The ASG Growth Markets Fund (AGMAX) seeks to deliver the long-term returns of emerging market stocks with less severe drawdowns than major emerging market equity indexes. ASG seeks to control volatility through an overlay portfolio of futures and forward contracts designed to contain the risks of emerging market equities.
Dr. Andrew W. Lo will co-manage the fund with Jeremiah H. Chafkin and Dr. Alexander D. Healy.
According to the announcement, similar to the other three ASG funds — ASG Global Alternatives Fund (GAFAX), ASG Diversifying Strategies Fund (DSFAX), and ASG Managed Futures Strategy Fund (AMFAX) — the new fund uses a mix of long and short exposures that ASG actively adjusts with the goal of controlling risk. A portion of the fund’s assets is allocated to a portfolio of emerging market equities subadvised by Westpeak Global Advisors.
ASG manages the risk elements of the equity portfolio with an overlay portfolio of futures contracts on developed and emerging market equity indexes, government bonds, short-term interest rates, and commodities, as well as forward contracts on developed and emerging market currencies. The remainder of the fund’s assets is invested in a portfolio of cash securities, which will be used to support the overlay portfolio of futures and forward contracts. Reich & Tang will serve as the subadvisor for the cash portfolio.The ASG Growth Markets Fund is available to U.S. investors through A, C and Y shares. The minimum investment is $2,500 for A and C shares, and $100,000 for Y shares.