Spectrum Financial has launched the Spectrum Low Volatility Fund (SVARX), which seeks to achieve total return with lower downside volatility and risk compared to major stock market indices.
Spectrum, which serves as the fund's sub-advisor, will primarily select fixed-income investments in exchange-traded funds or mutual funds that have high volatility adjusted returns (VAR) and low risk (defined as return volatility).
During favourable market conditions as determined by the sub-advisor, the fund will employ leverage or other borrowing methods to seek to enhance the returns of these investments. During unfavourable market conditions the sub-advisor will emphasise capital preservation by increasing the fund's allocation to cash equivalents and reducing leverage.
"We saw the launch of this fund as a natural extension of our existing business," says Ralph Doudera, chief executive officer of Spectrum. "This strategy dates back at least two decades and is at the core of what we do — providing investment solutions that strive to deliver total return as well as taking steps to preserve capital in all market conditions."
Advisors Preferred serves as advisor to the fund. Doudera is the fund's portfolio manager and acts in the same capacity for the Hundredfold Funds.
