The Giralda Fund Fact Sheet

Transcription

The Giralda Fund Fact Sheet
The Giralda Fund (GDAMX)
Giralda Risk-Managed Growth Fund (GRGIX)
September 2014
Objective
Fund Details
The Giralda Funds are open-end mutual funds that seek to provide primarily U.S. large cap
equity exposure with a multi-tiered downside risk management overlay. The manager’s goal
is to limit asset depreciation during both protracted and catastrophic market downturns
while allowing asset appreciation in up-trending markets.
Tickers
GDAMX, GRGIX
CUSIPs
66537X423, 66538B651
Fund Type
U.S. Large Cap
Equity Alternative
Load Type
No Load
Minimum Initial Investment
$2,500
Investment Strategy
Risk-managed investing attempts to go beyond traditional diversification, asset allocation
and rebalancing by explicitly reducing portfolio volatility and/or limiting downside potential.
The Giralda Funds embody two main risk-managed investment strategies: momentum-based
sector rotation and tail risk hedging.1 Together, these are designed to seek protection
against protracted down markets and catastrophic crashes.
Key Reasons to Invest
We believe that most investors should have exposure to the equity markets over the long
term to secure their financial future against inflation. Many have difficulty doing so when the
markets behave erratically. Riding out stock market volatility requires patience and fortitude
on the part of the investor. An investment such as the Giralda Funds attempts to allay investor
fears and enable long-term investing.
We believe that the Giralda Funds are particularly suited to investors who wish to stay fully
invested in the equity markets yet protect themselves from adverse market conditions. In our
opinion, the Fund scould serve as a core equity holding, as an alternative to stocks and actively
or passively managed equity funds, or as a substitute for an aggressive allocation fund.
The Giralda Risk-Managed Growth Fund has the same investment objective, strategy, and
management as The Giralda Fund, which has a longer history but is closed to new investors.
The expense ratios differ between the Funds as noted in the Disclosures. The performance
history of both Funds is shown below and in the table on the following page. The RiskManaged Equity Indexes are shown on the following page, and further described in
the Disclosures.
25%
Giralda Risk-Managed Growth Fund (GRGIX)
Average of Risk-Managed Equity Indexes
20%
15%
*Not annualized
**Inception date - GRGIX, Not annualized
***Inception date - GDAMX
Returns are net of fees
10%
5%
0%
-5%
Last 3 mos.*
Since 5/28/2014**
Last 6 mos.*
Last 12 mos.
Last 18 mos.
Last 24 mos.
Last 36 mos. Since 7/19/2011***
Tail risk hedging is the attempt to mitigate the adverse effects of rare but potentially catastrophic events.
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© Giralda Advisors
Sector
Technology
17%
Financials
16%
Health Care
12%
Consumer Discretionary
12%
Consumer Staples
11%
Industrials
11%
Energy
10%
Materials
5%
Utilities
3%
Telecom
3%
Sector allocations are subject to change and should not be
considered a recommendation to buy or sell any security.
Lead Portfolio Manager
Annualized Returns through 9/30/2014 (unaudited)
The Giralda Fund (GDAMX)
Sector Allocations (9/30/2014)
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Jerry Miccolis, CFA®, CFP®,
FCAS, MAAA, CERA
Jerry Miccolis is a founding
principal and the chief investment
officer of Giralda Advisors. He
is the lead portfolio manager of
Sector Dynamics, The Giralda
Fund, and the Giralda Risk-Managed Growth Fund.
Jerry has more than four decades of experience in
the investment management, risk management, and
actuarial fields, and he shares his expertise through
various speaking engagements, publications and
as the co-author of the book Asset Allocation For
Dummies®. Prior to founding Giralda Advisors, he
served as chief investment officer of Brinton Eaton
Wealth Advisors. Previously, Jerry was a principal
and global leader of the enterprise risk management
practice at Towers Perrin.
Jerry has a bachelor’s degree in mathematics from
Drexel University. He is a member of the Financial
Planning Association, the New York Society of
Security Analysts, and the American Academy
of Actuaries. He has chaired several professional
committees and is a widely quoted author and
speaker on the subject of strategic risk management.
www.thegiraldafund.com www.grgix.com
The Giralda Risk-Managed Growth Fund
September 2014
Last 3
mos.*
Equity Indexes
S&P 500 INDEX
DJIA INDEX
Risk-Managed Equity Indexes
MSCI USA MIN VOL STOCK INDEX
S&P 500 DAILY RISK CONTROL 15% INDEX
S&P DYNAMIC VEQTOR INDEX
S&P 500 LOW VOLATILITY INDEX
CBOE VIX Tail Hedge Index
CBOE S&P 500 95-110 Collar Index
Average of Risk-Managed Equity Indexes
The Giralda Fund
Giralda Risk-Managed Growth Fund
GDAMX
GRGIX
Total Return - Annualized as of 9/30/2014 (unaudited)
Since
Last 6
Last 12 Last 18 Last 24 Last 36
5/28/2014** mos.*
mos.
mos.
mos.
mos.
