Dynamic U.S. Opportunity Fund
The fund provides a dynamic core exposure to U.S. equity and fixed income to achieve above average risk-adjusted returns. The Innealta Investment Committee selects exposures in equity sectors, and sub-sectors, as well as fixed income sectors based on the perceived opportunities of return, risk, and correlation. Our Investment Committee utilizes a proprietary quantitative framework that provides a holistic view of financial markets. The investment objective of the fund is capital appreciation. Investors can use our fund as a low beta alternative to their core, U.S. equity allocation.
The fund primarily invests in the 11 sectors, 24 industry groups, and 68 industries of the U.S. equity market, as well as in the 3 major sectors of the U.S. fixed income market.
|Class I||Class N|
|Next Expense Ratio||1.38%||1.63%|
|Gross Expense Ratio||1.70%||1.96%|
The Fund’s total annual fund operating expenses are 1.96%, and 1.70% for Class N and Class I shares respectively. Total annual operating expenses after fee waiver are 1.63% and 1.38% for Class N and I shares. The Fund’s investment adviser has contractually agreed to reduce fees and/or absorb expenses until at least March 31, 2019, to ensure that total annual fund operating expenses (excluding any front-end or contingent deferred sales loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs, taxes and extraordinary expenses such as litigation) for the Fund do not exceed 1.49%, and 1.24% of the Fund’s average net assets, for Class N and Class I shares, respectively.
*Innealta Capital maintains distribution agreements with selected platforms where minimums may be waived for some clients in certain share classes. Please contact us for more details.
As of 9/30/2018
|Return (%)||3 Month||YTD||1 Year||3 Year||5 Year||Since Inception|
As of 9/30/2018
As of 9/30/2018
The performance data presented in the tables represents past performance net of all fees, including any acquired fund fees. Past performance is no guarantee of future results. Current performance may be lower or higher than the data cited above. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month end, please call 855.994.2326.
DISCLOSURES & IMPORTANT INFORMATION
(1) The Fund’s investment advisor has contractually agreed to reduce fees and/or absorb expenses until at least March 31, 2018.
(2) Holdings and allocation data as of September 30, 2018. Fund holdings are subject to change and should not be considered investment advice.
(3) Past performance information provided for the periods prior to March 28, 2018 reflects the performance of the Fund’s prior investment adviser, AFAM Capital, Inc. (“AFAM”), and specifically the Innealta Capital division of AFAM (“Innealta Division”). On March 27, 2018, shareholders approved the new investment advisory agreement with Innealta Capital, LLC which was formed through a reorganization of the Innealta Division. Prior to the reorganization, the Fund was managed by the principals of the Innealta Division, now the principals at Innealta Capital, LLC., who were primarily responsible for the performance results. Innealta Capital, LLC intends to pursue the same investment strategy that was pursued while its principals were employed by AFAM.
(a) S&P 500 Index (see below for complete definition).
(b) 70% S&P 500 Index / 30% Bloomberg Barclays U.S. Aggregate Bond Index USD (see below for complete definition).
(c) Morningstar U.S. Tactical Allocation Category. It measures domestic open-end mutual funds with a tactical allocation objective.
Innealta Capital, LLC is an Investment Adviser, registered with the Securities & Exchange Commission. For more information, please visit our website: innealtacapital.com.
GLOSSARY & RISK CONSIDERATIONS
The S&P 500 Index is an American broad market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.
The Bloomberg Barclays US Aggregate Bond Index is representative of the entire universe of taxable fixed-income investments. It includes issues of the U.S. Government and any agency thereof, corporate issues of investment grade quality (Baa/BBB or better), and mortgage-backed securities.
Unmanaged index returns do not reflect any fees, expenses or sales charges, and it is not possible to invest directly in an index.
Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. Beta is a measure of volatility, or systematic risk, of a portfolio in comparison to a benchmark. A beta greater than one indicates more volatility, while a beta less than one indicates less volatility than the relevant benchmark. R-squared is a measure of how close the relationship is between a portfolio and its benchmark. Standard Deviation is a measure of the dispersion of investment returns from the mean. A higher standard deviation indicates higher volatility. Capture Ratio is the ratio of upside capture to downside capture. Upside capture is the statistical measure of an investment manager’s overall performance in up-markets. The upside capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. Downside capture is a statistical measure of an investment manager’s overall performance in down-markets. Downside capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has exhibited negative performance.
Important Risk Information
Mutual Funds involve risk including the possible loss of principal.
The Fund is a ‘fund of funds’ and typically invests in other investment companies and exchange traded funds (“ETFs”). Costs of investing in the Fund are generally higher than direct investments and investors may bear the fees, expenses, and brokerage costs charged by the ETFs. ETFs carry security, market and sector risks, and may not perform as expected which could result in a decline in value. When the Fund invests in ETFs that own fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. The use of leverage and inverse leveraged ETF’s may exaggerate changes in price and return. Accordingly, values may be more volatile and the risk of loss magnified when compared to non-leveraged investments. Other possible risks to the Fund include those related to investment in small and medium sized companies, general risk, ETF Risk, Equity Securities Risk, Fixed Income Securities Risk, High Yield Risk, Large-cap Securities Risk, Growth Risk, Fund of Funds Risk, Sector Risk, Management Risk, Interest Rate Risk, Leveraged, Inverse and Inverse-Leveraged ETF Risk, Real Estate Investment Risk, Commodity Risk, High Volatility Risk, Derivatives Risk, Futures Risk, Options Risk, Portfolio Turnover Risk, and Cyber Security Risk. Please review the prospectus carefully for additional details.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Innealta Funds. This and other important information about the Funds is contained in the prospectus, which can be obtained by calling 855.994.2326. The prospectus should be read carefully before investing. The Innealta Funds are distributed by Northern Lights Distributors, LLC a FINRA/SIPC member. Innealta Capital, LLC is not affiliated with Northern Lights Distributors, LLC.
Shares of the Innealta Capital Funds are currently offered only in the United States to U.S. investors and are not available for sale in any jurisdiction other than the United States. The information on this Web site should not be considered a solicitation to buy or an offer to sell shares of the Innealta Capital Funds in any jurisdiction where it would be unlawful under the securities law of that jurisdiction.