The market is moving higher, with volatility continuing to fall and oil prices remaining relatively stable. That is especially notable given the geopolitical developments over the weekend involving Iran and the Strait of Hormuz. While the full scope of the situation is still unclear, the market appears to be pricing in some form of resolution, at least for now. I was surprised to see markets open lower and then turn higher across the board.
At this point, conditions have improved. If volatility continues to come down and the market continues to rally, the setup may remain constructive. That said, there is still the potential for renewed escalation, and the situation remains fluid. For now, the market is taking events in stride, and that has supported current positioning.
The Low Volatility Fund has rebounded as market conditions have improved. After a softer March, performance has improved this month, moving back into positive territory for the year. As volatility has come down and markets have moved higher, the strategy has benefited from the shift in conditions.
From my perspective, this is the type of environment where the fund has historically responded more favorably. While uncertainty remains, particularly around geopolitical developments, the recent decline in volatility has provided supportive conditions. If this trend continues, I believe the fund may remain positioned to participate in that environment.
The Synthetic Fund has also recovered with performance improving as markets have stabilized and volatility has declined. We are currently positive on the year.
I believe this reflects how the strategy responds to changing conditions. As volatility has come down, the environment has become more favorable, allowing participation in market dynamics. While we remain mindful of potential risks, the current setup appears constructive, and the fund may continue to benefit.
The Volatility Advantage Fund has delivered the strongest gains during this recent move, with performance improving as volatility has declined and markets have rallied. The strategy is designed to be more responsive in environments like this, and that is reflective in the recent results.
With volatility continuing to fall, the fund has participated in the recent upside. While there remains the possibility of renewed volatility if geopolitical tensions escalate, the current environment remains supportive. If conditions continue to stabilize, I believe the fund may remain favorably positioned under current market conditions.
The views expressed herein reflect current market commentary and portfolio observations as of the date published and are subject to change without notice. Statements made by portfolio managers represent current opinions based on prevailing market conditions and should not be interpreted as guarantees, forecasts, or assurances of future performance or market direction.
Any performance information shown is preliminary, unaudited, and may reflect results before applicable fees, expenses, or final administrator reporting where noted. Actual investor results may differ based on fee structure, timing of contributions or withdrawals, and other account-specific factors.
This material is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security, fund, or investment strategy. Past performance is not indicative of future results. All investments involve risk, including possible loss of principal.
