Astor Active Income employs a fundamental approach to income investing, assessing risk and opportunity across the capital market spectrum. It is designed to be a portfolio complement to traditional income strategies, using an active approach to fixed income investing. It seeks to find the asset mix that provides a more attractive yield-to-risk ratio compared to that of intermediate-term Treasury bonds.
MINIMIZE PRINCIPAL RISK
Analyzes macroeconomics, interest rates and credit data, seeking to make appropriate adjustments to duration, credit quality and equity income exposure in an effort to reduce volatility and minimize principal risk
Aims to add value through diversification and exposure adjustments to credit and duration in order to reduce the impact of adverse credit and rate conditions
Attempts to generate returns during any market environment; may invest in equity and other non-fixed income asset classes to complement the portfolio’s overall fixed income view
Credit Spreads: The difference in yield between two fixed income instruments with similar maturities and different credit qualities.
Past performance is no guarantee of future results and there is no assurance Astor’s strategies will achieve their objectives, generate positive returns, avoid losses, or produce returns similar to past periods.
The Strategy can purchase ETFs with exposure to equities, fixed income and Master Limited Partnerships (“MLPs”). The underlying investments of these ETFs will have different risks. Equity prices can fluctuate for a variety of reasons including market sentiment and economic conditions. It is important to note that bond prices move inversely with interest rates and fixed income. Fixed Income ETFs can experience negative performance in a period of rising interest rates. Debt issuers may not make interest or principal payments, resulting in losses to the funds. In addition, the credit quality of securities held by an ETF or underlying fund may be lowered if an issuer’s financial condition changes. High yield bonds are subject to higher risk of principal loss due to an increased chance of default. MLPs involve different risks than investments in stocks due to the limited control and rights to vote for shareholders. MLPs are also subject to tax risk as a change in tax laws could impact the level of distributions made to investors.
The Strategy can also purchase unleveraged, inverse fixed income ETFs. Inverse ETFs attempt to profit from the decline of an asset or asset class by seeking to track the opposite performance of the underlying benchmark or index. Inverse products attempt to achieve their stated objectives on a daily basis and can face additional risks due to this fact. The effect of compounding over a long period can cause a large dispersion between the ETF and the underlying benchmark or index. Inverse ETFs may lose money even when the benchmark or index performs as desired. Inverse ETFs have potential for significant loss and may not be suitable for all investors.
The benchmark is the Barclays Capital U.S. Aggregate Bond Index. The Barclays Capital U.S. Aggregate Bond is comprised of approximately 6,000 publicly traded bonds including U.S. Government, mortgage-backed, corporate and Yankee bonds with an average maturity of approximately 10 years. An investment cannot be made directly into an index. 503161-382