24/08/2015
Vanguard launches a mutual hedge fund
p { margin-bottom: 0.25cm; line-height: 120%; } The pioneer of low-cost tracker funds Vanguard has made a new incursion into the world of alternative asset management with the launch of the Vanguard Alternative Strategies Fund. This is something of an event, since Vanguard launched its first alternative mutual fund (Vanguard Market Neutral Fund) in 1998. The new strategy aims to earn returns with low correlation to equity or bond markets, and with lower volatility than the US stock market. Vanguard launched its first alternative mutual fund (Vanguard Market Neutral Fund) in 1998. These objectiives are pursued through the use of a multi-strategy approach, including long/short equity, event driven, fixed-come relative value strategies, currencies, and invesments tied to commodities. As part of each of these strategies, the fund may hold long or short positions, using options, futures contracts and swaps as needed. For a minimum initial investment of USD250,000, the management commission is 0.18% and the net expense ratio is 1.10%.
