Mutuactivos, the asset management business of the Spanish insurance group Mutua Madrileña, has launched a passive strategy that will invest in the stocks listed on the Dow Jones Industrial Average.
Mutuafondo Renta Variable EE.UU is an equity fund investing in the US stock exchange Dow Jones Industrial, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.
Mutuactivos said in a note that although it will keep its usual active management style, it has launched a passive strategy on this occasion because it believes that active management cannot provide consistent and constant long-term alpha to clients with US strategies.
The company also said that the new fund aims at offering retail investors access to US equities at a reduced cost.
Luis Ussía, CEO of Mutuactivos, said: "It will be particularly interesting to our clients of discretionary portfolio management and any other asset allocation products, where the new fund will be included."
Emilio Ortiz, investments director at the firm, assured that despite being a passive strategy, its team will optimise the fund's portfolio in order to maximise net returns for investors.
The fund will invest over 90% in US equities, both directly through shares and indirectly through derivatives. The remaining part of the portfolio will be invested in monetary assets of high quality and liquidity.
Mutuactivos currently manages over €7.5bn through 32 investment funds, 23 pension plans, and some savings insurance policies.