How much hedging takes place in the SMI Managed Volatility Fund?
The SMI Managed Volatility Fund uses a dynamic hedge, which means the managers can alter at any time the amount of hedging taking place. The Fund may hedge up to 100% of the value of the equity securities in its portfolio, although management expects the hedge to typically be in the 25%-75% range. The managers regularly evaluate the hedging strategy based upon an analysis of a number of factors including, but not limited to, market trends, fundamental analysis, technical analysis, and the performance of the Fund’s underlying funds.
