Products May 6, 2008

Morgan Stanley Launches Commodities Alpha Fund

Morgan Stanley Investment Management (MSIM) launched the Morgan Stanley Commodities Alpha Fund, an actively managed mutual fund.
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The company said the fund offers high-net-worth investors access to the potential return and portfolio diversification benefits of the commodities market and is managed by MSIM’s Quantitative and Structured Solutions investment team.

“The Commodities Alpha Fund gives investors the potential to capture the returns of a global, diverse and growing market that has a low correlation with equity and bond market returns,’ said Justin Simpson, Global Head of the Quantitative and Structured Solutions team and lead portfolio manager. “For investors seeking to diversify their portfolio, we believe this strategy may be an attractive opportunity for direct, actively managed exposure to the commodities asset class with the potential for incremental returns.’

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The fund seeks to generate the returns of the Dow Jones AIG Commodity Index (DJAIG) and to produce incremental returns from an actively managed, multi-strategy alpha engine, the company said. The fund pursues continuous exposure to the commodities market (such as agriculture, energy, industrial metals, livestock and precious metals) through investments in commodities-linked instruments as well as fixed-income securities, including money market instruments.

The fund will strive for above-market returns from multiple proprietary quantitative trading strategies designed to exploit inefficiencies or anomalies in the commodities marketplace, such as price curves, price change, and volatility, the company said.

“Commodities possess a number of unique properties, including currently favorable supply-demand fundamentals, that have made them an attractive alternative investment opportunity,’ said Chris Callan, Senior Portfolio Manager of the Commodities Alpha Fund. “We believe the combination of limitations on supply and burgeoning demand is supportive of a continued positive outlook for commodity prices. Additionally, a strategic allocation in commodities could also offer a potential hedge against the impacts of inflation, geopolitical risks, and macroeconomic downturns.’

The launch of the Morgan Stanley Commodities Alpha Fund for U.S. investors follows the Quantitative and Structured Solutions Group’s launch of commodities alpha strategies for European institutional investors in November 2006 and European individual investors in June 2007.

Products May 5, 2008

LPL Financial Introduces Platform for RIA and Hybrid Markets

LPL Financial Corporation plans to introduce an integrated adviser platform, supporting ndependent registered investment advisers (RIA) and hybrid (dually registered) advisers.
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LPL Financial said the platform will enable advisers to address all of their clients’ commission and fee-based needs while also allowing them the flexibility to grow their independent RIA offering across any business model.

As part of the formal market rollout planned for late 2008, LPL Financial will also offer prospective advisers transition services.

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The company has appointed industry veteran, Gary Gallagher, to executive vice president, head of RIA Services, to be responsible for building out the RIA and hybrid business. Based in Boston, Gallagher will report to Esther Stearns, president and COO.

“We have tremendous confidence that Gary’s experience in the RIA and Hybrid marketplace, combined with his impressive track record at a number of leading financial institutions, will allow us to build out an industry-leading offering that is critical to supporting this unique adviser group,” Stearns said.

Most recently, Gallagher served as senior vice president of Fidelity Institutional Wealth Services at Fidelity Investments. During his tenure at Fidelity, Gallagher launched UMA, alternative investments, separate account, and trust platforms for intermediaries and investment advisers. He was also responsible for developing high-net-worth strategies, focusing on wealth management services, trust services, separate account management, alternative investments, structured products, and liquidity management products.

“The LPL Financial platform is both flexible and scalable, making it possible for us to build out these RIA and hybrid capabilities while still maintaining one fully integrated platform,” Gallagher said. “I believe this expansion initiative offers great opportunity for both LPL Financial and our advisers, and look forward bringing my experience to the team at this exciting time.”

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