NEW YORK--(BUSINESS WIRE)--VanEck is today celebrating the one year anniversary of the launch of its VanEck NDR Managed Allocation Fund (the “Fund”, Class A ticker NDRMX).
The Fund was developed by VanEck in partnership with Ned Davis Research (NDR), one of the world’s leading researchers of the indicators that drive financial markets. Taking a tactical approach to asset allocation, the Fund responds to changing market conditions by allocating among global stocks and U.S. fixed income (using exchange traded products), and can also raise significant cash in order to limit drawdowns during extreme market events.
Since its inception on May 11, 2016, the Fund has outperformed its benchmark and ranks in the top quartile of the Morningstar Tactical Allocation category. As of the end of April, the Fund returned 11.27% (Class A at NAV) outperforming its benchmark of 60% global stocks (MSCI All Country World Index) and 40% bonds (Bloomberg Barclays US Aggregate Bond Index) which returned 9.97%.
VanEck’s Portfolio and Risk Solutions group invests based on a model from NDR that uses a combination of macroeconomic, fundamental, and technical indicators to develop a comprehensive view of market conditions to overweight asset classes expected to outperform on a relative basis and underweight or exit those expected to underperform. The goal of the Fund is to outperform in all market environments.
“The two primary things that make the Fund different are that it takes the emotion out of investing by relying on an objective, data-driven model, and it can exit the markets in periods of crises,” said David Schassler, Portfolio Manager with VanEck. “Outperforming in up and sideways market environments is always important, but avoiding substantial losses during major market corrections is the key to helping generate attractive long-term performance. That is what we are trying to accomplish with the Fund.”
“Since the Fund’s launch last May, we’ve seen no shortage of exciting events, from Brexit to the U.S. presidential election, and have been pleased with how the model has performed,” said Paul Jakubowicz with Ned Davis Research. “We look forward to many more years of successful efforts between our firms to make often difficult allocation decisions easier for investors.”
VanEck’s David Schassler regularly blogs about allocation-related topics on the VanEck website. His most recent piece, a full archive, and a form for subscribing to his future writing can be found here: https://www.vaneck.com/blogs/allocation/
About VanEck
VanEck’s mission is to offer investors forward-looking, intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, the firm is a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, VanEck continues this tradition by offering innovative active and passive investment portfolios in hard assets, emerging markets equity and debt, precious metals, fixed income, and other alternative asset classes. VanEck Vectors exchange-traded products are one of the largest ETP families in the world, managing more than 70 funds that span a range of sectors, asset classes, and geographies. As of March 31, 2017, VanEck managed approximately $44.2 billion in assets, including mutual funds, ETFs, and institutional accounts.
About NDR
Ned Davis Research (NDR) specializes in quantitative research based on technical, fundamental and macroeconomic analysis. It is headquartered in Venice, Florida and has approximately 125 employees. NDR was founded in 1980 as an institutional investment research provider and in 2011 was sold to Euromoney Institutional Investor PLC, a London-based holding company that invests globally in media companies operating in the financial services industry. NDR is not an affiliate of VanEck and none of NDR’s employees are also employees of VanEck.
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Month End
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1 |
3 |
Year to Date |
Since Inception |
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| Class A: NAV (Inception 05/11/16) | 1.29 | 4.45 | 5.70 | 11.27 | |||||||||
| Class A: Maximum 5.75% load | -4.52 | -1.54 | -0.36 | 4.89 | |||||||||
| Class I: NAV (Inception 05/11/16) | 1.32 | 4.52 | 5.81 | 11.59 | |||||||||
| 60% MSCI ACWI/40% BbgBarc US Agg. | 1.27 | 4.05 | 5.86 | 9.97 | |||||||||
| Morningstar Tactical Allocation (Median) | 0.89 | 3.00 | 4.48 | 9.04 | |||||||||
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Month End
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1 |
3 |
Year to Date |
Since Inception |
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| Class A: NAV (Inception 05/11/16) | 1.31 | 4.35 | 4.35 | 9.85 | |||||||||
| Class A: Maximum 5.75% load | -4.51 | -1.63 | -1.63 | 3.55 | |||||||||
| Class I: NAV (Inception 05/11/16) | 1.30 | 4.42 | 4.42 | 10.13 | |||||||||
| 60% MSCI ACWI/40% BbgBarc US Agg. | 0.75 | 4.53 | 4.53 | 8.59 | |||||||||
| Morningstar Tactical Allocation (Median) | 0.17 | 3.55 | 3.55 | 8.22 | |||||||||
Returns less than a year are not annualized.
