AUSTIN, Texas, April 1, 2014 /PRNewswire/ -- Innealta Capital, a division of AFAM Capital and a quantitative asset management firm specializing in the active management of portfolios of exchange-traded funds (ETFs), has launched a new mutual fund, the Innealta Capital Tactical Fixed Income Fund (YLDAX/YLDIX/YLDNX). The Fund was created to offer investors the opportunity to potentially achieve risk-adjusted returns from exposure to a wide spectrum of fixed income securities. It is driven by a quantitative model which takes economic, fundamental, risk and technical analyses into consideration when evaluating the risk/reward potential of investing in various fixed income sectors, as represented within the ETF investment universe.
"Our new Fund seeks to provide investors with a nimble and dynamic strategy to obtain unconstrained access to the full range of fixed income investments, such as U.S. Treasury, investment-grade and high-yield corporate, and foreign developed and emerging market bonds," said Dr. Gerald W. Buetow, CFA, Chief Investment Officer of Innealta Capital and the Fund's Portfolio Manager. "This product attempts to help investors overcome the macroeconomic challenges within the fixed income market and complements our existing funds."
The Fund, Innealta's first standalone product offering a pure fixed income investment strategy, invests in ETFs and exchange-traded notes (ETNs) that track fixed income indices. Its investments may include bonds issued by governments, government agencies, municipalities and companies across a wide range of industries and market capitalizations in the U.S. and foreign markets, as well as asset-backed securities. Its quantitative investment framework attempts to control for both risk and yield at the portfolio level.
"Innealta is known for its proprietary research compiled by Dr. Buetow, who has been at the forefront of fixed income investing for over two decades," said Scott E. Silverman, CIMA®, Senior Vice President of Business Development at Innealta Capital. "We believe that his in-depth expertise is reflected in our Tactical Fixed Income Fund, and this may help investors with varying risk preferences to benefit from what we view as the most promising investment opportunities in the global bond markets."
In addition to previous leadership positions with XTF GAM, Portfolio Management Consultants, and Atlantic Asset Management, Dr. Buetow was the Wheat First Professor of Finance and Director of the Quantitative Finance program at James Madison University; he has served as Vice President of Curriculum Development for the Association for Investment Management and Research (AIMR), has contributed to numerous academic and practitioner journals, and has recently completed two books on term structure modeling and interest rate contingent claim valuation.
"Innealta was an early pioneer as a tactical fixed income manager, building on Dr. Buetow's models to launch flexible, nimble and short-term-focused funds," said Jeff Montgomery, Chairman and CEO at AFAM Capital. "With our first-to-market Tactical Fixed Income Fund, our dynamic and tactical asset allocation attempts to maximize potential investment opportunities as they arise, while simultaneously mitigating risks associated with the Fed's anticipated tapering of its QE policies."
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Innealta Capital is a quantitative asset management firm specializing in the active management of portfolios of exchange-traded funds (ETFs). The firm offers a diverse range of portfolio options that includes pure fixed income, equity rotation, and whole-portfolio multi-asset class portfolios. Though each portfolio and the strategies that define them are unique in design, all are rooted in the firm's broader goal of achieving optimal risk-relative returns over longer-term investment horizons.
We believe Innealta's distinct competitive advantage is the effectiveness of its proprietary quantitative framework and its ability to execute investment strategies that attempt to optimize the risk-reward trade-offs within and among a range of broad asset classes.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
Mutual Funds involve risks including the potential loss of principal.
The Fund is a 'fund of funds' and invests in other investment companies and products such as ETF's and ETN's. Investors in the Fund will indirectly bear the fees and expenses of these investments. ETF's carry security specific and market risks and may not perform as expected. ETN's are a type of unsecured, unsubordinated debt security and have characteristics and risks similar to fixed income securities. ETN returns are based on the performance of a market index minus fees, no period coupon payments are distributed and no principal protection exists.
When the Fund invests in ETF's that own fixed income securities, the value will fluctuate with changes in interest rates. Typically, a risk in interest rates causes a decline in the value of fixed income securities. High yield and unrated securities or 'junk bonds' may be subject to greater levels of credit and liquidity risk and are generally considered speculative. Issues of debt securities may fail to make interest payments and repay principal when due and changes in the financial strength or a securities credit rating may affect the value.
Investing in ETF's that hold foreign securities are subject to risks not typically associated with securities of U.S. issuers and included fluctuating currencies, currency exchange controls, political and economic instability, differences in financial reporting, regulation, trading and taxation issues. Emerging market countries may have relatively unstable governments, weaker economies and less developed legal systems with fewer security holder rights. Emerging markets may be susceptible to economic weakness, more likely to default, and tend to be less liquid.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Innealta Funds. This and other important information about the Funds is contained in the prospectus, which can be obtained by calling 888.994.6827 or visit our website www.innealtafunds.com. The prospectus should be read carefully before investing. The Innealta Funds are distributed by Northern Lights Distributors, LLC, member FINRA.
AFAM Capital, Inc., is not affiliated with Northern Lights Distributors, LLC.
SOURCE Innealta Capital