have the ability for equity exposures to go 100% short. In fact, we have seen short exposures emerge throughout 2022 as global equity prices have moved lower.

DETERIORATING GLOBAL GEOPOLITICAL SITUATION

  • U.S. dominance versus serious threat from Russia, China, etc.
  • Russia/Ukraine war and long-term implications of global sanctions on Russia.
  • Socio-economic concerns across both the Developed and Emerging Market nations (including potentially growing violent political divisions as well as food and energy shortages).
  • U.S. mid-term 2024 presidential elections. We believe political divisions in the U.S. have rarely been so stark in the nation's history. Broadly diverging policy among the two parties have the potential to impact both financial and commodity markets in profound ways.

GLOBAL CONUNDRUM ACROSS ENERGIES AND OTHER COMMODITIES

  • GROWING DEMAND VS. SHRINKING SUPPLIES: Many of the commodity traders we work with believe that the underlying fundamental supply and demand equation in commodities has no real short-term fix. It is not just pent-up demand that is driving the volatility in commodity markets, but the primary reason we see the current commodity cycle being prolonged is the widespread weakness of the global supply chain and how it has been brought on by a decade of underinvestment in capital expenditures at nearly every level.
  • POTENTIAL ENERGY CRISIS: The energy complex, in and of itself, has a multitude of factors driving prices in the near and long term. The above-mentioned supply issues weigh heavily on the global energy marketplace. At the current time, the war between Ukraine and Russia appears to have no clear outcome. Even if there is a resolution between Ukraine and Russia in the near future, the sanctions against Russia by much of the western world are most likely here to stay for years and will continue to impact global energy prices. This is also potentially exacerbated by geopolitical and economic tensions between the U.S. and China, and the U.S. and OPEC.
  • CONTINUED GROWTH OF “GREEN” INITIATIVES, REGULATIONS, AND FINANCING: Also of growing significance is the ESG movement and governments' actions to fight climate change. This has the potential to greatly impact markets in profound ways for years to come. Energy transitions, infrastructure upgrades and electric car vehicle conversions are just a few examples for this to create new opportunities, sometimes in unique commodity markets, such as in global carbon allowance futures. The growing global climate issue may also affect the energy markets in other significant ways. More and more the efforts to move away from hydrocarbon energy to sustainable energy sources, which thus far have not been able to reliably provide for demand volatility, run up against the underlying fact that demand for energy will remain constant in the least and is most likely grow. These imbalances have the potential to inject a considerable amount of volatility into the energy complex.
  • DEGLOBALIZATION NOT LIMITED TO MANUFACTURING: Many of the themes listed above can be seen in terms of a reversal of the “one-world” globalization trend which has emerged over the last 20 years. Any profound change to this trend could potentially have a dramatic impact across the globe and add even more volatility to the current global situation.

We feel that these are just a few of the themes that have the potential for a strategy like managed futures to outperform for an extended period of time, given the current global economic environment. Uncertainties, whether economic, political, or social, will continue to support heightened volatility. Historically, managed futures have capitalized on such environments which feature prolonged volatility, adding diversification to a portfolio in any market environment.

 
 
 
MSIM's Managed Futures Investment Team:
PATRICK EGAN Executive Director Head of Managed Futures Group
  • • 30+ years of relevant industry experience
  • • B.B.A., University of Notre Dame
  • • Chairman and President of Ceres Managed Futures LLC
  • • Former Director on the Managed Funds Association's Board of Directors
  • • Series 3, 7, 24, and 63
  • • Experience: Morgan Stanley
SRDJAN TESLIC, PH.D. Executive Director Chief Investment Officer
  • • 25+ years of relevant industry experience
  • • PhD, Materials Science and Engineering, University of Pennsylvania
  • • B.S., Physics from University of Novi Sad, Serbia
  • • Experience: SEI, BNP Paribas, Parker Global, Ferro, JPMorgan
SCOTT DUNLAP Vice President Portfolio Manager
  • • 20+ years of relevant industry experience
  • • B.A., Lehigh University Finra Series 7
  • • Experience: Morgan Stanley, Ark Asset Management
 
 

MSIM's Managed Futures team, which has roots dating back 40-plus years, specializes in providing high net worth and institutional investors access to multimanager investment solutions. In our view, an allocation to managed futures is an essential component of a well-diversified portfolio. Over the long term, we believe these strategies provide important diversification benefits versus other traditional and alternative asset classes.

