Rational/ReSolve Adaptive Asset Allocation Fund
Tickers: RDMAX | RDMCX | RDMIX
2020
Rational/ReSolve Adaptive Asset Allocation Fund (RDMIX)
Best Managed Futures ‘40 Act Fund
2020
Rational/ReSolve Adaptive Asset Allocation Fund (RDMIX)
Best Fund over 3 Years
Alternative Managed Futures Funds
Fund Objective
The Fund’s investment objective is to seek long-term capital appreciation.
Investment Strategy
The Fund invests in futures contracts and occasionally in exchange traded funds to gain dynamic exposure to global market opportunities across country equity indexes, fixed income, tradeable real estate, currencies, and commodities.
Portfolios are formed using proprietary quantitative innovations to systematically emphasize global assets with strong and persistent trend and momentum characteristics, while maximizing diversification and minimizing total portfolio volatility.
As portfolio weights and estimates of volatility and correlations change through time, the Fund will increase and decrease the gross exposure in an effort to maintain its target level of 12% annualized portfolio volatility.
Portfolio Manager Insights
Portfolio Weightings (Scaled to 100%)
Data as of: 9/28/2020
Fund Management
ReSolve’s management team are considered thought leaders in the space of quantitative finance with extensive experience in asset management for private clients and institutions. The team’s approach to investing blends the rigor of academic research methods with the hard-nosed practicality required to implement functional investment strategies in risky markets. Passionate educators, Adam, Mike and Rodrigo have authored the book Adaptive Asset Allocation – Dynamic Global Portfolios Designed to Profit in Good Time and Bad, as well as several whitepapers that rank in the top 1% of most downloaded research on the academically renowned SSRN network.* The team is also responsible for the popular GestaltU.com investment blog.
Rodrigo Gordillo
Rodrigo is a Co-Founder, Managing Partner & Portfolio Manager of ReSolve Asset Management and has over 15 years of experience in investment management.
Adam Butler
Adam has 15 years of experience in investment management, including 12 years as a Portfolio Manager, and holds both CFA and CAIA charters.
Andrew Butler
As the Head of Quant Research & Operations, Andrew directs ReSolve’s research and software design in order to construct practical and robust investment solutions.
Fund Overview
Data as of: 2024-07-25T00:00:00
| Ticker | RDMAX | RDMCX | RDMIX | RDMAX |
| Share Class | Class A | Class C | Class I | Class A w/ Sales Load |
| CUSIP | 628255747 | 628255739 | 628255721 | 628255747 |
| Inception Date | 2016-09-30T00:00:00 | 2016-09-30T00:00:00 | 1994-02-28T00:00:00 | 2016-09-30T00:00:00 |
| As of Date | 2024-07-25T00:00:00 | 2024-07-25T00:00:00 | 2024-07-25T00:00:00 | 2024-07-25T00:00:00 |
| Daily NAV | 21.06 | 20.15 | 21.32 | 21.06 |
| NAV Change | -0.15 | -0.15 | -0.15 | -0.15 |
| % NAV Change | -0.71% | -0.74% | -0.70% | -0.71% |
Current Fund Performance
Data as of: 2024-07-25T00:00:00
Prior to 2/28/2018, the Rational/ReSolve Adaptive Asset Allocation Fund implemented a different investment strategy and used a different sub-advisor.
| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Annualized | 5 Years Annualized | 10 Years Annualized | Since Inception Annualized |
| Class A | -1.73% | -1.22% | 5.51% | 7.78% | 8.57% | 1.48% | 3.59% | N/A | 3.03% |
| Class C | -1.80% | -1.42% | 5.06% | 7.29% | 7.72% | 0.72% | 2.83% | N/A | 2.29% |
| Class I | -1.71% | -1.16% | 5.65% | 7.95% | 8.84% | 1.73% | 3.87% | N/A | 5.76% |
| Class A w/Sales Load | -7.39% | -6.90% | -0.57% | 1.59% | 2.30% | -0.50% | 2.37% | N/A | 2.25% |
Time periods with missing data for current performance are due to the pre-converted hedge fund only reporting returns on a monthly basis.
