ST. PAUL, Minn.--(BUSINESS WIRE)--Advantus Capital Management filed a prospectus with the Securities and Exchange Commission on October 24, 2016 to make several changes to the Advantus Funds as part of an annual review.
Advantus plans to change the name and investment objective of the current Advantus Short Duration Bond Fund. When the prospectus is finalized at the end of December 2016, the new Advantus Strategic Credit Income Fund, with both Institutional and Class A shares, will be available. The change in name and investment objective reflects the repositioning of the fund to be a more flexible bond fund that seeks to invest primarily in credit-related securities.
“Advantus seeks to develop strategies that respond to the needs of both institutional and retail investors,” said Steven Moen, Advantus Capital Management Senior Vice President for Business Development and Investment Solutions. “The prevailing and anticipated investment environment provides meaningful challenges for fixed income investors, and this strategy is designed to meet those challenges.”
Despite persistent expectations and hopes for higher interest rates, bond yields across global fixed income markets remain at or near historically low levels. With the proposed introduction of the Advantus Strategic Credit Income Fund, Advantus looks to leverage its extensive credit research expertise to find attractive levels of income and total return in an ever-changing and highly uncertain market environment.
The Fund’s investment objective is to seek to maximize risk-adjusted total returns relative to the Bloomberg Barclays US Aggregate Bond Index.
Thomas Houghton, CFA, David Land, CFA, and Daniel Henken, CFA, will be the portfolio management team for the Advantus Strategic Credit Income Fund.
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, 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.
The information in the prospectus is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but is not effective. The Funds may not sell these securities until such registration statement is effective. This is not an offer to sell these securities and is not a solicitation of an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the investment company, and it may be obtained by calling 1.800.665.6005 x51495. Read 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 such as futures contracts, credit default swaps, and options 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. The Funds may invest in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. This risk is greater in emerging markets. Investments in asset backed and mortgage backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities and commercial mortgage-backed securities (agency and non-agency). One cannot invest directly in an index.
The Advantus Funds are distributed by Quasar Distributors, LLC, and Advantus Capital Management, Inc. is the investment advisor. Securian Financial Group is not affiliated with Quasar Distributors, LLC.