iMGP DBi Managed Futures Strategy ETF
Overview
DBMF seeks to replicate the pre-fee performance of leading managed futures hedge funds and outperform through fee/expense disintermediation.
★ ★ ★ Overall Morningstar Rating™
DBMF: Three Star Overall Morningstar RatingTM among 68 Systematic Trend funds based on risk-adjusted return for the period ending 12/31/2022.*
Investment Objective
The fund seeks long-term capital appreciation. The fund will employ long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities.
Sourcing
They identify hedge funds with robust data, a long history and strong performance and add back fees to net performance to calculate gross returns and adjust the returns.
Initial screening process
They identify the key drivers of returns and screen factor universe for instruments that are liquid, efficient to trade.
DBi engine¹ analysis
They build what they believe is an optimized portfolio of liquid, exchange-traded instruments and their corresponding optimal weights.
¹The Dynamic Beta Engine is designed to seek to identify the main drivers of performance by approximating the current asset allocation of a selected pool of the largest commodity trading advisor hedge funds ("CTA hedge funds"), which are hedge funds that use futures or forward contracts to achieve their investment objectives.
How to invest
The iM DBi Managed Futures Strategy ETF is listed on the U.S. exchange NYSE Arca, similar to shares of publicly traded companies. Investors can buy and sell the iM DBi Managed Futures Strategy ETF through most traditional brokerage accounts. By using the fund ticker DBMF, your broker can place a multitude of order types including; limit orders, marker orders, and stop orders. The iM DBi Managed Futures Strategy ETF can be traded throughout normal NYSE Arca trading hours.
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The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and it may be obtained by calling 800-960-0188 or visiting www.partnerselectfunds.com. Read it carefully before investing.
iMGP DBi Managed Futures Strategy ETF Risks: Investing involves risk. Principal loss is possible.
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.
The Fund should be considered highly leveraged and is suitable only for investors with high tolerance for investment risk. Futures contracts and forward contracts can be highly volatile, illiquid and difficult to value, and changes in the value of such instruments held directly or indirectly by the Fund may not correlate with the underlying instrument or reference assets, or the Fund’s other investments. Derivative instruments and futures contracts are subject to occasional rapid and substantial fluctuations. Taking a short position on a derivative instrument or security involves the risk of a theoretically unlimited increase in the value of the underlying instrument. Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. Exposure to foreign currencies subjects the Fund to the risk that those currencies will change in value relative to the U.S. Dollar. By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. Fixed income securities, or derivatives based on fixed income securities, are subject to credit risk and interest rate risk.
A commission may apply when buying or selling an ETF.
Index Definitions | Industry Terms and Definitions
*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 DBi Managed Futures Strategy ETF (DBMF) was rated against the following numbers of U.S. Systematic Trend funds over the following time periods as of 12/31/2022: 68 funds in the last three years. With respect to these U.S. Systematic Trend funds, iMGP DBi Managed Futures Strategy ETF (DBMF) received a Morningstar Rating of 3 stars.
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The iMGP DBi Managed Futures Strategy ETF is distributed by ALPS Distributors, Inc.