AXS Managed Futures Strategy Fund
Class I: MHFIX Class A: MHFAX Class C: MHFCX
Combines diverse managed futures strategies in a single, actively managed mutual fund that offers investors the potential to achieve equity market upside and downside protection.
Seeks to achieve capital appreciation in both rising and falling equity markets with an annualized level of volatility that is generally lower than the historic level of volatility experienced by the S&P 500.
Combines more than 15 commodity trading advisers employing distinct approaches.
Invests across over 100 global futures markets, including physical commodities and financial futures.
Seeks to provide low to negative correlation to most traditional asset classes like stocks, bond and long-only commodities.
*The Fund’s investment advisor has contractually agreed to waive its fees and/or absorb expenses of the Fund to ensure that the Fund’s total annual operating expenses do not exceed on an annual basis: 1.70% Class I, 1.95% Class A, and 2.70% Class C of the Fund’s average daily net assets effective until November 9, 2021. Total Operating Expenses do not include costs associated with any over the-counter (OTC) derivatives utilized by the Fund to gain exposure to managed futures programs. Based on the average notional amount of the Fund’s OTC derivative positions during the fiscal year that ended on September 30, 2018, the Fund was subject to counterparty fees equal to approximately 1.83% (annualized) of Fund assets. During the fiscal year, the aggregate weighted average management fees and weighted average Performance Fees of the Managed Futures Programs in which the Subsidiary invested were approximately 0.93% of notional exposure and 21.24% of trading profits, respectively.
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.
The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the US Dollar, or, in the case of short positions, that the US Dollar will decline in value relative to the currency that the Fund is short. Currency rates in foreign countries may fluctuate significantly over short periods for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the US or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund will invest a percentage of its assets in derivatives, such as futures and options contracts. The use of such derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities and commodities underlying those derivatives.
The Fund may experience greater losses than those experienced by funds that do not use futures contracts and options. There may be an imperfect correlation between the changes in market value of the securities held by the Fund and the prices of futures and options on futures. Although futures contracts are generally liquid instruments, under certain market conditions there may not always be a liquid secondary market for a futures contract. As a result, the Fund may be unable to close out its futures contracts at a time that is advantageous. Trading restrictions or limitations may be imposed by an exchange, and government regulations may restrict trading in futures contracts and options. Because option premiums paid or received by the Fund are small in relation to the market value of the investments underlying the options, buying and selling put and call options can be more speculative than investing directly in securities. The Fund is subject to liquidity risk primarily due to its investments in derivatives. Investments in illiquid securities or derivative instruments involve the risk that the Fund may be unable to sell the security or derivative instrument or sell it at a reasonable price.
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.
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