2 New Multialternative Funds Hit The Market
In the week that saw February transition into March, two new multialternative mutual funds were launched: the Preserver Alternative Opportunities Fund (MUTF: PAOIX ), which first traded on February 29; and the PineBridge Dynamic Asset Allocation Fund (MUTF: PDAIX ), which debuted on March 2. Preserver Alternative Opportunities The Preserver Alternative Opportunities Fund’s investment objective is to provide current income and capital appreciation with low volatility compared to traditional stock and bond markets. In pursuit of this end, the fund employs three distinct alternative strategies: Event driven Structured credit Tactical trading Although Semper Capital Management is listed in the fund’s prospectus as a sub-advisor, Preserver Partners CIO Floyd Taylor will initially manage all or most of the fund’s assets. As the fund’s assets under management (“AUM”) increase, Mr. Taylor may allocate a portion of those assets to be managed by the sub-advisor, and the fund may add other sub-advisors, as well. As of March 7, the fund’s AUM stood at just $8.8 million. The Preserver Alternative Opportunities Fund’s institutional class shares have a minimum initial investment of $100,000 and a net-expense ratio of 2.18%. The retail class (MUTF: PAORX ) shares have a minimum initial investment of $2,000 and a net-expense ratio of 2.43%. PineBridge Dynamic Asset Allocation The PineBridge Dynamic Asset Allocation Fund was launched with $50 million in seed capital. It pursues its investment objective of providing absolute return by allocating across a broad range of asset classes, taking both long and short positions in stocks, bonds, ETFs, REITs, and more. According to the prospectus , the fund’s secondary objective is generating alpha, with investment selections based on the advisor’s macroeconomic views, fundamental analyses, and risk-management considerations. PineBridge was also the sub-advisor to the Redmont Resolute Fund I, which was liquidated in December 2015, and the firm still is the sub-advisor Redmont Resolute Fund II (MUTF: RMRGX ). Version “I” of the fund was liquidated despite 2015 performance in the top 15% of its peers, while Version “II” had annualized three-year gains of 1.50% through February 29, ranking in the top 34%. The PineBridge portfolio management team thus has a solid track record of outperformance. Shares of the PineBridge Dynamic Asset Allocation Fund are available in institutional and investor-servicing (MUTF: PDAVX ) classes. The institutional shares have a minimum initial investment of $1 million and a net-expense ratio of 0.65%. The investor-servicing shares have a minimum initial investment of $100,000 and a net-expense ratio of 0.80%. Past performance does not necessarily predict future results. Jason Seagraves contributed to this article.