VanEck and Ned Davis Research to Offer Tactical Asset Allocation Solutions

Firms team up to solve “the biggest investor issue”

NEW YORK--(BUSINESS WIRE)-- It has been widely recognized in the investment management industry that asset allocation decisions are often more important to investor returns than the value generated by even the best money managers. Yet the vast majority of exchange-traded funds (ETFs) and mutual funds tend to remain fully invested at all times. Additionally, many asset allocation strategies have historically been “strategic” or relatively immobile, even, for example, in the face of the 2008-2009 financial crisis. VanEck and Ned Davis Research have developed an answer—a tactical asset allocation fund that has the flexibility to freely allocate among securities and cash: the VanEck NDR Managed Allocation Fund.

The two firms have close to 100 years of investing history combined. VanEck has been providing investors with new asset class solutions based on macroeconomic research for over 60 years. For example, VanEck began offering a fund with exposure to international equities in 1956 to provide investors with access to post-WWII industrialization, and gold shares in 1968 in anticipation of inflation and supply constraints. Ned Davis has an almost 40-year history of researching financial market cycles and using technical signals to supplement macroeconomic and fundamental research.

“Ned Davis Research is a recognized leader in objective market and economic data and analysis. The company follows not just macroeconomic and fundamental forces, but also technical indicators, and has developed an asset allocation model combining all three,” said VanEck’s President and CEO Jan van Eck. “The VanEck NDR Managed Allocation Fund (the “Fund” / ticker NDRMX) will be just the first offering in what we expect will be a series of VanEck tactical fund solutions.” VanEck is also currently working on developing other tactical strategies in ETF format.

The Fund, a new open-end mutual fund, seeks capital appreciation by allocating primarily to exchange-traded products (ETPs) that invest in domestic and foreign equities and U.S. debt securities and cash and cash equivalents. In launching the Fund, VanEck seeks to help investors with core asset allocation decisions, particularly related to timing.

The Fund uses NDR’s model that combines over 130 macroeconomic, fundamental and technical indicators to overweight asset classes expected to outperform on a relative basis and underweight or exit those expected to underperform. “This global tactical asset allocation model seeks to add value – even in sideways markets – relative to a core 60/40 stock/bond portfolio, while actively managing risk throughout all market cycles,” said Tim Hayes, Chief Global Investment Strategist, Ned Davis Research.

The portfolio managers in VanEck’s Portfolio and Risk Solutions group make allocation decisions to ETPs or cash and cash equivalents using the NDR model. This group conducts its own asset allocation and risk modeling research that is used by many of VanEck’s investment strategies. It also maintains continuous interaction with NDR to review the latest research.

“Static asset allocations can lock you in to falling markets. This model has the ability to minimize losses by tactically reducing exposure to falling markets,” said David Schassler, VanEck Portfolio Manager. “The robustness and breadth of NDR’s indicators along with the portfolio’s ability to adjust allocations across asset classes based purely on objective market evidence can help to enhance an investor’s overall performance and risk profile.”

About Van Eck

VanEck’s mission is to offer investors intelligently designed investment strategies that take advantage of targeted market opportunities. Founded in 1955, we were a pioneer in global investing with a history of placing clients’ interests first in all market environments. Today, the firm continues this tradition by offering innovative active and passive investment portfolios in hard assets, emerging markets, precious metals, fixed income, and other alternative asset classes. VanEck Vectors ETPs span a range of sectors, asset classes and geographies. VanEck Vectors is one of the largest ETF families in the world, managing close to 70 funds globally.

As of March 31, 2016, VanEck managed approximately $28.9 billion in assets, including mutual funds, ETFs, and institutional accounts.

About NDR

Ned Davis Research (NDR) specializes in quantitative research based on technical, fundamental and macroeconomic analysis. It is headquartered in Venice, Florida and has approximately 125 employees. NDR was founded in 1980 as an institutional investment research provider and in 2011 was sold to Euromoney Institutional Investor PLC, a London-based holding company that invests globally in media companies operating in the financial services industry. NDR is not an affiliate of VanEck and none of NDR’s employees are also employees of VanEck.

You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program rather than a complete program. All mutual funds are subject to market risk, including possible loss of principal. Because the Fund is a "fund-of-funds," an investor will indirectly bear the principal risks of the exchange-traded products in which it invests, including but not limited to, risks associated with smaller companies, foreign securities, emerging markets, debt securities, commodities, and derivatives. The Fund will bear its share of the fees and expenses of the exchange-traded products. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in an exchange-traded product. Because the Fund invests in exchange-traded products, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an exchange-traded product's shares may be higher or lower than the value of its underlying assets, there may be a lack of liquidity in the shares of the exchange-traded product, or trading may be halted by the exchange on which they trade. Principal risks of investing in foreign securities include changes in currency rates, foreign taxation and differences in auditing and other financial standards. Debt securities may be subject to credit risk and interest rate risk. Investments in debt securities typically decrease in value when interest rates rise. Because the Adviser relies heavily on third party quantitative models, the Fund is also subject to model and data risk. For a description of these and other risk considerations, please refer to the Fund’s prospectus, which should be read carefully before you invest.

Please call 800.826.2333 or visit vaneck.com for a free prospectus and summary prospectus. Investing involves risk, including possible loss of principal. An investor should consider the investment objective, risks, and charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and information about the investment company. Please read the prospectus and summary prospectus carefully before investing.

Van Eck Securities Corporation, Distributor666 Third AvenueNew York, NY 10017800.826.2333

View source version on businesswire.com: http://www.businesswire.com/news/home/20160512005748/en/

MacMillan Communications
Mike MacMillan/Chris Sullivan
212.473.4442
[email protected]

Source: Van Eck

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