Expenses: Class A: Gross 3.60%; Net 1.38% - Class I: Gross 3.21%; Net 1.08% - Class Y: Gross 4.38%; Net 1.13%. Expenses are capped contractually until 05/01/18 at 1.15% for Class A, 0.85% for Class I, 0.90% for Class Y. Caps exclude certain expenses, such as interest.
The performance data quoted represents past performance which is no guarantee of future results and which may be lower or higher than current performance. Returns reflect temporary contractual fee waivers and/or expense reimbursements. Had the Fund incurred all expenses and fees, investment returns would have been reduced. Investment returns and Fund share values will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. An Index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. Index returns assume that dividends of the Index constituents in the Index have been reinvested. Please call 800.826.2333 or visit vaneck.com for performance information current to the most recent month end.
The Fund's benchmark index (60% MSCI ACWI/40% Bloomberg Barclays US Agg) is a blended index consisting of 60% MSCI All Country World Index (ACWI) and 40% Bloomberg Barclays US Aggregate Bond Index. The MSCI ACWI captures large and mid-cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries and covers approximately 85% of the global investable equity opportunity set. The MSCI benchmark is a Gross Return index which reinvests as much as possible of a company’s gross dividend distributions. The Bloomberg Barclays US Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. This includes Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and collateralized mortgage-backed securities.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees, or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
The Morningstar Tactical Allocation category includes portfolios that seek to provide capital appreciation and income by actively shifting allocations across investments. These portfolios have material shifts across equity regions, and bond sectors on a frequent basis. To qualify for the tactical allocation category, the fund must have minimum exposures of 10% in bonds and 20% in equity. Next, the fund must historically demonstrate material shifts in sector or regional allocations either through a gradual shift over three years or through a series of material shifts on a quarterly basis. Within a three-year period, typically the average quarterly changes between equity regions and bond sectors exceeds 15% or the difference between the maximum and minimum exposure to a single equity region or bond sector exceeds 50%. Class A shares of the Fund ranked #79 out of 319 funds in the category for the period of May 11, 2016 through April 30, 2017.
You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program rather than a complete program. All mutual funds are subject to market risk, including possible loss of principal. Because the Fund is a "fund-of-funds," an investor will indirectly bear the principal risks of the exchange-traded products in which it invests, including but not limited to, risks associated with smaller companies, foreign securities, emerging markets, debt securities, commodities, and derivatives. The Fund will bear its share of the fees and expenses of the exchange-traded products. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in an exchange-traded product. Because the Fund invests in exchange-traded products, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an exchange-traded product's shares may be higher or lower than the value of its underlying assets, there may be a lack of liquidity in the shares of the exchange-traded product, or trading may be halted by the exchange on which they trade. Principal risks of investing in foreign securities include changes in currency rates, foreign taxation and differences in auditing and other financial standards. Debt securities may be subject to credit risk and interest rate risk. Investments in debt securities typically decrease in value when interest rates rise. Because Van Eck Associates Corporation relies heavily on third party quantitative models, the Fund is also subject to model and data risk. For a description of these and other risk considerations, please refer to the Fund’s prospectus, which should be read carefully before you invest.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
Van Eck Securities Corporation, Distributor
666 Third Avenue, New
York, NY 10017
800.826.2333
