BOSTON--(EON: Enhanced Online News)--Natixis Global Asset Management (NGAM) announced today the launch of the ASG Tactical U.S. Market Fund (USMAX), a new equity mutual fund from AlphaSimplex Group, LLC (ASG). The fund seeks to participate in the upside of the U.S. equity market while seeking to minimize the impact of the market’s downside during periods of extreme market stress. It may help investors stay invested in stocks during both favorable and challenging market environments.
“We wanted to create an equity fund that would make it easier for investors to stay invested through both rising and falling markets by attempting to address investor concerns with regard to both potential losses and missing out on potential gains.”
“The new fund from ASG responds to investors’ need for additional tools to help them build and maintain durable portfolios for the long term,” said David Giunta, president and chief executive officer, Natixis Global Asset Management – U.S. Distribution. “Innovative products such as this fund can help investors tune out the noise that accompanies market shifts and focus on achieving investment goals in a more risk-aware way.”
The ASG Tactical U.S. Market Fund provides exposure to the stock market through a portfolio of equity securities broadly representative of the U.S. stock market. By using stocks and derivatives, the fund’s market exposure can be increased or hedged. The level of the fund’s stock market exposure is determined using a proprietary risk-of-loss measure developed by ASG. When this measure indicates a favorable risk-return tradeoff, the fund uses derivatives to increase its equity market beta1 to as high as 1.3 (130% sensitivity to changes in the stock market). If the measure indicates an unfavorable risk-return tradeoff, the fund uses derivatives to reduce its beta to as low as 0. The tactical flexibility of the fund to limit its market exposure at one extreme, and to exceed 100% market equity exposure at the other extreme, implies the fund can respond to both rising and falling markets. The fund is not intended to be a complete portfolio and is generally limited to the U.S. equity market.
“The ASG Tactical U.S. Market Fund is designed for investors who want to capture the equity market’s long-term return but fear its worst declines,” said Jerry Chafkin, president and portfolio manager at ASG. “We wanted to create an equity fund that would make it easier for investors to stay invested through both rising and falling markets by attempting to address investor concerns with regard to both potential losses and missing out on potential gains.”
Andrew Lo, a thought leader in risk management and systematic investing, co-manages the fund with Jerry Chafkin and Alexander Healy of ASG. The stock portion of the portfolio is sub-advised by Active Investment Advisors, a division of NGAM Advisors, L.P. Reich & Tang Asset Management, LLC, a cash management specialist and NGAM affiliate, sub-advises the fund’s high-quality cash investments.
About AlphaSimplex Group
AlphaSimplex Group (ASG) specializes in risk-managed portfolio solutions that are designed to help investors stay invested even during the market’s most challenging periods. ASG was founded in 1999 by Dr. Andrew W. Lo, ASG’s chief investment strategist. The firm’s first mutual fund, Natixis ASG Global Alternatives Fund (GAFAX), was launched in September 2008. Dr. Lo is a professor of finance at the MIT Sloan School of Management and a recognized thought leader in the fields of behavioral finance and risk management. Dr. Lo has published numerous articles in finance and economics journals, and is author of The Econometrics of Financial Markets, A Non-Random Walk Down Wall Street and Hedge Funds: An Analytic Perspective.
About Natixis Global Asset Management, S.A.
Natixis Global Asset Management, S.A. is one of the 15 largest asset managers in the world based on assets under management.2 Its affiliated asset management companies provide investment products that seek to enhance and protect the wealth and retirement assets of both institutional and individual investor clients. Its proprietary distribution network helps package and deliver its affiliates’ products around the world. Natixis Global Asset Management, S.A. brings together the expertise of multiple specialized investment managers based in Europe, the United States and Asia to offer a wide spectrum of equity, fixed-income and alternative investment strategies.
Headquartered in Paris and Boston, Natixis Global Asset Management, S.A.’s assets under management totaled $783.3 billion (€602.5 billion) as of June 30, 2013.3 Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.’s affiliated investment management firms and distribution and service groups include: Absolute Asia Asset Management; AEW Capital Management; AEW Europe; AlphaSimplex Group; Aurora Investment Management; Capital Growth Management; Caspian Private Equity; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Global Investors; Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; McDonnell Investment Management; Natixis Asset Management; Ossiam; Natixis Environnement & Infrastructure Luxembourg; Reich & Tang Asset Management; Snyder Capital Management; Vaughan Nelson Investment Management and Vega Investment Managers. Visit www.ngam.natixis.com for more information.
Natixis Global Asset Management consists of Natixis Global Asset Management, S.A., NGAM Distribution, L.P. (“NGAM Distribution”), NGAM Advisors, L.P. (“NGAM Advisors”), NGAM S.A. and NGAM S.A.’s business development units across the globe, each of which is an affiliate of Natixis Global Asset Management, S.A. The affiliated investment managers and distribution companies are each an affiliate of Natixis Global Asset Management, S.A.
1 Measures the volatility of a security or a portfolio in
comparison to the market as a whole.
2 Cerulli Quantitative Update: Global Markets 2013 ranked Natixis Global Asset Management, S.A. as the 15th largest asset manager in the world based on assets under management as of December 31, 2012.
3 Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the SEC’s definition of ‘regulatory AUM’ in Form ADV, Part 1.
Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Derivatives prices depend on the performance of an underlying asset and may be highly volatile; derivatives may carry one or more of the following risks: market, credit and liquidity. Fixed-Income investments may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Concentrated investments in a particular industry may be more vulnerable to adverse changes in that industry or the market as a whole.
Before investing, consider the fund's investment objectives, risk, charges, and expenses. Visit ngam.natixis.com or call 1-800-225-5478 for a prospectus or a summary prospectus containing this and other information. Read it carefully.