Morgan Stanley Investment Management (MSIM) announced today that it has launched the Morgan Stanley Commodities Alpha Fund, an actively managed mutual fund that offers high net worth investors the opportunity to gain direct access to the potential return and portfolio diversification benefits of the commodities market and the expertise of MSIM’s Quantitative and Structured Solutions investment team.

The Commodities Alpha 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 Commodities Alpha 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 Commodities Alpha Fund is managed by the Quantitative and Structured Solutions Group. Their collective experience encompasses structuring and analysis of derivatives as well as expertise in research, risk management, trading and technology.  Managing a variety of structured and quantitative pooled funds, and separate accounts, the group’s capabilities cover a spectrum of quantitative investing across commodities, currencies, fixed income and equity markets.  The group managed approximately $9.6 billion in assets for institutional and individual investors as of March 31, 2008.

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.

INFO SOURCES

Morgan Stanley (NYSE: MS)

FIRMS

Morgan Stanley Investment Management, together with its investment advisory affiliates, has nearly 1000 investment professionals around the world and approximately $577 billion in assets under management or supervision as of February 29, 2008.  By leveraging its global ‘community of boutiques’ structure and the strength of Morgan Stanley, MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 33 countries. 

PEOPLE

Randy Takian, Head of the Morgan Stanley Retail & Intermediary business at MSIM

Chris Callan, Senior Portfolio Manager of the Commodities Alpha Fund

Justin Simpson, Global Head of the Quantitative and Structured Solutions team and Lead Portfolio Manager

NOTE

“Dow Jones,” “AIG®” “Dow Jones AIG Commodity IndexSM,” and “DJ-AIGCISM” are service marks of Dow Jones & Company, Inc. and American International Group, Inc. (“American International Group”), as the case may be, and have been licensed for use for certain purposes by Morgan Stanley.  The Morgan Stanley sponsored Morgan Stanley Commodities Alpha Fund which seeks returns  based on the Dow Jones AIG Commodity IndexSM, is not sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial Products Corp. (“AIG-FP”), American International Group, or any of their respective subsidiaries or affiliates, and none of Dow Jones, AIG-FP, American International Group, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product.