Securian AM Balanced Stabilization Fund

Seeks to maximize risk-adjusted returns with a balanced portfolio of stocks, bonds, and hedging techniques.

Investment Objective

The Fund seeks to maximize risk-adjusted returns within a balanced portfolio while using hedging techniques to target volatility of 10% or less over a full market cycle.

Investment Management

Investment Manager

Liberty Street Advisors

Investment Sub-Advisor

Investment Philosophy

Management’s investment philosophy is that lower volatility tends to result in better returns over time.

Equity markets regularly cycle through periodic episodes of normal or expected levels of volatility. Periods of market volatility tend to be persistent. Higher volatility makes adverse outcomes more likely. High volatility periods also tend to lead to unfavorable performance. By contrast, low volatility periods tend to produce better performance results, even for risky asset classes. Active hedging and custom equity risk management overlays can potentially reduce the severity of downside risk and volatility.

Investment Focus

The Securian AM Balanced Stabilization Fund targets a 60% equity exposure and 40% fixed income allocation. Management adjusts equity exposure as market conditions change, allowing a minimum equity allocation of 10% and a maximum of 90%. As equity volatility increases, equity exposure is reduced by either selling S&P 500 futures contracts or reducing long positions in them.

Fund Facts

Inception date

9/28/2015

Morningstar asset category

Tactical Allocation

Benchmark

Balanced Stabilization Custom Benchmark

Investment minimum

$100,000

Distributions

Quarterly

Expense Ratios

Gross Expense Ratio

1.07%

Net Expense Ratio*

1.01%

*The Fund’s advisor has contractually agreed to waive its fee and/or pay operating expenses so that total annual fund operating expenses do not exceed 0.95%. The contractual agreement is in effect until December 31, 2023.

Ticker

Institutional Class

VVMIX

Fund Performance

12/1/2021
TickerNAVNAV ChangeDaily Return - Daily
VVMIX15.28-0.11-0.71
As of
9/30/2021
QuarterYTDOne
Year
Three
Year
Five
Year
Annualized
ITD
Institutional Class
0.127.5914.179.9011.2710.95
Balanced Stabilization Custom Benchmark
5.84%8.28%23.02%13.64%11.89%12.10%
S&P 500 Index
0.5815.9230.0015.9916.9017.03

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Fund performance current to the most recent month-end may be lower or higher than the performance quoted and can be obtained by calling 800-207-7108.

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, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).

The Balanced Stabilization Custom Benchmark consists of 60% S&P 500® Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.

The S&P 500® Index consists of 500 large cap common stocks which together represents approximately 80% of the total U.S. stock market. It is a float-adjusted market-weighted index (stock price times float-adjsuted shares outstanding), with each stock affecting the index proportion to it’s market value.

It is not possible to invest directly in an index.

Schedule of Distributions

 

Distribution DateVVMIX
Jun 28, 2021$0.0195
Mar 29, 2021$0.1014
Distribution DateVVMIX
Dec 9, 2020$0.0000
Sept 29, 2020$0.0253
Jun 29. 2020$0.0585
Mar 30. 2020$0.0414
Distribution DateVVMIX
Dec 30, 2019$0.1876
Sep 27, 2019$0.0600
Jun 27, 2019$0.0700
Mar 28, 2019$0.0500
Distribution DateVVMIX
Dec 28, 2018$0.0044
Sep 27, 2018$0.0500
Jun 28, 2018$0.0300
Mar 28, 2018$0.0507
Distribution DateVVMIX
Dec 28, 2017$0.0543
Sep 28, 2017$0.0655
Jun 29, 2017$0.0308
Mar 30, 3017$0.0422
Distribution DateVVMIX
Dec 29, 2016$0.0523
Sep 29, 2016$0.0473
Jun 29, 2016$0.0462
Mar 30, 2016$0.0470
Distribution DateVVMIX
Dec 30, 2015$0.0460
h

Top Holdings

As of 09/30/2021Sum of % of NetAssets
iShares Core S&P 500 ETF47.00
iShares iBoxx $ Investment Grade Corporate Bond ETF8.19
United States Treasury Note/Bond4.62
Takeda Pharmaceutical Co Ltd0.81
E*TRADE Financial Corp0.69
Abbott Laboratories0.53
AT&T Inc0.47
Sherwin-Williams Co/The0.45
Florida Gas Transmission Co LLC0.45
Comcast Corp0.42

Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Fund Highlights

Dynamic Hedging

The Fund uses futures contracts to actively and efficiently manage equity allocations. When the Fund expects market volatility will increase based on volatility metrics, we reduce equity positions by selling S&P 500 futures contracts or reducing long positions. Management seeks an average annualized long-term volatility in daily total returns of approximately 10%.

e

Rules Based

The Fund’s strategy is disciplined and algorithm-based strategy. Management adjusts the percentage of equities based on market volatility. The target portfolio allocation is 60% equities and 40% fixed income. The Fund seeks an average annualized volatility of 10% or less over a full market cycle.

U

Transparent

The Fund achieves its equity exposure by investing primarily in large capitalization equity securities or in exchange-traded funds (“ETFs”) that invest in large capitalization equity securities.  

The fixed Income portion of the portfolio primarily invests in investment-grade corporate bonds.

Important Risks and Disclosures:

Mutual fund investing involves risk. Principal loss is possible. The Fund’s Sub-Advisor may be unsuccessful in managing volatility and the Fund may experience a high level of volatility in their returns.

The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund. 

The securities used in the strategy are subject to price volatility, and the strategy may not result in less volatile returns for the Fund 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. Derivatives 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 Fund 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 Fund, particularly during times of market turmoil. In connection with establishing a short position in an instrument, the Fund is 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. ETNs are unsecured debt obligations and are subject to the credit risk of their issuers and will lose value if the issuer goes bankrupt. ETN returns are linked to the performance of designated indices which fluctuate due to market changes as well as economic, legal, political and geographic events. The market price of ETNs fluctuates as their returns fluctuate and as the level of supply and demand for the ETNs change. 

The Securian AM Balanced Stabilization Fund is distributed by Foreside Fund Services, LLC. 

Please read and consider the prospectus carefully before investing. To obtain a hardcopy of the prospectus, please call 800-207-7108.