TOPS® Managed Risk Moderate Gr (0P0000VE7O)

Overview

The fund operates under a fund-of-funds structure, primarily focusing on investing at least 80% of its assets in exchange-traded funds (ETFs). It aims to mitigate market risk and reduce return volatility through the use of exchange-traded futures contracts. The investment approach targets a diversified portfolio, encompassing a wide range of asset classes including government and corporate fixed income securities, stocks, real estate investment trusts (REITs), and natural resource-related securities. This broad investment spectrum positions the fund to capture growth across different sectors and minimize risks associated with market fluctuations.

Products and Services

Exchange-Traded Funds (ETFs): The fund invests substantially in ETFs, encompassing a diverse selection of asset classes to provide investors with exposure to various sectors of the market. ETFs offer the benefits of portfolio diversification, liquidity, and cost-efficiency, making them an attractive option for achieving broad market exposure.

Exchange-Traded Futures Contracts: To hedge against market volatility, the fund employs exchange-traded futures contracts. These financial instruments are used strategically to offset potential losses in the portfolio’s value due to adverse market movements, thereby aiming to stabilize returns over time.

Government Fixed Income Securities: The portfolio includes investments in government bonds and securities, offering a stable and relatively low-risk income stream. These securities are backed by the government, providing a level of security and predictability in returns, particularly attractive during uncertain market conditions.

Corporate Fixed Income Securities: By investing in corporate bonds, the fund seeks to achieve higher yields compared to government securities. These investments entail a higher risk but offer the potential for increased income, contributing to the fund’s overall yield performance.

Common and Preferred Stocks: Equities form a significant part of the portfolio, with investments in both common and preferred stocks. This allows the fund to participate in the growth potential of various companies and industries, contributing to the potential for capital appreciation.

REITS: Real Estate Investment Trusts (REITs) provide the portfolio with exposure to the real estate sector. REITs offer the potential for income generation through dividends and the possibility of capital appreciation, adding another layer of diversification to the fund's investment strategy.

Natural Resource-Related Securities: The inclusion of securities related to natural resources aims to capitalize on the commodities market. This segment of the portfolio can serve as a hedge against inflation and a source of growth, given the cyclical nature of commodity prices and their potential for appreciation.