Wilmington Trust launched a new mutual fund, Wilmington Rock Maple Alternatives Fund, which provides exposure to a diverse set of alternative strategies. The fund is managed by a team of experienced professionals with expertise in selecting and blending investment strategies with complementary styles, risk exposures, and opportunities. The goal of the fund is to deliver long-term growth of capital through consistent returns with a low correlation to traditional asset classes.
The fund’s portfolio managers selected eight independent sub-advisors, which will oversee separate sub-portfolios of the fund in accordance with specific parameters, constraints, and risk-return objectives. The fund also has assets invested in two independently managed mutual funds. It commenced investment operations on Jan. 12, 2012.
The mutual fund is managed by Wilmington Funds Management Corporation (WFMC), a Wilmington Trust company, in partnership with Wilmington Trust Investment Advisors, Inc. (WTIA), and Rock Maple Services, LLC (Rock Maple), an investment advisor specializing in alternative investments.
“We are excited to offer clients a new vehicle to diversify their investment exposures and dampen the overall volatility of their portfolios,” said Sam Fraundorf,
CFA, president of WTIA. “We are pleased to partner with Rock Maple Funds to launch this product and deliver a truly unique fund for our clients.”
Doug Fincher, president and CEO of Rock Maple, said, “We firmly believe investors wanting hedge fund strategies can benefit most from exposure to these strategies through an independent multi manager vehicle. Our partnership with Wilmington Trust allows us to provide this expertise in a mutual fund structure.”
“Diversification among managers and strategies is a key element in pursuing our investment objective,” said Greg Silberman, CA (SA), CFA, vice president and director of hedge funds for Wilmington Trust. “We believe the fund can generate consistent, risk-adjusted returns by adhering to the strict, clearly defined processes in place for manager selection, portfolio construction, and risk management.”
According to a recent report by Morningstar®, assets in alternative mutual funds totaled nearly $80 billion as of Dec. 31, 2011. Such funds accounted for less than one percent of all mutual fund assets.