AUSTIN, Texas, Oct. 14, 2013 /PRNewswire/ -- Innealta Capital, a division of AFAM Capital and a quantitative asset management firm specializing in the active management of portfolios of exchange-traded funds (ETFs), has launched a new mutual fund, the Innealta Risk Based Opportunity Moderate Fund (ROMAX/ROMIX/ROMNX/ROMRX). The Fund's objective offers investors the opportunity for both long-term capital appreciation and income within a single strategy. The Fund employs a quantitative model based on economic, fundamental, risk and technical analyses that evaluate the risk/reward potential of investing in equity asset classes relative to fixed income.
"We feel our new Fund provides investors with a cost-effective, liquid and transparent strategy for obtaining exposure to a wide range of asset classes during bull and bear markets," said Dr. Gerald W. Buetow, CFA, Chief Investment Officer of Innealta Capital and the Fund's Portfolio Manager. "This product was introduced as part of our ongoing commitment to deliver investment opportunities for long-term investors."
The Fund operates as a fund-of-funds and primarily invests in ETFs that are exposed to a variety of asset classes, including equities, fixed income, commodities, currencies and real estate. Its portfolio construction process is based on the proprietary Secular Tactical Asset Allocation (STAA) approach developed by Innealta's Investment Committee. The STAA methodology enables Innealta to attempt to capture enhanced risk-adjusted returns by tactically shifting the Fund's equity exposure by up to 20 percent in either direction depending on market conditions. The Fund seeks to invest in leveraged ETFs in order to free up portfolio collateral, which can then be allocated to high-yield investments deemed by Innealta to possess attractive risk/reward trade-offs.
The Fund's strategy is substantially similar to that offered to investors in the form of separately managed accounts (SMAs) since December 2009. It is the first of Innealta's Risk Based Opportunity SMA strategies to be launched as a mutual fund.
"Our lineup of Risk Based, Rotation and Fixed Income strategies uniquely positions us to develop vehicle-agnostic portfolios with what we feel are optimal risk/return profiles," said Scott E. Silverman, CIMA®, Senior Vice President of Business Development at Innealta Capital. "We believe the suite of Risk Based Opportunity programs can permit investors with varying risk preferences to benefit from our strategy."
Please contact James Doyle at 973-850-7308 or email@example.com for more information.
Innealta Capital is a quantitative asset management firm specializing in the active management of portfolios of exchange-traded funds (ETFs). The firm offers a diverse range of portfolio options that includes pure fixed income, equity rotation, and whole-portfolio multi-asset class portfolios. Though each portfolio and the strategies that define them are unique in design, all are rooted in the firm's broader goal of achieving optimal risk-relative returns over longer-term investment horizons.
We believe Innealta's distinct competitive advantage is the effectiveness of its proprietary quantitative framework and its ability to execute investment strategies that attempt to optimize the risk-reward trade-offs within and among a range of broad asset classes.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
Mutual Funds involve risk including the possible loss of principal.
The Fund may invest in commodities, currencies and use derivatives including option and futures. Currencies are subject to interest rate, exchange rate, economic and political risks. Commodity prices may be influenced by weather, disease, environmental factors and government regulation. Derivatives involve counter-party, valuation and correlation risks. Investments may also be exposed to leverage, inverse and inverse leveraged ETF risk which could increase or decrease a positions value and fund performance.
The Fund is a "fund of funds," a term typically used to describe an investment company whose principal investment strategy involves investing in other investment companies, such as ETFs. The cost of investing in the Fund will generally be higher than the cost of investing directly in ETFs or other investment company shares. Investments in fixed income securities can fluctuate with changes in interest rates and additional risks are associated with high yielding securities which are subject to greater levels of credit and liquidity risk. The Fund may invest in or have exposure to commercial and residential real estate companies which are subject to economic conditions, interest rates, property taxes and operating expenses, among others.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Innealta Funds. This and other important information about the Funds is contained in the prospectus, which can be obtained by calling 888.994.6827 or visit our website www.innealtafunds.com. The prospectus should be read carefully before investing. The Innealta Funds are distributed by Northern Lights Distributors, LLC, member FINRA.
AFAM Capital, Inc., is not affiliated with Northern Lights Distributors, LLC.
- Mutual Funds