Liberty One Tactical Income ETF (LOTI)

Overview

LOTI is an investment fund that blends US large-cap dividend-paying equities with tactical allocations to fixed income. The focus is on equity holdings that are considered recession-resistant, targeting businesses with stable demand, recurring revenue streams, and lower sensitivity to economic cycles. These equities are typically marked by consistent dividend growth, predictable earnings visibility, and stability in cash flows, supported by low demand elasticity and high switching costs. While equities are often held in equal weight, allocations may vary in response to changing market conditions. The fund also incorporates fixed income exposure primarily through ETFs and bond funds, investing in a mix of corporate and government securities. Credit quality and duration are actively managed, allowing for up to 20% of assets to be allocated to high yield bonds. This dual-structured approach provides flexibility to navigate various market environments, focusing on generating income while managing risks across both equity and bond allocations.

Products and Services

• Large-Cap Dividend-Paying Equities

  The core of LOTI's investment strategy lies in investing in US large-cap companies that pay dividends. These companies are typically leaders in their industries and are deemed to possess recession-resistant characteristics, helping to ensure stable income even during economic downturns.

• Tactical Fixed Income Allocations

  LOTI complements its equity holdings with tailored allocations to fixed income. This includes investments in corporate and government bond funds and ETFs, providing additional income sources while enhancing risk management across the portfolio. This tactical approach allows for adjustments based on prevailing market conditions.

• Active Credit Quality and Duration Management

  The fund actively manages the credit quality and duration of its fixed income investments. By strategically adjusting these factors, LOTI aims to maximize return potential while minimizing risk exposure, particularly in fluctuating market environments.

• High Yield Bonds

  LOTI permits up to 20% of its assets to be invested in high yield bonds. This allocation is designed to take advantage of potential higher returns offered by these securities, while also balancing risk through diversification across different asset classes.

• Market Condition Responsive Allocations

  Equity allocations within the fund may adjust in response to changing market conditions. This flexibility helps ensure that LOTI remains aligned with market trends, aiming to optimize the overall performance of the portfolio.