Securian AM Real Asset Income Fund

Seeks above-average income and long- term growth of capital by investing in companies with a fund that primarily invests in real assets.

Investment Objective

The Securian AM Real Asset Income Fund seeks above-average income and long-term growth of capital, with a secondary objective of reduced volatility compared to broader equity markets.

Investment Management

Investment Manager

Liberty Street Advisors

Investment Sub-Advisor

Investment Focus

The Fund primarily invests at least 80% of its net assets in “real assets” and securities of companies that derive at least 50% of their revenues from activities related to real assets. Real assets are defined broadly by the Fund to include any assets that have physical properties, such as energy and natural resources, real estate, basic materials, equipment, utilities and infrastructure, and commodities.

Management may invest, as it seeks to manage inflation or volatility, increase income, or gain market exposure:

  • 40% or more of the Fund’s total assets in real estate securities.
  • Up to 25% of its total assets in the securities of master limited partnerships (MLPs).
  • The Fund may invest in exchange-traded funds (ETFs), exchange-traded notes (ETNs), Treasury inflation-protected securities (TIPS) and futures and may write covered calls.

Advisors with clients who are looking for an actively managed real estate focused fund that may produce a relatively steady source of income may want to consider the Securian AM Real Asset Income Fund.

Fund Highlights

Higher Income Potential

The Fund’s goal is to produce higher income than investment-grade fixed income products, while managing volatility and inflation risk in a broadly diversified real asset-focused portfolio.

Potential Buffer Against Volatility

Dividend paying stocks may provide hedging because the anticipated revenue system of the dividend acts as a buffer against market volatility, while the real estate holdings can act as an inflation hedge.
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An Overlooked Asset Class

Many dividend strategies overlook the real estate investment trust (REIT) sector, knowing the special expertise it takes to be successful. The Firm has the experience to capitalize on this historically higher dividend-paying sector in addition to the traditional sectors of utilities, oil and gas, and others.

 

Fund Facts

Inception date

9/12/2012

Morningstar asset category

Allocation Equity

Benchmark

Morningstar U.S. Real Asset Index

Investment minimum

$100,000

Distributions

Quarterly

Expense Ratios

Gross Expense Ratio

1.09%

Net Expense Ratio*

0.97%

*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

VSDIX

Fund Performance

6/18/2021
TickerNAVNAV ChangeDaily Return - Daily
VSDIX10.010.101.01
As of
3/31/2021
QuarterYTDOne
Year
Three
Year
Five
Year
Annualized
ITD
Institutional Class
6.536.5335.515.623.775.40
Morningstar US Real Asset Index
6.09%6.09%19.82%5.09%3.97%2.40%
Securian AM Real Asset Benchmark
7.89%7.89%39.68%8.60%5.59%6.84%

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.

Alerian MLP Index – a composite of the 50 most prominent energy Master Limited Partnerships (MLPs).

Bloomberg Barclays U.S. Treasury Inflation Linked Bond Index – an index that includes publicly issued, U.S. Treasury inflation protected securities that have atleast 1 year remaining to maturity of index rebalancing date, with an issue size equal to or in excess of $500 million.

The Securian AM Real Asset Income Benchmark is a custom benchmark that is aligned wiht the Fund’s Principal Investment Strategy and is comprised of the following exisitng industry benchmarks: 54% FTSE NAREIT Equity REITs Index; 12% S&P 500 Utilities Index, 12% Alerian MLP Total Return Index; 12% Bloomberg Barclays US Government Inflation-Linked Bond Index; and 10% FTSE NAREIT Preferred Stock Index .

The Morningstar® US Real Asset IndexSM is a broadly diversified index that meets the needs of real-asset investors. To maintain broad exposure and diversificiation, the index will maintain a weight allocation at each rebalance of: 40% Treasury Inflation-Protected Securities, or TIPS; 30% commodities; 15% real estate investment trusts, or REITs; 10% upstream commodity stocks; and 5% master limited partnerships, or MLPs.

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.

S&P 500 Utilities Index – and index of those companies included in the S&P 500 that are classified as members of the GICS(registered symbol) utilities sector.

Wells Fargo Hybrid & Preferred Securities REIT Index – and index composed exclusively of preferred shares and depository shares designed to track the performance of preferred securities issued in the U.S. markets by Real Estate Investment Trusts (REITs).

FTSE NAREIT US Real Estate Index Series is designed to present investors with a comprehensive family of REIT performance indexes that spans the commercial real estate space across the US ecomony. The FTSE NAREIT Equity REITs index contains all Equity REITs not designated as Timber REITs or Infrastructure REITs and is free-float weighted.

It is not possible to invest directly in an index.

Schedule of Distributions

Distribution DateVSDIX
Mar 29, 2021$0.0180
Dec 9, 2020$0.0867
Sept 29, 2020$0.0510
Jun 29. 2020$0.0475
Mar 30. 2020$0.0425
Dec 30, 2019$0.0423
Sep 27, 2019$0.0262
Jun 27, 2019$0.0322
Mar 28, 2019$0.0171
Dec 28, 2018$0.0591
Sep 27, 2018$0.0358
Jun 28, 2018$0.0358
Mar 28, 2018$0.0239
Dec 28, 2017$0.0431
Sep 28, 2017$0.0500
Jun 29, 2017$0.0450
Mar 30, 3017$0.0254
Dec 29, 2016$0.0475
Sep 29, 2016$0.0700
Jun 29, 2016$0.0800
Mar 30, 2016$0.0700
Dec 30, 2015$0.0675
Sep 29, 2015$0.0900
Jun 29, 2015$0.0900
Mar 30, 2015$0.0675
Dec 30, 2014$0.0332
Sep 29, 2014$0.0875
Jun 27, 2014$0.0900
Mar 28, 2014$0.0920
Dec 27, 2013$0.0210
Sep 27, 2013$0.1156
Jun 27, 2013$0.1094
Mar 27, 2013$0.0968
Dec 28, 2012$0.0991
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Top Holdings

As of 3/31/2021% of Net Assets (Excluding Cash)
United States Treasury Inflation Indexed Bonds10.09
Prologis Inc2.94
Public Storage2.89
Digital Realty Trust Inc2.67
Equinix Inc2.14
Crown Castle International Corp1.96
Welltower Inc1.73
Healthpeak Properties Inc1.62
Sempra Energy1.55
Enterprise Products Partners LP1.53
Extra Space Storage Inc1.48

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

Important Risks and Disclosures:

Mutual fund investing involves risk. Principal loss is possible. Investors should be aware of the risks involved with investing in a fund concentrating in a specific industry such as REITs or real estate securities.

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.

These include risks such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. Investing in small and medium-sized companies involves greater risks than those associated with investing in large company stocks, such as business risk, significant stock price fluctuations and illiquidity. The Fund may invest in smaller or medium-sized companies, which involve additional risks such as limited liquidity and greater volatility than large companies. The Fund may invest in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. The Fund may invest in ETFs and ETNs, which are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of the shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares. MLPs are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, the limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates. The Fund may also use options and future contracts, which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. Covered calls may limit the upside potential of the underlying security. Interest payments on TIPS are unpredictable and will fluctuate as the principal and corresponding interest payments are adjusted for inflation. There can be no assurance that the CPI will accurately measure the real rate of inflation in the prices of goods and services. Diversification does not assure a profit or protect against loss in a declining market.

The Securian AM Real Asset Income 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.