The primary objective of the American Independence Hillcrest Small Cap Value Fund (the “Fund”) is long-term capital appreciation.
Based on Hillcrest's expertise in Behavioral Finance, a combination of quantitative factor modeling and fundamental analysis seeks to capture opportunities primarily in small cap equity securities priced below fair value.
|Share Class||Ticker||CUSIP||Fund Number|
|Number of Holdings||55|
|Average Market Cap||$1,885 Million|
|Net Assets||$6.0 Million|
|Price to Earnings Ratio||16.91|
|Price to Book Ratio||1.86|
|Fund Inception Date||December 31, 2015|
The Fund manager utilizes a four-step process that seeks to identify and select securities of small cap companies by examining three key components: stock valuation, earnings and revenue growth, and investor sentiment. The first step uses quantitative screening to rank every stock within the Russell 2000® Value Index (the "Index")1 according to proprietary Behavioral models. The Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. A small-cap company is defined as a company that, at the time of purchase, has a market capitalization found within the Russell 2000® Index (approximately $177 to $4.3 billion at the time of its most recent reconstitution on May 29, 2015, and is expected to change frequently) at the time of purchase.
Combining sophisticated behavioral modeling with "deep dive" Fundamental Analysis
The second step fundamentally analyzes the top 10% of the initial Index universe, evaluating non-quantifiable information to identify the top three to five securities within each sector. A portfolio of 40-60 small cap equities is constructed in the third step based on the risk profiles of securities within the Index.
Risk Control Weighting Philosophy
In the final step, the manager actively seeks to deliver returns above the benchmark by continually analyzing the Fund's holdings, using current information to avoid behavioral biases and only deviating from the benchmark in areas identified as potentially adding value. The manager will sell securities when they no longer meet investment criteria, trim when securities are overweight, and rebalance to maintain what the manager believes to be the appropriate risk levels, quality, and style. As the Fund has not yet had a full year of operations, portfolio turnover is not yet able to be determined.
1Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. Unlike the American Independence Funds, the Russell 2000® Value Index does not incur fees or expenses and is not available for purchase.
Price to Book Ratio compares the market value of a portfolio’s stocks to the stocks’ book value.
Price to Earnings Ratio is the ratio of a company’s share price to its earnings per share.
RiskX Investments, LLC (“RiskX Investments”) offers access to a wide array of boutique asset managers and tactical strategists within a series of sub-advised mutual funds and separately managed accounts. Our proprietary research platform covers a wide spectrum of active investing from traditional single manager risk-adjusted strategies to multi-strategy tactical risk managed solutions. RiskX Investments is registered as an investment adviser with the United States Securities and Exchange Commission.
Hillcrest Asset Management, LLC is one of the leaders in Behavioral Finance investing. They are an independent, institutional investment management firm founded in July 2007 with headquarters in Dallas, TX and a satellite office in Boston, MA. They have a deep and highly experienced investment team managing the Fund. Led by founder and Chief Investment Officer, Brian Bruce, the team has an average of over 25 years of institutional management experience. All of their investment strategies are based on their expertise in Behavioral Finance. They have a disciplined and systematic process that uses a blend of quantitative factor screens and rigorous fundamental analysis to identify those companies that have attractive valuations, strong earnings and revenue growth, and positive sentiment. Hillcrest Asset Management, LLC has previously managed portfolios for mutual funds.
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|Institutional Class Shares||Class A Shares||Class C Shares|
|Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)||None||5.75%||None|
|Maximum Deferred Sales Charge (Load) (as a percentage of the Net Asset Value purchase)||None||None||1.00% 2|
2Class C shares will be assessed a 1.00% contingent deferred sales charge if redeemed within one year of date of purchase
3RiskX Investments, LLC (“RiskX Investments” or the “Adviser”) has contractually agreed to reduce the management fee and reimburse expenses until March 1, 2018 in order to keep the Net Annual Fund Operating Expenses to 1.25%, 1.63% and 2.25% of the Fund’s average net assets for Institutional Class Shares, Class A Shares and Class C Shares, respectively. The contractual expense limitation does not apply to any taxes, brokerage commissions, interest on borrowings, acquired fund fees, extraordinary expenses, or short sale dividend and interest expenses. The Adviser is permitted to seek reimbursement from the Fund, subject to limitations, for fees it waived and Fund expenses it paid in any fiscal year of the Fund over the following three fiscal years, as long as the reimbursement does not cause the Fund’s operating expenses to exceed the expense limitation. The expense limitation may be terminated only by approval of the Board of Trustees.
