(Adds AQR Capital Management declined to comment)
Aug 12 The U.S. Securities and Exchange
Commission has begun a broad examination of alternative mutual
funds, the Wall Street Journal reported, citing people familiar
with the matter.
The so-called funds "sweep" includes examinations of large
investment companies such as BlackRock Inc and AQR
Capital Management LLC, and smaller firms that previously did
not offer mutual funds, the Journal said. (on.wsj.com/1ppVgBx)
BlackRock has launched seven alternative mutual funds aimed
at penetrating the retail alternatives market.
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 the SEC would launch examinations of these funds.
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 and AQR Capital Management declined to comment on
(Reporting by Neha Dimri in Bangalore; Editing by Feroze Jamal
and Jan Paschal)