The fund follows a risk-managed, absolute-return strategy designed to give zero to negative correlation to major equity indexes.
“The largest source of risk in many investors’ portfolios is equity market risk,” said Andrew Lo of ASG, one of the managers of the fund. “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 multiple quantitative absolute-return models, the fund takes both long and short positions with futures contracts and currencies.
John Hailer, Natixis president and CEO, added, “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 for individual investors.”
