Robinson Opportunistic Income Fund
RBNAX, RBNCX, RBNNX
Holdings Robinson Opportunistic Income Fund
|As of 6/30/17||% of Portfolio|
|Brookfield Real Assets Income Fund Inc||4.75%|
|Pioneer High Income Trust||4.69%|
|Ares Dynamic Credit Allocation Fund Inc||3.89%|
|Invesco Dynamic Credit Opportunities Fund||3.89%|
|Blackstone / GSO Strategic Credit Fund||3.81%|
The investment objective of the Robinson Opportunistic Income Fund is to seek total return with an emphasis on providing current income.
The Robinson Opportunistic Income Fund (the “Fund”) is an open-end mutual fund investing primarily in Closed-End Funds (“CEF”). The “CEFs” invest primarily in fixed income and fixed income-like securities. The Fund invests strategically across the global capital structure through the use of CEFs to seek a diversified fixed income stream. Robinson Capital Management, LLC (“Robinson”), the Fund’s sub-advisor, provides an experienced professional investment team with extensive knowledge of the CEF and fixed income markets. The opportunistic investment strategy is designed to capitalize on the chronic inefficiencies within the CEF space. As such, Robinson seeks to identify CEFs that trade at discounts to the true market value of the CEFs’ holdings, and utilizes a number of trading techniques to unlock its estimate of the value of the premiums/discounts in the CEFs. In addition, Robinson attempts to hedge against interest rate risk and mitigate the Fund’s exposure to duration risk through short positions – primarily in U.S. Treasury Futures contracts of various maturities. The Fund also utilizes carefully weighted long and short exchange traded funds, options and futures which seeks to hedge against undesired equity, currency, credit and volatility risks.
- Constructed primarily with income producing CEFs - liquid public securities that typically trade on the NYSE
- Generally, the Fund anticipates maintaining a portfolio of approximately 40-50 CEFs that invest in fixed income and fixed income-like securities; providing diversification in both manager selection and underlying fixed income securities
- Seeks to mitigate the portfolio’s exposure to interest rate risk and duration risk through the use of short positions in U.S. Treasury Futures contracts of various maturities and other securities
- Proprietary valuation model continuously seeks out the most attractive closed-end fund premiums/ discounts, and with the goal of enhancing total return, Robinson implements trading strategies to capitalize on the value of the premiums/discounts
IMPORTANT RISKS & DISCLOSURES
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by calling (800)207-7108. Please read the prospectus and summary prospectus carefully before you invest.
An investment in the Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus:
- The Fund will invest in shares of closed-end funds (CEFs). Investments in CEFs are subject to various risks, including reliance on management’s ability to manage the CEF portfolio, fluctuation in the market value of CEF shares, and the Fund bearing a pro rata share of the fees and expenses of each underlying CEF in which the Fund invests.
- The underlying CEFs in which the Fund invests will invest primarily in municipal bonds. Litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on the ability of an issuer of municipal bonds to make payments of principal and/or interest. Changes related to taxation, legislation or the rights of municipal security holders can significantly affect municipal bonds.
- The underlying CEFs in which the Fund invests will invest primarily in fixed income securities. Interest rates have been and continue to be low relative to historical levels. A rise in interest rates could negatively impact the value of the Fund’s shares. Generally, fixed income securities decrease in value if interest rates rise, and increase in value if interest rates fall, with longer-term securities being more sensitive than shorter-term securities. These risks are greater during periods of rising inflation.
- It is expected that the CEFs in which the Fund will invest will be leveraged as a result of borrowing or other investment techniques. As a result, the Fund will be exposed indirectly to leverage, and may expose the Fund to higher volatility in the market value of such CEF and the possibility that the Fund’s long-term returns will be diminished. In addition, regulations implemented pursuant to the Dodd-Frank Act, particularly the Volcker Rule, may in the future hinder or restrict a CEF’s ability to maintain leverage; which in turn may reduce the total return and tax exempt income generated by the underlying CEFs in which the Fund will invest and may cause a reduction in the value of the Fund’s shares.
- There is no guarantee that the Fund’s income will be exempt from regular federal income taxes. Events occurring after the date of issuance of a municipal bond or after a CEF’s acquisition of a municipal bond may result in a determination that interest on that bond is subject to federal income tax. Federal or state changes in the tax treatment of municipal bonds may make municipal bonds less attractive as investments and cause them to decline in value.
- The Sub-advisor, where deemed appropriate, will seek to hedge against interest rate risk by shorting U.S. Treasury futures contracts. To the extent the Fund holds such short positions, should market conditions cause U.S. Treasury prices to rise, the Fund’s portfolio could experience a loss; and should U.S. Treasury prices rise at the same time municipal bond prices fall, these losses may be greater than if the hedging strategy not been in place.
- The Fund and the CEFs held by the Fund may use derivative instruments, futures contracts, options, swap agreements, and/or sell securities short. Each of these instruments and strategies involve risks different from direct investments in the underlying assets. Risks include: futures contracts may cause the value of the Fund’s shares to be more volatile and expose the Fund to leverage and tracking risks; the Fund may not fully benefit from or may lose money on option or shorting strategies; swaps may be leveraged, are subject to counterparty risk and may be difficult to value or liquidate.
- The Fund’s turnover rate may be high. A high turnover rate may lead to higher transaction costs, a greater number of taxable transactions, and negatively affect the Fund’s performance.
- As a non-diversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk than if its assets were diversified among a greater number of issuers.
- Diversification does not assure a profit or protect against a loss.
The Fund may not be suitable for all investors. We encourage you to consult with appropriate tax and financial professionals before considering an investment in the Fund.