Robinson Opportunistic Income Fund
RBNAX, RBNCX, RBNNX
Holdings Robinson Opportunistic Income Fund
|As of 9/30/2019||% of Portfolio|
|Principal Real Estate Income Fund||6.73%|
|PGIM High Yield Bond Fund Inc||5.99%|
|Brookfield Real Assets Income Fund Inc||5.58%|
|Eaton Vance Senior Floating-Rate Trust||5.39%|
|Ivy High Income Opportunities Fund||5.06%|
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. When, in the opinion of Robinson, the risk/reward profile for CEFs appears unfavorable, or when CEF price valuations are not attractive, the Fund may purchase shares of open-end registered investment companies (“Mutual Funds”) or exchange-traded funds (“ETFs”) that invest primarily in income-producing securities, or exchange-traded notes (“ETNs”). The Fund may also invest in Mutual Funds, ETFs or ETNs as “placeholders” for asset classes in which Robinson seeks to invest but has yet to identify attractive 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 ETFs, ETNs, options, futures and credit default swap positions which seeks to hedge against undesired equity, interest rate, 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
- Use of carefully weighted long and short ETFs, options and futures to mitigate against a variety of undesired market risks
- 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
- May also invest in ETFs, Mutual Funds or ETNs when CEF price valuations are not attractive, the risk/reward profile for CEFs appears unfavorable, or as “placeholders” for asset classes in which Robinson seeks to invest but has yet to identify attractive CEFs
IMPORTANT RISKS & DISCLOSURES
Effective November 12, 2019, changes were made to the Fund’s principal investment strategy. In addition to investing in CEFs, the Fund may invest in open-end registered investment companies (“Mutual Funds”), Exchange-Traded Funds (“ETFs”) or Exchange-Traded Notes (“ETNs”) as part of the principal investment strategy.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are in the prospectus and summary prospectus, a copy of which may be obtained on this website or by calling (800) 207-7108. Please read the prospectus or 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:
Closed-end fund (CEF), exchange-traded fund (ETF) and open-end fund (Mutual Fund) risk: The Fund’s investments in CEFs, ETFs and Mutual Funds (“underlying funds”) are subject to various risks, including reliance on management’s ability to manage the underlying fund’s portfolio, risks associated with the underlying securities held by the underlying fund, fluctuation in the market value of the underlying fund’s shares, and the Fund bearing a pro rata share of the fees and expenses of each underlying fund in which the Fund invests. Management and strategy risk: the value of your investment depends on the judgment of the Sub-Advisor about the quality, relative yield, value or market trends, which may prove to be incorrect. Futures risk: Use of future contacts by the Fund or underlying funds may cause the value of the Fund’s share to be more volatile and exposes the Fund to leverage, tracking, and under certain market conditions, liquidity risk. Fixed income / interest rate risk: 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. Leveraging risk: The underlying funds in which the Fund will invest may be leveraged as a result of borrowing or other investment techniques. As a result, the Fund may be exposed indirectly to leverage, and may expose the Fund to higher volatility and possible diminishment of long-term returns. In addition, future regulations may hinder or restrict an underlying fund’s ability to maintain leverage; which in turn may reduce the total return and tax exempt income generated by the underlying funds and may cause a reduction in the value of the Fund’s shares. High yield (“junk bond”) risk: 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. ETN risk: Investing in ETNs exposes the Fund to the credit risks of the issuer. Shares of ETNs may be less liquid despite being typically traded on securities exchanges and may have large bid and ask spreads. Shares of ETNs may at time trade at a premium or discount to their intrinsic value. Tax risk: There is no guarantee that the Fund’s distributions will be characterized as income for U.S. federal income tax purposes. For example, the Fund’s opportunistic trading strategies may result in a portion of the Fund’s distributions to shareholders being characterized as capital gains. Liquidity risk: There can be no guarantee that an active market in ETNs or shares of CEFs and ETFs held by the Fund will exist. The Fund may not be able to sell some or all of the investments it holds due to a lack of demand in the marketplace or other factors such as market turmoil, or if the Fund is forced to sell an asset to meet redemption requests, it may only be able to sell those investments at a loss. Derivatives risk: The Fund and the underlying funds may use futures contracts, options, swap agreements, and/or sell securities short. 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. Bank loan risk: The underlying funds may invest in loan participations of any quality, including “distressed” companies with respect to which there is a substantial risk of losing the entire amount invested. Bank loans may not be considered securities under U.S. federal securities law and, as a result, investments in them by the underlying funds may not have the protection of federal securities laws. LIBOR Transition risk: The underlying funds may invest in securities, such as senior bank loans, that utilize the London Interbank Offered Rate (“LIBOR”), the most common benchmark interest rate index used to make adjustments to variable-rate loans, which is expected to expire by the end of 2021. Any effects of the transition away from LIBOR could result in losses to the underlying funds in which the Fund invests and to the Fund. These effects could occur prior to the end of 2021. Convertible securities risk. The underlying funds may invest in convertible securities, which are subject to market risk, interest rate risk, and credit risk. Convertible securities are typically issued by smaller capitalized companies with stock prices that may be more volatile than those of other companies. Preferred stock risk. The underlying funds may invest in preferred stock, which is subject to company-specific and market risks applicable to equity securities, and is also sensitive to changes in the company’s creditworthiness, the ability of the company to make payments on the preferred stock, and changes in interest rates, typically declining in value if interest rates rise.
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.