361 Managed Futures Strategy Fund &
361 Global Managed Futures Strategy Fund
For the month of April, the S&P 500 Index was up 0.38% and the MSCI World Index was up 1.27%. The VIX Index started the month in the 20’s and ended the month around 15—which correlates with the S&P 500 Index being more volatile and choppy in the beginning of the month, versus the end. Volatility has subsided compared to February and March, but it’s not back down to its January (or 2017) level. While the S&P 500 Index was basically flat for the month, it did see a 5% intramonth gain from April 2 to April 18—creating a “mini uptrend” in the middle of the month.
In April, the Morningstar Managed Futures Category was up 0.38%, while the 361 Managed Futures Strategy Fund (AMFZX) was down 0.17% and the 361 Capital Global Managed Futures Strategy Fund (AGFZX) gained 0.09%. Both Funds took losses on the first day of the month (April 2), along with the markets, then remained relatively flat during the “mini uptrend,” as we would expect. Following that, both benefited during the choppy period at month end with positive performance. Within AGFZX, losses in the U.S. region were the main detractor of performance; and more specifically, exposure to the S&P 500 Index was the biggest detractor. The S&P 500 exposure also negatively impacted AMFZX. Both Funds remain down for the year, primarily due to the transitionary period to higher volatility that occurred in February. However, if the markets remain choppy, we believe the Funds will continue to have a positive return expectation, while most asset classes may struggle.