For more information, please contact the MSIM Alternative Investments Hotline at (212) 296-7676.

 
 
 
The Managed Futures Team provides multi-manager and single-manager managed futures and currency strategies.
 
 
 
 
 

INDEX DESCRIPTIONS

The respective indices used in this presentation are the S&P 500 Total Return Index, Barclays Aggregate Bond Index, Barclay BTOP50 Index, and HFRI Fund of Funds Composite Index.

The S&P 500 Total Return Index is based on a portfolio of 500 stocks. The S&P 500 Total Return Index is a market value weighted index with each stock’s weight proportionate to its market value. The S&P 500 Total Return Index accounts for approximately 80% coverage of U.S. equities as of June 30, 2016. Total return provides investors with a price-plus-gross cash dividend return. Gross cash dividends are applied on the ex-date of the dividend.

The Bloomberg Aggregate Bond Index covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS sectors.

The MSCI World Index is a free float adjusted market capitalization weighted index that is designed to measure the global equity market performance of developed markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends.

The Barclay CTA Index is a leading industry benchmark of representative performance of commodity trading advisors. To qualify for inclusion in the CTA Index, an advisor must have four years of prior performance history. Additional programs introduced by qualified advisors are not added to the Index until after their second year. These restrictions, which offset the high turnover rates of trading advisors as well as their artificially high short-term performance records, ensure the accuracy and reliability of the Barclay CTA Index.

HFRI Fund Weighted Composite Index is an index comprised of funds of hedge funds classified by Hedge Fund Research, Inc. as “diversified.” Funds of hedge funds classified by HFR as “diversified” do not necessarily meet applicable diversification tests under the Investment Company Act of 1940 or the Internal Revenue Code. Rather, funds of hedge funds classified by HFR as “diversified” seek to minimize losses during down markets while still achieving superior returns in up markets, and they seek to do so by investing in underlying hedge funds collectively pursuing a variety of investment strategies and managed by multiple investment managers. The Index is an index of funds of hedge funds comprising approximately 340 funds of hedge funds which report monthly returns to HFR’s database and have either a minimum of $50 million in net assets or a track record of at least 12 months.

S&P GSCIU TR Index is the first major investable commodity index. It is one of the most widely recognized benchmarks that is broad-based and production weighted to represent the global commodity market beta. The index is designed to be investable by including the most liquid commodity futures, and provides diversification with low correlations to other asset classes.

IMPORTANT INFORMATION

The views and opinions are those solely of the author or the investment team as of the date of preparation of this material and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views and opinions herein will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date of publication. The views and opinions expressed do not reflect those of other or all investment teams at Morgan Stanley Investment Management (“MSIM”) or of the firm as a whole, and may not be reflected in all the strategies and products that the firm offers.

Forecasts and/or estimates provided herein are subject to change at any time and may not actually come to pass. Information regarding expected market returns and market outlooks is based on the research, analysis and opinions of the authors. These conclusions are speculative in nature, may not come to pass and are not intended to predict the future performance of any specific MSIM product.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Certain information herein is based on data obtained from third party sources believed to be reliable. However, such information has not been independently verified, and accordingly, no representations or warranties, express or implied, are made whatsoever as to its accuracy or completeness.

MSIM and its affiliates disclaim any and all liability arising from or in connection with any use of or reliance upon such information or any other information contained herein.

This communication is not a product of Morgan Stanley’s Research Department and should not be regarded as a research recommendation. The information contained herein has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This material is a general communication, which is not impartial and has been prepared solely for informational and educational purposes and does not constitute a solicitation, offer, solicitation of an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. All investments involve risks, including the possible loss of principal. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.

This document may be translated into other languages. Where such a translation is made this English version remains definitive. If there are any discrepancies between the English version and any version of this document in another language, the English version shall prevail.

MSIM is the asset management division of Morgan Stanley.

All information contained herein is proprietary and is protected under copyright and other applicable laws, and may not be distributed or republished, in whole or in part, without the prior written consent of MSIM.

