LA JOLLA, Calif., Nov. 3, 2011 /PRNewswire/ -- Altegris Advisors is pleased to announce the launch of the Altegris Futures Evolution Strategy Fund (Tickers: EVOAX, EVOCX, EVOIX, EVONX, EVOYX). For the first time, this ground-breaking Fund combines active management of what we believe are leading managed futures managers with an active fixed income approach. The introduction of this Fund further confirms the Altegris mission -- to find the best alternative investment managers and bring them to our clients through mutual funds, private funds and managed accounts.
"Traditionally the typical managed future fund allocates a large percentage of its assets to highly liquid, short-term, high-quality securities. Given today's low interest rate environment, we believe it is an opportune time to introduce an alternative fixed income approach in combination with a focused managed futures strategy," said Jon Sundt, President and CEO of Altegris. "The Altegris Futures Evolution Strategy Fund utilizes actively managed fixed income strategies, sub-advised by an industry-leading expert, DoubleLine Capital LP."
DoubleLine Capital LP is led by award-winning portfolio manager Jeffrey Gundlach. Altegris will collaborate with Gundlach and his investment team to determine allocations to various DoubleLine sub-strategies including Core, Low Duration, and Opportunistic Income.
The managed futures strategy will primarily access Winton Capital Management, an award-winning trend-following manager led by David Harding, pioneer and leader in the managed futures industry. In addition, Altegris will access a manager with a 10+ year track record and established pedigree -- International Standard Asset Management (ISAM). ISAM's trend-following strategy is overseen by Stanley Fink and Larry Hite, managed futures pioneers in their own right. Additional managers may be also be accessed in the future.
Key features of the fund include:
- Exposure to the potential benefits of managed futures and fixed income
- An actively-managed, dynamic portfolio – not a passive index fund
- Daily liquidity
- Low minimum investment
- No investor financial pre-qualifications
- 1099 tax reporting
- Individual and institutional share classes available
"Managed futures have historically withstood a number of major market scenarios and seen significant gains compared to U.S. stocks during the last decade," said Sundt. "We are very excited about the Altegris Futures Evolution Strategy Fund which provides investors with the opportunity to potentially get more from their investment dollars through actively managed futures and active fixed income management in a single Fund. +"
Altegris searches the world to find what we believe are the best alternative investments. Our suite of private funds, actively managed mutual funds and futures managed accounts provides an efficient solution for financial professionals and individuals seeking to improve portfolio diversification.
With one of the leading Research and Investment groups focused solely on alternatives, Altegris follows a disciplined process for identifying, evaluating, selecting and monitoring investment talent across a spectrum of alternative strategies including managed futures, global macro, long/short equity, event-driven and others.
Veteran experts in the art and science of alternatives, Altegris guides investors through the complex and often opaque universe of alternative investing.
Alternatives are in our DNA. Our very name, Altegris, highlights our singular focus on alternatives, the highest standards of integrity, and a process that constantly seeks to minimize investor risk while maximizing potential returns.
The Altegris Companies -- wholly owned subsidiaries of Genworth Financial, Inc. and affiliated with Genworth Financial Wealth Management, Inc. -- include Altegris Investments, Altegris Advisors, Altegris Funds, and Altegris Clearing Solutions. Altegris currently has approximately $2.88 billion in client assets, and provides clearing services to $780 million in institutional client assets. ++
Altegris Advisors LLC is an SEC-registered investment adviser that advises alternative strategy mutual funds that may pursue investment returns through a combination of managed futures, equities, fixed income and/or other investment strategies.
+PAST PERFORMANCE AND DIVERSIFICATION ARE NOT INDICATIVE OF FUTURE RESULTS. There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. The referenced indices are for general market comparisons and are not meant to represent the Fund. The Fund is new and has no performance history.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund or Funds described herein. This and other important information about a Fund is contained in a Fund's Prospectus, which can be obtained by calling (877) 772-5838. The Prospectus should be read carefully before investing. Funds are distributed by Northern Lights Distributors, LLC member FINRA. Altegris Advisors, DoubleLine Capital LP and Northern Lights Distributors are not affiliated.
MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.
The Fund is "non-diversified" for purposes of the Investment Company Act of 1940, which means that the Fund may invest in fewer securities at any one time than a diversified fund. When the Fund invests in fixed income securities or derivatives, 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 or derivatives owned by the Fund. In general, the market price of debt securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by the Fund possibly causing the Fund's share price and total return to be reduced and fluctuate more than other types of investments. To respond to adverse market, economic, political or other conditions, the Fund may invest 100% of its total assets, without limitation, in high-quality short-term debt securities and money market instruments. The Fund's indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. Dollar, or, in the case of short positions, that the U.S. Dollar will decline in value relative to the currency that the Fund is short. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies.
