New futures fund uses trend-following, volatility

The following is a press release from Natixis Global Associates...

BOSTON--(BUSINESS WIRE)--Reinforcing its position as a leader in niche investment solutions, Natixis Global Associates (NGA) announced today the launch of a managed futures mutual fund to be managed by AlphaSimplex Group (ASG): Natixis ASG Managed Futures Strategy Fund (AMFAX). The fund pursues its absolute return objective using multiple trend-following models across a broadly diversified portfolio of asset classes and markets. ASG seeks to limit risk by managing to a strict annualized volatility target and by employing dynamic drawdown controls. The new fund is co-managed by Dr. Andrew W. Lo, a thought leader in quantitative investing and risk management.

“Strategies like managed futures are among the few diversifying investment styles that can be effective even in the midst of a market crisis,” said Andrew Lo, one of the portfolio managers of the new ASG fund. “This fund answers a growing need for a broader set of diversification tools that are available in a highly liquid, transparent and passive low-cost format.”

The fund adds to NGA’s growing line up of non-traditional investment solutions. To date, NGA offers investors six non-traditional funds, including the Gateway Fund (GATEX), the AEW Real Estate Fund (NRFAX), the Westpeak ActiveBeta Fund (WABAX), which was launched just last week, and two additional U.S. mutual funds managed by AlphaSimplex Group. Launched in August 2009, the Natixis ASG Diversifying Strategies Fund (DSFAX) is a multi-strategy absolute return fund that strives to maintain a consistently low to negative correlation with global equity markets. In 2008, ASG launched its first U.S. mutual fund, the Natixis ASG Global Alternatives Fund (GAFAX), which employs a proprietary hedge fund beta replication strategy.

“The new ASG fund is further proof of our commitment to developing innovative investment solutions to help individual investors and their advisors diversify portfolios more effectively,” said John Hailer, president and chief executive officer of Natixis Global Asset Management, U.S. and Asia, and head of NGA U.S. and International distribution. “By taking a popular hedge fund strategy and offering it in a risk-controlled, low-cost, mutual fund format, Andrew Lo and the ASG team continue to make alternative investment strategies and techniques more accessible to individual investors.”

The Natixis ASG Managed Futures Strategy Fund is a U.S. ’40 Act fund, available only to U.S. investors through A, C and Y shares. Using highly liquid futures and currency forward contracts to gain desired market exposures, ASG offers a risk-controlled managed futures strategy with the convenience of a mutual fund. Fund management employs a proprietary trend following approach that dynamically adjusts position weights in response to changing market conditions. An annualized volatility target and dynamic drawdown controls help manage its risk. The minimum investment is $2,500 for A and C shares, $100,000 for Y shares.1

About AlphaSimplex Group

AlphaSimplex Group (ASG) specializes in absolute return strategies, including global macro and dynamic asset allocation. The firm’s first mutual fund, Natixis ASG Global Alternatives Fund (GAFAX), was launched in September 2008. ASG was founded in 1999 by Dr. Andrew W. Lo, AlphaSimplex’s Chief Investment Strategist. Dr. Lo is also 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 Associates

Natixis Global Associates (NGA) is the distribution arm of Natixis Global Asset Management. NGA works on a consultative basis from its network of worldwide offices, tailoring the expertise of its managers to meet the investment objectives of local clients. Natixis Distributors, L.P. acts as distributor for the Natixis ASG Managed Futures Strategy Fund. In the U.S., Natixis Global Associates includes Natixis Distributors, L.P. (member FINRA) and Natixis Asset Management Advisors, L.P. (a registered investment advisor). Both are located at 399 Boylston Street, Boston, MA 02116.

About Natixis Global Asset Management

Natixis Global Asset Management is one of the 15 largest asset managers in the world2 based on assets under management. 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 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 assets under management totaled $651 billion (€532 billion) as of June 30, 2010. Natixis Global Asset Management is part of Natixis. Listed on the Paris Stock Exchange, Natixis is the subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management’s affiliated investment management firms and distribution and service groups include: Absolute Asia Asset Management; AEW Capital Management; AlphaSimplex Group; Aurora Investment Management; Capital Growth Management; Caspian Capital Management; Gateway Investment Advisers; Hansberger Global Investors; Harris Associates; Loomis, Sayles & Company; Natixis Global Associates; Reich & Tang Asset Management; Snyder Capital Management; Vaughan Nelson Investment Management; and Westpeak Global Advisors. In addition to the U.S. firms, Natixis Global Asset Management includes four principal affiliates based in Paris: Natixis Asset Management, Natixis Multimanager, AEW Europe and Natixis Épargne Financière.

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