Third party money manager BTS Asset Management has rolled out a diversified income mutual fund, which has been developed to secure income while preserving capital in down markets.
In an effort to decrease downside volatility, the new fund adopts stop-loss measures and aims to rotate to the bond classes that may have the highest potential return, claims the asset manager.
BTS president Isaac Braley said, "By focusing on the price side of bonds, not only do we aim to provide favorable returns but we also look to effectively reduce downside volatility."
BTS founder and board chairman Vilis Pasts commented that the fund implements multi-sector allocations of high yield bond securities, high yield bond long/short positions, total return securities, and US government bond long/short positions to get the results.
According to the fund investment strategy, it will invest 30% each in high yield bond securities, total return securities, high yield or inverse high yield securities and remaining 10% will be allocated to either government or inverse government securities.
Further, the investment proportion will depend on market conditions as measured by BTS’ trend indicators.
Established in 1979, BTS caters quantitative risk management and portfolio services for mutual fund and variable annuity clients seeking income and/or total return over a three to five-year period.