The Fund will invest a percentage of its assets in derivatives, such as futures and options contracts. The use of such derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities and commodities underlying those derivatives. The Fund may experience losses that exceed losses experienced by funds that do not use futures contracts and options. There may be an imperfect correlation between the changes in market value of the securities held by the Fund and the prices of futures and options on futures. Although futures contracts are generally liquid instruments, under certain market conditions there may not always be a liquid secondary market for a futures contract. As a result, the Fund may be unable to close out its futures contracts at a time which is advantageous. Trading restrictions or limitations may be imposed by an exchange, and government regulations may restrict trading in futures contracts and options. Because option premiums paid or received by the Fund are small in relation to the market value of the investments underlying the options, buying and selling put and call options can be more speculative than investing directly in securities. Over-the-counter transactions are subject to little, if any, regulation and may be subject to the risk of counterparty default. A portion of the Fund's assets may be used to trade OTC commodity interest contracts, such as forward contracts, option contracts in foreign currencies and other commodities, or swaps or spot contracts.
A substantial portion of the trades of the managed futures programs are expected to take place on markets or exchanges outside the United States. Some foreign markets present additional risk, because they are not subject to the same degree of regulation as their U.S. counterparts. Trading on foreign exchanges is subject to the risks presented by exchange controls, expropriation, increased tax burdens and exposure to local economic declines and political instability. An adverse development with respect to any of these variables could reduce the profit or increase the loss earned on trades in the affected international markets. International trading activities are subject to foreign exchange risk.
The Fund may employ leverage and may invest in leveraged instruments. The more the Fund invests in leveraged instruments, the more this leverage will magnify any losses on those investments. Leverage will cause the value of the Fund's shares to be more volatile than if the Fund did not use leverage. The Fund may take short positions, directly and indirectly through the Subsidiary, in derivatives. If a derivative in which the Fund has a short position increases in price, the underlying Fund may have to cover its short position at a higher price than the short sale price, resulting in a loss.
Lower-quality fixed income securities, known as "high yield," present greater risk than bonds of higher quality, including an increased risk of default. An economic downturn or period of rising interest rates could adversely affect the market for these bonds and reduce the Fund's ability to sell its bonds. The lack of a liquid market for these bonds could decrease the Fund's share price.
Mortgage backed securities are sensitive to overall economic conditions and are subject to prepayment risk, which may lower their value, and credit risk because the underlying loan borrowers may default.
There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes. The value of fixed income securities typically falls when an issuer's credit quality declines and may even become worthless if an issuer defaults. Typically, a rise in interest rates causes a decline in the value of fixed income securities.
The value of securities issued by a REIT may be affected by changes in the value of the underlying property owned by the REITs and the value of mortgage REITs may be affected by the quality of loan assets. Investment in REITs involves risks similar to those associated with investing in small capitalization companies, and REITs (especially mortgage REITs) are subject to interest rate risks.
++Altegris and its affiliates are subsidiaries of Genworth Financial, Inc. and are affiliated with Genworth Financial Wealth Management, Inc., and include: (1) Altegris Advisors, LLC, an SEC registered investment adviser; (2) Altegris Investments, Inc., an SEC-registered broker-dealer and FINRA member; (3) Altegris Portfolio Management, Inc. (dba Altegris Funds), a CFTC-registered commodity pool operator, NFA member and California registered investment adviser; and (4) Altegris Clearing Solutions, LLC, a CFTC-registered futures introducing broker and commodity trading advisor and NFA member. The Altegris Companies and their affiliates have a financial interest in the products they sponsor, advise and/or recommend, as applicable. Depending on the investment, the Altegris Companies and their affiliates and employees may receive sales commissions, a portion of management or incentive fees, investment advisory fees, 12b-1 fees or similar payment for distribution, a portion of commodity futures trading commissions, margin interest and other futures-related charges, fee revenue, and/or advisory consulting fees.
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company with more than $100 billion in assets and employs approximately 6,500 people. Genworth has leadership positions in offerings that assist consumers protect themselves, invest for the future and plan for retirement, and also offers mortgage insurance to help consumers achieve homeownership while assisting lenders manage risk and capital.