The American Independence U.S. Inflation-Protected Fund’s (the “Fund”) objective is to provide investors with a high level of total return in excess of inflation as may be consistent with the preservation of capital.
This Fund is intended for investors seeking long-term preservation of capital while invested in U.S. Treasury securities designed to protect against inflation.
The Fund manager uses a proprietary discipline to identify inefficiencies in the Treasury Inflation Protected Securities ("TIPS") marketplace. The investment process incorporates macro-fundamentals related to the economy and inflation, micro-market and security specific dynamics and valuation tools to determine mispricings and evaluate opportunities.
A “Pure Play” – Focused Opportunity Set
The Fund invests solely in U.S. Treasury securities, cash, and cash equivalents. TIPS are a distinct asset class that aim to provide a long-term hedge against inflation, and can potentially enhance portfolio diversification to traditional financial assets.
Active Management Can Deliver Significant Alpha
The Fund manager actively positions portfolio duration and seeks returns above the benchmark using repeatable trading strategies that incorporate monetary policy, auction dynamics, and inflationary trends. Risk systems are used to monitor and control risk on a trade-by-trade basis.
|Share Class||Ticker||CUSIP||Fund Number|
|Number of Holdings||30|
|Net Assets||$301.8 Million|
|Fund Inception Date||January 2, 2001|
|Share Class||Subsidized 30-Day SEC Yield||Unsubsidized 30-Day SEC Yield|
Duration is a measure of a bond price’s sensitivity to changes in interest rates. Bond or bond funds with a higher duration generally have higher price volatility than those with lower durations.
30-Day SEC Yield and Unsubsidized SEC Yield: The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share as of the date specified. The SEC 30-Day Yield on A Shares at NAV applies only to A Shares purchased at no-load pursuant to the Fund’s policy permitting waiver of the A Share load in certain specified circumstances. Subsidized yields reflect fee waivers in effect. Without such waivers, yields would be reduced. The unsubsidized 30-day SEC yield is calculated using the gross expenses of the fund. Gross expenses do not include any fee waivers or expense reimbursements.
The American Independence U.S. Inflation-Protected Fund is managed by RiskX Investments, LLC (formerly American Independence Financial Services, LLC). The Fund is sub-advised by Fischer Francis Trees & Watts, Inc., and its affiliates. Fischer Francis Trees & Watts, Inc. is a fixed income specialist that, with its affiliated companies (collectively “FFTW”), currently manages approximately $45 billion in assets.
Founded in 1972, FFTW has offices in New York, London, Singapore and Tokyo. Clients include pension Funds, universities, foundations, corporations, commercial banks, insurance companies, government agencies and central banks.
Cedric Scholtes is responsible for the day to day management of the Fund.
Cedric Scholtes, Head of the Global Rates Alpha Team at FFTW, has responsibility for managing U.S. inflation-linked portfolios as well as U.S. Government portfolios including generating alpha ideas for U.S. duration and yield curve positioning for all investment strategies. He is responsible for the overall performance of the Global Rates Alpha Team, implementing and improving investment processes for this team as well as managing the dedicated interest rate specialists who comprise the team. Mr. Scholtes joined FFTW in June 2006 as a portfolio manager and is based in New York.
Mr. Scholtes joined the firm from the Treasury trading desk at Goldman Sachs, where his responsibilities included taking proprietary positions and market-making in index-linked markets, as well as enhancing the desk’s analytical capabilities. Prior to working at Goldman Sachs, Mr. Scholtes spent five years at the Bank of England, two of which were spent on secondment to the Federal Reserve Bank of New York. At the Bank of England, Mr. Scholtes spent two years in the Foreign Exchange Division, helping to manage the UK Treasury’s foreign exchange reserves. Prior to that, he worked as a research economist within the Monetary Analysis Division, researching fixed income markets. Mr. Scholtes has published articles on nominal and inflation-linked debt markets in Bank of England, BIS and IMF periodicals, as well as RiskBooks. Mr. Scholtes has 12 years of investment experience.
RiskX Investments, LLC
1345 Avenue of the Americas, 2nd Floor,
New York, NY 10105
|Institutional Class Shares||Class A Shares||Class C Shares||Premier Class Shares|
|Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)||None||4.25%||None||None|
|Maximum Deferred Sales Charge (Load) (as a percentage of the Net Asset Value purchase)||None||None||1.00% 1||None|
1Class C shares will be assessed a 1.00% contingent deferred sales charge if redeemed within one year of date of purchase
2RiskX 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 at 0.32%, 0.77%, 1.32% and 0.47% of the Fund’s average net assets for the Institutional Class shares, Class A shares, Class C shares and Premier Class 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.
