Robinson Tax Advantaged Income Fund
ROBAX, ROBCX, ROBNX

TOP HOLDINGS

TOP HOLDINGS

As of 6/30/17% of Portfolio
Nuveen AMT-Free Quality Municipal Income Fund7.19%
Nuveen Quality Municipal Income Fund4.86%
Invesco Value Municipal Income Trust4.59%
Invesco Advantage Municipal Income Trust ll4.47%
Pioneer Municipal High Income Trust4.44%

OBJECTIVE

The Fund’s objective is to seek total return with an emphasis on providing current income, a substantial portion of which will be exempt from federal income taxes.
 

STRATEGY

The Robinson Tax Advantaged Income Fund (the “Fund”) is an open-end mutual fund investing primarily in Closed-End Funds (“CEF”) which invest primarily in municipal bonds (“Municipal CEFs”). A substantial portion of the income generated to the Fund is expected to consist primarily of tax advantaged income by way of the underlying CEFs’ investments in municipal bonds. Robinson Capital Management, LLC (“Robinson”), the Fund’s sub-advisor, provides an experienced professional investment team with extensive knowledge of the CEF and municipal bond markets. The investment strategy first identifies a portfolio of Municipal CEFs to generate tax advantaged income to the Fund. In addition, Robinson seeks to identify CEFs that trade at discounts to the true market value of the CEFs’ municipal bond holdings, and utilizes a number of trading techniques to unlock its estimate of the value of the premiums/discounts in the CEFs. Seeking to hedge against interest rate risk and mitigate the Fund’s exposure to duration risk, Robinson may use short positions – primarily in U.S. Treasury Futures contracts of various maturities.

Why Municipal Closed-end Funds?

  • Access to a diversified portfolio of municipal bonds which potentially minimizes the impact of issue-specific credit problems such as Detroit and Puerto Rico
  • Municipal Closed-End Funds are frequently more liquid than individual municipal bonds.  Most Municipal CEFs trade throughout the day on the NYSE
  • Opportunity for investors to pursue an attractive level of income that is largely exempt from federal income tax (“tax advantaged income”)
  • Closed-end funds have the ability to utilize financial leverage in seeking to enhance the level of their returns. With interest rates currently at historically low levels, CEFs have the potential to obtain leverage at favorable borrowing rates
     

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 or summary prospectus carefully before you invest.

  • 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 read the Fund’s prospectus carefully and consult with appropriate tax and accounting professionals before considering an investment in the Fund.