Anchor Risk Managed Income Strategies Fund Institutional Class (ATCSX)

Overview

The fund operates on a fund of funds structure, aiming to achieve its investment objective by diversifying its assets across various worldwide market segments. This diversification is based on in-depth research and analysis conducted by the fund's advisers, who look into current market trends to decide the allocation of assets. The investment approach involves not only investing in the assets themselves but also leveraging borrowing to enhance the potential returns. By taking long and short positions in a variety of investment vehicles, including unaffiliated exchange-traded funds, mutual funds (both open-end and closed-end), and derivative instruments, the fund positions itself to capitalize on domestic and worldwide market movements.

Products and Services

• Exchange-Traded Funds (ETFs)

  The fund invests in unaffiliated ETFs, which are securities that track an index, commodity, bonds, or basket of assets like an index fund, but trade like a stock on an exchange. ETFs are chosen based on their potential to contribute positively toward the fund's investment objective by taking advantage of market trends identified through the adviser's research.

• Mutual Funds (Open-end and Closed-end)

  In addition to ETFs, the fund also invests in both open-end and closed-end mutual funds. Open-end mutual funds offer shares that are bought and sold at the end of each trading day based on the fund's net asset value, while closed-end funds operate more like ETFs with a fixed number of shares traded on the exchange. The selection of these mutual funds is guided by their alignment with the fund's strategic positions and market trend analysis.

• Derivative Instruments

  The fund engages in the trading of derivative instruments, such as options, futures, and swaps, as part of its investment strategy. These financial instruments derive their value from an underlying asset, index, or interest rate and are used for hedging against market movements or to speculate on directional moves in underlying assets or indexes. The utilization of derivatives allows the fund to take both long and short positions, aiming to profit from forecasted market trends and to provide a hedge against its other investments.

• Borrowing Strategy

  Utilizing a borrowing strategy enhances the fund's ability to invest beyond its actual cash holdings. This leverage amplifies both potential returns and potential risks. By borrowing, the fund can increase its investment in chosen assets or derivative positions, aiming to take fuller advantage of the market segments that the adviser believes offer the most promising returns based on their analysis.