Managed futures investments are speculative, involve a high degree of risk, use significant leverage, have limited liquidity and/or may be generally illiquid, may incur substantial charges, may subject investors to conflicts of interest, and are suitable only for the risk capital portion of an investor’s portfolio. Before investing in any partnership and in order to make an informed decision, investors should read the applicable prospectus and/or offering documents carefully for additional information, including charges, expenses and risks. Investors should read the prospectus and/or offering documents carefully for additional information, including charges, expenses and risks. Managed futures investments are not intended to replace equities or fixed income securities but rather may act as a complement to these asset categories in a diversified portfolio.

DISTRIBUTION

This communication is only intended for and will only be distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

Ireland: MSIM Fund Management (Ireland) Limited. Registered Office: The Observatory, 7-11 Sir John Rogerson’s Quay, Dublin 2, D02 VC42, Ireland. Registered in Ireland as a private company limited by shares under company number 616661. MSIM Fund Management (Ireland) Limited is regulated by the Central Bank of Ireland. United Kingdom: Morgan Stanley Investment Management Limited is authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 1981121. Registered Office: 25 Cabot Square, Canary Wharf, London E14 4QA, authorised and regulated by the Financial Conduct Authority. Dubai: Morgan Stanley Investment Management Limited (Representative Office, Unit Precinct 3-7th Floor-Unit 701 and 702, Level 7, Gate Precinct Building 3, Dubai International Financial Centre, Dubai, 506501, United Arab Emirates. Telephone: +97 (0)14 709 7158). Germany: MSIM Fund Management (Ireland) Limited Niederlassung Deutschland, Grosse Gallusstrasse 18, 60312 Frankfurt am Main, Germany (Gattung: Zweigniederlassung (FDI) gem. § 53b KWG). Italy: MSIM Fund Management (Ireland) Limited, Milan Branch (Sede Secondaria di Milano) is a branch of MSIM Fund Management (Ireland) Limited, a company registered in Ireland, regulated by the Central Bank of Ireland and whose registered office is at The Observatory, 7-11 Sir John Rogerson’s Quay, Dublin 2, D02 VC42, Ireland. MSIM Fund Management (Ireland) Limited Milan Branch (Sede Secondaria di Milano) with seat in Palazzo Serbelloni Corso Venezia, 16 20121 Milano, Italy, is registered in Italy with company number and VAT number 11488280964. The Netherlands: MSIM Fund Management (Ireland) Limited, Rembrandt Tower, 11th Floor Amstelplein 1 1096HA, Netherlands. Telephone: 31 2-0462-1300. Morgan Stanley Investment Management is a branch office of MSIM Fund Management (Ireland) Limited. MSIM Fund Management (Ireland) Limited is regulated by the Central Bank of Ireland. France: MSIM Fund Management (Ireland) Limited, Paris Branch is a branch of MSIM Fund Management (Ireland) Limited, a company registered in Ireland, regulated by the Central Bank of Ireland and whose registered office is at The Observatory, 7-11 Sir John Rogerson’s Quay, Dublin 2, D02 VC42, Ireland. MSIM Fund Management (Ireland) Limited Paris Branch with seat at 61 rue de Monceau 75008 Paris, France, is registered in France with company number 890 071 863 RCS. Spain: MSIM Fund Management (Ireland) Limited, Sucursal en España is a branch of MSIM Fund Management (Ireland) Limited, a company registered in Ireland, regulated by the Central Bank of Ireland and whose registered office is at The Observatory, 7-11 Sir John Rogerson’s Quay, Dublin 2, D02 VC42, Ireland. MSIM Fund Management (Ireland) Limited, Sucursal en España with seat in Calle Serrano 55, 28006, Madrid, Spain, is registered in Spain with tax identification number W0058820B. Switzerland: Morgan Stanley & Co. International plc, London, Zurich Branch Authorised and regulated by the Eidgenössische Finanzmarktaufsicht (“FINMA”). Registered with the Register of Commerce Zurich CHE-115.415.770. Registered Office: Beethovenstrasse 33, 8002 Zurich, Switzerland, Telephone +41 (0) 44 588 1000. Facsimile Fax: +41(0) 44 588 1074.

