WBI Launches 2 Absolute Return Funds That Mimic SMA Strategy

Funds based on objectives developed for high-net-worth individuals’ portfolios

WBI Investments Inc. announced Thursday the launch of two new absolute return mutual funds for individuals and institutional investors that mimic financial strategies originally developed for the firm’s high net worth clients.

The WBI Absolute Return Balanced Fund (no load shares: WBADX, institutional shares: WBBAX) and the WBI Absolute Return Dividend Growth Fund (no load shares: WBIDX, institutional shares: WBDGX) will be co-managed by Don Schreiber Jr. (left), the firm’s CEO and founder, and Gary Stroik, vice president and a WBI portfolio manager for the last 20 years. While the funds are no-load, management and other expenses still apply.

Based in Little Silver, N.J., WBI began accepting shareholders into the funds on Dec. 29. WBI was founded in 1984 and introduced its first risk-managed absolute return portfolio in 1992. The strategy for the new WBI funds is based on objectives developed over the firm’s 18 years of experience managing absolute return separately managed account (SMA) portfolios.

“WBI is excited to bring our absolute return strategies, previously only available to high net worth individuals through our separately managed accounts program, in a more widely accessible mutual fund product,” Schreiber said in a statement.

The Balanced Fund’s investment objectives are to seek current income and long-term capital appreciation while also seeking to protect principal during unfavorable market conditions. Under normal market conditions, the Balanced Fund will invest at least 40% of its net assets in the equity securities of domestic and foreign dividend paying companies of any size market capitalization with the capacity to increase dividends over time, and at least 40% of its net assets in domestic and foreign fixed income securities.

The Dividend Growth Fund’s investment objectives are to seek long-term capital appreciation and current income. Under normal market conditions, the Dividend Growth Fund will invest at least 80% of its net assets, including any borrowings for investment purpose, in dividend-paying equity securities of foreign and domestic companies and up to 10% of its net assets in domestic and foreign fixed income securities.

Read more about Schreiber and WBI Investments at AdvisorOne.com.

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