Navigator Tactical Fixed Income Fund Class I (NTBIX)

Overview

The firm in question operates within the financial market, strategically allocating assets across diverse sectors of the global equity markets. The primary focus is on achieving a broad investment spread by predominantly investing in Exchange-Traded Funds (ETFs) that in turn invest in equity securities. To manage risk and protect against market volatility, the firm utilizes a combination of put options on the Standard & Poor's 500 Index, along with volatility-linked ETFs and exchange-traded notes (ETNs), in addition to employing options on these volatility instruments. A significant principle of their investment policy is the commitment to invest at least 80% of their assets in equity securities, ensuring a concentrated effort in this asset type. This approach highlights their dedication to equity markets while also emphasizing the importance of hedging strategies to navigate through market uncertainties.

Products and Services

• ETF Investments in Global Equity Markets

  The firm offers an investment product primarily focused on ETFs that hold a portfolio of equity securities. These ETFs cover various sectors across global equity markets, providing investors with diversified exposure to international stock markets. The inclusion of these ETFs in client portfolios aims to capture growth opportunities worldwide while spreading risk across different industries and economies.

• Put Options on the S&P 500 Index for Hedging

  As a risk management strategy, the company utilizes put options on the S&P 500 Index. These options give the firm the right, but not the obligation, to sell the index at a predetermined price before the option expires. This technique is used to hedge against potential declines in the equity market, protecting the portfolio from significant losses due to market downturns.

• Volatility-Linked ETFs and ETNs

  To further hedge against market volatility, the firm invests in volatility-linked ETFs and ETNs. These financial instruments are designed to increase in value when market volatility rises, offsetting losses in equity positions. This strategy is crucial for enhancing portfolio stability during turbulent market periods.

• Options on Volatility-Linked Instruments

  In addition to direct investments in volatility-linked ETFs and ETNs, the company employs put and call options on these instruments. This approach adds an extra layer of flexibility and protection to their hedging strategy, allowing the firm to efficiently navigate through different market conditions and volatility levels.