SunAmerica Asset Management Corp.[see profile]
has launched the SunAmerica Global Trends Fund
, a trend-following futures offering.
The fund, which is subadvised by Wellington Management Company, LLP
, allocates assets across 10 global asset classes, including global equity and fixed income markets, currencies and commodities, by using a rules-based strategy.
“Many mutual funds are actively managed using fundamental analysis that focuses on the intrinsic value of a security or market,” stated Rick Wurster
, a PM with Wellington. “However, only a few use technical analysis to determine exposures to such a diverse group of global markets.”
SunAmerica Launches Innovative Global Trends Fund Sub-Advised by Wellington Management
SunAmerica Asset Management Corp. announced the recent launch of its SunAmerica Global Trends Fund. The Fund allocates assets across 10 global asset classes, including global equity and fixed income markets, currencies and commodities, by using an innovative, rules-based strategy that seeks to move the Fund in and out of changing markets. Exposures to each individual asset class are adjusted based upon technical analysis and the positive or negative signals identified by Wellington Management Company, LLP, the Fund’s sub-adviser. The Fund generally seeks to implement its investment strategy by investing in futures contracts and futures-related instruments that provide the Fund with exposure to the 10 asset classes.
“One of the greatest challenges for investors is deciding when to move in and out of changing markets,” said Steve Maginn, Chief Distribution Officer of the SunAmerica Companies. “With the SunAmerica Global Trends Fund, investors can leave these tough decisions to professional managers. The Fund’s unique rules-based process, which Wellington Management uses to determine when to move in and out of global markets, eliminates the need for investors to make difficult buy and sell decisions because the Fund actively manages the decisions for them.”
The Fund’s investment objective is to seek to achieve capital appreciation. The Fund also has the potential to reduce volatility through broad diversification across global markets and through the ability to adjust its exposure to multiple asset classes based on market conditions which include reducing or eliminating positions in downward-trending asset classes.
“Many mutual funds are actively managed using fundamental analysis that focuses on the intrinsic value of a security or market,” said Rick Wurster, Portfolio Manager with Wellington Management. “However, only a few use technical analysis to determine exposures to such a diverse group of global markets.” The Fund has the flexibility to move out of an asset class completely in response to signals of a negative trend. Its investment exposure to each of the 10 global asset classes (based on the notional exposure of the futures) will generally be between 0-10% of the value of the Fund’s net assets.1 If there are negative signals, the Fund may decrease the asset class weight to 0%, keeping the position in high-quality, short-term securities. If strong positive signals are identified, the Fund can overweight one or more asset classes to a maximum of 20%.
The SunAmerica Global Trends Fund is subadvised by Wellington Management Company, LLP, a leading global asset manager with more than $663 billion in assets under management, spanning more than 50 countries as of March 31, 2011. Wellington manages assets for some of the world’s leading funds, banks, endowments and foundations. The Fund’s management team is led by Rick Wurster, CFA, CMT and a portfolio manager within Wellington Management’s 24-member Asset Allocation group that is dedicated to providing sophisticated investment solutions to clients. In managing the Fund, Mr. Wurster can draw upon the breadth and depth of Wellington Management's firm-wide resources, which include proprietary research across all asset classes.
SunAmerica Asset Management Corp., the investment adviser to the Fund, offers a broad range of retail mutual fund offerings, including unique investment products designed to meet targeted objectives such as alternative strategies, asset allocation and focused dividend strategies. The company’s investment management approach combines strong in-house talent with highly respected independent money managers. As of April 30, 2011, SunAmerica Asset Management Corp. managed and/or administered approximately $46.5 billion of assets.
The Fund expects to invest a significant portion of its assets in repurchase agreements collateralized by the U.S. government and its agencies, and may also invest in other high-quality short-term securities (“money market instruments”). The primary purpose of the repurchase agreements and other money market instruments held by the Fund will be to serve as collateral for the futures instruments. The Fund's return is expected to be derived principally from changes in the value of the assets underlying the futures instruments held by the Fund.
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