Market Opportunity

The SML Capital 50/57Fund is an S&P 500 index fund that adopts an absolute return strategy which aims to achieve positive returns under all market conditions. The fund is an alternative strategy offering equity-like returns with significantly lower volatility and drawdown risk.

Volatility in equity and fixed interest markets has fostered an environment where many investors have become increasingly risk adverse. While exposure to rising markets is desired, it is crucial to have capital preservation when markets fall.
 
The Managed Risk Fund is designed to give investors a secure way to invest in the equity market profiting from bull markets, flat markets and protecting capital in bear markets. The fund allows investors to sustain a safe investment in the equity markets with limited downside risk while generating returns that out pace the broader equity markets over the long-term.
 
The key aims of the fund are to:
  • Provide returns competitive to the equity markets ( 60%-70% upside correlation to the S&P 500)
  • Reduce portfolio risk without compromising returns (-6% downside correlation to the S&P 500)
  • Protect capital with a hedged portfolio that employs a tail-risk component that is designed to reduce downside risk and protect capital during large cyclical drawdown’s and market crisis situations