Morgan Stanley

Morgan Stanley Alternative Investment Partners Launches the AIP Dynamic Alternative Strategies Fund

May 13, 2013

New York —

Morgan Stanley Alternative Investment Partners (AIP) today announced the launch of the AIP Dynamic Alternative Strategies Fund, its first-ever mutual fund and a significant addition to the innovative investment solutions AIP already offers clients across hedge funds, private equity, real estate and diversified alternatives.  The new mutual fund provides investors with daily liquidity and a sophisticated, one-step means of accessing a broad range of alternative strategies that may complement traditional equity and fixed income investments.  


“AIP has been successfully managing portfolios of non-traditional strategies on behalf of clients for years, and the new AIP Dynamic Alternative Strategies Fund will enable a broader group of investors to pursue the diversification benefits of alternatives,” said Ryan Meredith, Co-Portfolio Manager.  

The fund utilizes AIP's innovative, proprietary hedge fund replication strategy that seeks to generate returns based on several fundamental underlying hedge fund strategies.  The fund also provides exposure to additional non-traditional return sources and will be actively managed in an effort to capture new opportunities and to manage risk.

“We are excited to present investors with an open-end mutual fund solution that addresses many of the challenges associated with investing in alternatives,” added Patrick Reid, Co-Portfolio Manager.  “The structure for the AIP Dynamic Alternative Strategies Fund delivers AIP’s investment selection, portfolio construction and risk management expertise in a vehicle that offers daily liquidity, investment transparency and modest investment minimums.”    

“Our new fund is the latest example of AIP’s pioneering efforts to integrate alternative investments into portfolio construction and asset allocation,” said Arthur Lev, Head of AIP.   “Institutional investors have long used alternative investments to seek increased return potential with lowered equity risk, but it remains challenging for individual investors to construct a well-diversified portfolio of alternative investments.  The AIP Dynamic Alternative Strategies Fund changes the equation by effectively connecting individual investors to the strengths of alternatives.”


Morgan Stanley Alternative Investment Partners (AIP), part of Morgan Stanley Investment Management, specializes in assisting investors achieve their goals through the design, integration and management of alternative investment programs.  Our investment teams have unique expertise in fund investing, secondaries and co-investing across private equity, hedge fund, real estate and multi-asset class strategies.  For further information about AIP, please visit

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Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund and can be obtained by contacting your Morgan Stanley Financial Advisor or by downloading one at Please read the prospectus carefully before investing.

Risk Considerations

There is no assurance that a mutual fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that the market values of securities owned by the fund will decline and that the value of fund shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this fund. Please be aware that this fund may be subject to certain  additional risks. Alternative asset classes. Because the Fund’s performance is linked to the performance of certain highly volatile alternative asset classes, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund shares. Correlation risk. While the Fund seeks to invest in mutual funds which are deemed likely to have limited correlations among each other or with fixed income or equity indices, there can be no assurance that the Fund’s expectations regarding such limited correlations will prove correct. Non-diversification. Nondiversified funds often invest in a more limited number of issuers. As such, changes in the financial condition or market value of a single issuer may cause greater volatility. The risk of investing in the Fund may be intensified because it may invest in securities of a limited number of issuers. Fund of funds risk. Because the Fund’s investments are concentrated in other mutual funds, and the Fund’s performance is directly related to the performance of such underlying funds, the ability of the Fund to achieve its investment objective is directly related to the ability of the underlying funds to meet their investment objectives. ETFs. Shares of ETFs have many of the same risks as direct investments in common stocks or bonds and their market value is expected to rise and fall as the value of the underlying index rises and falls. As a shareholder in an ETF, the fund would bear its ratable share of that entity’s expenses while continuing to pay its own investment management fees and other expenses. Equity securities. In general, equity securities’ values fluctuate in response to activities specific to a company. Fixed- income securities. Subject to credit and interest-rate risk. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. In a declining interest-rate environment, the fund may generate less income. In a rising interest-rate environment, bond prices fall. Derivatives. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on the fund’s performance. Commodities. Trading in commodities may involve substantial risks and investment exposure to the commodities market that may subject the Fund to greater volatility than investments in traditional securities, such as stocks and bonds. REITs. Investing in REITs exposes the Fund to the risks of owning real estate directly, as well as to the risks that relate specifically to the way in which REITs are organized and operated. Foreign and emerging markets. Investments in foreign and emerging markets entail special risks such as currency, political, economic, and market risks. The risks of investing in emerging-market countries are greater than the risks associated with foreign investments. Senior loans. Senior loans are usually rated below investment grade, and are subject to similar risks, such as credit risk, as below investment grade securities. Diversification. Diversification does not protect against a loss or guarantee a profit.

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Media Relations Contact: Matt Burkhard, 212.761.2444