GLOBAL - Natixis Global Associates has launched two hedged equity funds - the Gateway US Equities Fund and the Gateway Euro Equities Fund.
It said the funds were targeted at institutional and wholesale investors.
Each Fund combines a broad-based index portfolio with the sale of index call options, seeking to provide an efficient way to achieve steady cash flow. Downside risk is then mitigated by purchasing index put options to hedge the portfolios.
NGA said it hopes this will allow the funds to capture a substantial portion of the long-term return potential of equities, while exposing investors to less risk than other equity investments.
Gateway founder Walter Sall said: "As an alternative to alternatives, the funds are compelling given the transparency they offer as regulated publicly available vehicles, with daily liquidity and reasonable fees compared to many privately offered alternative vehicles."
The Gateway US Equities Fund will be co-managed by Patrick Rogers, Paul Stewart and Michael Buckius. The Gateway Euro Equities Fund will be co-managed by Buckius and Kenneth Toft.
Buckius said: "Our aim is to be market agnostic as we don't rely on market direction to make our strategy work. Rather, volatility is the lens through which we view the market.
"As a result, these Funds are useful products in uncertain times as, unlike most traditional long-only equity strategies, these Funds can consistently benefit from volatile markets.
"Index options can be a particularly effective way of mitigating risk, as index option markets are some of the most liquid markets in the world and are not subject to the counterparty risk of over the-counter options."
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