Fund Evaluator:
Redwood Managed Volatility I (RWDIX)
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Best Performing in Nontraditional Bond Over the Last Year
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Fund Details
Redwood Managed Volatility I Overview
Redwood Managed Volatility I (RWDIX) is an actively managed Taxable Bond Nontraditional Bond fund. Redwood Investment Management, LLC launched the fund in 2013.
The investment seeks a combination of total return and prudent management of portfolio downside volatility and downside loss. The adviser uses a trend-following strategy that seeks to identify the critical turning points in the markets for high yield bonds and bank loans. The fund's adviser uses a quantitatively driven process that seeks to invest in diversified high yield bond, bank loan, and other fixed income exposure with similar characteristics when the high yield bond and bank loan markets are trending upwards, and short-term fixed income securities when the high yield bond and bank loan markets are trending downwards.
About Redwood Managed Volatility I (RWDIX)
There are 2 members of the management team with an average tenure of 11.60 years: Michael Cheung (2016), Michael Messinger (2013). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA 3-5Y US Trsy TR USD index with a weighting of 100%. Redwood Managed Volatility I has 14 securities in its portfolio. The top 10 holdings constitute 99.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Redwood Managed Volatility I is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Redwood Managed Volatility I has 10.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.0%. There is 0.2% allocated to foreign stock, and 1.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 86.8% (76.8% domestic bond, 10.0% foreign bond and 0.6% convertible bond). Redwood Managed Volatility I has 16.3% of the portfolio in cash.
Assets Under Management
The fund has $69 million in total assets, which is below the $663 million average for the Nontraditional Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
RWDIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Redwood Managed Volatility I expense ratio is high compared to funds in the Nontraditional Bond category. Redwood Managed Volatility I has an expense ratio of 2.20%, which is 55% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Redwood Managed Volatility I has a portfolio turnover rate of 90%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 304% for the Nontraditional Bond category.
Recently, in the month of July 2026, Redwood Managed Volatility I returned -0.5%, which earned it a grade of D, as the Nontraditional Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Redwood Managed Volatility I has a trailing yield of 5.14%, which is above the 4.94% category average. The fund normally distributes its income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Redwood Managed Volatility I Grades
Year to date, the fund has returned 0.9%, 0.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.7% over the past year (grade of C), 4.2% over the past three years (grade of D) and 0.0% per year over the past five years (grade of F) and 1.4% per year over the past 10 years (grade of F).
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RWDIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| RWDIX Return (NAV) | -0.5% | 0.0% | 3.7% | 4.2% | 0.0% | 1.4% |
| RWDIX Grade | D | D | C | D | F | F |
| +/- Category | -0.3% | -0.4% | -0.7% | -1.4% | -2.5% | -1.7% |
| Nontraditional Bond Avg | -0.2% | 0.4% | 4.4% | 5.6% | 2.5% | 3.1% |
| RWDIX Tax Cost Ratio | na | na | 2.0% | 2.7% | 2.2% | 2.0% |
RWDIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RWDIX Return (NAV) | 0.9% | 4.8% | 6.6% | 1.0% | -11.2% | 0.5% | -1.9% | 9.0% | -2.6% | 7.3% | 13.3% |
| RWDIX Grade | D | D | B | F | F | D | F | A | D | A | A |
| +/- Category | -0.4% | -2.1% | 1.2% | -5.5% | -5.1% | -0.8% | -7.4% | 2.5% | -1.8% | 3.2% | 6.9% |
| Nontraditional Bond Avg | 1.2% | 6.8% | 5.4% | 6.5% | -6.1% | 1.3% | 5.4% | 6.5% | -0.8% | 4.1% | 6.4% |
| Risk Measures | |
| Standard Deviation: | 4.1% |
| Total Risk Index: | 0.33 - Low |
| Category Risk Index: | 1.14 - Above Average |
| Category Risk Grade: | D (68% Rank) |
| Beta: | 0.55 |
| R-Squared: | 58% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | Low Quality Limited Sensitivity |
| Yield: | 5.1% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | |
| Total Assets: | $72 Mil |
| Fund Total Assets: | $ 70 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 90% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 12.6 years | |||
| Average Tenure: 11.6 years | |||
| Managers (Year): Messinger Michael (2013), Cheung Michael (2016) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 14 |
| % in Top 10 Holdings: | 99.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 10.1% |
Portfolio Allocation |
|
| Domestic Stock: | 1.0% |
| Foreign Stock: | 0.2% |
| Preferred Stock: | 1.1% |
| Domestic Bond: | 76.8% |
| Foreign Bond: | 10.0% |
| Convertible Bond: | 0.6% |
| Other: | -5.9% |
| Cash: | 16.3% |
Purchase Information
| Fund Family: | Redwood Investment Management, LLC |
| Phone Number: | 855-733-3863 |
| Website: | www.redwoodmutualfund.com |
| Status: | Open |
| Inception Date: | December 19, 2013 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 2.20% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.42% |
| Share Class: | Redwood Managed Volatility Y |
| Min. Subsequent Purchase: | $1,000 |
| Min. Subsequent IRA Purchase: | $ 0 |