|Name||NAV||1 Month||YTD||1 Year||Since Inception4|
|Institutional Class Shares||$12.57||-0.87%||-1.80%||21.40%||20.33%|
|Class A Shares (NAV)||$12.54||-0.87%||-1.88%||20.92%||19.95%|
|Class A Shares (w/ 5.75% max load)||$13.31||-6.56%||-7.52%||14.00%||14.40%|
|Class C Shares (w/ 1.00% max CDSC)||$12.45||-1.95%||-3.03%||19.17%||19.17%|
|Russell 2000® Value||--||-0.62%||0.29%||23.43%||--|
|Name||QTR||YTD||1 Year||Since Inception4|
|Institutional Class Shares||-1.80%||-1.80%||21.40%||20.33%|
|Class A Shares (NAV)||-1.88%||-1.88%||20.92%||19.95%|
|Class A Shares (w/ 5.75% max load)||-7.52%||-7.52%||14.00%||14.40%|
|Class C Shares (w/ 1.00% max CDSC)||-3.03%||-3.03%||19.17%||19.17%|
|Russell 2000® Value||-0.13%||-0.13%||29.37%||--|
4Since December 31, 2015 Inception. Since inception return is cumulative.
During certain of the periods shown in the performance table above, the adviser waived a portion of its management fee and capped the total operating expenses of the Fund. Absent such expense cap and fee waiver, the Fund would have had a higher expense ratio and lower performance. The expense ratio is per the most recent prospectus dated March 1, 2017. The expense ratio is net of a contractual expense cap of 1.25% for the Institutional share, 1.63% for the A share, and 2.25% for the C share classes through March 1, 2018.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance information current to the most recent month-end, please call 866.410.2006 or visit the Product Performance pages of this website.
Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. Unlike the American Independence Funds, the Russell 2000® Value Index does not incur fees or expenses and is not available for purchase.
|Black Hills Corporation||2.60%|
|Customers Bancorp, Inc.||2.49%|
|DuPont Fabros Technology, Inc.||2.43%|
|Apogee Enterprises, Inc.||2.24%|
|First Interstate BancSystem, Inc., Class A||2.24%|
|Great Western Bancorp, Inc.||2.19%|
|Tutor Perini Corporation||2.19%|
|Simmons First National Corp., Class A||2.16%|
|Percent in Top 10||23.54%|
Portfolio holdings are subject to change.
Information found on this site is directed to U.S. Investors.
Investing involves risk. Equity securities are more volatile and carry more risk than other forms of investment.
Equity Securities Risk. In general, prices of equity securities are more volatile than those of fixed income securities. The prices of equity securities fluctuate, and sometimes widely fluctuate, in response to activities specific to the issuer of the security as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions.
Small-Cap Securities Risk. Investments in small cap companies may be riskier than investments in larger, more established companies. The securities of smaller companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small-cap securities can be subject to more abrupt or erratic share price changes than larger, more established companies. Securities of these types of companies have limited market liquidity, and their prices may be more volatile.
Micro-Cap Securities Risk. Micro-cap stocks may involve substantially greater risks of loss and price fluctuations than those for small-cap securities. Micro-cap companies carry additional risks because of the tendency of their earnings and revenues to be less predictable, their share prices to be more volatile, and their markets to be less liquid than companies with larger market capitalizations.
Mid-Cap Securities Risk. The prices of securities of mid-cap companies generally are more volatile than those of large capitalization companies and are more likely to be adversely affected than large-cap companies by changes in earnings results and investor expectations or poor economic or market conditions, including those experienced during a recession.
Large-Cap Securities Risk. Stocks of large companies as a group can fall out of favor with the market, causing the Fund to underperform investments that have a greater focus on mid-cap or small-cap stocks. Larger, more established companies may be slow to respond to challenges and may grow more slowly than smaller companies.
Value Stock Risk. "Value" stocks can perform differently from the market as a whole and from other types of stocks. Value stocks may decline in value or never reach the value the Sub-Adviser believes is its full market value, either because the market fails to recognize what the Sub-Adviser considers to be the company’s true business value or because the Sub-Adviser’s assessment of the company’s prospects was not correct.
Foreign Securities Risk. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or smaller capital markets.
New Fund Risk. There can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Board of Trustees or the Adviser may determine to liquidate the Fund. The liquidation can be initiated by the Board of Trustees without a shareholder vote and, while shareholder interests will be the paramount consideration, the timing of any liquidation may not be favorable to certain individual shareholders.
For more complete information on the American Independence Funds, you can obtain a prospectus containing complete information for the Funds by calling 866.410.2006 or by downloading them from this web site. You should consider the Fund’s investment objectives, risks, charges and expenses carefully before you invest or send money. Information about these and other important subjects is in the Funds’ prospectus. The prospectus and, if available, the summary prospectus, should be read carefully before investing.
Shares of the American Independence Funds are distributed by Matrix 360 Distributors, LLC, which is not affiliated with RiskX Investments, LLC and Hillcrest Asset Management, LLC.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
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