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Principal Investment Strategies
Objective
GAMTX is a flexible fund that emphasizes absolute returns. The primary investment objective is to provide long-term total return from income and capital appreciation. The Advisor seeks to provide conservative growth of the Fund by employing prudent investment risk within the Fund.
Tactics
Because of its conservative emphasis, the Fund may, at times, be heavily positioned in bonds and debt securities during normal market cycles. The Fund may go entirely into cash and also may employ hedging strategies through use of ETFs and other products that move inversely to the Fund's positions or to the specific market indices, when the Advisor believes a defensive posture is needed.
In making investment decisions, the Advisor may take into consideration macro-economic factors such as economic conditions, earnings, industry and sector outlooks, politics, historical data, price-to-earnings ratios, dividends, general level of interest rates, company management and tax benefits. Technical considerations may be statistics of past market activity, prices, and volume, and indicators from which it may make an inference about future movements.
The Advisor attempts to maintain the purchasing power of the Fund by considering the impact of CPI inflation and the relationship of the US dollar to other currencies. The Advisor may add investments to the Fund's portfolio that offset inflationary and currency effects when it deems necessary.
The Advisor will attempt to reduce tax distributions to shareholders by maintaining long-term positions when possible. However, minimizing tax distributions is secondary in the overall decision to hold or sell an investment. The Advisor may make tax distribution decisions such as taking losses to offset gains or to sell holdings to clear out excessive undistributed gains.
The Advisor will sell investments if it determines that any of the mentioned factors have changed materially from its initial analysis, or that other factors indicate that an investment is no longer earning a return commensurate with its risk.
Composition
The Fund may invest in issuers of any size throughout the world. Investments may include equity securities, fixed income securities, exchange-traded funds ("ETFs"), real estate investment trusts ("REITs"), and other investments that are selected primarily for their long-term growth potential.
In selecting investments for the Fund, the Advisor uses an approach that combines fundamental "top-down" macro-economic analysis with technical analysis. The Advisor then analyzes this data to form conclusions as to investment trends. The Advisor looks for individual companies or securities that it believes are expected to offer earnings growth potential that may not be recognized by the market at large. The Advisor may also consider whether a particular security or other investment potentially offers current income.
The Fund's investments in equity securities may include common stocks and common stock equivalents, REITs, and shares of other investment companies whose portfolios primarily consist of equity securities. The Fund may invest in foreign companies, either directly or through American Depositary Receipts ("ADRs"), which are receipts issued by U.S. Banks for shares of a foreign corporation that entitle the holder to dividends and capital gains on the underlying security.
The Fund's investments in fixed income securities may include U.S. Treasury Notes and bonds, investment grade corporate debt securities, high-yield securities, debt securities of foreign issuers and shares of other investment companies whose portfolios primarily consist of fixed income securities.
The Fund may also invest in shares of other investment companies or ETFs whose portfolios primarily consist of physical commodities such as gold, silver, and other precious metals, as well as invest in the securities of U.S. and foreign companies whose assets consist primarily of real estate and natural resources such as oil and minerals.
Other holdings may consist of ETFs, including double inverse ETFs. Inverse ETFs seek to negatively correlate to the performance of the particular index that they track by using various forms of derivative transactions, including by short-selling the underlying index. Ultra-short ETFs seek to multiply the negative return of the tracked index. As a result, an investment in an inverse ETF will decrease in value when the value of the underlying index rises. By investing in ultra-short ETFs and gaining magnified short exposure to a particular index, the Fund can commit less assets to the investment in the securities represented on the index than would otherwise be required.
Investment Risks
Investments in international markets present special risks including currency fluctuation, the potential for diplomatic and political instability, regulatory and liquidity risks, foreign taxation and differences in auditing and other financial standards. Risks of foreign investing are generally intensified for investments in emerging markets.
Investments in real estate investment trusts (REITs) and real estate related securities involve special risks associated with an investment in real estate, such as limited liquidity and interest rate risks and may be more volatile than other securities. In addition, the value of REITs and other real estate related investments is sensitive to changes in real estate values, extended vacancies of properties and other environmental and economic factors.
The Fund may use derivative instruments. Derivatives are investments the value of which is "derived" from the value of an underlying asset (including an underlying security), reference rate or index. The value of derivatives may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose more than the amount invested in the derivative. Derivatives may be used to create synthetic exposure to an underlying asset or to hedge a portfolio risk. If the Fund uses derivatives to "hedge" the overall risk of its portfolio, it is possible that the hedge may not succeed. This may happen for various reasons, including unexpected changes in the value of the rest of the Fund's portfolio. Over the counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the Fund.
There is no guarantee that any underlying investment in an ETF will achieve its investment objective and that inverse ETFs in particular should lose money when their benchmark index rises.
No investment strategy, including an absolute return strategy, can ensure a profit or protect against loss. Additionally, investing in an absolute return strategy may result in under performance during a bull market.
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You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund's prospectus by calling 877-747-4268.
Past performance is no guarantee of future results. Your fund shares, when redeemed, may be worth more or less than their original cost.
Distributed by Unified Financial Securities, Inc. , 2960 N. Meridian Street, Suite 300, Indianapolis, IN 46208 (Member FINRA) |
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