Kina Simeone Clark
Fund Enables Advisors to Access Clark Capital’s Tactical Fixed Income Approach in a 40 Act Fund Format
Philadelphia, PA — Clark Capital Management Group, an independent, employee-owned investment advisory firm, is pleased to announce the introduction of the Navigator® Tactical Fixed Income Fund.
With yields at historic lows, bond portfolios could decline if interest rates rise. Clark Capital believes investors may benefit from the nontraditional, flexible approach to targeting opportunities and managing risk in fixed income offered by the Fund. Clark Capital has delivered the same strategy within a separately managed account (SMA) format since 2005.
Within the mutual fund, portfolio managers seek to deliver income and risk control while reducing interest rate sensitivity. The firm believes that a crucial component of the fund is its ability to shift out of lower quality areas when needed and invest in high quality debt and/or cash.
The Tactical Fixed Income mutual fund uses a quantitative research process to make investment allocation decisions. The goals of the fund are threefold: 1) provide a tactical, flexible approach; 2) deliver income with risk control; 3) mitigate interest rate sensitivity.
The fund rotates between three identified fixed income sectors: 1) low-quality debt (including high yield bonds, international high yield, bank loans, preferred stock and emerging market debt); 2) short-term U.S. Treasuries and cash equivalents, 3) intermediate U.S. government debt and high grade corporate debt.
Sean Clark, CFA and Chief Investment Officer, cited the following potential benefits of the fund format over the separately managed account format:
- Expanded liquidity and trading execution.
- Access to an enlarged universe of investment vehicles including mutual funds, individual bonds, ETFs, and synthetic vehicles allowing for more precise exposure to our favored fixed income sector.
- Enhanced flexibility The funds we have held in the SMA version of the fund (the Navigator® Fixed Income Total Return Strategy) invest in individual bonds and synthetics. Essentially, we are bringing that flexibility in-house in order to have greater control over what we want to hold.
The Navigator® Tactical Fixed Income Fund is available through a full service relationship with Clark Capital and through several custodians.
Mutual Fund Symbols:
- Class A Shares: NTBAX
- Class C Shares NTBCX
- Class I Shares NTBIX
About Clark Capital Management Group
Clark Capital Management Group is an independent investment advisory firm providing institutional quality investment solutions to individual investors, corporations, foundations, and retirement plans. The firm was founded in 1986 and has been entrusted with approximately $2.8* billion in assets.
Our investment philosophy is driven by a single-minded focus: to add value for our collective clients. This focus requires us to seek superior risk-adjusted returns over full market cycles. It compels us to maintain a long-term perspective and provide innovative investment management solutions that enable advisor clients to achieve their life cycle goals.
*As of 3/31/2014
This is an actively managed dynamic portfolio. There is no guarantee that any investment will achieve its objectives, goals, generate positive returns, or avoid losses.
The opinions expressed are those of the Clark Capital Management Group Investment Team. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. There is no guarantee of the future performance of any Clark Capital investment portfolio. Material presented has been derived from sources considered to be reliable, but the accuracy and completeness cannot be guaranteed. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy or strategies. For educational use only. This information is not intended to serve as investment advice. This material is not intended to be relied upon as a forecast or research. The investment or strategy discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. Past performance does not guarantee future results.
Clark Capital Management Group, Inc. reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security, sector or industry. There is no assurance that any securities, sectors or industries discussed herein will be included in or excluded from an account’s portfolio. It should not be assumed that any of the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
Clark Capital Management Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange. Registration does not imply a certain level of skill or training. More information about Clark Capital’s advisory services can be found in its Form ADV which is available upon request.
Performance of the Navigator Fixed Income Total Return Strategy accounts does not represent the past or future performance of the Navigator Tactical Fixed Income Fund and should not be considered indicative of future performance of any strategy, account or the Fund.
Important risk information. An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus. The principal risks of investing in the Navigator Tactical Fixed Income Fund include: Interest Rate Risk, High-Yield Bond Risk, Derivatives Risk, Credit Risk, Fixed Income Risk, Small and Mid-sized Company Risk, and Portfolio Selection Risk. Interest Rate Risk – The value of the Fund may fluctuate based on changes in interest rates and market conditions. As interest rates rise, the value of income producing instruments may decrease. This risk increases as the term of the note increases. High-Yield Bond Risk – Lower-quality bonds, known as high-yield bonds or “junk bonds,” present a significant risk for loss of principal and interest. These bonds offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the bond’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk). Derivatives Risk – The Fund may execute an investment strategy or hedge by entering into derivative contracts such as futures, options and swaps, which can be riskier than traditional investments because they may involve leverage, be illiquid, suffer counterparty default and limit gains. Credit Risk – The issuer of a fixed income security may not be able to make interest or principal payments when due. Generally, the lower the credit rating of a security, the greater the risk is that the issuer will default on its obligation.
The Fund invests in exchange traded funds (ETFs) and performance is subject to underlying investment weightings which will vary. ETFs are subject to expenses, which will be indirectly paid by the fund. The cost of investing in a Fund that invests in ETFs will generally be higher than the cost of investing in a Fund that invests directly in individual stocks and bonds. Exchange traded notes (ETNs) are unsecured obligation of the issuer and are not secured debt. ETNs are riskier than ordinary unsecured debt securities and have no principal protection. ETNs include limited portfolio diversification, trade price fluctuations, uncertain principal repayment, and illiquidity. Investing in the ETNs is not equivalent to investing directly in an index or in any particular index components. The investor fee will reduce the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon redemption of your ETNs even if the level of the relevant index has increased or decreased (as may be applicable to the particular series of ETNs). An investment in an ETNs may not be suitable for all investors.
Standard Deviation: A statistical measure of performance fluctuations-generally the higher the standard deviation, the greater the expected volatility of returns. Standard deviation, a historical measure, cannot be used to predict fund performance.
Correlation: A statistical measure of how two securities move in relation to each other.
Beta: Measures a fund’s sensitivity to market movements by comparing a fund’s excess return (over a benchmark) to the market’s excess return. By definition, the beta of the market is 1.00. For example, a beta that is lower than 1.00 would normally indicate that a fund’s excess return is expected to be above the market’s excess return in a down year and below in an up year. However, beta is a measure of historical volatility and cannot predict a fund’s actual volatility.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Navigator Fixed Income Tactical Fixed Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 877-766-2264. The prospectus should be read carefully before investing. The Navigator Tactical Fixed Income Fund is distributed by Northern Lights Distributors, LLC member FINRA.
Before investing, carefully consider the Fund’s investment objectives, risks, charges and expenses. Contact 800.766.2264 for a prospectus containing this and other information. Read it carefully.
Clark Capital Management Group, Inc. and Northern Lights Distributors, LLC are not affiliated.
The Fund’s primary benchmark is the Barclays U.S. Corporate High-Yield Index. The Barclays U.S. Corporate High-Yield Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. The Barclays U.S. Corporate High-Yield Index was created in 1986, with history backfilled to July 1, 1983, and rolls up into the Barclays U.S. Universal and Global High-Yield Indices. The Fund’s secondary benchmark is the Barclays US Aggregate Bond Index. The Barclays US Aggregate Bond Index covers investment grade bonds being traded in United States. It is an unmanaged market value-weighted index for U.S dollar denominated investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The Barclays US Aggregate Index was created in 1986 with history backfilled to January 1, 1976.