The E-Valuator Moderate Risk Managed Strategy (RMS) Fund
The E-Valuator Moderate Risk Managed Strategy Fund is a "fund-of-funds" that seeks to achieve its investment objectives by investing in the securities of other investment companies (including open-end funds, exchange-traded funds (“ETFs”) and closed-end funds (collectively referred to as “Underlying Investments”). The E-Valuator Moderate RMS Fund (aka, "The Fund") utilizes a risk-managed strategy (thus, the term “RMS” in the Fund’s name) which involves the allocation of invested assets across multiple Underlying Investments in a manner that provides fluctuations in annualized returns that would be commensurate to an investor seeking to experience low volatility in year-over-year returns. The Underlying Investments will be Rebalanced periodically whenever the Underlying Investment balances expressed as percentage of the total Fund's assets exceeds the original asset allocation percentage by +/- 10%. The Fund will utilize both Passive Management and Active Management in the selection of Underlying Investments. The Fund will generally allocate 30%-70% of the Fund’s assets into a variety of Underlying Investments that focus on investments in fixed income securities (e.g., money markets and bonds) that possess varying qualities of credit and duration. The remaining 30%-70% of the Fund’s allocation will be dedicated to investments in Underlying Investments that focus on investments in equity securities that have the potential of paying dividends, as well as providing asset growth, on an annual basis.
Investment Focus and Goals
The focus of this RMS Fund is the management of risk by diversifying assets across industry leading mutual funds and ETF's that incorporate tactical management to optimize performance. The Fund incorporates an asset allocation based on 3-Year and 5-Year time horizons that maintain the Fund's volatility as measured by its standard deviation (definition on back) within the ranges identified below. These Underlying Investments must meet the rigorous performance tolerance demands of The E-Valuator analytical software (www.e-valuator.com).
- Primary: Growth & Income
- Secondary: Growth & Income
Investor Suitability Parameters
- Tolerance to Short-Term Loss: Acceptable (Average)
- Stock Market Risk Exposure: Average
- Inflation Risk Exposure: Average
- Target Date: 4 Years to 7 Years
Asset Allocation as of 3/31/2017
This is not a typical mutual fund. The additional features are:
The Underlying Investments are selected by utilizing The E‐Valuator analytical software. Each Underlying Investment must pass a rigorous criteria and continually meet this criteria to sustain its position in the Fund. The E‐Valuator analytical software updates the status of each Underlying Investment on a daily basis.
The Fund's assets are dispersed (allocated) across the Underlying Investments to generate returns that are commensurate with the performance volatility suitable to an investor with a Moderate risk temperament (see Investor Suitability Parameters).
The Fund's asset allocation is structured in a manner to optimize annualized returns at varying levels of risk (standard deviation). This process involves the creation of an Efficient Frontier line which identifies varying levels of potential return at varying levels of risk. For instance, an optimized allocation seeking lower potential risk and lower potential return would be found along the lower end of an Efficient Frontier line. While an optimized allocation seeking potentially higher returns with potentially higher risk would be found along the upper level of an Efficient Frontier line. A portfolio is considered to be optimized when the allocation of underlying investments places the return-to-risk ratio along the Efficient Frontier line. The Fund will continually adjust the asset allocation of its underlying holdings in an effort of achieving optimized performance
The asset allocation inside the Fund will be rebalanced (realigned) to the original allocation percentages when an Underlying Investment's account balance expressed as a percentage of the Fund's total assets is 10% above or below the original allocation percentage. For instance, if the Fund has a 15% allocation into an Underlying Investment, rebalancing will occur whenever that Underlying Investment's account balance exceeds 16.5% (15% X 110% = 16.5%), or drops below 13.5% (15% X 90% = 13.5%) of the Fund's total balance.
Passive management is considered a form of investment management whereby the allocation mirrors the allocation of a benchmark, or index. The Fund’s allocation into Passive Management is achieved by investing a portion of the Fund’s assets into Underlying Investments that attempt to replicate the performance of a common index (e.g., S&P 500®, Russell 1000, Barclays US Aggregate Bond Index, etc.), that is, passively managed Underlying Investments. The Fund’s allocation to Active Management corresponds to the portion of the Fund’s portfolio that will be invested in actively managed Underlying Investments. Active management is considered a form of investment management whereby the allocation is driven by security selection and trading with an overriding goal of outperforming a stated index, or benchmark. By constructing the Fund’s portfolio with Passively and Actively managed Underlying Investments, the Adviser is blending two management philosophies in an effort to capture the returns of the market indexes through Passive Management, while seeking to enhance the overall performance through Active Management, thereby attempting to deliver above average performance.
Percentage of Assets
Number of Underlying Investments
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