Australia: This publication is disseminated in Australia by Morgan Stanley Investment Management (Australia) Pty Limited ACN: 122040037, AFSL No. 314182, which accept responsibility for its contents. This publication, and any access to it, is intended only for “wholesale clients” within the meaning of the Australian Corporations Act. Hong Kong: This document has been issued by Morgan Stanley Asia Limited for use in Hong Kong and shall only be made available to “professional investors” as defined under the Securities and Futures Ordinance of Hong Kong (Cap 571). The contents of this document have not been reviewed nor approved by any regulatory authority including the Securities and Futures Commission in Hong Kong. Accordingly, save where an exemption is available under the relevant law, this document shall not be issued, circulated, distributed, directed at, or made available to, the public in Hong Kong. Singapore: This publication should not be considered to be the subject of an invitation for subscription or purchase, whether directly or indirectly, to the public or any member of the public in Singapore other than (i) to an institutional investor under section 304 of the Securities and Futures Act, Chapter 289 of Singapore (“SFA”), (ii) to a “relevant person” (which includes an accredited investor) pursuant to section 305 of the SFA, and such distribution is in accordance with the conditions specified in section 305 of the SFA; or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. In particular, for investment funds that are not authorized or recognized by the MAS, units in such funds are not allowed to be offered to the retail public; any written material issued to persons as aforementioned in connection with an offer is not a prospectus as defined in the SFA and, accordingly, statutory liability under the SFA in relation to the content of prospectuses does not apply, and investors should consider carefully whether the investment is suitable for them. This publication has not been reviewed by the Monetary Authority of Singapore.

BRAZIL. This document does not constitute a public offering of securities for the purposes of the applicable Brazilian regulations and has therefore not been and will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários) or any other government authority in Brazil. All information contained herein is confidential and is for the exclusive use and review of the intended addressee of this document, and may not be passed on to any third party.

CHILE. Neither the Fund nor the interests in the Fund are registered in the Registry of Offshore Securities (el Registro de Valores Extranjeros) or subject to the supervision of the Commission for the Financial Market (la Comisión para el Mercado Financiero). This document and other offering materials relating to the offer of the interests in the Fund do not constitute a public offer of, or an invitation to subscribe for or purchase, the Fund interests in the Republic of Chile, other than to individually identified purchasers pursuant to a private offering within the meaning of Article 4 of the Chilean Securities Act (la Ley del Mercado de Valores) (an offer that is not “addressed to the public at large or to a certain sector or specific group of the public”).

COLOMBIA. This document does not constitute an invitation to invest or a public offer in the Republic of Colombia and is not governed by Colombian law. The interests in the Fund have not been and will not be registered with the National Register of Securities and Issuers (el Registro Nacional de Valores y Emisores) maintained by the Financial Supervisory Authority of Colombia (la Superintendencia Financiera de Colombia) and will not be listed on the Colombian Stock Exchange (la Bolsa de Valores de Colombia). The interests in the Fund are being offered under circumstances which do not constitute a public offering of securities under applicable Colombian securities laws and regulations. The offer of the interests in the Fund is addressed to fewer than one hundred specifically identified investors. Accordingly, the interests in the Fund may not be marketed, offered, sold or negotiated in Colombia, except under circumstances which do not constitute a public offering of securities under applicable Colombian securities laws and regulations. This document is provided at the request of the addressee for information purposes only and does not constitute a solicitation. The interests in the Fund may not be promoted or marketed in Colombia or to Colombian residents unless such promotion and marketing is carried out in compliance with Decree 2555 of 2010 and other applicable rules and regulations related to the promotion of foreign financial and securities related products or services in Colombia.

Colombian eligible investors acknowledge that the interests in the Fund

(i) are not financial products, (ii) are transferable only in accordance with the terms of the Fund’s constitutional documents and (iii) do not offer any principal protection.

Colombian eligible investors acknowledge Colombian laws and regulations (in particular, foreign exchange, securities and tax regulations) applicable to any transaction or investment consummated in connection with an investment in the Fund, and represent that they are the sole liable party for full compliance with any such laws and regulations. In addition, Colombian investors acknowledge and agree that the Fund will not have any responsibility, liability or obligation in connection with any consent, approval, filing, proceeding, authorization or permission required by the investor or any actions taken or to be taken by the investor in connection with the offer, sale or delivery of the interests in the Fund under Colombian law.

MEXICO. Any prospective purchaser of the interests in the Fund must be either an institutional investor (inversionista institucional) or a qualified investor (inversionista calificado) within the meaning of the Mexican Securities Market Law (Ley del Mercado de Valores) (the “Securities Market Law”) and other applicable Mexican laws in effect.

