Model-Driven Fund Adjusts Equity Exposure Across Market Cycles

This fund invests money in both shares and bonds.

A computer-based model helps decide how much money should go into each type of investment.

When shares look cheap and investors are worried, the fund usually buys more shares.

When shares look expensive and investors are very confident, it reduces its share exposure.

The model examines four things, including share prices, dividend payments and bond yields.

The fund currently has about 81% of its investments exposed to shares.

It also uses arbitrage and bonds to reduce some ups and downs.

The fund has earned better average returns than the typical fund in its category over several periods.

The article says it may suit investors who can invest for at least three years and accept moderate risk.