Innealta Announces the Launch of Actively Managed Sector and Country Rotation Mutual Funds
AUSTIN, Texas, Jan. 9, 2012 /PRNewswire/ -- Innealta Capital, a quantitative asset manager specializing in the active management of Exchange Traded Fund (ETF) portfolios, has announced the launch of two mutual funds, the Innealta Capital Country Rotation Fund (tickers: ICCIX and ICCNX) and the Innealta Capital Sector Rotation Fund (tickers: ICSIX and ICSNX). Each fund rotates investor capital among equities and fixed income, depending upon the risk/reward characteristics of diverse asset class exposure opportunities. The strategies offer an investor the opportunity to obtain both capital preservation and growth within a single strategy.
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"Investor confidence has been shaken by the dramatic market swings of the past 12 years and most indicators point toward continued volatility," said Scott Silverman, Innealta's Senior Vice President of Business Development. "The launch of the Country and Sector Rotation Funds offers investors and advisors actively managed, diversified investment products that attempt to help them weather all market environments. An offering that tactically seeks optimal risk return tradeoffs."
The Innealta Capital Country Rotation Fund is based on a quantitatively driven, tactical asset allocation approach that potentially invests in up to 20 countries based on the specific risk/reward characteristics of each. Assets not allocated to equities are invested in an actively managed portfolio of fixed income ETFs. The strategic weight of each country is generally targeted to be five percent.
The Innealta Capital Sector Rotation Fund is based on a quantitatively driven, tactical asset allocation approach that potentially invests in up to 10 economic sectors based on the specific risk/reward characteristics of each. Assets not allocated to equities are invested in an actively managed portfolio of fixed income ETFs. The strategic weight of each sector is generally targeted to be 10 percent.
"The market environment of the past decade continues to create demand for investment solutions with a bias toward managing risk and preserving wealth," said Jeff Montgomery, Chairman and Chief Executive Officer of Innealta. "Advisors and investors can expect continued market volatility in the future and the Innealta funds seek to take advantage of those types of trends."
Each fund seeks to outperform its benchmarks on a risk-adjusted basis through global diversification, active management, style integrity, minimized security selection risk and cost efficiency. Innealta manages multiple portfolio strategies based on a proprietary econometric model developed by Founder and Chief Investment Officer, Dr. Gerald Buetow, Ph.D., CFA, and has grown rapidly by offering separately managed accounts. The new mutual funds are based on the two most popular separately managed account offerings, the Country and Sector Rotation portfolios.
"We believe in delivering innovative products that harness the potential benefits of ETFs and provide investors with exposure to multiple asset classes and investment styles in highly liquid, low-cost portfolios," said Dr. Buetow. "The maturation of ETF offerings provides an opportunity to deliver broader access to these asset classes that were largely unavailable to many investors until recently."
Please contact James Doyle at 973-850-7308 or [email protected] for more information. To request more information, or to speak to a member of the Innealta Capital team, please contact Scott Silverman at 949-540-7307 or [email protected].
About Innealta Capital
Innealta Capital is a quantitative asset management firm specializing in the active management of Exchange Traded Fund (ETF) portfolios. Innealta is a division of Al Frank Asset Management, Inc. (AFAM), a privately held company founded in 1977, and has approximately $1.7 billion in assets under management and advisement. Innealta's competitive advantage is its quantitative investment strategy driven by a proprietary econometric model, which was created by the company's Founder and Chief Investment Officer, Dr. Gerald Buetow. The investment management team's focus is to capitalize on attractive market environments for ETFs, tactical strategies, and low-cost portfolio alternatives. Additional information can be found at www.innealtacapital.com.
There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses.
The Fund is new and has no performance history. Investors should carefully consider the investment objectives, risks, charges and expenses of the Innealta Capital Country Rotation Fund or the Innealta Capital Sector Rotation Fund. This and other important information about the Funds are contained in the Fund's Prospectus, which can be obtained by calling (855) USE-ETFS. The prospectus should be read carefully before investing. Funds are distributed by Northern Lights Distributors, LLC member FINRA. Al Frank Asset Management (AFAM), Inc., Innealta Capital, and Northern Lights Distributors are not affiliated.
MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.
Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests. Investment in an exchange traded fund (ETF) carries security specific risk and the market risk. If the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the investment in the ETF may decline. When the Fund invests in ETFs that own fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities and thus the value of ETFs that own fixed income securities. The Fund invests in high yield securities and unrated securities of similar credit quality (commonly known as "junk bonds") which may be subject to greater levels of credit and liquidity risk than funds that do not invest in such securities. These securities are considered predominately speculative with respect to the issuer's continuing ability to make principal and interest payments.
To the extent the Fund invests in foreign securities by investing in ETFs that hold foreign securities or by purchasing American Depository Receipts ("ADRs") directly, the Fund may be subject to risks not usually associated with owning securities of U.S. issuers. Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy's dependence on revenues from particular commodities or industries. To the extent the Fund invests in the stocks of small and medium capitalization companies or ETFs that invest in such companies, the Fund may be subject to additional risks that could include volatile earnings and higher failure rates than larger companies. The Fund may invest in companies that appear to be growth oriented or ETFs that invest in such companies. If the Advisor's perceptions of a company's growth potential are wrong, the securities purchased may not perform as expected, reducing the Fund's return.
The Fund is a "fund of funds," a term typically used to describe an investment company whose principal investment strategy involves investing in other investment companies, such as ETFs. The cost of investing in the Fund will generally be higher than the cost of investing directly in ETFs or other investment company shares. Value investing is subject to the risk that a company's intrinsic value may never be fully realized by the market or that a company judged by the Advisor to be undervalued may actually be appropriately priced. The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions. The risks associated with the Fund include interest rate risk, which means that the prices of the Fund's investments are likely to fall if interest rates rise.
The Capital Country Rotation Fund invests in foreign companies which can involve certain risks not generally associated with investments in the securities of U.S. companies, including changes in currency exchange rates, unstable political, social and economic conditions, a lack of adequate or accurate company information, differences in the way securities markets operate, less secure international banks or securities depositories than those in the U.S. and foreign controls on investment. The Capital Sector Rotation Fund may be overweight in certain sectors at various times. Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments.
CONTACT: James Doyle
JCPR
973-850-7308
[email protected]
SOURCE Innealta Capital
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