SMI Multi-Strategy Fund (SMILX)

Overview

The fund is a dynamic financial entity focused on capitalizing on momentum within the equity investment market. It operates on a unique Stock Upgrading strategy, which involves rigorously selecting investments primarily in open-end equity mutual funds, ETFs (Exchange-Traded Funds), and publicly traded partnerships. The selection process is based primarily on momentum scores, highlighting the fund's active management approach to outperform the market by investing in assets that exhibit the highest potential for growth. This methodology underscores the fund's commitment to generating superior returns for its investors by tactically navigating the complex and ever-changing landscape of equity investments. However, this strategy also implies a heightened risk, as underlying funds without the top momentum scores may underperform or incur losses. Additionally, the fund's scope encompasses a broad spectrum of equity securities, including foreign securities and those from issuers within emerging markets, thereby diversifying its investment approach but also integrating an additional layer of risk stemming from global market volatilities.

Products and Services

• Open-End Equity Mutual Funds - The fund invests in a carefully selected range of equity mutual funds. Each fund is chosen based on its momentum score, reflecting its recent performance and potential for future growth. This provides investors with a diversified portfolio that taps into various segments of the equity market.

By focusing on mutual funds with high momentum scores, the fund aims to capitalize on the growth potential of these investments, though it's important for investors to note that such a strategy carries risks, as funds not performing at the top of their category may lag or incur losses.

• ETFs (Exchange-Traded Funds) - Another crucial component of the fund’s investment strategy involves ETFs. These are selected with the same criteria in mind, ensuring that they exhibit strong momentum and potential for appreciable returns. ETFs offer the flexibility of trading like a stock while providing the diversified exposure of mutual funds.

This investment in ETFs is intended to harness the growth potential within various sectors and geographical regions, including both developed and emerging markets. The fund's focus on ETFs with the highest momentum is aimed at maximizing returns, but similar to mutual funds, this strategy bears the risk of fluctuation and potential underperformance.

• Publicly Traded Partnerships - In its portfolio, the fund also includes publicly traded partnerships. This unique type of investment often focuses on the energy sector, among others, and can offer tax advantages as well as high yield potential.

The selection of publicly traded partnerships is guided by the same momentum-based strategy, highlighting the fund's consistent approach across different investment vehicles. However, as with all its investments, the fund advisers caution that these assets are subject to market risks and may not always perform as expected, potentially affecting overall fund performance.