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Vanguard Alternative Strategies Fund registration filing
Interesting that the 'Principal Investment Strategies' in the prelim prospectus reads like a multi-asset, multi-strategy alt fund, but the advisor is listed on p. 24 as Vanguard's Equity Investment Group. Then it goes on to say that "the Fund reserves the right to utilize a multi-manager approach in the future."
I wonder if they did the initial filing before they had set up any agreements with the people/firms who are actually going to run the strategies, and that's why the apparent (?) delay. Nothing comes up on the V. site from a search for the fund by name.
"The Fund is expected to utilize leverage in an attempt to match the expected risk profile of each individual strategy to a targeted level. " "The advisor may also engage in this strategy [L/S equity] through futures, forwards, or swaps." "Absolute return investing is complex and may involve greater risk than investing in a traditional portfolio of stocks, bonds, and cash. " "The Fund has the ability to obtain commodity exposure by investing directly in commodity-linked investments or investing indirectly in those investments through a wholly owned subsidiary organized under the laws of the Cayman Islands. [...] the subsidiary will not be organized as a mutual fund that is registered under any federal or state securities laws, including the Investment Company Act of 1940. "
Doesn't have the feel of a Vanguard fund to me. The more things change.... the more they DON'T stay the same?
Comments
I wonder if they did the initial filing before they had set up any agreements with the people/firms who are actually going to run the strategies, and that's why the apparent (?) delay. Nothing comes up on the V. site from a search for the fund by name.
Thanks for the heads-up, Shadow.
"The advisor may also engage in this strategy [L/S equity] through futures, forwards, or swaps."
"Absolute return investing is complex and may involve greater risk than investing in a traditional portfolio of stocks, bonds, and cash. "
"The Fund has the ability to obtain commodity exposure by investing directly in commodity-linked investments or investing indirectly in those investments through a wholly owned subsidiary organized under the laws of the Cayman Islands. [...] the subsidiary will not be organized as a mutual fund that is registered under any federal or state securities laws, including the Investment Company Act of 1940. "
Doesn't have the feel of a Vanguard fund to me. The more things change.... the more they DON'T stay the same?
Regards,
Ted
http://blogs.wsj.com/moneybeat/2015/03/10/vanguards-alt-fund-has-investing-community-abuzz/tab/print/
Vanguard Research: ' Liquid Alternatives: A Better Mousetrap?'
https://pressroom.vanguard.com/content/nonindexed/Liquid_alternatives_A_better_moustrap_7.23.2014.pdf