AXS Alternative Growth Fund
Class I: EEHIX Class A: EEHAX
2020 LIPPER FUND AWARD
Best Alternative Long/Short Equity Fund
Granted to funds in each Lipper classification that achieve the highest score for Consistent Return, a measure of funds' historical risk adjusted returns, relative to peers. Fund awarded for Best Alternative Long/Short Equity Fund over five years in 2020.
Seeks to provide investors both upside potential through equity market exposure and downside protection through an innovative portfolio of diversifying strategies.
In the Morningstar long-short equity category, EEHIX and EEHAX received an overall rating of 4 stars, 3-year rating of 4 stars out of 179 funds, and 5-year rating of 4 stars out of 151 funds, based on risk-adjusted returns as of 6/30/2021.
Capital-efficient equity exposure pursued through S&P 500 index futures contracts.
Balanced risk and reward complemented by a dynamic hedging strategy designed to dampen portfolio risk.
Diversifying programs designed to provide uncorrelated sources of return.
Inception Date: 9/9/2013
Distribution Frequency: Annual
Management Fees: 0.75%
Total Operating Expense: 4.58%
Net Expense*: 0.99%
*The Gross/Net Expense Ratio for the Fund does not include costs associated with any over-the-counter derivatives that provide the Fund exposure to the Overlay Strategy. The Investment Advisor anticipates that such exposure will indirectly subject the Fund to (i) counterparty fees of up to 0.50% (annualized) of notional exposure, and (ii) (annualized) management fees of up to 1.25% of notional exposure and performance-based incentive fees of up to 25% of new high net trading profits. The Adviser anticipates that the Fund’s average notional exposure to the Overlay Strategy generally ranges between approximately 100% and 200% of Fund assets. The performance of the Fund will be net of all such embedded counterparty, management and incentive/ performance fees. The Adviser has contractually agreed to waive certain fees/expenses until November 9, 2021. Performance would have been lower without fee waivers in effect.
Ampersand Investment Management is a research-grounded institutional investment manager that develops and manages alternative investment strategies, including long/short equity and managed futures.
Ampersand has been an industry leader in structuring and managing innovative solutions that seek to meet the needs of a wide range of investors.
Dr. Ajay Dravid
Chief Investment Officer
Dr. Rufus Rankin
MD - Research
There is no assurance that the Fund will achieve its investment objective.
Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. Many of the derivative contracts entered into by the Fund, the Subsidiary or a trading company will be privately negotiated in the OTC market. These contracts also involve exposure to credit risk, since contract performance depends in part on the financial condition of the counterparty. Credit risk refers to the possibility that the issuer of the security will not be able to make principal and interest payments when due. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. Derivative instruments come in many varieties and have a wide range of potential risks and rewards, and may include futures contracts, options on futures contracts, options, swaps, and forward currency exchange contracts. Derivatives typically have economic leverage inherent in their terms. The use of leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities or other investments. Furthermore, derivative instruments and futures contracts are highly volatile and are subject to occasional rapid and substantial fluctuations. Investments in foreign securities could subject the Fund to greater risks, including currency fluctuation, economic conditions, and different governmental and accounting standards. Derivative instruments and futures contracts are highly volatile and are subject to occasional rapid and substantial fluctuations.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the I share classes; other classes may have different performance characteristics.
© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.