BOSTON--(BUSINESS WIRE)--Wellington Management (“Wellington”), one of the world’s largest independent investment management firms and a leading global hedge fund manager, today announced the launch of its first interval fund, Wellington Global Multi-Strategy Fund (the “Fund”), which seeks to generate consistent and positive returns across market cycles while managing market risk exposure and seeking to minimize drawdowns and volatility. The Fund will be managed by Portfolio Manager Roberto Isch, CFA, who will be supported by an 11-member management team of key leaders across the platform.
As an interval fund, its investment features intersect hedge funds and open-end funds, and its distinct structure enables Wellington to deliver a broad range of alternative investment strategies to a wider base of qualified investors. The Fund is designed primarily for long-term investors and leverages demonstrated multi-strategy experience, dating back to 2001. By combining bottom-up trading strategies with top-down portfolio construction and risk management in an integrated fund structure, the Fund seeks to deliver attractive risk-adjusted returns and provide flexibility with capital allocation changes.
“Multi-strategy approaches are designed to have low correlation with traditional asset classes and provide downside mitigation during difficult market environments,” according to Roberto Isch. “They may be a valuable diversifier to broad equity and fixed income exposure in a client’s portfolio, particularly during periods of market stress when the two can be highly correlated.”
The launch of this Fund marks a significant step in expanding Wellington’s alternative investments platform, emphasizing its dedication to providing high-quality investment products in appropriate vehicles to distribution partners and clients. Wellington already offers a wide range of strategies in alternatives and private markets to institutional investors, in addition to its public markets platform.
“There is increasing demand for alternative solutions, historically available only to institutions, from a growing number of qualified wealth investors,” added 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 is why the category is experiencing strong inflows in U.S. Wealth.”
Wellington has over 30 years of hedge fund investment experience and manages $30 billion (as of 30 November 2024) for clients across a range of multi-strategy and long/short approaches. For more than three decades, the firm has been building a broad set of investment capabilities powered by the innovative spirit of an alternatives boutique combined with the resources and stability of a global asset manager. The firm continues to grow in areas that are adjacent to core competencies, and which offer clients differentiated solutions to meet their needs.
About Wellington Management
Wellington Management is one of the world’s largest independent investment management firms, serving as a trusted adviser to over 2,500 clients in more than 60 countries. The firm manages more than US$1.2 trillion, as of 30 November 2024, for pensions, endowments and foundations, insurers, family offices, fund sponsors, global wealth managers, and other clients. Wellington aspires to provide excellent service to clients through a unique combination of independence enabled by its distinctive private partnership model, diverse perspectives through its unified, multi-asset investment platform, and relentless curiosity and intellectual rigor fostered by its enduring collaborative culture.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please contact your financial advisor or visit our website at https://www.wellington.com/en-us/intermediary/interval-funds/wellington-global-multi-strategy-fund. Read the prospectus or summary prospectus carefully before investing. The Fund has been organized as a continuously offered, non-diversified closed-end management investment company that is operated as an interval fund.
- There is not expected to be any secondary trading market in the Shares. Thus, an investment in the Fund may not be suitable for investors who may need the money they invest within a specified timeframe.
- Unlike most closed-end funds, the Shares are not listed on any securities exchange. The Fund will provide liquidity through quarterly offers to repurchase a limited amount of the Fund’s Shares (at least 5%).
- Shareholders should not expect to be able to sell their Shares in a secondary market transaction regardless of how the Fund performs. An investment in the Fund is considered to be of limited liquidity.
- An investor will pay a sales load of up to 5.00% on the amounts it invests in Class A Shares. If you pay the maximum aggregate 5.00% for sales load, you must experience a total return on your net investment of 5.27% in order to recover these expenses.
- The Fund may charge a performance fee on net profits including unrealized gains. There is a risk that such unrealized gains on which a performance fee is charged may never be realized.
- There is no assurance that annual distributions paid by the Fund will be maintained at the targeted level or that dividends will be paid at all.
- The Fund’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to Shareholders through distributions will be distributed after payment of fees and expenses.
- The Fund’s distributions may be funded from sources not available in the future, and such distributions may be unrelated to the Fund’s performance.
- A return of capital to Shareholders is a return of a portion of their original investment in the Fund, and reduces the tax basis of their investment. As a result of such reduction in tax basis, Shareholders may be subject to tax in connection with the sale of Fund Shares, even if such Shares are sold at a loss relative to their original investment.
- The Fund’s distributions may arise as a result of expense reimbursements provided by the Adviser, which are subject to repayment by the Fund. Shareholders should understand that any such distributions are not based on the Fund’s investment performance and can only be sustained if the Fund achieves positive investment performance in future periods and/or the Adviser continues to make such expense reimbursements. Shareholders should also understand that the Fund’s future repayments will reduce the distributions that a Shareholder would otherwise receive.
MAJOR RISKS
DIRECTIONAL: Not market neutral. Primarily invests in equity on both long and short sides. Will experience equity like volatility, at times. At times, markets experience great volatility and unpredictability.
BROAD INVESTMENT FLEXIBILITY: No benchmark orientation; few investment restrictions. Geographic, sector, market cap, and asset class emphases may shift over time. Net exposure is flexible; manager’s bias can change in different environments.
LEVERAGE RISK: Use of leverage may increase the risk of investment loss.
LIQUIDITY RISK: May use small capitalization companies.
COUNTRY/CURRENCY RISK: Use of non US names.
DERIVATIVES RISK: May employ derivatives including futures, swaps, options, forwards, and other instruments on equities, commodities, bonds, interest rates, credits, other fixed income, currencies, indices, and other baskets of securities. Commodity trading involves substantial risk of loss.
COUNTERPARTY RISK: Counterparty risk to prime broker, and to counterparties for over the counter derivatives transactions.
TRANSPARENCY RISK: Holdings, pricing, and other data is limited and thus less transparent than certain other investments. | Summary of some of the major risks. Consult the Fund’s prospectus for a more complete description of risks specific to the Fund.
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