Responding to growing interest in alternative solutions, Wellington Management has launched its first interval fund.
Through the Wellington Global Multi-Strategy Fund, Wellington aims to provide a greater range of alternative investment strategies to a larger long-term investor client base. The initiative forms part of the company’s strategic expansion into the US wealth market, and is the first of its funds to be distributed through financial advisors.
Mark Sullivan, head of hedge funds, commented: “[We are providing] a broader range of wealth clients exposure to a potentially valuable portfolio diversifier. This is particularly important today as traditional sources of diversification and downside mitigation have been less reliable and we believe is why the category is experiencing strong inflows in US wealth.”
The fund combines bottom-up trading strategies with top-down portfolio construction and risk management, investing in both hedge and open-end funds. This will allow flexibility with capital allocation changes, the company said.
Roberto Isch, who will manage the fund along with a 11-member management team, said: “Multi-strategy approaches are designed to have low correlation with traditional asset classes and provide downside mitigation during difficult market environments. They may be a valuable diversifier to broad equity and fixed income exposure in a client’s portfolio, particularly during periods of market stress when the two can be highly correlated.”
Isch has been with Wellington for more than 12 years, and is currently a partner, senior managing director and portfolio manager at the firm. Earlier in his career, Isch was a quantitative analytics specialist at FactSet.
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