While some in the fund industry worry about a brain (and investment) drain to the hedge fund industry, others are doing something about it. UBS Asset Management
filed to launch a mutual fund that uses hedging strategies on July 30.
Officials stated in the filing
that the new fund, called the UBS Dynamic Alpha Strategy Fund, would invest in a variety of asset classes, including U.S and non-U.S.equities, emerging market equities, U.S. and non-U.S. fixed income, emerging market debt, U.S. high yield fixed income and cash equivalents.
"The Fund intends to use financial futures, forward agreements, options, swaps and other derivatives as part of its asset/market allocation strategies. The Fund may establish net short or net long positions
for individual markets, currencies and securities. The Fund may invest in Derivatives to the extent permitted by the 1940 Act," stated officials in the filing.
The fund will may also invest in other open-end investment companies advised by UBS Asset Management.
Class A shares in the fund have an operating expense of 135 basis points, B and C shares have an operating expense of 210 basis points, and Y shares have an operating expense of 110 basis points.
The fund will be run by a team at UBS Asset Management; no details were given on the individuals comprising the team.
Minimum investment in the fund is $1,000.
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