Insight Article Desktop Banner
 
 
Insight Article
  •  
novembre 01, 2022

Managed Futures: A Primer

Insight Video Mobile Banner
 
novembre 01, 2022

Managed Futures: A Primer


Insight Article

Managed Futures: A Primer

Share Icon

novembre 01, 2022

 
 

What are Managed Futures and Commodity Trading Advisors?

Managed futures investment strategies may provide qualified investors access to the world’s exchange-cleared and regulated futures, options on futures, and currency forward markets. These investment strategies are employed by Commodity Trading Advisors (CTAs). Historically, the CTA universe is comprised of a wide array of investment approaches that manage client assets. CTAs are professional asset managers with membership in the National Futures Association (NFA) and are registered with the Commodity Futures Trading Commission (CFTC).

 
 

There are several characteristics of managed futures which differentiates it as an investment strategy. Below are a few of the primary fundamental underpinnings and features of managed futures as an alternative investment strategy.

Absolute Return Strategy:

There is often the misconception that managed futures only make profits when stocks are down and vice versa when stocks rally. In reality, managed futures is an absolute return strategy whose long-term returns are independent not only of stock market performance but also any other asset class. One of the key reasons this is often the case is because a CTA can go long or short in any market they trade in with relatively equal ease. Thus, a managed futures strategy can capitalize when markets are exhibiting bullish tendencies, but also record gains from downside price moves. It is the ability to be long or short in the global futures marketplace which, over time, gives managed futures its low correlation not only to traditional stock and bond investments, but other alternative strategies as well. And, because managed futures have been complementary to these other investment strategies, an inclusion of managed futures to a qualified investor’s portfolio can potentially improve the portfolio’s overall risk/return characteristics. (However, it is important to remember past performance is not indicative of future results.)

Inherent Diversification:

Another key aspect of managed futures is the style differentiation and integration of two separate and unique investment styles, quantitative systematic and fundamental discretionary trading.

Systematic Strategies:

  • These strategies typically utilize proprietary trading models to identify pricing trends ranging from short-term to long-term, with short-term strategies holding trades for only a few days, and longer-term strategies seeking to capitalize on price trends over weeks or months. Systematic CTAs are unemotional in their investment-making processes. Each systematic CTA has its own proprietary trading models that have the advantage of optimally adjusting exposures as opportunities ebb and flow, without the “in the moment” emotion that can be involved with discretionary decision-making.
  • Trading models across CTAs differ greatly with regards to markets traded, time horizon, type of analysis employed, and input data analyzed. These models attempt to determine the future trajectory of prices or relative relationships based on historical data inputs and using scientific methods. Accordingly, research departments at CTAs are staffed primarily by experts with quantitative backgrounds such as mathematicians, physicists, engineers and scientists from other quantitative-related disciplines.
  • More powerful computing technology, data availability and collection, and overall growing market diversity has been the primary drivers behind the evolution of systematic trading strategies over the last few decades.
  • This automated style of trading has many advantages. Most importantly, a systematic CTA can monitor and trade in multiple markets at one time. Most CTAs trade between 75 and 200 markets at once, many of which have little to no correlation to one another. This broad exposure to multiple market opportunities lies at the foundation of managed futures trading. Using strict risk controls, liquid markets and daily mark-to-market practices, CTAs have positions in numerous trades, adjusting position sizes accordingly as opportunities develop or challenging trading environments arise.

Fundamental Discretionary Strategies:

  • These strategies tend to be less technical and more fundamental, seeking to anticipate market moves rather than capitalize on existing price trends. They tend to trade with larger position sizes, in a smaller number of markets. Discretionary strategies may also focus their expertise on a single market or market sector.
  • Discretionary CTAs acquire deep expertise in their areas of specialty. They analyze fundamental supply demand data, gather quantitative and qualitative information from niche, not easily obtainable, data sources, including other experts in a particular field related, directly or indirectly, to the markets traded by the CTA. Quantitative and qualitative analyses are performed to identify individual market price imbalances that offer attractive risk reward opportunities. This expertise tends to result in fewer, larger positions than a systematic manager would normally have. Discretionary managers, whether they trade futures or securities, can share this trait.
  • Discretionary CTAs are required to possess expert knowledge. They are typically focused on a particular sector, such as energy, for example, or can be even further specialized to a market within a sector, natural gas being one. In addition, position sizing and timing of trade entry and exit is of extreme importance. Fundamental CTAs rely on their risk management expertise, developed over their professional careers, suited to their personalities and their clients’ risk tolerances.
 
 

Unique Diversification Through Broad Global Market Access:

Futures markets allow direct access to markets that are important to the world’s economic flows and may offer opportunities that are difficult for investors to access via other investment options. Currently, there are dozens of futures exchanges globally and hundreds of individual futures markets trading on those exchanges, with new market contracts added frequently. This allows for broad global market diversification (Display 1) across a wide range of market sectors, including: Currency, Fixed Income, Equity Indices, Commodity (energies, grains, softs, metals, livestock).

