Natixis opens ASG Growth Markets Fund from AlphaSimplex

By Tali David

Minneapolis, Oct. 24 - Natixis Global Associates announced the launch of ASG Growth Markets Fund, a risk-managed emerging markets mutual fund from AlphaSimplex Group.

The fund seeks to deliver the long-term returns of emerging market stocks with less severe drawdowns than major emerging market equity indexes, according to Natixis.

Andrew W. Lo, described by Natixis as a thought leader in risk management and global macro investing, will co-manage the fund with Jeremiah H. Chafkin and Alexander D. Healy.

"As traditional markets in the developed world become more crowded, emerging markets provide a natural alternative for new investment opportunities. However, the additional volatility associated with these growing markets is a valid concern of investors," Lo said in a news release.

"Our risk-controlled approach to investing focuses on reducing the impact of potential drawdowns so that investors can better weather the volatility and remain invested long enough to benefit from the long-term potential returns of these markets."

AlphaSimplex will include long and short positions in the fund, with the exposures actively adjusted in order to control risk. Part of the assets will be allocated to a portfolio of emerging market equities subadvised by Westpeak Global Advisors.

AlphaSimplex will manage the risk of the equity portfolio with an overlay of futures contracts on developed and emerging market equity indexes, government bonds, short-term interest rates, and commodities, as well as forward contracts on developed and emerging market currencies. Remaining assets will be invested in cash securities, which will be used to support the overlay portfolio of futures and forward contracts. Reich & Tang will be subadvisor for the cash portfolio.

AlphaSimplex Group is a Cambridge, Mass.-based company that specializes in absolute return strategies, including global macro and dynamic asset allocation.

Natixis Global Associates is a Boston-based company that works on a consultative basis, tailoring the expertise of its managers to meet the investment objectives of local clients.

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