What is the primary function of a completeness fund?

The primary function of a completeness fund is to align with the overall portfolio risk exposures. Completeness funds are typically employed in a larger investment strategy, where they seek to provide coverage for specific risks that may not be fully accounted for in other investments within the portfolio.

These funds allow investors to achieve a targeted risk profile, complementing their core investments by providing specific exposures that enhance the overall portfolio's alignment with desired risk and return objectives. By doing so, completeness funds assist in ensuring that the investor’s total portfolio reflects their strategic asset allocation while mitigating gaps in particular exposures, essentially refining the portfolio's overall risk structure.

This approach differs from simply aiming to maximize returns, reducing costs, or providing diversification, which might not directly address the focus on achieving an optimal risk alignment within the broader investment framework.