Products October 24, 2011

Natixis Launches ASG Growth Markets Fund

Natixis Global Associates (NGA) launched a risk-managed emerging markets mutual fund from AlphaSimplex Group (ASG).
Reported by

The ASG Growth Markets Fund (AGMAX) seeks to deliver the long-term returns of emerging market stocks with less severe draw-downs 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.   

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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.
Products October 24, 2011

PenChecks Introduces Distributions via Debit Card

PenChecks has introduced a debit card option for retirement plan distributions.
Reported by

Under this new service, retirement plan participants may elect to have their distributions made via debit card instead of a traditional check. The company said it believes the debit card option to be the future of benefit processing. Debit cards are safer, more secure, more portable, more convenient, and may provide important benefits to millions of people with limited or no banking access, the company said.   

Millions of individuals: 1) cannot conduct transactions requiring credit cards (including most Internet-based transactions), 2) are more likely to lose their paychecks and, 3) because they’re forced to carry cash, are more likely to become victims of crime and pay high fees for check-cashing services, the company noted. A debit card solution offers a portable and more secure way for these consumers to make every-day transactions.

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Additionally, the recipients of retirement distributions via PenChecks’ debit card program may elect to convert the proceeds to cash, to a paper check, or deposit funds to a rollover IRA. Through a toll-free customer service feature, card holders can check balances, transfer money to a checking account, or deactivate and replace a lost or stolen card. Additionally, these debit cards are reloadable and may also be setup to receive payroll deposits.

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