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Kleinschmidt Launches ‘All-Weather’ Fund to Navigate Market Uncertainty

Investment Management

Retirement plan industry veteran Gary Kleinschmidt announced a new investment fund that combines indexing and alternative asset classes. Designed as an all-weather strategy, the SafeGuard CORE ONE Fund (SGFIX, SGFAX) targets upside participation and downside protection, or more specifically capital appreciation in rising and falling markets while minimizing volatility.

Noting the rise in demand for liquid solutions in an increasingly uncertain market environment, Kleinschmidt and SafeGuard Chief Investment Officer Joe Gabor said the fund will meet the demand by blending three strategies into one approach. The fund’s two options strategies and its alternative investment strategy combination look to outperform the S&P 500 with less volatility across various economic conditions.

“It’s so exciting to have spent so many years working with advisors and investors and now to have led a team in creating an investment with the potential to help so many investors,” Kleinschmidt added. “SafeGuard and the Core One fund provide a new approach to equity investing.”

According to a press release, SafeGuard takes a risk-managed approach by employing a proprietary investment model that allocates fund assets among three principal strategies:

  • S&P 500 Strategy—seeking to track the returns of the S&P 500 Index through the use of S&P 500 Index futures contracts.
  • Futures Overlay Strategy—seeking to provide capital appreciation and diversification, up to 25% of the fund’s assets are invested in commodity-based strategies expected to have a low correlation to each other and the equity markets.
  • Protection Strategy—seeking downside protection in declining markets, the fund invests in long-dated put options on the S&P 500 Index.

“We’re excited to be providing a broader universe of investors and advisors with access to our derivatives expertise through the SafeGuard CORE ONE fund,” Gabor explained. “This year’s market outlooks are littered with an array of risks ranging from inflation, global recession, the Russia-Ukraine war, debt ceiling debacles, and much more. Against this backdrop, there’s never been a better time to consider prioritizing risk management across your equity exposures by combining the power of indexing and alternatives.”