Advantus Capital Management Launches Two Managed Volatility Funds
ST. PAUL, Minn.--(BUSINESS WIRE)-- Investors seeking to reduce the amount of volatility in their investment portfolios now have well-researched mutual fund options available from Advantus Capital Management, a subsidiary of Securian Financial Group.
Building off its experience in managed volatility strategies, Advantus recently launched its Advantus Dynamic Managed Volatility Fund (AVMNX and VVMIX) and Advantus Managed Volatility Equity Fund (AMENX and VMEIX), each with Class A and Institutional shares available.
“Investors are increasingly focused on risk management, and they are looking for solutions that go beyond traditional equity and fixed income products,” said Steve Moen, senior vice president of business development and investment solutions at Advantus. “Our Managed Volatility Funds are for investors seeking to maintain exposure to the equity markets with the potential for lower volatility.”
As market conditions change, the effective equity exposure of the Funds change to manage volatility. The equity allocation is adjusted primarily through the use of futures, reducing equity exposure when markets are more volatile, and increasing exposure when market volatility is low.
The Advantus Dynamic Managed Volatility Fund targets an allocation of 60% equities and 40% fixed income. The effective equity exposure in the Fund can range from a minimum of 10% to a maximum of 90%.
The Advantus Managed Volatility Equity Fund can have an effective equity exposure up to 100%. In addition, the Fund’s equity investments are primarily in historically low volatility ETFs.
“Our approach to managing volatility is straightforward,” said Moen. “By adjusting the equity allocation, investors don’t need to solely rely on moving dollars to fixed income to try to reduce risk in their portfolio. The Advantus Managed Volatility Funds can allow investors to stay in equities without the big swings.”
David Kuplic, CFA, and Craig Stapleton, CFA, FRM, are the portfolio managers for the Funds. Both investment professionals have demonstrated expertise and results leading similar managed volatility strategies at Advantus since 2013.
For more information about Advantus Funds, visit www.advantusfunds.com.
Advantus Capital Management is an institutional asset manager that specializes in public and private fixed income, real estate securities and other income‐oriented equity strategies. Its investment approach is founded on thorough fundamental research insights derived from collaboration among investment specialists across diverse strategies, with risk management embedded throughout the process. Advantus is a subsidiary of Securian Financial Group.
The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1.800.665.6005 x51495. Read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. The Adviser may be unsuccessful in managing volatility and the Funds may experience a high level of volatility in their returns. The securities used in the strategy are subject to price volatility, and the strategy may not result in less volatile returns for the Funds relative to the market as a whole, and they could be more volatile. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. Investment by the Funds in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Municipal securities are subject to adverse political or economic factors, including changes in the tax law. Derivatives involve special risks including leverage, correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented to more traditional investments. The Funds may invest in illiquid securities which involve the risk that the securities will not be able to be sold at the time or prices desired by the Funds, particularly during times of market turmoil. In connection with establishing a short position in an instrument, the Funds are subject to the risk that they may not always be able to borrow the instrument, or to close out a short position at a particular time or at an acceptable price. The market price of an ETF fluctuates based on changes in the ETF’s net asset value as well as changes in the supply and demand of its shares in the secondary market. It is also possible that an active secondary market of an ETF’s shares may not develop and market trading in the shares of the ETF may be halted under certain circumstances. ETNs are unsecured debt obligations and are subject to the credit risk of their issuers, and will lose value if the issuer goes bankrupt. ETN returns are linked to the performance of designated indices which fluctuate due to market changes as well as economic, legal, political and geographic events. The market price of ETNs fluctuates as their returns fluctuate and as the level of supply and demand for the ETNs change. The Funds may invest in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods.
Targeted portfolio allocations are subject to change. There is no guarantee that the portfolio characteristics above will reflect the Funds’ portfolio.
The S&P500® is a market value weighted index of 500 stocks chosen by Standard and Poor’s for their market capitalization, liquidity and industry grouping. One may not directly invest in an index.
The Advantus Dynamic Managed Volatility Fund and Advantus Managed Volatility Equity Fund are distributed by Quasar Distributors, LLC, and Advantus Capital Management, Inc. will be the investment advisor. Securian Financial Group is not affiliated with Quasar Distributors, LLC.
DOFU 09-201524631
View source version on businesswire.com: http://www.businesswire.com/news/home/20150930006359/en/
Securian Financial Group
Jeff Bakken, Media Relations, 651-665-7558
[email protected]
Source: Advantus Capital Management
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