 
 
DISPLAY 1
 
Representative Markets Traded*
 

* The list above is for illustrative purposes only and may not necessarily be inclusive of all the markets that may be traded on behalf of the Funds operated by the Managed Futures team.

 
 

Futures contracts traded on individual markets are based on standardized terms and set dates. As such, CTAs typically do not trade in individual physical markets or securities, but rather, futures contracts based on representative asset prices for a future date. We believe the breadth of the futures markets is one of the main reasons that managed futures funds have historically performed differently from stocks, bonds and other alternative investment strategies.

In general, futures markets provide commodity producers an opportunity to hedge against fluctuating market prices.

An investment in these dynamic markets can offer investors an opportunity today to potentially protect their investment portfolios from adverse market environments as well as add important portfolio diversification that can potentially improve overall portfolio risk-adjusted returns.

Below are some of the other key aspects which differentiate managed futures funds from traditional investments as well as other alternative investment strategies:

  • MANAGED COUNTERPARTY RISK: Futures contracts are exchange-cleared instruments, which means the risk between counterparties is managed effectively by the respective exchanges and limited to an exchange’s members. Each exchange has a clearing corporation that consists of multiple institutional members. The clearing corporation takes the offsetting positions of each participant and clears them so that all parties are made whole, and all transactions are completed. Clearing members have a financial obligation to support this function. A clearing corporation’s multiple members help to minimize the risk of single counterparty default—a risk that exists for securities that are not cleared via a clearing corporation.
  • LIQUIDITY: Futures contracts are liquid financial instruments that trade and settle daily on regulated exchanges, which allows for transparent market pricing.
  • REGULATION: Subject to oversight by CFTC and National Futures Association (NFA).
  • TAX EFFICIENCY: The majority of the trading-related gains and losses from managed futures funds are taxed annually at 60% long-term /40% short-term tax rates and reported via Schedule K-1.
  • TRANSPARENCY: Unlike many other alternative investments, managed futures are able to mark-to-market daily, providing a higher level of transparency and frequency of valuation.
 
 

Low Correlation to Other Asset Classes:

  • Historically, managed futures have had low correlation to traditional asset classes and other alternative investments, which can make them a powerful portfolio diversifier. Unlike long-only and long-biased equity and bond portfolios, which tend to rise and fall with their respective markets, managed futures investments generally profit when sustainable trends, either up or down, exist. This is represented by the correlation chart in Display 2 which shows the long-term correlation between managed futures, as represented by the Barclay CTA Index, versus other traditional and alternative asset classes.
 
 
DISPLAY 2
 
Barclay CTA Index vs. Asset Classes
 

Data: January 2005-August 2022. U.S. stocks are represented by the S&P 500 TR, U.S. Bonds by Bloomberg US Agg Bond TR, International Stocks by MSCI World Index, Managed Futures by Barclay CTA Index, Hedge Funds by HFRI Fund Weighted Composite Index, and Commodities by S&P GSCI TR Index. Data for Indices were provided by EurekaHedge. Past performance is not indicative of future results.

 
 
  • Over time, managed futures have proven to be a source of downside protection, delivering positive returns during periods of equity market weakness. In fact, managed futures investments have historically experienced their strongest performance when traditional markets are experiencing extended and severe weakness and heightened, directional volatility. The previous chart indicates the performance of the Barclay CTA Index during periods of extended equity drawdowns represented here by the S&P 500 Total Return Index. As the below chart shows, historically, managed futures have tended to perform well in periods of extended equity weakness.
 
 
DISPLAY 3
 
Barclay 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.

 
 
  • Managed futures, with the scope and breadth of both systematic and discretionary strategies, trade both long and short across a universe of potentially hundreds of markets on exchanges around the globe, and can be a source of diversification in traditional stock and bond portfolios, as well as to other alternative strategies like private equity and hedge funds.
 
 
 
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.
 
 
 
Approfondimenti correlati
 
Approfondimenti correlati
 
 

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.

 

La presente comunicazione ha carattere promozionale.

Prima di procedere è necessario leggere attentamente tutti i Termini e le Condizioni che illustrano i vincoli legali e normativi che regolano la divulgazione delle informazioni relative ai prodotti di investimento Morgan Stanley Investment Management.

È possibile che i servizi illustrati in questo sito Web non siano disponibili in tutte le giurisdizioni o a qualsiasi persona. Per ulteriori informazioni, si rimanda alle condizioni d'uso.


Privacy e cookie    •    Istruzioni per l'uso

©  Morgan Stanley. Diritti riservati.