ST. PAUL, Minn.--(BUSINESS WIRE)--Advantus Capital Management today launched the institutional share class of the Advantus Strategic Dividend Income (SDI) Fund (VSDIX). The fund’s goal is to produce higher income than investment-grade fixed income products while managing volatility and inflation risk in a broadly diversified equity portfolio.
“Our objective with this fund is to seek above-average income and long-term growth of capital,” said Joseph R. Betlej, CFA, vice president and portfolio manager. “A secondary objective is reduced volatility compared to broader equity markets.”
Lowell R. Bolken, CFA, vice president, who co-manages the Advantus Real Estate Securities strategy with Betlej; and Craig M. Stapleton, CFA, quantitative strategies portfolio manager, will co-manage the SDI Fund with Betlej. The minimum initial investment is $1,000,000.
The SDI Fund’s primary investment strategy is to invest in dividend-paying equity securities including common and preferred stocks from utilities, energy, infrastructure-related, real estate-related and other companies.
- Typically, 50% or more of the fund’s total assets will be allocated to real estate securities;
- The fund may also invest up to 25% of its total assets in the securities of master limited partnerships (MLPs);
- In addition, the fund may invest in exchange-traded funds (ETFs), exchange-traded notes (ETNs), Treasury inflation-protected securities (TIPS) and futures;
- The fund also may write covered calls as it seeks to manage inflation or volatility, increase income or gain market exposure
Says Betlej, “Many dividend strategies may overlook the real estate investment trusts (REIT) sector, knowing the special expertise it takes to be successful there. We believe we have the expertise to capitalize on this historically higher dividend-paying sector and the traditional sectors of utilities, oil and gas, and others.”
Advantus Capital Management has more than $24 billion in assets under management, including non-security assets. Advantus specializes in managing portfolios that seek to achieve specific client objectives. Clients include public and corporate pension plans, foundations and endowments, and insurance companies. Clients can benefit from Advantus’ investment expertise across fixed income, dividend income, real estate securities and private placements, as well as its expertise in originating and servicing commercial whole loans. Advantus is a subsidiary of Securian Financial Group, Inc.
The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1.800.665.6005 x51495. Read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. Investors should be aware of the risks involved with investing in a fund concentrating in a specific industry such as REITs or real estate securities. These include risks such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. Investing in small and medium-sized companies involves greater risks than those associated with investing in large company stocks, such as business risk, significant stock price fluctuations and illiquidity. The Fund may invest in smaller or medium sized companies, which involve additional risks such as limited liquidity and greater volatility than large companies. The Fund may invest in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. The Fund may invest in ETFs and ETNs, which are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of the shares may trade at a discount to it net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares. MLPs are subject certain risks inherent in the structure of MLPs, including complex tax structure risks, the limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates. The fund may also use options and future contracts, which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. Diversification does not assure a profit or protect against a loss in a declining market.
The Securities and Exchange Commission (SEC) does not approve or disapprove of any securities.
The Advantus Strategic Dividend Income Fund is distributed by Quasar Distributors, LLC.
Securian Financial Group is not affiliated with Quasar Distributors, LLC.