iMGP Alternative Strategies Fund

Overview

We couldn't find a core alternatives strategy that we liked, so we created our own.

Risk-Management Goals

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 

Return Goals

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.

LEARN MORE ABOUT THE STRATEGY >

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.

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.

Index Definitions | Industry Terms and Definitions

The iMGP Funds are distributed by ALPS Distributors, Inc.