Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. Print
April 14, 2008 01:00 AM

NACM to launch 3 new 130/30 mutual funds

Raquel Pichardo
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Marna Whittington

    SAN DIEGO — Nicholas-Applegate Capital Management Inc. this year is launching three 130/30 institutional mutual funds, a frontier fund that will include exposure to developed and emerging markets, and a global petroleum fund.

    The San Diego-based firm is cashing in on investors' interest in high alpha-producing products amid lackluster equity markets, said Marna Whittington, managing director and chief executive officer.

    The 130/30 mutual funds will be the first offered to outside investors by NACM, Ms. Whittington said. NACM has launched a Global Equity 130/30 fund, and plans to launch a U.S. Systematic Large-Cap Growth 130/30 fund and a U.S. Systematic Small-Mid Cap 130/30 fund. The strategies have been run in internally managed separate accounts for more than one year each, she said.

    The strategies weathered the subprime storm that has battered many quant products, Ms. Whittington said.

    The global equity 130/30 strategy in the separate account, which has $4 million in assets and was seeded on Jan. 1, 2007, returned 5.8% in the fourth quarter and 40.2% for the year. Its benchmark, the Morgan Stanley Capital International All Country World Index, returned -1.7% for the quarter but was up 12.2% for the year.

    The global 130/30 launched April 1, while the other two 130/30 strategies will follow by year-end, Ms. Whittington said.

    The $4 million large-cap growth 130/30 suffered during the fourth quarter, returning -1.4% vs. -0.8% for the Russell 1000 Growth benchmark. For the year ended Dec. 31, the long/short strategy returned 16.7% vs. 11.8% for the benchmark. It was also seeded on Jan. 1.

    The $4 million smidcap product was down 2.7% in the fourth quarter, beating the Russell 2500 index, which returned -4.3% in the same time period. The portfolio returned 6.1% for the year vs. 1.4% for the index.

    As some hedge fund strategies struggle with performance, 130/30 will begin to look like a more attractive alternative, Ms. Whittington said.

    However, investors are more risk averse than they were at the beginning of last year, she said. “We will be a little slower in attracting new assets this year than we would have been at the beginning of last year,” she said.

    The 130/30 strategies are also available to investors in a separate account format.

    Separately, NACM plans to launch a frontier fund in the third quarter. The fund is an extension of the existing $560 million global select fund, an all-cap global equity strategy, Ms. Whittington said. The new fund, currently registered as a Luxembourg SICAV, will invest some 80% of its assets in developed and emerging markets equities, and the remaining 20% in frontier markets, or pre-emerging markets.

    The fund is being developed in partnership with Lawrence Speidell, CIO at Frontier Market Asset Management LLC, La Jolla, Calif., and a former partner at NACM.

    The fund initially will be open to Asian and European investors but eventually will be offered to U.S. investors, Mr. Speidell said. “This is designed to provide emerging-markets investors with a more broad-based ... lower volatility, diversified portfolio,” he said.

    'Next emerging markets'

    “People see it as the next emerging markets,” Ms. Whittington said. The firm is in discussions with a large U.S. institutional investor about investing in the fund, but she declined to disclose the client.

    Last month, Barclays Global Investors, San Francisco, launched the BGI Frontier Markets Fund, a collective investment trust exclusively for institutional investors that offers exposure to equities in 16 pre-emerging markets.

    Finally, NACM plans to launch a Global Petro Fund also registered as a Luxembourg SICAV. The institutional fund will be “very concentrated” and will invest in the top oil-exporting companies and others dealing in the oil industry worldwide. “This is a focused commodity play,” Ms. Whittington said. “We've had a lot of conversations about commodities as an inflation hedge,” she said. As oil prices soar, investments in oil-exporting companies become more attractive.

    But whether or not now is the right time to invest in oil companies is questionable, said Michael Beasley, managing director at Strategic Investment Solutions, San Francisco. “Is this a good idea at $150 a barrel? Was it a good idea at $50 a barrel?” he asked. If the price goes up or down, what will that do to demand, he asked. “Those questions will be important,” he added.

    However, “the need to supply and transport oil is not going to change in the immediate future,” he said.

    Contact Raquel Pichardo at [email protected]

    Recommended for You
    Read the print edition of P&I
    Read the print edition of P&I
    Citadel's Ken Griffin gives $125 million to Chicago museum; name will change
    Citadel's Ken Griffin gives $125 million to Chicago museum; name will change
    Gender diversity is improving on FTSE 350 boards
    Gender diversity is improving on FTSE 350 boards
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    Morningstar Indexes' Annual ESG Risk/Return Analysis
    The Future of Infrastructure: Building a Better Tomorrow
    Outlook 2023: Opportunity in a volatile world
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing