Natixis Global Asset Management has rolled out a new global asset allocation mutual fund aimed to deliver long-term capital appreciation to investors.
Dubbed as ASG Dynamic Allocation Fund (DAAFX), the fund will be managed by AlphaSimplex Group.
The Dynamic Allocation Fund will be co-managed by Alexander Healy, who is also director of strategic research at AlphaSimplex, alongside Robert Rickard, who focuses on short-term cash equivalent asset management, and Derek Schug, who focuses on asset allocation.
The fund has been designed to invest in a broad range of asset classes through the use of futures, forwards and exchange traded funds (ETFs).
It will also invest in long positions in ETFs and derivatives in five asset classes including US stocks, ex-US developed market stocks, emerging markets stocks, U.S. bonds, and ex-US developed market bonds.
Natixis said that the new strategy will begin with a balanced allocation to high-risk and low-risk asset classes and adjusts those allocations according to insights AlphaSimplex derives from its quantitative analysis of market behaviors.
The fund will quickly adapt to changes in market conditions and evolving manager insights. Its primary benchmark is the Morningstar Global Allocation Index, with a secondary benchmark of 60% MSCI World Index and 40% Barclays U.S. Aggregate Bond Index.
AlphaSimplex CEO Duncan Wilkinson said: "The ASG Dynamic Allocation Fund seeks to balance risk with expected return by tactically allocating to multiple asset classes across a range of global markets using a disciplined quantitative approach that draws on AlphaSimplex’s current strategies and our experience managing liquid alternatives since 2003.
"We created the fund to help investors shift exposures among global assets in a fast-paced global market environment and help them stay invested over the long term."