Fund files: Neuberger fund adds crypto option, MassMutual offers bitcoin game

[ad_1]

MassMutual announced on Wednesday that its broker, MML Investors Service, has entered into an agreement with NYDIG, a New York-based bitcoin investment advisory firm, to launch a bitcoin fund for MassMutual clients.

MassMutual purchased a $ 5 million stake in NYDIG in December 2020.

The move reflects MassMutual’s bet that bitcoin and other cryptocurrencies will continue to play a larger role in the financial world, the company said in a statement. MassMutual has also already purchased $ 100 million in bitcoin through a transaction handled by NYDIG.

“This offering with NYDIG is a further step in continuing to expand our product line with the goal of ensuring that our finance professionals and clients have the tools they need to continue to build broadly diversified portfolios,” said Daken Vanderburg, Head of MML Investors Services. investments.

A number of wire houses and brokerage houses have added crypto offerings to their platforms in recent months, including Morgan Stanley and JP Morgan, with Merrill Lynch also looking into them.

NB adds crypto option to commodities fund

Neuberger Berman adds a cryptocurrency angle to its $ 161 million Neuberger Berman Commodity Strategy fund, giving its portfolio managers the ability to invest in bitcoin futures, according to a filing with the Securities and Exchange Commission.

The company has indicated that it is not looking to use the fund, which is managed by Hakan Kaya, Thomas Sontag, David Wan and Michael Foster, to invest directly in bitcoin.

The goal, according to a spokesperson for Neuberg Berman, is to strengthen the fund’s use as a hedge against inflation, a move underscored by the Prime Minister’s belief that “crypto assets are scarce by definition.”

“In the meantime, however, they believe there will be strong price trends, including relative price trends, and as such, they believe exposure to a diversified portfolio, albeit modest, of these crypto assets offers another source of potential return for the portfolio. ” said the spokesperson.

A number of other funds have taken similar steps, allowing managers to access Bitcoin futures contracts.

In late January, BlackRock filed a filing with the SEC to allow two funds – the BlackRock Strategic Income Opportunities and BlackRock Global Allocation funds – to invest in bitcoin futures.

Both funds are led by Rick Rieder, CIO of Global Fixed Income at BlackRock. Other well-known managers who have made a similar decision include Bill Miller, who has long been a cryptocurrency investor in his hedge funds, and Dennis Lynch of Morgan Stanley Investment Management.

[ad_2]