ST. PAUL, Minn.--(BUSINESS WIRE)--Advantus Capital Management has launched a second Managed Volatility Fund available through the Securian Funds Trust (SFT) as an option with certain variable annuity contracts and variable life insurance policies.
The SFT Advantus Managed Volatility Equity Fund invests primarily in historically low volatility Exchange Traded Funds (ETFs) and can have an effective equity exposure up to 100%.
“We’re excited to make this managed volatility equity investment approach available with Securian’s variable annuity and life insurance products,” said Steve Moen, senior vice president of business development and investment solutions at Advantus. “Managed Volatility Funds allow investors to maintain exposure to the equity markets with the potential for lower volatility.”
As market conditions change, the effective equity exposure of the Fund changes 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.
“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.”
David Kuplic, CFA, and Craig Stapleton, CFA, FRM, are the portfolio managers for the Fund. Both investment professionals have demonstrated expertise and results leading similar managed volatility strategies at Advantus.
For more information, visit www.advantuscapital.com.
Advantus Capital Management is an institutional asset manager that specializes in public and private fixed income, real estate securities, managed volatility, 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. Variable insurance products are issued by Minnesota Life Insurance Company, Inc., and distributed by Securian Financial Services, Inc., member FINRA/SIPC.
Shares of Securian Funds are sold only through the Trust’s currently effective prospectus and are not available to the general public. An individual investor has access to the Funds only through the purchase of a Minnesota Life or Securian Life variable annuity or life insurance product. For information about the variable insurance products that offer shares of the Funds, please refer to the appropriate separate account prospectus.
Investments will fluctuate and when redeemed may be worth more or less than when originally invested.
Derivatives may be used to seek increased income or try to hedge investment risks. In general terms, a derivative investment’s value depends on (or is derived from) the value of an underlying asset, interest rate or index. Options, futures, swaps, structured notes, currencies and certain mortgage-related securities are examples. Derivatives can be highly volatile, illiquid, may disproportionately increase losses and may have a potentially large negative impact on the fund’s performance. There is also a possibility that derivatives may not perform as intended, which can reduce opportunity for gain or result in losses by offsetting positive returns in other securities in the Portfolio.
Rising interest rates will affect the performance of the fund’s investments in debt securities. The ability of the Fund’s equity securities to generate income is dependent on the earnings and the continuing declaration of dividends by the issuers of such securities. The values of income-producing equity securities may or may not move in tandem with overall changes in the stock market.
Liquidity risk exists when particular investments are difficult to purchase or sell. A Portfolio’s investments in illiquid securities may reduce the returns of the Portfolio because it may be unable to sell the illiquid securities at an advantageous time or price.
The Fund engages in frequent trading of portfolio securities. Active trading results in added expenses and may result in a lower return and increased tax liability.
There can be no assurance that investment decisions made in seeking to manage Fund volatility will achieve the desired results.