(Adds BlackRock declined to comment)
Aug 12 The Securities and Exchange Commission
has launched a broad examination of alternative mutual funds,
the Wall Street Journal reported, citing people familiar with
The so-called funds "sweep" includes examinations of large
investment firms such as BlackRock Inc and AQR Capital
Management LLC, as also smaller firms that previously didn't
offer mutual funds, the Journal said. (on.wsj.com/1ppVgBx)
BlackRock has launched seven alternative mutual funds aimed
at penetrating the retail alternatives market. [ID: nL2N0QE1D8]
Alternative mutual funds typically employ investment
strategies that imitate those of hedge funds, such as investing
in private debt or shorting assets, and command higher fees.
Traditional mutual funds, in comparison, generally invest in
more standard asset classes such as stocks and bonds for the
Reuters reported in July that a surge of investment in
alternative mutual funds had caught the attention of the
regulators and that the SEC would launch examinations into
The SEC also expects alternative funds to follow a
regulation that generally requires mutual funds to send payments
to investors within seven days after they redeem shares.
BlackRock declined to comment. AQR Capital Management was
not immediately available for comment.
(Reporting By Neha Dimri in Bangalore; Editing by Feroze Jamal)