Morgan Stanley Launches Long/Short Hedge Fund of Funds

Morgan Stanley Investment Management (MSIM) has launched the Morgan Stanley Global Long/Short Fund, a fund of hedge funds.

The company said the new offering features a diversified, institutional-quality portfolio of long/short equity hedge funds for smaller institutional clients.

With the launch of the Global Long/Short Fund, investors gain access to long/short hedge fund managers around the globe in a fund-of-funds structure for a minimum investment of $100,000.

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“The Global Long/Short Fund offers investors the potential to capture the upside return of global equity markets while helping to reduce downside exposure,” said Mustafa Jama, Head and Chief Investment Officer of Morgan Stanley AIP’s Fund of Hedge Funds team, in a product announcement. “As such, it may serve as an attractive alternative to long only equities investing for those seeking to enhance the risk/reward profile of their equity portfolio.’

The Global Long/Short Fund is intended to be managed for long-term capital appreciation and to have moderate volatility as compared to the equity markets.

The long and short equity strategies in which the Global Long/Short Fund will primarily invest allow the underlying hedge fund managers to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the global capital markets.

The Global Long/Short Fund will invest in approximately 20-25 long/short equity hedge funds. Additionally, unlike most hedge fund products which provide delayed K-1 tax reporting, the Global Long/Short Fund will deliver Form 1099 tax reporting by January 31 of each year, the announcement said.

Wilmington Trust Expands with Acquisition of AST Capital Trust

Wilmington Trust FSB has agreed to acquire AST Capital Trust Company, a provider of directed trustee, trust administration, and back-office services.

AST Capital Trust, whose services are offered through financial advisers to retirement plans, high-net-worth individuals and families, and institutional investors, will become part of the Corporate Retirement Services group within Wilmington Trust’s Corporate Client Services (CSS) business, the company said.

The transaction will nearly double the amount of retirement plan assets Wilmington Trust administers to $41 billion and approximately doubles the number of plans the company serves to 3,000, according to an announcement.

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AST Capital Trust Company’s president, Gregory W. Tschider, will join Wilmington Trust to lead the combined organization’s retirement services business, reporting to Bill Farrell, executive vice president of Wilmington Trust and head of CCS.

“The acquisition of AST Capital Trust Company enhances our presence and service capabilities in the market for retirement plan services,” said Ted T. Cecala, Wilmington Trust chairman and CEO, in the announcement. “This union gives us an opportunity to grow our retirement plan services business more quickly than it might grow otherwise.”

AST Capital Trust Company administers a total of more than $28 billion in trust assets and has 170 staff members. Its assets under administration include more than $19 billion in 1,500 retirement plans.

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