A company news release said the strategy of the new offering is to combine the advantages of a stable value portfolio, generally a large allocation within defined contribution plans, with the portable alpha capabilities of the Quantitative Strategy Group’s integrated Global Alpha Platform (iGAP).
The initial investor is a large corporate client with $610 million invested. “Like many firms today, the client was looking for a prudent way to enhance the long-term performance for its defined contribution plan participants,” said John Axtell, head of DeAM’s Stable Value Group, in the news release.
The fund provides the potential to enhance yield and return with little added volatility due to a yield-enhancing strategy that has a low correlation to the underlying stable value portfolio, DeAM said.
The yield-enhancing component is an overlay strategy that takes relative value positions in major bond and currency markets and employs both quantitative and qualitative market views.