Regan Floating Rate MBS ETF (NYSE: MBSF) Surpasses $100 Million in Assets

DALLAS, Sept. 23, 2024 /PRNewswire/ -- Regan Capital, an investment firm with approximately $1.8 billion in assets, announced today that its Regan Floating Rate MBS ETF (NYSE: MBSF), an actively managed exchange-traded fund that invests primarily in floating rate Agency Residential Mortgage-Backed Securities (RMBS), has surpassed $100 million in assets six months after its February 28, 2024 launch.

Agency RMBS can potentially have higher yields than traditional Treasury bonds. MBSF seeks to enhance that spread through the alpha generated from its portfolio that primarily invests in Agency RMBS. MBSF offers a compelling opportunity for investors to diversify their cash allocation into agency RMBS, due to its potential for high yield and liquidity.

"MBSF's success comes at a distinct time, with the Federal Reserve undergoing a significant interest rate policy shift, which we believe could depress yields on traditional government bonds and money markets," said Skyler Weinand, chief investment officer and managing member of Regan Capital and portfolio manager of MBSF. "Agency Residential Mortgage-Backed Securities have the potential to earn higher yields compared to traditional government bonds, while potentially benefiting from the lower credit risk of a U.S. government agency-backed asset."

MBSF's portfolio of Agency RMBS have floating rates, which adjust based on the short-term Secured Overnight Financing Rate (SOFR). MBSF has the potential to perform in both declining and rising interest rate environments.

MBSF is Regan Capital's first ETF. In 2020, Regan Capital launched the Regan Total Return Income Fund (RCIRX), a mutual fund which invests across the fixed income market with a focus on mortgage bonds. It was the recipient of the 5-Star Morningstar Rating™, based on risk-adjusted returns for the three-year and overall periods, out of 269 funds in the Nontraditional Bond Category as of 7/31/2024.

MBSF generated a total return of 4.13% based on NAV since its launch through August 31, 2024. As of June 30, 2024, the year-to-date performance was 2.88% based on NAV.

NAV Return represents the closing price of underlying securities. Market Return is calculated using the price which investors buy and sell ETF shares in the market. The market returns in the table are based upon the midpoint of the bid/ask spread at 4:00 pm EST, and do not represent the returns you would have received if you traded shares at other times. The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free, (844)-988-6273.

For more information, please visit: https://www.regancapital.com/etf-mbsf/

About Regan Capital
Founded in 2011, Regan Capital, LLC is an SEC Registered Investment Adviser. The firm's target investor base includes endowments and foundations, banks and insurance companies, corporate and public pension plans, family offices, high net worth individuals and Registered Investment Advisors. The firm is based in Dallas, Texas.

Regan Capital was founded by Skyler Weinand, who serves as chief investment officer and managing member. Previously, Weinand was head of residential and consumer asset-backed (ABS) securities trading at Cantor Fitzgerald from July 2007 to March 2011. Prior to that, Weinand was responsible for trading a $2+ billion mortgage-backed securities (MBS) portfolio at Sit Investment Associates from July 2005 to June 2007. From 2001 to 2005, Weinand was employed with GMAC-RFC, where he was responsible for portfolio valuation on a $1 billion MBS subordinate book, structuring CDOs and structuring the first re-performing securitizations to come to market.

DISCLOSURES: 
Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (844)-988-6273 or at www.regancapital.com/etf-mbsf/.

The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company and may be obtained by calling 1 -888-44-REGAN. Read carefully before investing. For additional information on the Advisor please call 1 -214-550-1710 or email [email protected].

Regan Floating Rate MBS ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Northern Lights Distributors, LLC.

The Regan Total Return Income Fund (RCTRX & RCIRX) is distributed by Quasar Distributors, LLC.

The Regan Floating Rate MBS ETF has a limited history of operations with a launch date of February 28, 2024.

IMPORTANT RISKS: Exchange Traded Fund investing involves risk. Principal loss is possible. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss of principal and interest than higher-rated securities do. The Fund is newly formed and has no operating history. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by any government agency. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses.

The Fund may effect creations and redemptions in cash and therefore may recognize gains that may not have been recognized if it were to distribute portfolio securities in-kind. Investments in shares may be less tax-efficient that an investment in an ETF that distributes portfolio securities entirely in-kind.

Glossary

• Floating Rate: is an investment with interest payments that float or adjust periodically based upon a predetermined benchmark.
• Mortgage-Backed Securities (MBS):  Investment products similar to bonds. Each MBS consists of a bundle of home loans and other real estate debt bought from the banks that issued them. Investors in mortgage - backed securities receive periodic payments similar to bond coupon payments.
• Residential Mortgage-Backed Securities (RMBS): RMBS are a type of MBS backed specifically by residential mortgages.
• Treasury Bonds: Treasury bonds are securitized debt issued by the United States Treasury.
• Spread: Excess yield over treasuries.
• Alpha: a risk-adjusted measure of how well a security or portfolio performs compared to the market average return.
• Yield: The annual return on an investment, expressed as a percentage of the price. For bonds, it is the coupon rate divided by the market price, called current yield.
• Secured Overnight Financing Rate (SOFR): a broad measure of the cost of borrowing cash overnight using collateralized Treasury securities.

As of 7/31/2024, the Regan Total Return Income Fund (RCIRX) received a Morningstar Rating of 5 stars (overall and for the three-year time period) out of 269 funds in the Nontraditional Bond Category. The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange -traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

©2024 Morningstar, Inc. All Rights Reserved. The information herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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SOURCE Regan Capital