|Name||NAV||1 Month||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception3|
|Institutional Class Shares||$10.70||-0.09%||1.23%||1.18%||1.72%||0.65%||4.30%||5.47%|
|Class A Shares (NAV)||$10.66||-0.09%||1.14%||0.71%||1.27%||0.22%||3.95%||5.15%|
|Class A Shares (w/ 4.25% max load)||$11.13||-4.31%||-3.18%||-3.54%||-0.17%||-0.64%||3.50%||4.87%|
|Class C Shares (w/ 1.00% max CDSC)||$10.42||-1.19%||0.07%||-0.77%||0.75%||-0.32%||3.70%||5.10%|
|Premier Class Shares||$10.67||-0.09%||1.23%||1.07%||1.56%||0.52%||4.15%||5.32%|
|Barclays U.S. TIPS||--||-0.05%||1.26%||1.48%||2.03%||0.97%||4.24%||--|
|Name||QTR||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception3|
|Institutional Class Shares||1.23%||1.23%||1.18%||1.72%||0.65%||4.30%||5.47%|
|Class A Shares (NAV)||1.14%||1.14%||0.71%||1.27%||0.22%||3.95%||5.15%|
|Class A Shares (w/ 4.25% max load)||-3.18%||-3.18%||-3.54%||-0.17%||-0.64%||3.50%||4.87%|
|Class C Shares (w/ 1.00% max CDSC)||0.07%||0.07%||-0.77%||0.75%||-0.32%||3.70%||5.10%|
|Premier Class Shares||1.23%||1.23%||1.07%||1.56%||0.52%||4.15%||5.32%|
|Barclays U.S. TIPS||1.26%||1.26%||1.48%||2.03%||0.97%||4.24%||--|
3Since January 2, 2001 Inception
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 net expense ratio is net of a contractual expense cap of 0.32% for Institutional share, 0.77% for A share, 1.32% for C share and 0.47% for Premier 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.
Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index consists of Treasury inflation-protected securities with a remaining maturity of one year or more. The index does not incur fees and expenses and is not available for purchase.
Portfolio Statistics source: Zephyr StyleADVISOR.
Alpha measures a fund’s risk-adjusted performance independent of benchmark performance.
Beta is a measure of a fund’s volatility in comparison to a market benchmark: a Beta of less than 1 indicates a fund is less volatile than the market, while a Beta of greater than 1 indicates a fund is more volatile than the market.
R-Squared measures the portion of a fund’s movement that is explained by the broad market’s movements.
Standard Deviation measures a fund’s performance volatility based on the spread of its returns around its average return.
Sharpe Ratio measures risk-adjusted returns using excess return and standard deviation to determine a fund’s reward per unit of risk taken. A higher sharpe ratio indicates better historical risk-adjusted performance.
|U.S. Treasury Obligations||96.52%|
|U.S. Treasury/ U.S. Government Agency||100.00%|
|United States Treasury Inflation Indexed Bonds,0.13%,4/15/20||11.42%|
|United States Treasury Inflation Indexed Bonds,0.13%,4/15/19||10.23%|
|United States Treasury Inflation Indexed Bonds,0.38%,7/15/23||8.26%|
|United States Treasury Inflation Indexed Bonds,1.38%,2/15/44||6.00%|
|United States Treasury Inflation Indexed Bonds,0.13%,7/15/24||5.99%|
|United States Treasury Inflation Indexed Bonds,0.13%,7/15/26||5.86%|
|United States Treasury Inflation Indexed Bonds,0.63%,1/15/24||5.20%|
|United States Treasury Inflation Indexed Bonds,2.50%,1/15/29||3.94%|
|United States Treasury Inflation Indexed Bonds,0.63%,1/15/26||3.65%|
|United States Treasury Inflation Indexed Bonds,0.13%,1/15/23||3.59%|
|Percent in Top 10||64.14%|
Portfolio holdings are subject to change.
Information found on this site is directed to U.S. Investors.
Futures Risk. A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund’s initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.
Fixed Income Securities Risk. Some of the securities or other investment companies in which a Fund may invest are invested in a broad range of bonds or fixed-income securities. To the extent that a security or other investment company is so invested, the return on, and value of, an investment will fluctuate with changes in interest rates, credit rating and duration.
High Portfolio Turnover Rate Risk. High portfolio turnover rates could generate capital gains that must be distributed to shareholders as short-term capital gains taxed at ordinary income rates (currently as high as 39.6%) and could increase brokerage commission costs. To the extent that a Fund experiences an increase in brokerage commissions due to a higher turnover rate, the performance of the Fund could be negatively impacted by the increased expenses incurred by the Fund.
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 Fischer Francis Trees & Watts, Inc.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
RiskX Investments, LLC is a limited liability company.
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