Asset Manager Wellington Management Launches First Interval Fund
Wellington Management, one of the world’s largest privately owned asset managers with more than $1 trillion under management, announced the launch of its first interval fund, Wellington Global Multi-Strategy Fund.
Structured as a Delaware statutory trust, the fund will operate as an interval fund and seeks to generate consistent and positive returns across market cycles while managing market risk exposure and seeking to minimize volatility. The fund aims to achieve its objectives through three principal strategies: equity long/short, macro and fixed income, and credit.
Through its equity long/short strategy, the fund will invest in publicly listed equity securities and maintain both long and short positions. Long investing generally involves buying a security expecting to profit from an increase in its price. Short investing generally involves selling a security that the fund does not own, expecting to profit from a decline in its price at a later time.
Through its macro and fixed-income strategies, the fund will invest in securities and other instruments to establish long and short investment exposures. These investments will be expressed utilizing fixed income, currencies, equities and commodity securities and derivatives.
Through its credit strategies, the fund will opportunistically seek to invest in a variety of debt securities.
“There is increasing demand for alternative solutions, historically available only to institutions, from a growing number of qualified wealth investors,” said Mark Sullivan, head of hedge funds at Wellington. “We are introducing a distinct global multi-strategy interval fund to provide a broader range of wealth clients exposure to a potentially valuable portfolio diversifier. This is particularly important today as traditional sources of diversification and downside mitigation have been less reliable, and we believe this is why the category is experiencing strong inflows in U.S. wealth.”
The fund will initially offer Class A shares, Class I shares, and Class M shares. The fund stated that it may offer additional share classes in the future. It intends to make annual distributions to shareholders and will operate under a dividend reinvestment plan.
The fund said that a performance fee will be determined as of the end of the fiscal year. This fee will be equal to 20% of the amount by which the fund’s net profits exceed the balance of the loss carryforward account. Additionally, an investment management fee, payable monthly in arrears and accrued daily based upon the fund’s average daily net assets at an annual rate of 1% prior to any accrual of the performance fee, will also be charged.
The fund is designed primarily for long-term investors and those who reach the criteria for a “qualified client” under the Investment Advisers Act of 1940.
Roberto Isch, portfolio manager, will manage the fund. He will be supported by an 11-member management team of key leaders across the platform.
Wellington Management is one of the world’s largest independent investment management firms, serving as an adviser to over 2,400 clients in more than 60 countries. As of Dec. 31, 2023, Wellington had investment management authority for approximately $1.22 trillion in assets.
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