1. How are the investments in the Funds determined?
The pensionpartners Funds use a proprietary approach to position more defensively or offensively in a portfolio. The process is consistent and repeatable.
pensionpartnersX positions into bonds when our indicators are giving a defensive signal and into equities when they are giving an offensive signal.
BROTX positions into defensive sectors when our indicators are giving a defensive signal and into cyclical sectors when they are giving an offensive signal.
2. What is the underlying concept of the approach?
The approach attempts to evaluate conditions which favor higher or lower stock market volatility. The strategies position defensively when odds favor rising volatility and offensively when odds favor a falling volatility environment.
3. What are the instruments used in the Funds?
pensionpartnersX uses broad equity and bond exchange-traded funds (ETFs).
BROTX uses U.S. equity sector exchange-traded funds (ETFs).
4. How frequently does an offensive or defensive rotation occur?
The indicators are evaluated on a weekly basis for potential rotations in the portfolio. Changes are made only when our proprietary signals suggest a directional change from offense to defense or defense to offense is warranted.
5. How many inputs are used in the approach?
We don’t believe in overly complex, 100-variable quantitative models. We believe there are a select group of factors that have predictive value in markets and have written about two of these factors in award-winning research papers.
6. Where can I access the award-winning research papers?
Full copies of the papers can be downloaded at SSRN.com.
Diversification does not assure a profit nor protect against a loss in a declining market.
Mutual fund investing involves risk. Principal loss is possible. Because the Funds invest primarily in ETFs, they may invest a greater percentage of its assets in the securities of a single issuer and therefore is considered non-diversified. If a Fund invests a greater percentage of its assets in the securities of a single issuer, its value may decline to a greater degree than if the fund held were a more diversified mutual fund. The Funds are expected to have a high portfolio turnover ratio which has the potential to result in the realization by the Fund and distribution to shareholders of a greater amount of capital gains. This means that investors will be likely to have a higher tax liability. Because the Funds invest in Underlying ETFs an investor will indirectly bear the principal risks of the Underlying ETFs, including but not limited to, risks associated with investments in ETFs, large and smaller companies, real estate investment trusts, foreign securities, non-diversification, high yield bonds, fixed income investments, derivatives, leverage, short sales and commodities. The Fund will bear its share of the fees and expenses of the underlying funds. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying funds. The Beta Rotation Fund is new with no operating history and there can be no assurances that the fund will grow or maintain an economically viable size.
The Fund’s investment objectives, risks, charges, expenses and other information are described in the statutory or summary prospectus, which must be read and considered carefully before investing. You may download the statutory or summary prospectus or obtain a hard copy by calling 855-pensionpartnersFUND or visiting www.pensionpartnersfund.com. Please read the Prospectuses carefully before you invest.
Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
While the fund is no-load, management and other expenses still apply.
The Funds are only offered to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of our Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.