*Inception: Institutional 02/01/1994, Class A & C 09/30/2016. Performance from 09/30/2016 to 02/28/2018 is attributable to the previous sub-advisor Chesapeake Capital Corporation and performance from 03/01/18 to present is attributable to the current Sub-Advisor ReSolve Asset Management.
The maximum sales charge for Class “A” Shares is 5.75%. Class “C” Shares held for less than one year are subject to a 1% CDSC. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the fund’s prospectus please call 800-253-0412 or visit www.RationalMF.com.
Quarterly Fund Performance
Data as of Quarter End: 2024-06-30T00:00:00
| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Annualized | 5 Years Annualized | 10 Years Annualized | Since Inception Annualized |
| Class A | 1.69% | 4.84% | 10.75% | 10.75% | 12.24% | 3.50% | 4.39% | N/A | 3.42% |
| Class C | 1.62% | 4.65% | 10.33% | 10.33% | 11.41% | 2.75% | 3.62% | N/A | 2.68% |
| Class I | 1.67% | 4.89% | 10.89% | 10.89% | 12.53% | 3.77% | 4.66% | 4.32% | 5.87% |
| Class A w/Sales Load | -4.16% | -1.19% | 4.39% | 4.39% | 5.77% | 1.48% | 3.16% | N/A | 2.63% |
*Inception: Institutional 02/01/1994, Class A & C 09/30/2016. Performance from 09/30/2016 to 02/28/2018 is attributable to the previous sub-advisor Chesapeake Capital Corporation and performance from 03/01/18 to present is attributable to the current Sub-Advisor ReSolve Asset Management.
Fund Expenses
Data as of: 2024-07-25T00:00:00
| Share Class | Class I | Class A | Class C | Class A w/ Sales Load |
| Prospectus Gross Expense Ratio (May 1, 2020) | 2.45% | 2.73% | 3.50% | 2.73% |
| Prospectus Net Expense Ratio* (May 1, 2020) | 2.10% | 2.35% | 3.10% | 2.35% |
*The Fund’s investment advisor, Rational Advisors, Inc. (the “Advisor”) has contractually agreed to waive all or a portion of its management fee and/or reimburse certain operating expenses of the Fund to the extent necessary in order to limit the Fund’s total annual fund operating expenses (excluding (i) acquired fund fees and expenses; (ii) brokerage commissions and trading costs; (iii) interest (including borrowing costs and overdraft charges), (iv) taxes, (v) short sale dividends and interest expenses, and (vi) non-routine or extraordinary expenses, such as regulatory inquiry and litigation expenses) to not more than 1.97%, 2.22%, 2.97%, of the average daily net assets of the Fund’s Institutional Shares, Class A Shares, and Class C Shares, respectively, through April 30, 2021.
Past performance is not a guarantee of future results.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.RationalMF.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. and ReSolve Asset Management Inc. are not affiliated with Northern Lights Distributors, LLC.
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. Investing in the commodities markets (directly or indirectly) may subject the Fund to greater volatility than investments in traditional securities. Commodity prices may be influenced by unfavorable weather, animal and plant disease, geologic and environmental factors as well as changes in government regulation such as tariffs, embargoes or burdensome production rules and restrictions. Derivatives are investments in which the value is "derived" from the value of an underlying asset, 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. Emerging market securities tend to be more volatile and less liquid than securities traded in developed countries. The Fund is diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds.
The Fund acquired all of the assets and liabilities of Chesapeake Fund, LLC (the “Predecessor Fund”) in a tax-free reorganization on December 31, 2016. In connection with this acquisition, shares of the Predecessor Fund were exchanged for Institutional Shares of the Fund. At the time of the reorganization, the Predecessor Fund had an investment objective and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. Effective February 27, 2018, the Fund’s investment strategy changed and a new Sub-Advisor replaced the prior subadvisor. Consequently, prior performance may not reflect the Fund’s current operations.
