The latest in a spate of hedge-fund-like mutual funds has hit the shelves. Natixis revealed Monday that it launched a multi-strategy, absolute return fund managed by the AlphaSimplex Group
, which Natixis acquired in 2007. A shares of the Natixis ASG Diversifying Strategies Fund
come with an expense ratio of 174 basis points, while C shares sport a 249 basis point expense ratio.
| Dr. Andrew Lo|
Chief Investment Strategist
The fund pursues an absolute return strategy and will attempt to manage a low-to-negative correlation with major equity indexes.
Natixis executives are pitching the product as the first mutual fund designed manage a minimal or negative long-term correlation with the S&P 500.
This is the second mutual fund from AlphaSimplex, which in October last year launched the Natixis ASG Global Alternatives Fund
based on a hedge fund industry beta replication strategy.
"The latest ASG fund is a result of our innovative approach to mutual fund development,” said Natixis Global Asset Management president and CEO John Hailer
The launch coincided with a Wall Street Journal
article that took a look
at the broadening field of hedge-like mutual fund strategies. Dr. Andrew Lo, who is ASG's chief investment strategist, was quoted in the article.
"Part of hedge-fund returns come from investing in illiquid securities," Lo noted. "But we can replicate the liquid portion."
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