As reported by The MFWire last week, Jefferies Asset Management s now in the '40 Act arena by way of a sub-advisory relationship with ALPS Advisors. JAM acts as sub-advisor to the Commodity Strategy Allocation Fund, which launched a few weeks ago.

"JAM decided to enter the '40 Act space to provide investors with an updated and unique approach to commodity exposure," according to JAM managing director Satch Chada in an interview, noting that "global commodity markets have rapidly evolved over the past decade."

Jefferies is new to the mutual fund space, but its relationship with ALPS isn't.

The firm is working with Alps on ETFs that were launched last year and this year. "This is an extension of our already strong and strengthening relationship with ALPS," Chada said.

He also said that while Jefferies has not aggresively pursued sub-advisory opportunities in the past, "we would be interested in exploring strategic partnerships with firms offering complementary capabilities."

As for the Commodity Strategy Allocation Fund, Chada sees the product becoming available in the coming weeks and months "at nearly all of the major distribution franchises." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE