FundQuest adds alternatives to SMA platform

FundQuest Inc. of Boston has expanded the offerings on its managed-accounts platform to include select alternative strategies.
JUL 22, 2009
FundQuest Inc. of Boston has expanded the offerings on its managed-accounts platform to include select alternative strategies. FundQuest is now providing access to hedge-style mutual funds, commodities and international bonds, in addition to traditional stocks and bonds. “Our research indicated that the market correction has provided an opportune time to add these three asset classes,” Tim Clift, FundQuest’s chief investment officer, said in a statement. “In particular, we see good valuations, increased portfolio diversification, and a means to add a hedge against future inflation and a weaker dollar,” he added. The hedge-style mutual funds are less correlated to long-only stocks and many bond indexes, and the addition of international bonds from developed markets makes sense as an alternative to domestic bonds, FundQuest said in the statement. In FundQuest’s model-based portfolios, about 10% of the assets are being allocated to the alternative classes. For adviser-directed portfolios, the allocation is more flexible, depending on how well the strategy suits each client.

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