Morgan Stanley funds in limbo
Three Morgan Stanley FX Alpha Funds have been placed 'on hold' by ratings house Standard & Poor's (S&P) following confirmation that they will be closed by the end of September, with money being returned to investors.
The ratings house announced this week that it had moved to place the funds 'on hold' after being notified that, as a result of operational and timing issues, the funds would not be acquired by Invesco. As a result, Morgan Stanley decided to jettison the fund.
S&P said that while the current Morgan Stanley FX Alpha management team had committed to remaining in place running the funds until such time as they closed, it was not clear if and how Australian investors would be able to access the team or their strategy beyond the funds’ planned closure date.
It said that Macquarie Bank, the responsible entity for the funds in Australia, had not yet stated any intentions for the product in Australia.
“While we see the potential likelihood for the team and strategy to be rebranded within another investment manager, the significant uncertainty at this stage has led us to place the product 'on hold' until we obtain more clarity in coming days,” S&P analyst Michael Armitage said.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