Since
7/19/2011***
1.1%
1.9%
4.0%
3.2%
6.4%
4.8%
19.7%
15.3%
18.9%
13.6%
19.5%
15.4%
23.0%
19.0%
15.7%
12.8%
1.7%
1.4%
1.4%
-1.0%
1.1%
0.9%
0.9%
0.6%
0.3%
3.9%
5.6%
3.7%
1.9%
4.0%
3.6%
3.8%
3.7%
3.2%
5.7%
8.3%
2.8%
4.1%
4.9%
4.8%
5.1%
6.1%
15.9%
23.9%
9.3%
15.1%
14.0%
14.4%
15.4%
16.5%
12.4%
21.2%
8.6%
11.3%
11.2%
13.3%
13.0%
16.1%
15.3%
22.2%
8.6%
14.8%
10.9%
13.1%
14.1%
15.5%
18.5%
21.0%
7.8%
17.5%
12.6%
12.8%
15.0%
16.3%
14.8%
13.8%
11.0%
14.6%
9.2%
7.6%
11.8%
8.9%
Source: Bloomberg
Returns are net of fees
* Not annualized
** Inception date - GRGIX, Not annualized
*** Inception date - GDAMX
The performance quoted in the table represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will
fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Investors cannot invest directly in an index or benchmark.
For performance information current to the most recent month-end, please call toll-free 1-855-GIRALDA. Additional information can be found on our website, www.GiraldaFunds.com. The peer group
was compiled based on the investment objectives and strategy descriptions of liquid exchange-listed products (mutual funds, ETFs, ETNs) whose stated goal is to provide limited-volatility exposure and/or
limited-downside exposure to the domestic equity market. (See Disclosures below.)
Disclosure
There is no guarantee that the Giralda Funds will achieve their objectives, generate positive returns, or avoid losses.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Giralda Funds. A purchase can be transacted directly with the
mutual fund company. No-load mutual funds are sold without a sales charge; however, they have ongoing expenses, such as management fees.
The expense ratio for The Giralda Fund is 0.18%. Total annual fund operating expenses of the Fund are 0.43% including “acquired fund fees and expenses” (i.e.,
the fees and expenses embedded in the underlying investments, such as ETFs, within the Fund). The Fund’s investment adviser has contractually agreed to waive
its fees, at least until October 31, 2014: Without this waiver, the Fund’s total annual operating expenses would be 1.43% including “acquired fund fees and
expenses.” This and other important information about The Giralda Fund is contained in the prospectus, which can be obtained at www.thegiraldafund.com or
by calling 855-447-2532 (855-GIRALDA). The prospectus should be read carefully before investing.
The expense ratio of the Giralda Risk-Managed Growth Fund is 1.30%. Total annual fund operating expenses of GRGIX are 1.55% including “acquired fund fees
and expenses” (i.e., the fees and expenses embedded in the underlying investments, such as ETFs, within the Fund). The Fund’s investment adviser has contractually
agreed to reduce its fees and/or absorb expenses of the Fund, at least until June 30, 2015, to ensure that the expense ratio will not exceed 1.30%, attributable to
Class I shares, subject to possible recoupment from the Fund in future years. Without these waivers, the Fund’s total annual operating expenses would be 2.07%
including “acquired fund fees and expenses.” This and other important information about the Giralda Risk-Managed Growth Fund is contained in the prospectus,
which can be obtained at www.grgix.com or by calling 855-447-2532 (855-GIRALDA). The prospectus should be read carefully before investing.
The Giralda Fund and the Giralda Risk-Managed Growth Fund are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Giralda Advisors, LLC, is
not affiliated with Northern Lights Distributors, LLC.
Investing in mutual funds involves risk including the possible loss of principal. ETFs and mutual funds are subject to specific risks, depending on the nature
of the underlying strategy of the fund. These risks could include liquidity risk and sector risk, as well as risks associated with fixed income securities, real
estate investments, and commodities, to name a few. Investments in foreign securities could subject the Funds to greater risks including, currency fluctuation,
economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign
companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders,
economies based on only a few industries, and securities markets that trade a small number of issues.
Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. Because the
Funds are non-diversified, the Funds may be more vulnerable to any single economic, business, political or regulatory occurrence than a diversified investment
company fund. Real estate values rise and fall in response to a variety of factors, including local, regional and national economic conditions, interest rates and
tax considerations. Investing in the commodities markets will subject the Fund to potentially greater volatility than traditional securities. Derivative instruments
involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Equity marketrelated structured notes involve leverage risk, tracking risk and issuer default risk.
The VIX is a volatility index calculated by the Chicago Board Options Exchange (CBOE). It measures the market’s expectations of near-term volatility, as conveyed
by S&P 500 stock index option prices.
The S&P 500 is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes
in the aggregate market value of 500 stocks representing all major industries.
Dow Jones Industrial Average (DJIA) index is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.
© Giralda Advisors
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www.thegiraldafund.com www.grgix.com
4504-NLD-12/11/2014