TOPS® Balanced ETF Portfolio Service Class Shares (0P0001FVHL)

Overview

The fund operates with a fund-of-funds strategy, primarily focusing on investing in a diverse range of exchange-traded funds (ETFs) that represent various asset classes. By allocating at least 80% of its assets into ETFs under normal market conditions, the fund aims to provide investors with exposure to a broad spectrum of securities, including government and corporate fixed income securities, equity securities (common and preferred stocks), Real Estate-Related securities (REITs), and natural resource-related securities. This approach is designed to mitigate risk through diversification while seeking to achieve growth, income, or both.

Products and Services

• Exchange-Traded Funds (ETFs):

The fund invests predominantly in ETFs that cover a wide array of asset classes. By doing so, it provides investors with an efficient means to gain diversified exposure to different types of investments, including government bonds, corporate bonds, stocks, REITs, and natural resource sectors. This forms the core of its investment strategy, aiming to balance risk and return effectively.

• Government Fixed Income Securities:

A significant portion of the fund’s investments is in ETFs that focus on government fixed income securities. These are essentially government bonds that offer investors stable income through interest payments, making them a relatively low-risk investment compared to stocks and other security types.

• Corporate Fixed Income Securities:

In addition to government bonds, the fund also allocates assets to ETFs that invest in corporate fixed income securities. These bonds, issued by corporations, generally offer higher interest rates than government bonds due to the higher risk of default. They provide a means for investors to achieve higher income while managing risk through diversification.

• Common and Preferred Stocks:

Equity investments through ETFs that hold common and preferred stocks form another critical component of the fund’s strategy. Common stocks offer potential for significant growth through price appreciation, while preferred stocks combine features of both stocks and bonds, often providing fixed dividends. This blend allows investors to pursue growth while seeking income.

• Real Estate-Related Securities (REITs):

The fund’s portfolio includes investments in ETFs that focus on real estate investment trusts (REITs). REITs own, operate, or finance income-generating real estate, offering investors a way to gain exposure to the real estate market with the liquidity of tradable securities. This can add both income and diversification to the portfolio.

• Natural Resource-Related Securities:

Recognizing the value of diversification further, the fund invests in ETFs that target natural resource-related securities. This category includes investments in companies involved in the extraction, production, and selling of natural resources. These securities can offer growth opportunities, especially in times of rising commodity prices, and serve as a hedge against inflation.