Dynamic Funds has launched a new US equity market mutual fund. The Dynamic US Sector Focus Class fund will be managed by Myles Zyblock, and will use a rules-based approach to investing in the American stock market.
Dynamic says that the new fund will focus on a number of rising sectors in the US market but will also have the flexibility to shift its asset allocation in order to protect capital against prolonged downturns.
The fund will use exchange traded funds to invest primarily in companies from the Standard & Poor’s 500 Global Industry Classification Standard (GICS) sectors, or it will invest in fixed income securities, cash, and cash equivalents.
"The fund's allocation follows a proprietary methodology that focuses on price momentum, price persistence, and market breadth metrics to systematically select a concentrated set of sectors that the portfolio manager believes to be favourable," explains Dynamic. "The fund may also eliminate its entire equity exposure and become invested in fixed income or cash for downside protection during down markets."