ABOUT THIS FUND
This liquid alternatives fund seeks to provide positive absolute returns with true diversification through low correlation to stocks and bonds. We invest in a portfolio of traditional and nontraditional investable risk premia derived from equity, fixed income, currency and commodity asset classes. By targeting a broad collection of statistically independent sources of return, we believe we are in a position to create a more robust portfolio that provides, over time, a generally more stable source of return with a targeted volatility of 5% to 7%, significantly less than the long-term volatility of stocks.
WHY INVEST IN THIS FUND
Target Absolute Return
The portfolio seeks to deliver absolute returns over a full market cycle.
Seeks Constant Volatility
The portfolio targets 6% annualized volatility over a full market cycle.
The portfolio seeks to provide diversification through low correlation to traditional assets such as stocks and bonds.
Striking a Balance Between Low Correlation and Moderate Volatility
5 Year correlations and volatility, Fund (Class I Shares) and Morningstar category averages, relative to the MSCI All Country World Index (as of 9/30/19)
Source: Morningstar, Inc.
Relative volatility measures the ratio of standard deviation relative to the standard deviation of the MSCI All Country World Index. Since equities pose the predominant risk in traditional portfolios, this global equity index is used as an indicator of equity risk in order to determine how well an alternative strategy diversifies away from this risk.
Past performance is no guarantee of future results.