Dynamic launches liquid alternative private poolBy The IJ Staff | January 20 2020 02:30PM
Dynamic Funds announced Jan. 20 that it is launching its fifth liquid alternative offering for retail investors, the Dynamic Liquid Alternative Private Pool.
The fund, managed by 1832 Asset Management L.P., invests in one or more unnamed alternative mutual funds which have the ability to invest in asset classes or use investment strategies that are not permitted for use in conventional mutual funds.
The underlying funds used in the pool are expected to use alternative strategies such as purchasing securities on margin or with borrowed funds, short selling, and derivatives. According to the fund’s fund fact sheet, the pool – reportedly a low risk investment designed for medium to long-term investors – is designed for those seeking to protect capital during a wide range of economic and market environments. It is also designed for those seeking equity returns that are not correlated to major stock market indices. The fund’s annual management fee is 1.90 per cent, plus a fixed administration fee of 0.05 per cent. Depending on the series, the fund may pay trailing commissions, up to 1 per cent.
“Dynamic Liquid Alternatives Private Pool is constructed using three alternative strategies – long-short equities, long-short credit and alternative income,” the company said in a statement released Jan. 20. “This pool seeks to provide long-term positive absolute returns that are not highly correlated to major asset classes.”