An ESG-based high yield strategy that invests primarily in below-investment-grade corporate bonds of a diversified mix of Next Economy™ companies and select corporate bonds directed at Next Economy™ solutions. These are publicly traded companies that enable solutions to major systemic sustainability risks, such as climate change, resource scarcity, inequality, erosion of social cohesion and costs associated with human disease.
Seeks to generate current income by investing in high yield debt, chosen through fundamental analysis and environmental, social and governance (ESG) factors.
Selects Next Economy™ companies that deliver innovative solutions to major sustainability systemic risks.
Alternative source for seeking higher income with the potential to preserve principal and lower volatility over a full market cycle.
Inception Date: 2/1/2013
Distribution Frequency: Annual
Management Fees: 0.70%
Total Operating Expense: 4.73%
Net Expense**: 0.99%
** The Fund's investment advisor has contractually agreed to reduce 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 0.99% of the Fund's average daily net assets, effective until January 31, 2025. Please review the Fund's Prospectus or Summary Prospectus for additional expense detail.
Uniplan Investment Counsel, Inc. ("Uniplan") and Green Alpha Investments ("Green Alpha") serve as sub-advisors to the AXS Sustainable Income Fund. Richard Imperiale of Uniplan leads the portfolio management of the Fund. Green Alpha has been managing sustainable, fossil fuel free investment strategies since 2008 and is responsible for identifying the universe of Next Economy™ companies for potential investment by the Fund. Founded in 1984, Uniplan is an asset manager specialized in alternative investing. It is responsible for selecting sustainable companies from the universe identified by Green Alpha for inclusion in the Fund's portfolio, determining which portfolio investments will be sold by the Fund, and executing transactions for the Fund's portfolio.
Green Alpha Investments owns the trademark to Next Economy.
Environmental, Social and Governance (ESG): Environmental criteria considers how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers and the communities where it operates. Governance deals with a company's leadership, executive pay, audits, internal controls, and shareholder rights.
There is no assurance that the Fund will achieve its investment objective.
The market price of a security may decline due to general market conditions that are not specifically related to a particular company, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment. The prices of fixed income securities respond to economic developments as well as to changes in an issuer's credit rating or market perceptions about the creditworthiness of an issuer. High yield bonds are debt securities rated below investment grade and are speculative, involve greater risks of default, downgrade or price declines and are more volatile and tend to be less liquid than investment-grade securities. If an issuer of a debt security held by the Fund defaults or is downgraded, or if the value of the assets underlying a security declines, the value of the Fund's portfolio will typically decline. Generally fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, with longer-term securities being more sensitive than shorter-term securities. While the Sub-Adviser believes that the integration of ESG analysis as part of the investment process contributes to its risk management approach, the Fund's consideration of ESG criteria in making its investment decisions may affect the Fund's exposure to risks associated with certain issuers, industries and sectors, which may impact the Fund's investment performance.