Despite the bullish trend for U.S. equity markets, investors are increasingly shying away from putting additional money to work in the space. Meanwhile, the prevailing ultra-low interest rates can only lead to a rising interest rate scenario in the future, thus tarnishing the appeal of fixed income instruments.
The markets are also likely to remain volatile in view of the Q2 earnings season ahead and a gloomy European economy. In such a situation, investors may be better off investing in multi-asset ETFs, which seek to provide a high current income level with long-term capital appreciation.
In line with this principle, AdvisorShares has recently launched the AdvisorShares Sunrise Global Multi Strategy ETF under the symbol of MULT – which invests in multiple alternative investment strategies. The fund will be overseen by San Diego-based Sunrise Capital, having an established expertise in quantitative asset management.
MULT in Focus
This actively managed index uses a multi-model and multi-strategy quantitative investment approach to provide long-term capital appreciation. In order to do so, the fund holds both long and short positions in roughly 50 global markets, investing in various asset classes including stocks, bonds, commodities and currencies using futures, OTC currencies and ETFs and US Treasury securities.
MULT will be using various strategies like trend following, sector rotation, momentum and reversionary patterns to achieve its targeted return.
The fund currently holds long/short positions in 15 equity index futures including E-mini S&P 500, DJIA Mini and DAX Stock Index Futures. Further, it has exposure in bonds as well 11 different ETFs like XLY, IEF, XLP, XLE and XLI.
MULT also has exposure in long/short investments in 13 single currencies including the British pound, Swiss franc, Japanese yen and euro as well as in five cross rate/pair investments.
The fund’s active management approach and uses of multi-model and multi-strategy models renders it quite expensive with MULT charging a hefty 1.89% as annual fees.