Stock Selection
The Fund selects the particular stocks on which to go long and short based on quantitative models. The models are based on proprietary research related to economic indicators found in peer-reviewed academic journals. The target portfolio typically holds:
- More than 600 individual securities
- Invests in both US and International developed-market stocks
- Targets sector and currency neutrality.
The Fund’s ranking model is based on research of investment anomalies found in peer-reviewed academic journals, and uses machine-learning techniques to most optimally score the universe of input stocks. The Fund seeks to target the best performing, recent, and persistent anomalies. The Fund’s strategy is multi-factor, and seeks to capitalize on many market anomalies at any one time.
Tactical Risk Management
Using a disciplined tactical market model based on trend-following methodologies, the Fund seeks to avoid downside risk by alternating between “Risk On” (0.80 to 0.85 beta to S&P 500) and Defensive (zero beta to S&P 500, plus 30% treasuries) target asset allocations.
Historical analysis suggests that when the model signaled to reduce equity risk, the following month’s realized market volatility in avoided equities was on average 96% higher versus when the model signaled to hold equities.
Portfolio Managers
Fund Tickers and Facts
| Ticker | CPAEX | CPCEX | CPIEX |
|---|---|---|---|
| CUSIP | 66538G429 | 66538G411 | 66538G395 |
| Share Class | Class A | Class C | Institutional |
| Minimum Investment | $5,000 | $5,000 | $100,000 |
| Minimum IRA Investment | $1,000 | $1,000 | $100,000 |
| Management Fee | 1.25% | 1.25% | 1.25% |
| Other Fund Expenses (Maximum Net of Waiver) | 0.79% (0.50%) | 0.79% (0.50%) | 0.79% (0.50%) |
| Interest/Dividend Expense on Securities Sold Short and Acquired Fund Fees and Expenses | 0.08% | 0.08% | 0.08% |
| 12b-1 Distribution & Marketing | 0.25% | 1.00% | None |
| Total Annual Operating Fees | 2.40% | 3.15% | 2.15% |
| Total Annual Fund Operating Expenses After Fee Waiver | 2.11% | 2.86% | 1.86% |
| Fund Inception Date | November 30, 2015 | ||
| Fund Overview Sheet |  | ||
| Quarterly Fact Sheet |  | ||
| Prospectus |  |
The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2021 to ensure that the net annual fund operating expenses exclusive of Acquired Fund Fees and Interest/Dividends on Short Sales will not exceed 2.00%, 2.75%, and 1.75% attributable to Class A, Class C, and Class I shares, subject to possible recoupment from the Fund in future years.
Performance Since Inception
| As of September 18, 2020 | As of June 30, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| Return Since Fund Inception (Annualized) | Year to Date | 1 Year Return | Standard Deviation (Annualized) | Return Since Fund Inception (Annualized) | Year To Date | 1 Year Return | 3 Year Return (Annualized) | |
| CPIEX | -5.85% | -22.97% | -18.64% | N/A | -6.03% | -22.60% | -24.08% | -8.94% |
| CPAEX Without Sales Load | -6.09% | -23.14% | -18.83% | N/A | -6.25% | -22.69% | -24.29% | -9.15% |
| CPAEX With Sales Load (5.75%) | -7.25% | -27.54% | -23.49% | N/A | -7.46% | -27.11% | -28.64% | -10.93% |
| CPCEX | -6.80% | -23.59% | -19.49% | N/A | -6.95% | -22.96% | -24.79% | -9.82% |
| Blended Index | 7.02% | 3.07% | 7.45% | N/A | 6.49% | -0.73% | 5.13% | 6.54% |
Fund inception date is November 30, 2015.
The performance data displayed here represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. A shares (CPAEX) have a Front-End Sales Charge (commission or “load”) of 5.75%, with lower rates for accounts over $25,000, and 12b-1 distribution fee of 0.25% per year. For performance information current to the most recent month-end, please call toll-free 844-273-8637.
The Counterpoint Tactical Equity Fund seeks to provide capital appreciation while managing downside risk. The Fund invests in individual stocks that have exposure to multiple market anomalies, while using a tactical model to dynamically adjust portfolio risk.
Fund Holdings
| Top Ten Holdings - as of August 31, 2020 | |
|---|---|
| United States Treasury TIP 0.125 10/15/2024 | 20.53% |
| United States Treasury Bill 09/10/2020 | 11.48% |
| SPDR S&P 500 ETF Trust | 10.96% |
| United States Treasury TIP 0.125 04/15/2025 | 4.74% |
| Fidelity Government Portfolio | 2.21% |
| SPDR SP 500 ETF LONG | 1.1% |
| United States Treasury Bill 04/22/2021 | 0.88% |
| RECV CTE GS LONG 2-GSGLC | 0.67% |
| JD.com Inc. | 0.48% |
| 1-800-Flowers.com Inc. | 0.46% |
Download International Total Return Swap Basket Holdings as of 6/30/2020
Download International Total Return Swap Basket Holdings as of 3/31/2020
Download International Total Return Swap Basket Holdings as of 12/31/2019
Download International Total Return Swap Basket Holdings as of 9/30/2019
Download International Total Return Swap Basket Holdings as of 6/28/2019
Download International Total Return Swap Basket Holdings as of 3/31/2019
Download International Total Return Swap Basket Holdings as of 12/31/2018
Download International Total Return Swap Basket Holdings as of 9/28/2018
Download International Total Return Swap Basket Holdings as of 6/29/2018
Download International Total Return Swap Basket Holdings as of 3/29/2018
Download International Total Return Swap Basket Holdings as of 12/29/2017
Download International Total Return Swap Basket Holdings as of 9/29/2017Portfolio holdings are subject to change, vary over time and should not be considered a recommendation to buy any individual security.
IMPORTANT RISK INFORMATION
Mutual Funds involve risk including the possible loss of principal. The Fund is a new mutual fund as has a limited history of operations for investors to evaluate. The use of leverage by the Fund or an Underlying Fund, such as borrowing money to purchase securities or the use of derivatives, will indirectly cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. A higher portfolio turnover will result in higher transactional and brokerage costs. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
Overall equity and fixed income market risk, including volatility, may affect the value of individual instruments in which the Fund invests. The net asset value of the Fund will fluctuate based on changes in the value of the U.S. and/or foreign equity securities held by the Fund. Fixed income risk factors include credit risk and prepayment risk. When the Fund invests in other investment companies, it will bear additional expenses based on its pro rata share of the other investment company’s operating expenses, including the potential duplication of management fees.
The fund may invest in options which hold an underlying risk greater than securities. The Fund’s losses are potentially large in a written put transaction and potentially unlimited in an unhedged written call transaction. The earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. The Fund may use swaps to enhance returns and manage risk, which involves risks possibly greater than, the risks associated with investing directly in securities and other traditional investments.
The Adviser’s reliance on its strategy and its judgments about the value and potential appreciation securities in which the Fund invests may prove to be incorrect, including the Adviser’s tactical allocation of the Fund’s portfolio among its investments. The adviser’s investment model carries a risk that the mathematical model used might be based on one or more incorrect assumptions.
Long positions entail purchasing securities with the intention of holding them in anticipation of a price increase. Short positions entail borrowing securities with the intention of holding them in anticipation of a price decrease.
