Astor Investment Management is proud to celebrate the 10-year anniversary of its Astor Dynamic Allocation Fund (ASTIX), a mutual fund that takes a macroeconomics-based approach to asset allocation.
“In 2009, coming out of the ‘Great Recession,’ We believed ASTIX was a concept that investors needed and wanted to hear about—how to pursue tactical asset allocation and smoother returns over time,” says Rob Stein, CEO and founder of Astor Investment Management.
ASTIX uses the firm’s proprietary Astor Economic Index® to determine asset allocation. The fund’s objective seeks total return through a combination of capital appreciation and income. Our investment strategy aims to produce smoother returns by strategically increasing exposure to risk assets (equities) during periods of economic strength, while reducing risk by reducing exposure during periods of economic weakness.
“In a world in which mutual funds have faced challenges, we are proud of investor support for ASTIX over the past ten years,” says John Eckstein, Chief Investment Officer. “That longevity speaks to what a valuable tool Astor Dynamic Allocation has been for investors.”
At the time of its founding, tactical was becoming a fad and many managers had stories to tell about models that would do well within a specific period. For Astor, launching ASTIX in that proving ground was a leap of faith—a leap in the right direction.
“Over the past ten years, we have stayed true to our process of measuring and analyzing economic data,” says said Bryan Novak, Senior Managing Director and Portfolio Manager. “That has paid off with solid returns and reduced risk, while giving advisors a risk-focused option to complement their core, passive exposure.”
“ASTIX’s ability to perform over time is a testament to its value-added proposition for investors,” Stein adds. “The ultimate reward has been the loyal client base that Astor and ASTIX enjoy.”
Dynamic Allocation Fund Overview
Astor’s Dynamic Allocation Fund seeks to adjust a portfolio allocation of multiple asset classes throughout economic cycles by utilizing macro-economic analysis to determine portfolio risk targets. A proprietary model built around the Astor Economic Index® translates macroeconomic data into a quantifiable measure of the overall economic condition and trend. The direction and magnitude of this measure provides a guideline for an appropriate level of portfolio beta in the current environment. In order to achieve the desired beta level, the Fund seeks to invest in an optimal mix of asset classes. When trends are stable or rising, the Fund attempts to allocate to risk assets with favorable forecasts for price appreciation such as equities. When conditions weaken, the Fund seeks to reduce equity exposure and allocate to defensive positions such as cash, fixed income, and inverse equity. The Fund uses exchange-traded funds (“ETFs”) for portfolio construction.
For performance information current to the most recent month-end, please call toll-free 877.738.0333 or visit astorimfunds.com.
All information contained herein is for informational purposes only. This is not a solicitation to offer investment advice or services in any state where to do so would be unlawful.
Mutual funds involve risk including the possible loss of principal. Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions. ETFs are subject to investment advisory fees and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs. Each ETF is subject to specific risks, depending on its investments. When the Fund invests in fixed-income products, the value of your investment in the Fund will fluctuate with changes in interest rates.
Other risk factors impacting fixed-income securities include credit risk, maturity risk, market risk, extension or prepayment risk, illiquid security risks, investment-grade securities risk. The adviser’s dependence on its proprietary macroeconomic analysis and judgments about the attractiveness, value and potential appreciation of particular asset classes in which the Fund invests may prove to be incorrect and may not produce the desired results. Inverse ETFs are funds designed to rise in price when stock prices are falling. Positions in inverse securities are speculative and can be more risky than “long” positions (purchases).
Mutual Funds involve risk including the possible loss of principal. An investor should consider the Astor funds’ investment objectives, risks, charges, and expenses carefully before investing. This and other information about the Astor funds are contained in the funds’ prospectus, which can be obtained by calling 877.738.0333. Please read the prospectus carefully before investing. The funds are distributed by Northern Lights Distributors, LLC a FINRA/SIPC member. Astor Investment Management is not affiliated with Northern Lights Distributors, LLC.