NEWFOUND RISK MANAGED U.S. SECTORS

Risk managed exposure to domestic large-cap equities

NFDAX | NFDCX | NFDIX

Investment Objective

The Newfound Risk Managed U.S. Sectors strategy provides access to large-cap U.S. equities within a disciplined risk-management framework. The strategy applies a disciplined, rule-based process to evaluate each of 9 U.S. sector ETFs individually utilizing Newfound’s proprietary momentum models. Sectors identified as exhibiting negative momentum are removed from the portfolio. A 25% allocation cap is applied to each sector; if 3 or fewer sectors remain, a position in a short-term treasury ETF is built.

Why Newfound Risk Managed U.S. Sectors?

  • Provides core equity exposure through sector-based framework (25% max in any sector)

     

  • Fully tactical – can go from 100% equity to 100% cash in an effort to avoid significant drawdowns

     

  • Places a 100% unemotional, momentum-based framework on allocation decisions

     

  • Flexible tool to address key risks, such as capital loss, fear-based under allocation to equities

A simple
objective.

The strategy seeks to protect and participate, providing exposure to U.S. equities through 9 sector ETFs with the ability to shift the portfolio entirely to a short-term U.S. treasury ETF position.

A consistent
process.

Applies a disciplined, rule-based process to evaluate each sector independently utilizing Newfound’s proprietary momentum models. Sectors identified as exhibiting negative momentum are removed from the portfolio.

A thoughtful
design.

If a sector is removed from the portfolio, its capital is re-allocated among the remaining investments. Sectors are capped at 25%; if 3 or fewer sectors remain, a short-term U.S. Treasury ETF position is built.

"By splitting raw model output and the rules that govern portfolio design, we force ourselves to deal with model failure as an eventual certainty, not something to ignore and hope it doesn’t happen."

− Corey Hoffstein, Chief Investment Officer

Prospectus

Details regarding the fund including investment objectives, risks and fees

SAI

A supplementary document to the prospectus containing further information and disclosures

Annual Report

Discloses certain aspects of a Fund’s operations and financial condition

Semiannual Report

Discloses certain aspects of a Fund’s operations and financial condition

XBRL Files

XBRL Files

Tearsheet

A brief brochure outlining the principal investment strategy and past performance

Presentation

An in-depth informational guide to our firm and the investment strategy

Commentary

Recent commentary from the Portfolio Managers

Holdings

Recent fund holdings