Dynamic Growth Fund
Seeks participation in rising equity markets, while striving to reduce correlation to equity markets in times of market decline and/or volatility by alternating between a Risk-On Risk-Off state.
Objective
The Dynamic Growth Fund (the “Fund” or “KAGIX”) seeks capital gains.
Why Invest
- Adaptive Equity Participation: The Fund dynamically adjusts its exposure between equities and cash or U.S. Treasuries. This approach seeks to allow investors to capture market gains while reducing drawdown during periods of heightened volatility, providing an alternative to traditional buy-and-hold strategies.
- Drawdown Mitigation: In times of increased market volatility, the Fund reduces equity exposure . This defensive measure is designed to help limit losses and enhance stability during market downturns.
- Long-Term Growth Potential: By focusing on growth equities when market conditions are favorable and maintaining the flexibility to shift to cash equivalents as needed, the Fund aims to balance risk and return, supporting long-term capital appreciation.
Overview
KAGIX is a tactical allocation fund that alternates between equities and cash.
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Rising Markets
Risk-On
Equity Index ETFs -
Declining/Volatile Markets
Risk-Off
U.S. Treasuries and Cash Equivalents
Daily Change
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Yields & Distributions
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Key Facts
Fees & Expenses
Risk Characteristics
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Holdings
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Total Returns (%)
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Growth of $10,000
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Materials
Fund Literature
Risk Definitions
Key principal investment risks include, but are not limited to:
- Management Risk: The Adviser’s reliance on its proprietary trend-following model and asset judgments may be incorrect, potentially failing to achieve desired results.
- Equity Securities Risk: Equity securities can experience sudden, unpredictable drops or prolonged declines in value. This may result from general market factors or specific issues affecting industries, sectors, geographic markets, or individual companies.
- Market Risk: Investment market risks, influenced by economic growth, market conditions, interest rates, and political events, affect asset values. Unexpected events like war, terrorism, financial disruptions, natural disasters, pandemics, and recessions can significantly impact investments and market liquidity, causing investor fear and economic instability.
- Underlying Funds Risk: Investments in underlying funds can lead to duplicated fees and expenses. Each fund has specific risks based on its strategy, and its manager may not always succeed. ETF shares might trade at prices different from their net asset value and incur additional trading costs, potentially affecting performance. Market demand can impact the ability to liquidate holdings optimally.
- Derivatives Risk: Derivatives involve leverage, leading to potential gains or losses greater than the initial investment, with value fluctuations that may not perfectly correlate with the market. Futures contracts carry risks like imperfect correlation, lack of liquidity, and unanticipated market movements. Credit default swaps are difficult to value and highly susceptible to liquidity and credit risk. Options are speculative and can result in the loss of the premium paid if the underlying asset’s price does not move favorably.
- Non-Diversification Risk: Non-diversified investments may allocate more than 5% of total assets to one or more issuers, including non-diversified underlying funds. This can make performance more sensitive to single economic, business, political, or regulatory events compared to diversified investments.
- Turnover Risk: Higher portfolio turnover can lead to increased transactional and brokerage costs. Turnover rates may significantly exceed 100% annually.
- US Government Securities Risk: Investments in obligations issued by US government agencies or instrumentalities may not be backed by the US government. If the issuer defaults and the government chooses not to provide financial support, recovery of the investment may not be possible.
- Models and Data Risk: Investment exposure relies heavily on proprietary quantitative models and third-party data. Incorrect or incomplete models and data can lead to suboptimal investment decisions. Predictive models carry inherent risks, such as incorrect forecasts and unexpected results in low-probability scenarios, potentially causing losses.
For a complete list of potential investment risks associated with this Fund, please refer to its Prospectus.
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Quarterly Fact Sheet
Most recent returns, key statistics, exposures and holdings related data.
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Dynamic Growth Strategy
Overview of the Dynamic Growth Strategy, built on the same modeling system now utilized in KAGIX
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Monthly Commentary
View the Monthly Market Commentary