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1. What are the investment objectives for the ATAC Funds?
ATACX seeks to achieve absolute positive returns over time.
BROTX seeks capital appreciation over time.
2. Where do the ATAC Funds fit into my portfolio?
Our goal is to educate our investors so that they can choose the offering or offerings that best suit their investment objectives. ATACX fits into the alternative or tactical allocation bucket. It tends to act as a non-correlated alternative and can add significant diversification benefits over the course of a full market cycle.
BROTX fits into the U.S. equity bucket. It seeks to minimize volatility during periods of equity market stress by rotating into defensive sectors and maximize return during offensive periods by rotating into cyclical sectors using leading indicators of volatility, as discussed in the summary versions of our award winning papers on Utilities and Treasuries.
3. How should I think about periods of relative underperformance for the ATAC Funds?
If there were an investment strategy that worked all of the time, everyone would follow it and it would stop working. Both Funds are designed specifically to take advantage of the anomaly that you can position ahead of stock market volatility. Anomalies themselves have cycles, which can be either favorable or unfavorable for the types of risk rotations employed in the Funds. There will be months, quarters, or even longer that our strategies will underperform one benchmark or another, but this is true of any strategy that is successful over time. Furthermore, the potential to be defensive ahead of higher volatility regimes in equities makes the magnitude of potential outperformance during such periods significantly greater than might otherwise be obvious when looking at past performance in a lower volatility cycle.
We are dedicated to following a disciplined process with the core belief that over the course of a full market cycle, adhering to our process will reward our investors. Our broad philosophy is that true long-term outperformance does not come from being up more, but rather down less.
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-ATACFUND or visiting www.atacfund.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.