Robinson Opportunistic Income Fund
RBNAX, RBNCX, RBNNX
Holdings Robinson Opportunistic Income Fund
|As of 6/30/18||% of Portfolio|
|Pioneer High Income Trust||5.88%|
|Western Asset High Income Fund II Inc||5.64%|
|Blackstone / GSO Strategic Credit Fund||5.33%|
|PIMCO Dynamic Credit and Mortgage Income Fund||5.23%|
|KKR Income Opportunities Fund||4.95%|
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:
- 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.
- 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 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.
- The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to changes in an issuer’s credit rating or market perceptions about the creditworthiness of an issuer. Generally fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, and longer-term and lower rated securities are more volatile than shorter-term and higher rated securities.
- 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 investment in the underlying assets, including but not limited to: futures contracts may cause the value of the Fund’s shares to be more volatile; 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; for short sales, if the price of a security has increased at the time the Fund replaces the security, the Fund will experience a loss, which is theoretically unlimited.
- High yield (“junk”) bonds are speculative, involve greater risks of default, downgrade, or price declines and are more volatile and tend to be less liquid than investment-grade securities.
- Investing in an ETF provides the Fund with exposure to the securities comprising the index on which the ETF is based and exposes the Fund to risks similar to those of investing directly in those securities. In addition, an ETF may not replicate exactly the performance of the benchmark index it seeks to track.
- There is no guarantee that the Fund’s distributions will be characterized as income for U.S. federal income tax purposes. For example, a portion of the distributions to shareholders may be characterized as return of capital or capital gains due to either the nature of the distributions from the underlying CEFs, or the Fund's opportunistic trading strategies.
- 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 that 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 financial professionals before considering an investment in the Fund.