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August 06, 2009 at 08:00 PM
Natixis Global Associates (NGA), the distribution arm of Natixis Global Asset Management and AlphaSimplex Group (ASG), an investment strategy firm has launched a multi-strategy, absolute-return fund: Natixis ASG Diversifying Strategies Fund (DSFAX).
The fund is thought “to be the first mutual fund to actively manage low-to-negative correlation with major equity indexes by selling S&P 500 futures,” when the need arises, according to an August 3 announcement. “Longer-term correlation of the fund with the S&P 500 is expected to be minimal or negative.”
“The largest source of risk in many investors’ portfolios is equity market risk,” said Andrew Lo, (see exclusive Wealth Manager interview) AlphaSimplex’s Chief Investment Strategist, founder and a portfolio manager for the fund. A professor of finance at the MIT Sloan School of Management, Dr. Lo is known for his work in risk management techniques for absolute-return strategies and behavioral finance. “We designed this fund to answer a broad-based need for portfolio diversification with low to negative long-run correlation to the major equity markets within a liquid and transparent mutual fund vehicle.”
“Using highly liquid futures and currency forward contracts to gain desired exposures, AlphaSimplex seeks to deliver absolute returns through a diversified, actively managed global portfolio of long and short positions,” according to the announcement. The minimum investment is $2,500 for A and C shares, $100,000 for Y shares.
John Hailer, president and CEO of Natixis Global Asset Management, noted in the announcement that, “By addressing the current needs of average investors, including diversification away from the equity markets, reduced volatility and a goal of downside protection, Andrew Lo and the AlphaSimplex team continue to focus on making alternative approaches more accessible and affordable to individual investors.
Michael K. Stanley can be reached at [email protected]
Putnam Funds proposes comprehensive changes to performance and management fees, and fund family breakpoints, pending shareholder approval later this year.
