Alternative asset manager Steben & Company’s Steben Managed Futures Strategy Fund has achieved an overall and three-year period 4-Star Morningstar Rating for its Class I Shares (SKLIX) among 95 funds in the managed futures category based on risk-adjusted returns as of 30 April 2017.
The fund is a multi-adviser mutual fund that seeks positive long-term absolute returns in rising and falling markets as it maintains a low correlation to traditional equity and bond investments.
The fund is comprised of an actively managed allocation to select managed futures trading advisors within a cost efficient structure that does not charge any performance fees.
“We are delighted to celebrate the fund’s three-year track record with a 4-Star Morningstar Rating,” says Ken Steben, founder and president of Steben & Company. “We believe a strong Morningstar Rating further distinguishes our investment approach from our peer category and highlights the fund’s potential to provide diversification while seeking to enhance overall portfolio risk-adjusted returns for investors.”
The fund is currently allocated to what Steben believes to be three premier and complementary managed futures trading advisers including Millburn Ridgefield’s Core Markets Trend programme, Revolution Capital’s Alpha Non-Trend programme and PGR Capital’s PGR Trend programme.
“In our view, optimistic valuations and rising rates could generate greater market volatility in 2017. The fund’s investment strategy is designed to help financial advisors and their clients access an independent source of returns that has historically had a very low correlation to traditional asset classes. Entering the ninth year of an extended bull market, many portfolios are likely overweight equities. At this stage of the cycle, we believe diversification is essential for investors seeking to limit volatility while potentially preserving capital during market stress periods,” says John Dolfin, chief investment officer of Steben & Company.