ABR Dynamic Funds, a New York-based asset management firm, is introducing its Smart Volatility mutual fund, the ABR Dynamic Blend Equity and Volatility Fund (ABRVX).
The fund, driven by algorithms designed to anticipate and dynamically rebalance during market volatility, is a welcome source of diversification intended to improve portfolio performance in turbulent markets.
"Volatility has long been seen as a one-dimensional threat," explains Taylor Lukof, CEO of ABR Dynamic Funds, LLC. "We believe volatility also represents opportunity and have designed a 'Smart Volatility' fund that allows investors to manage volatility as they would any other asset class in their portfolio."
Composed of S&P 500 Index (SPX), CBOE Volatility Index (VIX Index), and cash exposures, the ABR Dynamic Blend Equity and Volatility Fund rebalances daily based on current and anticipated volatility. The Fund is designed to hold each security in approximately the same proportion as its weighting in the ABR Dynamic Blend Equity & Volatility Index – Powered by Wilshire.
Lukof credits his experience as an options specialist and the expertise of his team of computer scientists with the development of the firm's proprietary algorithms.
"Traders and professional investors have profited from volatility by seizing opportunities in volatile markets. Our fund allows all investors to employ 'Smart Volatility,' in the same opportunistic manner with a reasonable percentage of their portfolio."
"The ABR Dynamic 'Smart Volatility' fund represents an innovative way for investors to manage volatility with S&P 500 and VIX exposures," says Bill Speth, Vice President of Research and Product Development at the Chicago Board Options Exchange (CBOE). "We are delighted to work with Taylor and his team in making our products available to a broader audience of investors who prefer to invest in mutual funds, so they can capture the power of volatility as an opportunity versus a threat."