The interests in the Fund have not and will not be registered in the National Registry of Securities (Registro Nacional de Valores) maintained by the Mexican Banking and Securities Commission (Comisión Nacional Bancaria y de Valores). The interests in the Fund may not be offered or sold in the United Mexican States by any means except in circumstances which constitute a private offering pursuant to Article 8 of the Securities Market Law and its regulations. No Mexican regulatory authority has approved or disapproved the interests in the Fund or passed on the solvency of the Fund. All applicable provisions of the Securities Market Law must be complied with in respect of any sale, offer or distribution of, or intermediation in respect of, the Fund interests in, from or otherwise involving Mexico, and any resale of the interests in the Fund within Mexican territory must be made in a manner that will constitute a private offering pursuant to Article 8 of the Securities Market Law and its regulations.

PERU. The interests in the Fund have not been and will not be registered in Peru under Decreto Legislativo 862: Ley de Fondos de Inversión y sus Sociedades Administradoras or under Decreto Legislativo 861: Ley del Mercado de Valores (the “Securities Market Law”), and are being offered to institutional investors only (as defined in article 8 of the Securities Market Law) pursuant to a private placement, according to article 5 of the Securities Market Law. The interests in the Fund have not been registered in the securities market public registry (Registro Público del Mercado de Valores) maintained by, and the offering of the Fund interests in Peru is not subject to the supervision of, the Superintendencia del Mercado de Valores. Any transfers of the Fund interests shall be subject to the limitations contained in the Securities Market Law and the regulations issued thereunder.

URUGUAY. The offering of the Interests qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The Interests will not be offered or sold to the public (Individuals or Companies) in Uruguay, except in circumstances which do not constitute a public offering or distribution through a recognized Exchange under Uruguayan laws and regulations. Neither the Fund nor the Interests are or will be registered with la Superintendencia de Servicios Financieros del Banco Central del Uruguay. The Fund corresponds to an investment fund that is not an investment fund regulated by Uruguayan law 16,774 dated September 27, 1996, as amended.

IMPORTANT  INFORMATION

EMEA: This marketing communication has been issued by MSIM Fund Management (Ireland) Limited. MSIM Fund Management (Ireland) Limited is regulated by the Central Bank of Ireland. MSIM Fund Management (Ireland) Limited is incorporated in Ireland as a private company limited by shares with company registration number 616661 and has its registered address at The Observatory, 7-11 Sir John Rogerson’s Quay, Dublin 2, D02 VC42, Ireland.

Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.

All investments involve risks, including the possible loss of principal. The material contained herein has not been based on a consideration of any individual client circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

The views and opinions are those of the Investment team as of the date of preparation of this material and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all Investment teams at Morgan Stanley Investment Management or the views of the firm as a whole, and may not be reflected in the strategies and products that the Firm offers.

Charts and graphs provided herein are for illustrative purposes only. This material has been prepared using sources of information generally believed to be reliable but no representation can be made as to its accuracy.

The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the applicable European or Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

MSIM has not authorised financial intermediaries to use and to distribute this document, unless such use and distribution is made in accordance with applicable law and regulation. MSIM shall not be liable for, and accepts no liability for, the use or misuse of this document by any such financial intermediary. If  you are  a distributor  of the  Morgan  Stanley Investment

Funds, some or all of the funds or shares in individual funds may be available for distribution. Please refer to your sub-distribution agreement for these details before forwarding fund information to your clients.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without MSIM’s express written consent. All information contained herein is proprietary and is protected under copyright law.

All information contained herein is proprietary and is protected under copyright law.

Morgan Stanley Investment Management is the asset management division of Morgan Stanley.

 

This is a Marketing Communication.

Check the background of our firm and registered representatives on FINRA's BrokerCheck

It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products.

The services described on this website may not be available in all jurisdictions or to all persons. For further details, please see our Terms of Use.

Not FDIC Insured—Offer No Bank Guarantee—May Lose Value
Not Insured By Any Federal Government Agency—Not A Deposit

Subscriptions    •    Privacy & Cookies    •    Your Privacy Choices    •    Terms of Use

©  Morgan Stanley. All rights reserved.

Morgan Stanley Distribution, Inc. Member FINRA/SIPC.