Key Advantages

Preservation of Capital


The Fund's strategy is designed to limit downside portfolio volatility. The Fund seeks to achieve superior risk-adjusted tax-free returns by dynamically changing credit quality exposure in municipal bonds in response to shifts in market behavior.

Risk Management


The Fund uses price-driven trend-following models to tactically allocate the portfolio in order to manage risk.

Quantitative Research-Driven


Counterpoint’s empirical research of market history has shown price levels can be an effective predictor of future volatility, and can be utilized to seek an improvement to risk-adjusted returns relative to passive benchmarks.

Innovative Management Team


Counterpoint’s investment team develops and publishes some of the latest research in the behavioral finance field, which is leveraged throughout Counterpoint’s quantitative approach.

Strategy

The Fund seeks tax-exempt income by investing in mutual funds and ETFs of high-yield or high-quality municipal bond instruments. The Fund leverages proprietary quantitative trend-following models to reduce exposure to declines in the high-yield municipal bond market.

The Fund is designed to limit downside portfolio volatility by tactically allocating according to market conditions. The portfolio is constructed based on empirical research of market history and price-driven trend-following models to manage risk.

The Fund primarily invests in mutual funds and ETFs of high-yielding municipal bonds when the model indicates a stable or upward-trending market. Investments shift to mutual funds of higher quality municipal money market and/or other short-term municipal securities when the model indicates a downward-trending market.

High Yield Muni Trend Signals Over Time

The above stylized example depicts trading signals to a tactical strategy on the Municipal High Yield bond market. The strategy uses crosses above and below the included index’s 200-day moving average to create buy and sell signals. Several signals are omitted to improve readability. The Fund does not use the 200-day moving average in its strategy, but employs a similar trendfollowing approach.

Annualized Return and Risk of High Yield Muni

The above results depict returns and risk of the untradeable Barclays Muni High Yield Total Return Index while Risk Off (when the index is below its 200-day moving average) and Risk On (when the index is above its 200-day moving average). The Fund does not use the 200-day moving average in its strategy, but employs a similar trend-following approach.

Risk Off: The period of time where the Muni High Yield Index is below the 200-day moving average. A trend-following strategy would sell the asset class in a risk off state.

Risk On: The period of time where the Muni High Yield Index is above the 200-day moving average. A trend-following strategy would buy the asset class in a risk on state.

Performance

As of September 21, 2018As of June 30, 2018
Return Since Fund Inception (Annualized)Year to Date1 Year ReturnStandard Deviation (Annualized)Return Since Fund Inception (Annualized)Year To Date1 Year Return
TMNIX0.68%N/AN/A1.02%0.47%N/AN/A
TMNAX
Without Sales Load
0.62%N/AN/A1.02%0.47%N/AN/A
TMNAX
With Sales Load (4.5%)
-3.90%N/AN/A1.02%-4.04%N/AN/A
TMNCX0.45%N/AN/A1.02%0.40%N/AN/A
Bloomberg Barclays Municipal Bond Index-0.16%-0.57%-0.11%0.90%0.16%-0.25%1.56%

Fund inception date is June 11, 2018.

The performance data displayed here represents past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2020 to ensure that the net annual fund operating expenses exclusive of Acquired Fund Fees and Interest/Dividends on Short Sales will not exceed 1.25%, 2.00%, and 1.00% attributable to Class A, Class C, and Class I shares, subject to possible recoupment from the Fund in future years.

Bloomberg Barclays Capital High Yield Municipal Bond Index is an unmanaged index made up of bonds that are non-investment grade, or unrated by Moody’s Investors Service with a remaining maturity of at least 1 year. Bloomberg Barclays US Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. The indices shown are
for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features.

Facts

TickerTMNAXTMNCXTMNIX
CUSIP66538R10266538R20166538R300
Share ClassClass AClass CInstitutional
Minimum Investment$5,000$5,000$100,000
Minimum IRA Investment$1,000$1,000$100,000
Management Fee0.70%0.70%0.70%
Estimated Acquired Fund Expenses0.60%0.60%0.60%
Estimated Other Fund Expenses (Maximum with Fee Waiver)0.41% (0.30%)0.41% (0.30%)0.41% (0.30%)
12b-1 Distribution & Marketing0.25%1.00%None
Estimated Total Annual Operating Fees1.96%2.71%1.71%
Estimated Total Annual Operating Fees (After Waiver)1.85%2.60%1.60%
Fund Inception DateJune 11, 2018
The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2020 to ensure that the net annual fund operating expenses exclusive of Acquired Fund Fees and Interest/Dividends on Short Sales will not exceed 1.25%, 2.00%, and 1.00% attributable to Class A, Class C, and Class I shares, subject to possible recoupment from the Fund in future years.

Holdings

Top Holdings - as of August 31, 2018 
MainStay MacKay High Yield Municipal Bond Fund28.18%
Nuveen High Yield Municipal Bond Fund24.43%
Lord Abbett High Yield Municipal Bond Fund21.9%
PIMCO High Yield Municipal Bond Fund15.7%
VanEck Vectors High-Yield Municipal Index ETF5.96%
Oppenheimer Rochester High Yield Municipal Fund3.22%
BLACKROCK LIQUIDITY FUNDS TREASURY TRUST FUND1.15%

Portfolio holdings are subject to change, vary over time and should not be considered a recommendation to buy any individual security.

Portfolio Managers

Headshot_CPT_flat2
Joseph Engelberg, Ph.D
Ph.D. in Finance, Northwestern University
mbk-headshot-color
Michael Krause, CFA
MBA, University of California San Diego

Fund Literature

Recent Pieces

Slim Pickings for Active Bond Managers
Imagine you’re an active bond portfolio manager. Your investors hire you to outperform an index, and you do this by
Read more.
There’s a Bubble in Trashing (Some) Active Management
At the end of 2017 Warren Buffett, the most successful stock picker of the 20th century, won a $1 million
Read more.
High Yield’s Exposure to Stock Market Risk
After a steep drawdown and the return of volatility to U.S. stocks in recent weeks, it’s worth investigating the level
Read more.

IMPORTANT RISK INFORMATION

Mutual Funds involve risk including the possible loss of principal. Past performance is no guarantee of future results. There is no assurance the Fund will meet its stated objectives. The Fund is a new fund and does not have a performance record and the above index performance is not intended to serve as a proxy for the Fund’s future performance.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Counterpoint Tactical Municipal Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at counterpointmutualfunds.com or by calling 844-273-8637. The prospectus should be read carefully before investing. The Counterpoint Tactical Municipal Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC.
4770-NLD-7/9/2018
Back to Top

Counterpoint Mailing List

Please sign up to receive monthly updates
and perspectives from Counterpoint.
You may check your junk mail folder if you
do not see an opt-in confirmation.

Please enter a valid email address
That address is already in use
The security code entered was incorrect
Thanks for signing up

×