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A Unique Blend

Some managers are purely fundamental and some are quantitatively driven. We believe that not one way is right for every market cycle. We blend the two together in
what we believe is a unique way that aims to avoid behavioral biases and unrealistic assumptions. Our investment process is driven by fundamentals but implemented precisely. We actively seek risk management with dynamic volatility adjustment and event-based scenario analysis.

 

 

Identify Opportunities

Proprietary risk ratings

We identify opportunities based on proprietary research and economic analysis. Our leading economic index provides a risk rating every month for 30 countries around the globe. We aggregate country ratings to regional ratings and an overall global rating. Our goal is to capture inflection points in the economic and business cycles and identify countries and regions with above-average trend line growth. Risk ratings govern our allocation decisions.

 

Adapt Portfolio

Portfolio Construction

Our portfolio construction changes based on proprietary evaluation of macroeconomic environment. We use various portfolio optimization techniques that vary by global risk rating to avoid tail risks in the portfolio, especially in a declining economic environment. To achieve proper diversification, we reshuffle portfolio mix as correlations change between asset classes. We try to avoid unrealistic model assumptions and follow a non-parametric Bayesian approach.

 

Manage Risks

Risk Management

We take a dynamic approach to risk management. Our primary goal is to align risk allocation and have specific volatility targets for different market environments. We estimate daily volatility for various markets using proprietary techniques and consider adjustment when necessary. Our event- based risk management includes probabilistic scenario analysis and tail-risk forecasting. We attempt to manage current risk in our clients’ portfolios as well as prepare for the future.

 

 

Our Goal

 A Smooth Ride

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Our Risk Rating

 

 Rates Investment Environment Across the Globe

 

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Our Risk Management Goals

 

 Multifaceted

 

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No investment strategy, including an absolute return strategy, can ensure a profit or protect against loss. Investments in international markets carry additional risks not associated with domestic investments. Investments in commodities carry additional risks and may subject the Fund to greater volatility than investment in traditional securities. Bonds are affected by a number of risks, including fluctuations in interest rates, credit risk, and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall.

Past performance is no guarantee of future results. Diversification and asset allocation do not guarantee investment returns and do not eliminate the risk of loss. The investment return and principal value of an investment in the Funds will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Investors should carefully consider the investment objectives, risks, charges and expenses of the Spouting Rock Mutual Funds. This and other important information about the Funds is contained in the Prospectus, which can be obtained by calling Shareholder Services at (844) 834-6478. The Prospectus should be read carefully before investing. Distributed by Unified Financial Securities, LLC. (Member, FINRA, www.finra.org)