FARIX

Fulcrum Diversified Absolute Return Fund

Daily NAV

As of 00/00/0000

1 Day NAV Change

0.00

As of 00/00/0000

Morningstar Rating

Rating: Macro Trading (Rating: 5 Stars Overall). Overall Rating out of 68 funds in the Macro Trading category based on risk adjusted returns as of 11/30/22

Reasons to Invest

Fulcrum Diversified Absolute Return (FARIX) can help diversify a portfolio consisting primarily of stocks and bonds with its low correlation and beta to both, along with good historical downside mitigation during volatile periods for markets. Target return of Cash + 3-5%.

Diversification

Generate returns with low correlation to stocks and bonds.

Downside Mitigation

Seeks to hedge against extreme losses.

Liquidity

Daily valued and reasonable fees.

Fund Overview

All weather portfolio investing across equities, bonds, currencies and commodities, built from complementary strategies combining discretionary and systematic inputs, with each playing a specific role and contributing to performance. Tailored hedging overlay aims to protect against extreme losses.

Dynamic Asset Allocation

Medium-term directional views across global equities, commodities and bonds

Percentage of Risk
30-40%

Expected Equity Beta*
+0.3

Discretionary Macro

Shorter-term trading of market transitions across all asset classes

Percentage of Risk
40-50%

Expected Equity Beta*
-0.1

Diversifying Strategies

Medium-term trend following, technical signals on >170 markets

Percentage of Risk
0-10%

Expected Equity Beta*
+0.1

Diversified Absolute Return

Absolute Return

Since inception low correlation to equities and negative to bonds

Expected Equity Beta*
+0.2%

*Expected Equity Beta: A measure of the volatility of a security or portfolio compared to the market as a whole. Specifically, outlines the anticipated beta value associated with a portfolio’s equity holdings. By multiplying the beta-value of a given strategy or portfolio with the expected movement of the aggregated securities, the expected change in the overall risk of the portfolio can be determined.

Fulcrum’s Investment Process Explained

In this video, Suhail Shaikh, Chief Investment Officer of Fulcrum gives an overview of Fulcrum, the investment team, the investment process and our key strengths.

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Performance

as of May 31, 2024
as of March 31, 2024
May
YTD
Since
Inception**
Q1-24
1 Year
3 Years
5 Years
Since
Inception**
Fulcrum Diversified Absolute Return
2.60%
4.75%
2.90%
4.75%
7.64%
2.55%
4.84%
2.96%
Wilshire Liquid Alternatives1
1.20%
5.12%
1.93%
4.92%
8.25%
1.96%
2.92%
1.95%
HFRX Global Hedge Fund Index2
0.54%
2.51%
1.81%
2.51%
5.70%
1.12%
3.44%
1.85%
Bloomberg US Agg Total Return3
1.70%
-1.64%
1.13%
-0.78%
1.70%
-2.46%
0.36%
1.25%

Note returnsfor periods greater than one year are annualized. **Inception date: July 31, 2015. 1Representsthe Wilshire Liquid Alternative Index which measures the collective performance of the five Wilshire Liquid Alternative strategies that make up the Wilshire Liquid Alternative Universe. It is designed to provide a broad measure of the liquid alternative market by combining the performance of the Wilshire Liquid Alternative Equity Hedge Index (WLIQAEH), Wilshire Liquid Alternative Global Macro Index (WLIQAGM), Wilshire Liquid Alternative Relative Value Index (WLIQARV), Wilshire Liquid Alternative Multi-Strategy Index (WLIQAMS) and Wilshire Liquid Alternative Event Driven Index (WLIQAED) (Bloomberg ticker: WLIQA). 2The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. (Bloomberg ticker: HFRXGL). 3Represents the Bloomberg US Agg Total Return Value Unhedged USD, a broad-based flagship benchmark that measures the investment grade, US dollardenominated, fixed-rate taxable bond market. The index includes treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency) (Bloomberg ticker LBUSTRUU).

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-855-538-5278.

Fund Facts

As of April 30, 2024


Institutional Class FARIX


Management Fee 0.90%


Gross Expenses 1.40%


Net Expenses* 1.20%


Strategy Start Date Sept 2008


40 Act Launch Date 07/31/2015


Dividend Frequency Annual


Fund AUM $200.0m


Firm AUM $7.3bn


Strategy AUM $6.3bn

*As of the prospectus dated October 30, 2023, the Adviser has contractually agreed to waive a portion or all of its management fees and pay Fund expenses in order to limit the total annual fund operating expense to 1.05% through at least October 31, 2024 excluding shareholder servicing fees; any front end or contingent deferred loads; brokerage fees and commissions; acquired fund fees and expenses ("AFFE"); fees and expenses associated with investment vehicles or derivative instruments; borrowing costs; taxes; and extraordinary expenses, such as litigation expenses.

Literature

The Investment Committee

Our disciplined investment process and risk management is driven by an experienced and stable senior team, who have complementary strengths and are supported by a team of over 30 investment professionals.  We aim to be our clients’ most trusted long-term partner.

Gavyn Davies

Founding Partner &
Executive Chairman

  • BBC, Chairman
  • Goldman Sachs, Chief Economist, Managing Director and Partner
  • HM Treasury Forecasting Panel UK
  • Policy Unit at 10 Downing Street, Economic Policy, Economist then advisor to the Prime Minister
  • St John’s College, Cambridge

Suhail Shaikh, CFA

Partner, Chief Investment Officer


  • Goldman Sachs, Investment Strategy Group, Global Equity the Global Fixed Income & Currency Asset Management
  • London School of Economics & Political Sciences
  • BSc in Management
  • CFA Charterholder

Andrew Bevan, PhD

Partner, Economic Advisor


  • Goldman Sachs, Managing Director, Head of Global Markets Research
  • Bear Stearns, Managing Director. Head of Financial Analytics and Structured Transactions Group
  • PhD International Monetary Economics, PhD in Theology

Insights

We share our latest macro views and analysis from our investment team, plus firmwide news.

Contact us

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Important Information

Diversification does not assure a profit nor protect against loss in a declining market.

The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Investors should read and consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the investment company. To obtain a hardcopy of the fund’s prospectus, please call 855-538-5278.

Mutual fund investing involves risk. Principal loss is possible. Absolute return strategies are not designed to outperform stocks and bonds during strong market rallies. Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, embargoes, tariffs and international economic, political and regulatory developments. Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented by more traditional investments. The fund may use leverage which may exaggerate the effect of any increase or decrease in the value of portfolio securities or the Net Asset Value of the fund, and money borrowed will be subject to interest costs. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater in emerging markets. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.

The Fulcrum Diversified Absolute Return Fund is distributed by Northern Lights Distributors, LLC.

© Fulcrum Asset Management. 2024. All Rights Reserved. All third party trademarks are hereby acknowledged.

© Fulcrum Asset Management LLP 2024. All rights reserved.