iMGP Alternative Strategies Fund
We couldn't find a core alternatives strategy that we liked, so we created our own.
MASFX: Four Star Overall Morningstar Rating among 128 multistrategy funds based on risk-adjusted return for the period ending 12/31/2022. *
Lower risk and lower volatility than the stock market
- Inherently lower risk because of the nature of each manager's investment strategy and/or approach to risk management
- Low risk of negative returns over any given one-year time period
- Relatively low beta and correlation to stock and bond market indexes
Volatility in the range of 4% to 8%
- Risk control is intended to be a function of several factors including: the inherent risk level of the strategies; the risk-sensitive nature of the managers; the skill of the managers; and the overall strategy diversification
Strong absolute, relative and risk-adjusted returns over full market cycles
- Managers can take advantage of the additional flexibility that comes from a multi-manager structure, and in some cases invest in ways traditionally associated with private funds. For example, our managers can use prudent leverage, portfolio concentration, and take advantage of less-liquid opportunities (while maintaining a focus on overall portfolio liquidity).
- Managers are risk-averse, but opportunistic. They tend to be less invested when valuations / spreads are average or worse, but will invest more aggressively when the opportunity set is attractive.
- iM Global Partner may tactically alter each sub-advisor's allocation to take advantage of particularly compelling opportunities for a specific strategy or to further manage risk.
Other key features:
- Highly experienced managers chosen for their specialized and demonstrated expertise, and for their complementary, low-correlation investment approaches.
- Each manager runs individualized sleeves for Litman Gregory (this is not a fund of funds).
- Highly competitive cost
- Transparent and understandable
- A mix of strategies and managers not available in a single public mutual fund
The fund's role in a portfolio
We consider the fund a substitute for a portion of a portfolio's exposure to traditional stocks and bonds. If the fund meets our goals, iM Global Partner believes that owning it as a core holding has the potential to offer returns that are as good as or better than a conservative stock / bond mix, with less volatility and downside risk, and added diversification. There are no guarantees that the fund will meet our goals.
iMGP Fundsʼ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be viewed here or by calling 1-800-960-0188. Read it carefully before investing.
Diversification does not assure a profit nor protect against loss in a declining market. Mutual fund investing involves risk. Principal loss is possible.
Potential risks include, but are not limited to, market risk, credit risk, liquidity risk, interest rate risk, and management risk. Outcomes depend on the skill of the sub-advisors and advisor and the allocation of assets among them. References to other mutual funds should not be deemed an offer to sell or solicitation of an offer to buy shares of such funds.
*The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed products monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five, and 10-year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. iMGP Alternative Strategies Fund was rated against the following numbers of Multistrategy funds over the following time periods as of 12/31/2022: 128 funds in the last three years, 107 funds in the last five years, and 44 funds in the last 10 years. With respect to these Multistrategy funds, iMGP Alternative Strategies (MASFX) received a Morningstar Rating of 3 stars, 3 stars, and 4 stars for the three-, five-, and ten-year periods, respectively. Ratings for other share classes may be different. Morningstar rating is for the Institutional share class only; other classes may have different performance characteristics. The Investor share class received a rating of 2 stars, 3 stars, and 3 stars for the three-, five-, and ten-year periods, respectively.
Though not an international fund, the fund may invest in foreign securities. Investing in foreign securities exposes investors to economic, political and market risks, and fluctuations in foreign currencies. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in mortgage-backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Multi-investment management styles may lead to higher transaction expenses compared to single investment management styles. Outcomes depend on the skill of the sub-advisors and advisor and the allocation of assets amongst them.
Merger arbitrage investments risk loss if a proposed reorganization in which the fund invests is renegotiated or terminated.
Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
Diversification does not assure a profit nor protect against loss in a declining market.
© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The iMGP Funds are distributed by ALPS Distributors, Inc.