Designed to be a non-correlating compliment to any investment portfolio, this fund seeks to perform in both rising and falling market volatility environments. It is the first in a series of volatility-monetizing funds that the firm intends to bring to market.
The fund seeks to capture both increasing and decreasing volatility trends. The firm says this agnostic approach to the direction of market volatility makes the fund a more appropriate choice for a long-term holding, serving as a diversifier in all market cycles rather than just a hedge against rising volatility.
The VFF is designed to capture performance through all market cycles by employing a long-short strategy — constantly holding both put and call options on the SPX. The strategy consists of forward-looking technical indicators as well as a historical statistical analysis of the trading range of the S&P 500. The model combines an exponentially weighted historical average with a tactical overlay.
The fund offers Class A shares (BVFAX) at an annual operating expense of 1.33% and Class C shares (BVFCX) at 2.09%.