Morgan Stanley is preparing to re-open its open-ended P2 Value fund on 1 November.
The fund manager is revaluing its assets and said it expects net asset value of €820m-€870m by the end of October, down from €922.8m in early September and €1.67bn since the fund was frozen.
Morgan Stanley also hired two industry veterans to take over from chairman Walter Klug, who retires next year.
The fund manager said the revaluation of seven assets caused a further write-down of €185m. A further eight assets will be revalued by the end of October.
As a result of the revaluations, and €21m risk provisioning, shares in the fund dropped 18% to €29.83 from €36.48. Morgan Stanley expects shares to trade within a range of €26.60 to €28.20 when the fund reopens.
The sale of several assets netted €85m. Further assets are being sold.
Morgan Stanley hired Marc Weinstock and Silvia Schmitten-Walgenbach as managers of Morgan Stanley’s KAG business. Weinstock was previously chairman of HSH Real Estate. Schmitten-Walgenbach joins from Aberdeen Degi. Morgan Stanley also plans to hire a new CFO.
The re-opening of the fund is closely watched by the other funds. A run on the fund could have a knock-on effect on other funds, as it did in previous crises.
