AUSTIN, Texas, Jan. 24, 2017 /PRNewswire/ -- Innealta Capital, a privately held quantitative asset manager headquartered in Austin, Texas, proudly announces its Sector Rotation Fund (ICSIX) ranked in the top 1% of 309 funds in the Morningstar's Tactical Allocation Category for the year 2016 (1 year percentile ranking out of 309 Tactical Allocation funds as of 12/31/16 based on total returns).
The Sector Rotation Fund celebrated its fifth anniversary in 2016 by returning 17.91% net of fees for the one year period as of 12/31/2016, outperforming its benchmark, the S&P 500, by 5.95% while experiencing approximately half the benchmark's volatility. In addition, the Fund received a 4-star Overall Morningstar Rating™, a 5-Star 3 Year Morningstar Rating™, and a 3-Star 5 Year Morningstar Rating™ and a below average risk rating relative to its category. (Overall rating out of 251 Tactical Allocation funds as of 12/31/2016, 3 Year rating out of 251 Tactical Allocation funds as of 12/31/2016, and 5 Year rating out of 169 Tactical Allocation funds as of 12/31/2016 based on risk-adjusted returns).
The Fund's strategy aims to generate capital appreciation and current income, with strict risk controls, by trying to consistently invest in those U.S. sectors and industry groups that exhibit strong risk-adjusted performance potential. The Fund follows an active, systematic approach to investing based on advanced academic research that dynamically adjusts allocations with the goal of outperforming in a variety of market environments.
Innealta Chief Investment Officer Dr. Vito Sciaraffia says "The Fund's performance metrics reflect Innealta's rigorous investment process. We utilize a decades-old proven quantitative framework, which has evolved throughout the years, that allows us to systematically analyze in real-time thousands of economic variables with the goal of producing accurate return and risk forecasts. We believe combining quantitative and qualitative investment approaches results in the best investment solutions."
For over a decade Innealta Capital has advised and managed global investment portfolios. The multidisciplinary team possesses several advanced degrees, including PhD, MBA, and MS degrees from top academic institutions, along with portfolio managers with significant industry experience. Innealta delivers solutions to Financial Advisors, Intermediaries, and High Net Worth individuals and is one of the largest managed ETF managers in the United States. To learn more, please click here.
For the one, five and since-inception periods ending 12/31/2016, ICSIX returned 17.91%, 4.30% and 4.30%, respectively. Current performance may be lower or higher than the data cited above. Investment return and principal value will fluctuate so that 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 855.994.2326. Past performance is no guarantee of future results.
© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (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.
The Morningstar RatingTM 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.
Morningstar Rating is for the I-share class only; other classes may have different performance characteristics.
There is no guarantee investment objectives will be met. The Fund is a 'fund of funds' and typically invests in other investment companies and exchange traded funds ("ETFs"). ETFs carry security, market and sector risks, and may not perform as expected which could result in a decline in value. When the Fund invests in ETFs that own fixed income securities, the value of any investment in the Fund will fluctuate with changes in interest rates. The use of leverage and inverse leveraged ETFs may exaggerate changes in price and return. Other possible risks to the Fund include those related to investment in small and medium sized companies, foreign securities, currencies and emerging markets, and short-term trading. Please review the prospectus carefully for additional details.
Mutual Funds involve risk including the possible loss of principal.
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 855.994.2326 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 a FINRA/SIPC member. Innealta Capital is a division of AFAM Capital, Inc., a registered investment advisor. AFAM Capital and Innealta Capital are not affiliated with Northern Lights Distributors, LLC.
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SOURCE Innealta Capital