Citi Investor Services has gone live with a new mutual fund platform for alternative asset managers, as the convergence of hedge funds and mutual funds continues to accelerate.
The platform, named ALTMFX Trust, is a joint venture with CAIS, a third party alternatives distribution platform, and Atlantic Fund Services. It offers hedge fund managers alternative liquid strategies, enabling them to launch US’40 Act mutual funds.
Under the joint venture, Atlantic will provide fund administration, governance and compliance support, while Citi is the exclusive global custodian for the rest and serves as the preferred prime broker to newly launched alternative mutual funds.
These liquid alternatives, such as ’40 Act mutual funds, are becoming more favourable amongst institutional and retail investors, particularly within the perceived safety of a regulated vehicle.
In a white paper published by Citi in May 2013, it predicted $939 billion of the $12.8 trillion in retail assets will flow into liquid alternatives by 2017.
The launch of the platform represents Citi’s commitment to hedge funds, despite the bank announcing it is looking to sell its hedge fund administration and transfer agency businesses.
Citi’s Mutual Fund Platform for Liquid Alternatives Goes Live
Citi Investor Services has gone live with a new mutual fund platform for alternative asset managers, as the convergence of hedge funds and mutual funds continues to accelerate.