The Giralda Fund (GDAMX) for Risk-Managed Growth June 2014 Objective Fund Details The Giralda Fund is an open-end mutual fund that seeks to provide primarily U.S. large cap equity exposure while providing several layers of downside risk management. The managers’ goal is to limit asset depreciation during both protracted and catastrophic market downturns while allowing asset appreciation in up-trending markets. TickerGDAMX Fund Type U.S. Large Cap Equity Alternative Load Type No Load Minimum Initial Investment $2,500 Assets $260 million Investment Strategy The Giralda Fund embodies two main risk-managed investment strategies: momentumbased sector rotation and tail-risk hedging.1 Together, these are designed to seek protection against protracted down markets and catastrophic crashes. Risk-managed investments attempt to go beyond traditional diversification, asset allocation, and rebalancing – to explicitly reduce portfolio volatility and/or limit downside potential. Key Reasons to Invest We believe that most investors should have exposure to the equity markets over the long term to secure their financial future against inflation. Many have difficulty doing so when the markets behave erratically. Riding out stock market volatility requires patience and fortitude on the part of the investor. An investment like The Giralda Fund attempts to allay investor fears and enable long-term investing. We believe that The Giralda Fund is particularly suited to investors who wish to stay fully invested in the equity markets yet protect themselves from adverse market conditions. The Fund could serve as a core equity holding or as an alternative to stocks and actively or passively managed equity funds. Top Ten Sector Holdings (6/30/2014) Sector Ticker Security Description Technology IYW iShares Dow Jones US Technology Sector Financials XLF SPDR Financial Select Sector Health Care XLV SPDR Health Care Sector Consumer Discretionary XLY SPDR Consumer Discretionary Sector Energy XLE SPDR Energy Select Sector Consumer Staples XLP SPDR Consumer Staples Sector Industrials XLI SPDR Industrials Select Sector Materials XLB SPDR Materials Select Sector Utilities XLU SPDR Utilities Select Sector Telecom IYZ iShares Dow Jones US Telecom Sector Sector Allocation as of 6/30/2014 2.9% 2.2% 4.8% 16.8% 10.8% 16.1% 10.8% 11.5% 12.1% 12.0% Technology Consumer Staples Financials Health Care Consumer Discretionary Energy Industrials Materials Utilities Telecom Sector Classifications are determined by referencing the Global Industry Classification Standard (GICS®) Codes developed by Standard & Poor’s and Morgan Stanley Capital International. Sector Allocations are a percent of Net Asset Value (NAV) and should not be considered as recommendations to purchase or sell a security. They are subject to change without notice. Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security. Tail Risk Hedging is the attempt to mitigate the adverse effects of rare but potentially catastrophic events. 1 © Giralda Advisors www.thegiraldafund.com Giralda Fund June 2014 Portfolio Managers The professional staff of Giralda Advisors, the investment advisor to The Giralda Fund, are recognized industry leaders in developing and applying innovative risk management techniques to investing, with the dual goal of achieving superior longterm performance while providing protection against a wide variety of adverse market conditions. Jerry Miccolis, CFA®, CFP®, FCAS, MAAA, CERA Jerry Miccolis is a founding principal and the chief investment officer of Giralda Advisors. He is the lead portfolio manager of Sector Dynamics, The Giralda Fund, and The Giralda Risk-Managed Growth Fund. Jerry has more than four decades of experience in the investment management, risk management, and actuarial fields, and he shares his expertise through various speaking engagements, publications and as the co-author of the book Asset Allocation For Dummies®. Prior to founding Giralda Advisors, he served as chief investment officer of Brinton Eaton Wealth Advisors. Previously, Jerry was a principal and global leader of the enterprise risk management practice at Towers Perrin. Jerry has a bachelor’s degree in mathematics from Drexel University. He is a member of the Financial Planning Association, the New York Society of Security Analysts and the American Academy of Actuaries. He has chaired several professional committees and is a widely quoted author and speaker on the subject of strategic risk management. Marina Goodman, CFA®, CFP® Marina Goodman is an investment strategist at Giralda Advisors and a portfolio manager of Sector Dynamics, The Giralda Fund, and The Giralda Risk-Managed Growth Fund. Previously, Marina was an investment strategist at Brinton Eaton Wealth Advisors and an actuarial associate at MetLife, where she evaluated investment strategies and developed financial models and Monte Carlo simulations for new products. Marina has bachelor’s degrees in mathematics and economics from Cornell University. She has authored several articles on risk-managed investing for the Journal of Financial Planning. Giralda Advisors’ professional staff includes Rohith Eggidi, investment analyst, and Jonathan Katz, investment operations associate. Disclosure There is no guarantee that The Giralda Fund will achieve its objectives, generate positive returns, or avoid losses. Investors should carefully consider the investment objectives, risks, charges and expenses of The Giralda Fund. A purchase can be transacted directly with the mutual fund company. No-load mutual funds are sold without a sales charge; however, they have ongoing expenses, such as management fees. The expense ratio for the Fund is 0.18%. Total annual fund operating expenses of the Fund are 0.43% including “acquired fund fees and expenses” (i.e., the fees and expenses embedded in the underlying investments, such as ETFs, within the Fund). The Fund’s investment adviser has contractually agreed to waive its fees, at least until October 31, 2014. Without this waiver, the Fund’s total annual operating expenses would be 1.43% including “acquired fund fees and expenses.” This and other important information about The Giralda Fund is contained in the prospectus, which can be obtained at www.thegiraldafund.com or by calling 855-447-2532 (855-GIRALDA). The prospectus should be read carefully before investing. The Giralda Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Giralda Advisors, LLC, is not affiliated with Northern Lights Distributors, LLC. Mutual Funds involve risk including the possible loss of principal. ETFs and mutual funds are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk and sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. As a non‐diversified fund, the Fund may be more vulnerable to any single economic, business, political or regulatory occurrence than a diversified investment company fund. Real estate values rise and fall in response to a variety of factors, including local, regional and national economic conditions, interest rates and tax considerations. Investing in the commodities markets will subject the Fund to potentially greater volatility than traditional securities. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Equity market-related structured notes involve leverage risk, tracking risk and issuer default risk. © Giralda Advisors www.thegiraldafund.com 4281-NLD-8/11/2014
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