Rational Risk Managed Emerging Markets Fund

Rational Risk Managed Emerging Markets Fund



Investment Strategy

The Risk Managed Emerging Markets Fund seeks total return. The Fund focuses on companies that are organized, have a majority of their assets, or generate a majority of their operating income in emerging markets. The manager employs a “top-down” macro-economic analysis to identify those countries believed to have the best prospects for sustainable growth. A “bottom-up” process then seeks to identify securities expected to provide what the manager believes will be superior risk-adjusted returns in those countries. A systematic currency overlay program is applied utilizing a four-factor dynamic hedging model in an effort to neutralize currency risk, with hedge ratios normally updated on a weekly basis.

Seeks Total Return

The Fund invests primarily in equity securities that provide the potential for capital appreciation. Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities of issuers and currencies that are organized, have a majority of their assets, or generate the majority of their operating income in emerging markets. The Sub-Advisor defines emerging market countries and those countries within the MSCI Emerging Markets Index.

Globally Diversified

The Fund may also invest up to 20% of its total assets in the securities of issuers located in Frontier Markets. The Sub-Advisor generally considers “Frontier Markets” to be underdeveloped countries with relatively low per capita income that are experiencing, or may experience, rapid growth and industrialization with established markets, economies or industries that the Sub-Advisor deems suitable for investment.

Value Strategy

The Sub-Advisor seeks to identify stocks that it believes are undervalued. They generally considers selling a security when in its opinion it reaches its fair value estimate, when earnings forecasts do not appear to justify the current price, when there has been or there is an expectation of an adverse change in the company’s fundamentals, or when other investment opportunities appear more attractive.

Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is nondiversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds. The performance of the Fund may be subject to substantial short term changes. To the extent the Fund invests in the stocks of smaller-sized companies, the Fund may be subject to additional risks, including the risk that earnings and prospects of these companies are more volatile than larger companies. Smaller-sized companies may experience higher failure rates than larger companies and normally have lower trading volume than larger companies. These factors may affect the value of your investment. Investments in real estate investment trusts (REITS) 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. There are no guarantees that dividend paying stocks will continue to pay dividends. In addition, dividend paying stocks may not experience the same capital appreciation potential as non-dividend.


Fund Documents
Fact Sheet
Summary Prospectus
Semi-Annual Report
Annual Report
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